The Treasury has set aside additional Sh12.7 billion for additional salaries to public servants following the signing of new pay deals that were not expected while drawing the budget for the year to June next year.
Treasury secretary Henry Rotich said the bulk of the money will go towards meeting increased salaries across a number of sectors, including health and education.
“The additional requests include expenditures to support salary shortfalls,” Mr Rotich said.
He said the implementation of the Collective Bargaining Agreements (CBAs) had been budgeted for in the current financial year but there have been changes to some of the agreements leading to additional need for Sh12.7 billion.
“If you recall, the SRC completed a job evaluation exercise and we agreed to implement the first phase of the harmonised revision of salaries across many sectors including health and education,” said Mr Rotich.
“We had budgeted for the money but there have been changes in a few CBAs that have been signed. It necessitated provisions for that.”
Treasury spent more than Sh20 billion to award civil servants increased pay of between 5.2 per cent and 30.7 per cent from July, kicking off a deal their union struck with the government to improve their terms of service over four years.
The CBA will be in force for four years starting July and has provisions for harmonisation of house allowance for workers in the same grade.