The Salaries and Remuneration Commission (SRC) has introduced new salary structures and allowances for civil servants working in the national government. 

The revised framework, which falls under the fourth remuneration review cycle for 2025–2029, is expected to shape how public officers are paid over the next several years.

The updates were approved during the SRC’s 691st meeting held on December 19, 2025, and will apply retroactively from July 1, 2025. Government estimates show that the adjustment will cost about Ksh2.065 billion in the 2025/2026 financial year.

Why the Review Was Done

Every four years, SRC carries out a review to ensure public sector salaries match economic realities, remain competitive with labour markets, and reflect the cost of living across the country.

For this review cycle, the SRC worked closely with the State Department for Public Service and the Human Capital Development team, which issued negotiation guidelines early in 2026. 

These guidelines helped shape decisions on pay, allowances, and benefits across different job grades.

Who Is Affected?

Acting SRC Chief Executive Officer Margaret Njoka issued a circular outlining the new salary structure covering:

• Civil servants from CSG1 to CSG17

• Designated public officers

• Unionisable staff (to be implemented through collective bargaining)

The changes standardize how salaries and allowances are determined across the public service.

Housing Allowances: Three New Clusters

One of the most significant updates is the introduction of three housing allowance clusters, designed to reflect the cost of living in different regions. Housing allowances were previously scattered across various rates, creating inconsistencies.

Here is how the new clusters work:

Cluster 1 – Nairobi

This category covers Nairobi alone, due to its high cost of living. Civil servants working in the capital will earn the highest housing allowances.

Cluster 2 – Major Cities and Municipalities

This includes cities such as:

• Mombasa

• Kisumu

• Nakuru

And major municipalities like:

• Nyeri

• Eldoret

• Thika

• Kisii

• Malindi

• Kitale

Cluster 3 – All Other Areas

This cluster applies to smaller towns and rural regions where the cost of living is lower.

How Much Will Civil Servants Earn?

Under the new salary structure:

Higher Grades

Senior officers, such as those in CSG4, will now earn basic salaries ranging between:

• Ksh185,690 — Ksh396,130

They will also receive:

• Housing allowances of up to Ksh140,600 in Nairobi

• Reduced housing rates in other clusters

Lower Grades

Junior officers, including those in CSG15, will earn:

• Ksh21,120 — Ksh26,250

With housing allowances of:

• Up to Ksh4,500, depending on their duty station

The aim is to match pay with both job responsibilities and the cost differences across regions, ensuring fairness without overstretching the government wage bill.

New Salary Market Adjustment (SMA)

Another major change is the introduction of the Salary Market Adjustment (SMA).

This combines three previous allowances:

• Entertainment allowance

• Extraneous allowance

• Domestic servant allowance

These have now been folded into one unified payment.

The purpose of SMA is to:

• Align civil service pay with current market conditions

• Reduce administrative complexity

• Eliminate inconsistencies created by the old allowance categories

This adjustment makes it easier for government to manage payroll while ensuring staff receive predictable, transparent compensation.

Unionisable Staff to Negotiate Through CBAs

For unionisable employees, the new structure will be applied through collective bargaining agreements (CBAs). This means:

• Trade unions and government will negotiate terms within SRC’s approved framework

• Salaries and allowances for these staff must still align with SRC guidelines

This ensures that negotiations remain fair and within national budget limits.