Kenya SRC: State Corporation Board Pay Sees Chair Honorarium Increase

• The Salaries and Remuneration Commission (SRC) has increased the monthly honorarium for state corporation board chairpersons to Sh130,000.
• All state corporation board members will now receive a standardized Sh30,000 sitting allowance per meeting.
• New benefits include annual medical cover of up to Sh3 million for inpatient care and Sh200,000 for outpatient care.
• State corporations currently paying above the new limits are directed to comply, but serving board members retain existing pay under 'personal-to-holder' terms.
• The revised rates were communicated on October 13, following a request from the State Corporations Advisory Committee (SCAC) and an SRC review.

Compliance officers in Kenyan state corporations now face an immediate need to review and update their board remuneration policies to align with the new SRC directives, particularly concerning the Sh130,000 monthly honorarium for chairs and the Sh30,000 sitting allowance.

The Salaries and Remuneration Commission (SRC) has recently announced significant adjustments to the Kenya SRC state corporation board pay structure, specifically increasing the monthly honorarium for chairpersons of state corporations. This revised compensation package sees the chair's monthly payment rise by Sh50,000, settling at a new rate of Sh130,000. Alongside this, a standardized sitting allowance of Sh30,000 per meeting has been established for all board members, including the chairpersons. It is important to note that ordinary board members will not receive a monthly honorarium; their compensation will primarily consist of this sitting allowance and other approved benefits.

These new rates were formally communicated through a letter dated October 13, following a comprehensive review conducted by the commission on October 6. The SRC's decision was prompted by a request from the State Corporations Advisory Committee (SCAC), indicating a collaborative effort in refining public sector remuneration Kenya. Beyond the primary honorarium and sitting allowances, the updated package introduces several other benefits designed to support board members. These include an annual medical cover providing up to Sh3 million for inpatient treatment and Sh200,000 for outpatient care. Furthermore, chairpersons will receive a monthly telephone allowance of Sh7,000, while other board members are allocated Sh5,000. A daily lunch allowance of Sh2,700 is also provided when meals are not supplied, and transport costs are reimbursed at Automobile Association rates if official transport is unavailable.

The Salaries and Remuneration Commission Kenya, as the constitutional body tasked with setting and reviewing the remuneration and benefits for all state officers, has issued clear directives regarding these new rates. The SRC has explicitly instructed state corporations that are currently disbursing payments above the newly approved limits to adjust their Kenya SRC state corporation board pay to align with the revised structure. This mandate underscores the commission's authority in ensuring uniformity and fiscal prudence across public entities.

A critical aspect of this directive is the inclusion of a 'personal-to-holder' provision. This clause stipulates that serving board members will be permitted to retain their existing remuneration packages, provided these terms are stipulated in their current contracts. This ensures a degree of continuity for existing agreements while simultaneously establishing new standards for future appointments and contract renewals within the framework of Kenya board member allowances.

The recent directives from the Salaries and Remuneration Commission Kenya necessitate immediate action from state corporations, particularly concerning their internal governance and financial policies. Compliance officers in Kenyan state corporations now face an immediate need to review and update their board remuneration policies to align with the new SRC directives, particularly concerning the Sh130,000 monthly honorarium for chairs and the Sh30,000 sitting allowance. This is crucial for ensuring adherence to the updated framework for Kenya SRC state corporation board pay.

Legal counsel within these entities should be engaged to advise on the intricate implications of the 'personal-to-holder' clause, especially as it pertains to existing board member contracts. While serving board members are permitted to retain their current pay under these specific terms, subject to their existing agreements, new appointments and contract renewals must strictly conform to the revised rates. This dual approach requires careful management to avoid discrepancies and ensure legal compliance. The overarching goal is to standardize Kenya board member allowances across the public sector, promoting equity and transparency in public sector remuneration Kenya, as mandated by the SRC.

Compliance officers in Kenyan state corporations must review and update board remuneration policies to align with the new SRC directives, particularly concerning the Sh130,000 monthly honorarium for chairs and the Sh30,000 sitting allowance. Legal counsel should advise on the implications of the 'personal-to-holder' clause for existing board member contracts and ensure new contracts comply with the revised rates.

Source: Original reporting via Capital FM