This archive report was first published on 2 September 2019.
Published on September 2, 2019, the Kenyan government has issued a directive to freeze hiring of new employees for the next three years. Labour CS Ukuru Yatani announced the move, stating that it will give the government more money for development.
Government agencies are facing significant budget cuts, with Treasury CS Ukur Yatani targeting allocations for consumable goods, staff upgrades, ICT equipment, and funding for parastatals. The saved funds will be prioritized to drive the Big Four agenda, aiming to address unemployment, poverty, and inequality.
Ministries and state departments will require Treasury approval before recruiting new staff, and there will be no costing for recruitment in the 2019-20 budget. Additionally, ministries will be prohibited from seeking funds for interns or staff upgrades, potentially delaying pay rises for government workers.
Ministries will also need to obtain written approval from Treasury before submitting salary review requests to the Salaries and Remuneration Commission (SRC). The directive emphasizes the importance of supporting personnel emoluments with Integrated Personnel Payroll Data (IPPD).
The Treasury has hinted that it will no longer fund profitable parastatals, as outlined in the circular with guidelines for the preparation of the 2020/21 – 2022/23 medium-term budget.
