Scrap hardship pay for civil servants, says the World Bank

The World Bank wants Kenya to scrap hardship allowance to save Sh3 billion as part of cost-cutting measures to return the country on track after increased spending during the coronavirus pandemic.

The Bretton Woods institution argues that State officers enjoying the hefty allowances work in areas categorised as hardship decades ago, but have since developed and no longer qualify for the tag.

Kenya pays a hardship allowance at a flat rate for each grade across the public service ranging from Sh2,800 for the lowest rank of job group A to Sh60,000 for job group T after a review by the Salaries and Remuneration Commission (SRC) in December 2014.

“The review of hardship zones is needed as several regions have developed their infrastructure and social amenities over the last two decades and are no longer classified hardship areas,” the World Bank report on Kenya Public Expenditure Review reads.

Hardship allowance was introduced as an incentive to teachers and other public officers working in remote areas to compensate for lack of amenities, infrastructure and a challenging environment.

Over time the criteria has changed with an increase in hardship areas especially for teachers who used to get 30 percent of their basic salaries as hardship allowances, which they had even locked into their collective bargaining agreement that lapsed in 2013 before the SRC review.

Some of the areas the Teachers Service Commission considers are those that lack access to food, adequate transport and communication, have limited access to social amenities as well as face harsh climate and insecurity.

Parts of Garissa, Isiolo, Kilifi, Kwale, Lamu, Mandera, Marsabit, Narok, Samburu, Taita Taveta, Tana River, Turkana, Wajir and West Pokot counties are classified as hardship areas.

The World Bank is proposing far reaching cuts in government spending besides rolling back the corona tax incentives as part of an effort to contain huge debts that became necessary to combat the health pandemic.

The Bretton woods institution estimates that Kenya saved up to Sh30 billion this year as a result of coronavirus restrictions on movement and should continue to limit travel and standardise rates across different job cadres for more savings.

By reducing over-use of travel related allowances for domestic and foreign travel, Kenya can save up to Sh10 billion annually.

The World Bank also says that paying professionals Sh2 billion in allowances to retain crucial skills in the public service should also be stopped since research shows that State workers rarely resign on their own.

Kenya also saved up to Sh85.2 billion by consolidating demand and centralising procurement for motor vehicles and ICT equipment in 2018.