Nairobi Civil Servants to Benefit Most as Govt Approves New Salary and Allowance Structure

The Salaries and Remuneration Commission (SRC) has approved a revised salary and leave allowance structure for national government civil servants as part of the fourth remuneration review cycle for 2025-2029, signaling a major update to public sector compensation.

The decision, made during SRC’s 691st meeting on 19th December 2025, will take effect retroactively from 1st July 2025, with an estimated cost of Sh2.065 billion for the 2025/2026 financial year.

The move follows extensive consultations with the State Department for Public Service and Human Capital Development, which submitted negotiation guidelines earlier this year.

In a circular issued by acting SRC CEO Margaret Njoka, the Commission outlined the new basic salary structure and leave allowances, covering grades CSG1 to CSG17 and other designated job groups.

Key changes in the salary structure

A major feature of the revised framework is the reorganization of house allowances into three clusters to reflect regional cost-of-living differences:

• Cluster 1: Nairobi, where living costs are highest.
• Cluster 2: Major cities like Mombasa, Kisumu, Nakuru, and municipalities including Nyeri, Eldoret, Thika, Kisii, Malindi, and Kitale.
• Cluster 3: All other towns and rural areas.

Civil servants in Nairobi are set to benefit the most from increased house allowances, while staff in smaller towns and rural regions will receive comparatively lower rates.

Under the new structure, higher-grade employees (CSG4) will earn basic salaries ranging from Sh185,690 to Sh396,130, with house allowances reaching up to Sh140,600 for Nairobi residents.

Workers in CSG5 will receive between Sh155,930 and Sh292,490, with a Sh120,000 annual leave allowance, while CSG6 staff will earn between Sh113,430 and Sh185,690, with leave allowances ranging from Sh12,000 to Sh28,000 depending on their grade.

For mid-level officers, CSG7 staff will earn between Sh94,120 and Sh142,590, and CSG8 officers between Sh59,010 and Sh103,440, with leave allowances ranging from Ksh8,000 to Ksh35,000.

CSG9 officers will earn between Sh47,900 and Sh67,750, while CSG10 staff will receive between Sh43,200 and Sh59,010, both with leave allowances of up to Sh10,000 per year.

CSG11 officers will pocket between Sh36,200 and Sh47,900, CSG12 between Sh30,400 and Sh38,880, CSG13 between Sh27,200 and Sh34,950, and CSG14 between Sh22,340 and Sh28,240, with leave allowances of between Ksh4,000 and Ksh6,500.

Lower-grade employees (CSG15) will see salaries rise to Sh21,120–Sh26,250, accompanied by house allowances of up to Sh4,500.

The revised structure aims to balance fairness with cost-of-living differences across regions.

Consolidated Salary Market Adjustment

The SRC also introduced a consolidated Salary Market Adjustment (SMA), which merges entertainment, extraneous, and domestic servant allowances into a single adjustment.

“The SMA aligns civil service salaries with market realities, ensuring competitiveness while adhering to constitutional and statutory principles,” the circular stated. The consolidation also simplifies administration and reduces discrepancies that previously existed in fragmented allowances.

Implementation and collaboration

The government will implement the salary structure for unionizable staff through Collective Bargaining Negotiations, allowing trade unions and employers to agree on specific terms within the broader framework.

“This guidance supersedes all previous advice on civil service remuneration for the items covered, making it the definitive framework for implementation,” Njoka noted, praising the continued collaboration of the National Treasury, Office of the Auditor General, Controller of Budget, and Public Service Commission.

The review is expected to boost morale and productivity among civil servants, particularly those stationed in high-cost urban centers, by easing financial pressures and providing a more transparent and consistent approach to allowances, which were previously adjusted on an ad hoc basis.

The SRC notedthat the first phase of the fourth remuneration review cycle reflects the government’s commitment to modernizing civil service compensation, enhancing equity, and aligning wages with national economic realities.

COTU Secretary General Francis Atwoli thanked civil service unions and President William Ruto for their intervention, highlighting the importance of fair and competitive pay in strengthening Kenya’s public sector workforce.

The Commission has indicated that subsequent phases will continue to refine salaries and allowances, ensuring the framework remains sustainable and competitive over the coming years.

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