State stops hiring Kenyans on ‘permanent and pensionable’

Government Jobs in Kenya: The government of Kenya will no longer hire workers on the basis of permanent and pensionable. Instead, the government will now only be hiring workers on contractual terms.

According to a report that appeared in the Business Daily on Wednesday, the Public Service Commission (PSC) has stopped employing entry-level State workers on permanent and pensionable terms in a radical policy shift aimed at taming the runaway government wage bill.

The report quoted PSC chairman Stephen Kirogo saying: “It will help shrink that expanding public wage bill. It will also allow people to move away freely without being limited, while the Public Service Commission will also be able to bring in new skills at whatever level of employment.”

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“Fresh university graduates, diploma holders and other professionals getting jobs in ministries will now be deployed on renewable three-year contracts based on satisfactory performance. Only senior civil servants the rank of a director (job group S) and above are currently hired on contractual terms,” the report said.

The report on government jobs in Kenya in the Business Daily painted a gloomy picture of how Kenya has been battling with a ballooning public wage bill.

“Kenya has been grappling with a spiraling public wage bill for years now, largely driven by hefty remunerative allowances such as house and commuter perks as well as retirement benefits like pension and gratuity. Other perks accruing to public sector employees on top of basic salary include hardship, extraneous and risk allowances as well as insurance covers for medical and personal accident.

The Salaries and Remuneration Commission (SRC) estimates the current public wage bill will hit about Sh. 790 billion this year from Sh. 733 billion in the year ended June 2018, Sh. 664 billion the year before and Sh. 615 billion at the end of financial year ended June 2016. The public wage bill has expanded from Sh. 465 billion in June 2013 despite a freeze on new employment except for essential sectors such as security, education and health following a moratorium by Treasury Secretary Henry Rotich. The public wage bill accounted for about 55 percent of the Sh. 1.31 trillion ordinary revenue – comprised of taxes and non-tax streams such as levies, rent of buildings, fines and forfeitures – in the last financial year ended June 2018, which is more than 35 percent recommended by the SRC,” it reported.