No Salary Enhancement Until After 2021 General Elections
Government will not be in position to meet the salary enhancement requirement for all public servants due to several funding requirements for the Financial Year 2020/2021.
According to the Secretary to the treasury and Permanent Secretary Ministry of Finance Keith Muhankanzi, some of the funding requirements include the 2021 General Elections, which require additional funding of 704 billion shillings, in addition to other on-going project commitments in roads, energy, which cannot be stopped.
Muhakanizi also explains that there are still over 364 sub-counties, 352 town councils created from 2016 to 2019, and 10 cities proposed to be created, but have not been operationalized due to lack of funding. Muhakanizi says the operationalization of these administrative units will require increased funding.
In October, the Permanent Secretary Ministry of Public Service requested for additional funding from the Ministry of Finance amounting to 1.5 trillion shillings for the 2020/2021 financial year, of which Shs 1.2 trillion was to pay the approved salary enhancement for government scientists, teaching staff of Public Universities and Health Workers.
The additional funding requests also included monies for enhancement of other employee categories in 2020/2021 financial year, that would put Local Government Workers at a minimum of 35% of the approved long term pay targets, among others. Muhakanizi says the budget of the 2019/2020 financial year is already constrained with a projected revenue shortfall of Shs. 1.5trillion, by the end of June 2020.
He notes that this shortfall will have an impact on revenue for the 2020/2021 financial year. He therefore concludes that the projected revenue for 2020/2021 will not be able to accommodate and sustain additional requirements for salary enhancement. Muhakanizi has adviced any proposed salary enhancement should be postponed until after the General Elections in 2021.