Board Pay Reset: SRC Lifts State Corporation Chairs to KSh 130,000 a MonthBoard Pay Reset: SRC LiftsState Corporation Chairsto KSh 130,000 a Month

The change matters because it lands across roughly 290 parastatals while the government is trying to hold down a public wage bill of about KSh 1.3T ($10B). The honoraria increase alone adds about KSh 174M ($1.34M) to the cost of running state boards, according to a report by The Star.

What the SRC approved

The commission approved the revised package at its 6 October meeting, and SRC chair Sammy Chepkwony conveyed it in a letter dated 13 October 2026 to Philip Mong'ony, chair of the State Corporations Advisory Committee. The committee had asked for the review in June.

Under the new ceilings, chairs receive KSh 130,000 a month. Members get no monthly honoraria, but their sitting allowance rises to KSh 30,000 ($231) a meeting from KSh 20,000 ($154). Chairs draw the sitting allowance in addition to their honoraria.

On the report's figures, a chair attending four meetings a month would earn KSh 250,000 ($1,925), while a member would earn KSh 120,000 ($924), before other benefits.

Allowances and cover

Other allowances also rise. Chairs' telephone allowance goes to KSh 7,000 ($54) a month from KSh 5,000 ($38), and members receive KSh 5,000. A lunch allowance of KSh 2,700 ($21) a day applies where lunch is not provided, up by KSh 700 ($5).

Where official transport is unavailable, board members are reimbursed at Automobile Association rates. Subsistence allowances for official travel are pegged to Job Group U, the chief executive level, which allows up to KSh 22,000 ($169) a day.

Board members also receive medical cover: inpatient cover of up to KSh 3M ($23,094) a year, outpatient cover of up to KSh 200,000 ($1,540) and a last-expense benefit of KSh 200,000. State corporations must buy personal accident insurance for members on official travel.

Compliance and context

Corporations that currently pay above the new ceilings must comply from the effective date of the letter, the SRC chair wrote. Serving members keep their existing rates on a personal basis, subject to their contracts.

The SRC is constitutionally mandated to set and review the pay of state officers. Mwenendo earlier reported on how remuneration structures define the public wage bill, and as Mwenendo earlier reported, permanent civil service recruitment has now overtaken exits after four years of contraction.

The review follows Cabinet's April 2024 guidelines on state corporation boards, which were framed around fiscal consolidation. The new package sits alongside pressure on public finances, including a university lecturers' strike over arrears that is now in its third week.

What it means for readers

For taxpayers, the figures show how board costs are set at the centre and applied across the state sector. The honoraria rise is modest against the total wage bill, but the allowances, medical cover and travel rules add to the full cost, which the SRC has not published. Mwenendo will report the commission's circular when it is released.