Kenya Parastatal Salary Scales (2021 Update)

This article will highlight the current Parastatal salary scales in Kenya.

Kenyan Parastatals are among the best paying institutions; even so, several parastatals pay less than others.

This is why we present the following Parastatal salary scales in Kenya to enlighten you on how salaries are shared in parastatals.

Time after time, the SRC Salaries and Remuneration Commission releases new grading for pay structures on parastatals. This is mainly based on the CBAs signed and the country’s economic state at that particular time.

According to the latest grading on src salary structure for parastatals. Even the chief heads in parastatals will not earn a salary exceeding Ksh 1 million.

SRC used the Paterson grading system to determine the salaries of each individual based on their grading. The model classifies CEOs between class E and D1, which are the highest and lowest, respectively.

According to the SRC salary scale, the lowest-paid CEO in service and regulatory State corporations will earn Sh253,333 while the highest will take home Sh812,970 per month.

Types of parastatals

This sector comprises 98 parastatals that offer services or are regulators in the market. They include the Kenya Institute of Curriculum Development (KICD), a service, and a regulator’s Retirement Benefits Authority.

Some service sector institutions charge a fee for their services, while others depend purely on the National Treasury for funding.

Under the 49 commercial state corporations such as Kenya Power and KenGen. The highest-paid CEO will earn Sh903,300, while the lowest will take home Sh281,481 per month.

“The total number of jobs evaluated in service and regulatory corporations was 9,843 while those in commercial were 6,270,” said SRC Chairperson Sarah Serem.

Consulting partners Deloitte and Touche undertook the CEOs’ job evaluation. The new pay structure is expected to bring equity and harmony to the public sector.

Serem said the Commission considered several factors while preparing the pay structure, including budgetary allocation from the Exchequer, the institutions’ ability to pay, and salary survey.

She said the job evaluation aimed to determine the internal equity of jobs within an institution. The external ownership between institutions would facilitate the development of a harmonized Parastatal salary scale in Kenya.

Read Also: PSC Salary Scales in Kenya

Parastatal salary scales in Kenya

The Commission, however, clarified that CEOs currently earning more than Sh1 million would continue to do so as the law does not permit revision of salaries downwards.

“The structure is for four years when the government will do the next pay review. So those who are earning higher than our recommendations can continue to draw their pay. It’s only those starting CEOs who will be subjected to the new pay structure,” Serem said.

“The Commission’s desire, in the long run, is to have a salary structure that will ensure the principle of equal pay for work of equal value. This is important in ensuring stability and fair play of public institutions.”

According to Serem, the Parastatal salary scales in Kenya will break the notorious cycle of public servants shifting from one parastatal to others seeking better salaries while their productivity is vague.

Advantages of the salary scales

Serem added that the salaries could also enhance productivity through partnerships. Partnering with unions in an endeavour to establish healthy industrial relations.

Serem told more than 100 CEOs and senior managers of State corporations that jobs in their institutions will be placed in salary grades as evaluated with a salary structure of a minimum of 12 notches for each grade to ensure adequate progression and compression ratio.

The new Parastatal salary scales in Kenya will streamline operations in parastatals. It will ensure that servants are paid salaries relative to their contributions.

Anne Katana
I am from the Kenyan Coast and currently in Nairobi. I studied history, and now I do blogging for a living. I like to share my passion for Kenya and my experiences with other people in Kenya and abroad. So welcome to Nasonga (I am Moving).

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