The Public Service Commission (PSC) is restricting salary advances for civil servants, setting a maximum limit of one month's salary.
A draft policy created by the Public Service Commission, specifies that an accounting officer may approve a salary advance for a civil servant, but it cannot exceed one month's salary and can only be granted under special conditions.

“An advance of not more than one month’s salary may be granted by an Accounting Officer to an officer on permanent and pensionable or contract establishment when the officer, owing to circumstances beyond his control, is placed in a difficult financial position requiring assistance from the Government,” it stated

The draft policy also notes that, in exceptional situations, an officer might be allowed to receive an advance of up to two months' salary.

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Additionally, the policy suggests a strict repayment plan for salary advances, requiring the full amount to be repaid within 12 months. For officers who are retiring or leaving before this period ends, the policy mandates that the advance must be repaid in equal installments during their remaining time in service.

The recovery period for salary advance will be limited to a period of not more than twelve (12) months. In respect of an officer who is due to leave the service before twelve (12) months, the advance must be fully recovered in equal installments within the remaining period of the officer’s service in the Government.

This move is to shield the Civil servants from increased deductions on their pay slips and allow them to properly plan for their money.

Matatu Owners Declare Nationwide Strike

Members of the Matatu Movement Kenya are considering going on a nationwide strike on Tuesday, August 20, to protest against what they termed as being taken advantage of by insurance companies and auctioneers. 

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They claim that while insurance companies' closures have forced them to buy new policies at additional costs, rising operating costs have forced banks to auction off vehicles as a result of defaults on their loans.

“You find you have taken an insurance policy only to find it is not valid because the company providing it has closed down at night without issuing a notice,” matatu operators explained.

They stated in what they termed as a collusion between insurance companies and auctioneers that when the matatu owners delay in payment of premiums, their vehicles are auctioned almost immediately.

“We will not accept that. If your claim was Ksh3 million, you are given Ksh250,000 because it makes people to be auctioned,” they explained criticizing auctioneers who are quick to auction their vehicles.

They urged the new Transport Cabinet Secretary Davis Chirchir to take the matter seriously and resolve the matter as soon as possible.

“If the government does not hear our grievances, we have united all over the country to desist from engaging in transport activities. On Tuesday, there will be no public service vehicles on the road, if things are not going to be resolved, we are going to down our tools,” they added.

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250,000 Retirees to Wait Longer for Their Pensions

The National Treasury has not disbursed Ksh24 billion in pensions for over 250,000 retirees by the end of June 2024, attributing the delay to insufficient funds. 

This shortfall has left many retirees and their dependents without their expected pension payments. As a result, these overdue pensions will now be deferred to the new fiscal year.