The Salaries and Remuneration Commission has unveiled a new pay and leave allowance framework for national government civil servants, marking the first stage of the fourth review cycle for 2025–2029.
The revised structure, which takes effect retroactively from July 1, 2025, is expected to cost Sh2.065 billion in the 2025/2026 financial year.
The decision follows extensive consultations with the State Department for Public Service and Human Capital Development, which submitted negotiation guidelines earlier this year.
During its 691st meeting on December 19, 2025, the Commission approved the new salaries and allowances, covering grades CSG1 to CSG17 and other designated job groups.
Acting SRC CEO Margaret Njoka issued a circular detailing the updated pay scales and leave allowances. She emphasised that the new framework replaces all previous guidance on civil service remuneration for the affected items.
A major feature of the revision is the restructuring of house allowances into three cost-of-living clusters. Cluster One applies to Nairobi, reflecting the highest living costs in the country.
Cluster Two includes major cities such as Mombasa, Kisumu, and Nakuru, as well as municipalities like Nyeri, Eldoret, Thika, Kisii, Malindi, and Kitale. Cluster Three covers smaller towns and rural areas. Civil servants in Nairobi will benefit the most, while those in less costly regions will receive lower allowances.
Under the new framework, senior staff in grades such as CSG4 will earn basic monthly salaries between Sh185,690 and Sh396,130, with house allowances in Nairobi reaching up to Sh140,600.
Lower-grade officers, including those in CSG15, will earn between Sh21,120 and Sh26,250, with house allowances of up to Sh4,500. The Commission said the approach is designed to balance fairness while considering regional cost differences.
In addition, SRC introduced a consolidated Salary Market Adjustment (SMA), combining entertainment, extraneous, and domestic servant allowances into a single adjustment.
The SMA aligns civil service pay with market trends and ensures salaries remain competitive while complying with legal and constitutional requirements. The change also simplifies administration and addresses inconsistencies that existed in the previous fragmented system.
The circular highlighted that unionisable staff salaries will be implemented through Collective Bargaining Negotiations, allowing trade unions and employers to agree on specific terms within the broader framework.
Njoka acknowledged the cooperation of key government offices, including the National Treasury, Office of the Auditor General, the Controller of Budget, and the Public Service Commission. “The Commission appreciates the continued cooperation and support as we discharge our respective mandates,” she stated.
The review brings greater clarity and transparency to civil service pay, reducing ad hoc adjustments and helping ease financial pressures, particularly for staff in high-cost urban centers. It is expected to boost morale and productivity by providing a more predictable and equitable system.
SRC said future phases will continue refining the pay structure to ensure sustainability and competitiveness.
COTU Secretary General Francis Atwol thanked the civil servants union and president William Ruto for the intervention, underlining the collaborative effort in finalising the revised framework.
