Wage bill debate: No money for intern doctors, which way Ruto on CASs? (2024)

• Cabinet approved a drastic reduction in the payment of intern doctors to Sh70,000 monthly down from Sh200,000.
• A CAS shall also be eligible to a car loan of up to Sh8 million and a mortgage facility not exceeding Sh35 million.

Focus is now on President William Ruto to see if he will walk the talk on managing the ballooning wage bill, when the proposed law entrenching chief administrative secretaries (CAS) is presented to him for assent.

According to sources in the presidency, the President is expected to append his signature on the National Government Administration Laws (Amendment) Bill 2023, next Tuesday.

Coming a week after Cabinet approved a drastic reduction in the payment of intern doctors to Sh70,000 monthly down from Sh200,000, the CASs are expected to earn a gross monthly salary of Sh780,000.

Speaking on the strike on April 7, President Ruto urged the medics to reconsider their stance, noting that the country is struggling with a ballooning wage bill and meagre resources.

“I know we have a situation in Kenya facing our doctors and medical doctor interns but I want to implore them that it is important for us as a nation to agree that we must live within our means,” he said.

The proposed law will put President Ruto in a tight spot; whether to proceed to appoint the CASs and therefore show lack of commitment to taming the wage bill, or fail to do so and disappoint allies.

The President has the opportunity to return the Bill to parliament with proposed amendments.

The Bill states that the remuneration of the CASs shall be determined by the Public Service Commission (PSC) on the recommendation of the Salaries and Remuneration Commission (SRC).

The SRC, in a brief obtained from PSC, revealed that it will cost the taxpayer at least Sh9.4 million a year to remunerate one CAS after undertaking a job evaluation grading.

The proposed law assigns a CAS responsibilities such as responding to issues relating to the portfolio assigned, representing the Cabinet secretary at meetings and performing any other duties assigned by the relevant CS. However, the Bill effectively prevents CASs from representing CSs in Parliament.

The job evaluation report shows that the monthly gross pay of a CAS is at Sh780,000, which is higher than the Sh710,000 an MP pockets every month, and includes Sh459,113 in basic pay, Sh165,000 house allowance and Sh155,887 salary market adjustment.

“SRC has determined the monetary worth of the job of a CAS at grade F1 and would like to advice on the attendant remuneration and benefits structure,” SRC Chairperson Lyn Mengich says in the March 14, 2023 letter addressed to PSC Chairman Anthony Muchiri.

The remuneration of a CAS excludes an attractive annual medical cover that includes Sh10 million inpatient, Sh300,000 out-patient, maternity, Sh150,000, and dental as well as optical set at Sh75,000 each.

A CAS shall also be eligible to a car loan of up to Sh8 million and a mortgage facility not exceeding Sh35 million with an applicable interest of 3 per cent per annum.

The Justice and Legal Affairs committee of the National Assembly, in a report to the House on the Bill, had capped the CAS positions to 22. However, within days of tabling its report, it beat a hasty retreat and removed the cap. This means that if it becomes law, President Ruto will have the leeway to appoint as many CASs as he desires.

If President Ruto goes ahead to appoint 50 CASs as he had done in March last year, based on the SRC evaluation, it will cost the taxpayer Sh2.3 billion to remunerate the CASs in five years and Sh468 million in a year.

The cost of remunerating the CASs in five years is enough to construct 234 standard boreholes complete with all fittings or more than 2,000 classrooms for junior school. It costs close to Sh10 million to construct a fully fitted borehole and about Sh800,000 to construct a classroom.