SRC Presentation 222 for educational purposes.pptx

gen z

1. Welcome to DHQ

2. 17 September 2020 2 Presentation to The Salaries and Remuneration Commission By Brig J K Mburu MBS ‘ ndc ’, ‘ psc ’ (K) Chairman KDFPAB 18 th Sept 20 SECRET SECRET

3. 17 September 2020 3 “The pre-eminent military task, and what separates the military profession from all other occupations, is that soldiers are routinely prepared to kill …in addition to killing and preparing to kill, the soldier has two other principal duties…some soldiers die and, when they are not dying, they must be preparing to die .” SECRET SECRET James H. Toner Professor Emeritus of Leadership and Ethics at the U.S. Air War College

4. Elements of National Power 17 September 2020 4 Protect sovereignty and territorial integrity Promotion and protection of National Interests Enhance regional and global peace and security Project image and prestige The military is a professional force comprised of certified experts in ethical application of lethal force bonded in comradeship, shared identity and unity of purpose. They are embodied in chain of command with a culture of sacrifice and service to the state Military and the state SECRET SECRET

5. 17 September 2020 5 Many Dependants One Source National Treasury KDF Parliament Judiciary TSC County Govts Other MDAs State Corporations SECRET SECRET

6. Under Constitution 2010 Mandate of SRC 17 September 2020 6 SECRET SECRET

7. 17 September 2020 7 Under KDF Act 2012 Section 25: The SRC shall set and regularly review the remuneration and benefits of the Chief of the Defence Forces, the Vice of Chief of Defence and the three Service Commanders in accordance with Article 230 (4) of the Constitution and the Salaries and Remuneration Act, 2011 Section 29(1): Defence Council shall on the advice of the SRC determine salaries of members of the Defence Forces Defence Council mandate is executed through KDFPAB Mandate of Defence Council SECRET SECRET

8. KDFPAB Members Brig J K Mburu – Chairman Col L M Makunga – D/Chairman Members Col R D Munanga Col M A Nderih Lt Col P B Mungori Lt Col R Oktoi Lt Col J S Hirbo Lt Col C W Kuria WO1 Emilio Mwaniki WO1 Eugene Musundi WO2 Joel Mutemi WO2 W K Maiyo Maj A N Macharia – Sec SECRET 8 9/17/2020

9. Terms of Reference Align remuneration and benefits for state officers Review and harmonize remuneration and benefits for KDF Personnel as advised by the SRC Review allowances applicable to KDF pers and align with SRC and DPM allowances Formulate pay hierarchy based on ranks and trades in the KDF Review the existing Additional pay and make recommendations Conduct JE when and where necessary 17 September 2020 9 SECRET SECRET

10. 10 Military Entitlements . Facilitative supplies and services provided to KDF personnel in material form or cash payment whichever is convenient to the Government Military Ranks . Hierarchical relationships in the military for effective command, control and management. Ranks are the basis of remuneration in the military as opposed to appointment Public Officer . A person other than a State Officer who holds a public office and for KDF includes personnel of the ranks of Colonel and below Concepts SECRET 17 September 2020 SECRET

11. 11 State Officer . Any person holding a state office as defined by the legislation. X-Factor . Military compensation accounting for the range of components which capture the exigencies of military employment Concepts Cont… SECRET 17 September 2020 SECRET

12. Evolution of KDF Remuneration Up to 1977 KDF remuneration review was based on Public Service pay reviews This practice was stopped due to: Unsuitability of application of the civil service pay review to the military Lack of local comparator Peculiarities of military profession and service life 17 September 2020 12 SECRET SECRET

13. Evolution of KDF Remuneration Cont… Since 1979 t he remuneration review has been undertaken after every four (4) years and l ast review was done in 2015 SRC JE exercise resulted into a harmonized job grading and salary structure for public sector wef - 2017 17 September 2020 13 SECRET SECRET

14. Aim Apprise the SRC Review of KDF Personnel Remuneration 17 September 2020 14 SECRET SECRET

15. Scope Guidelines Principles of KDF Basic Pay Conduct & Approach KDF Remuneration & Benefits Impact on Economy Recommendations Discussion 17 September 2020 15 SECRET SECRET

16. Guidelines SRC National JE results for KDF personnel SRC Circulars The Cost of living/CPI The Military Rank Structure Pay comparability Retirement based on Rank and not age 17 September 2020 16 SECRET SECRET

17. Based on military rank structure not Appointment Differentials in pay between ranks and trades X - Factor Annual pay increment Narrow Pay spine Additional pay Principles of KDF Basic Pay 17 September 2020 17 SECRET SECRET

18. Conduct and Approach Conducted Field Visits to Services , Formations, Units and operation areas Visited government and private institutions for comparability Conducted Market Surveys Benchmarked with other Militaries best practices Studied SRC and Treasury Circulars 17 September 2020 18 SECRET SECRET

19. There are three main categories of compensation in KDF: Cash Compensation. Basic pay, Allowances, Special and incentive pay, military entitlement Non-cash Compensation . Training and Education, Health care, DEFCO Deferred Compensation. (Gratuity & pension) N/B : Review done every 4 years or when necessary KDF Remuneration and Benefits 17 September 2020 19 SECRET SECRET

20. 20 Recruitment Training Character development Professionalism Career progression Employment SECRET 17 September 2020 SECRET

21. 17 September 2020 SECRET 21 Impact on the Economy

22. Enabling Economic Development KDF personnel deployed to JKIA Assurance of continuity of essential social economic services Airlines count losses in Kenya airports workers strike went on strike 6 Mar 19 Kenya Navy – Port Security and protection of Sea Lines of Communication SECRET SECRET

23. Contribution to the Health Sector Guarantee a minimum protection from diseases and unhealthy lifestyles, protection against malnutrition, sufficient access to health services, clean water and other basic necessities KDF Doctors take part in medical treatment during a Doctors Strike SECRET SECRET

24. Environmental Security Conservation of environment for sustainable development as part of PC targets for KDF Restoration of forest cover Forest fire fighting at Menengai SECRET SECRET

25. Disaster Response Contain and mitigate effects of disasters Solai Dam rescue ops Rescue mission River Sabaki - Tana River SECRET SECRET Evacuation in collapse building

26. Research and Development KDF has invested human capital in research and development in fields of ICT , medical, environment and food production Defence Food Processing Factory in Gilgil Defence Forces Mobile Field Kitchen (DEFKITCH) SECRET SECRET

27. 27 Contribution to the Economy Development and Industrialization SECRET SECRET 9/17/2020 Military Cost - Kshs 30 Million Tender Cost - Kshs 2.6 Billion Savings - Kshs 2.57 Billion Resumed operations in transportation of petroleum oil in EA region Created job opportunities for the locals Currently generating revenue Rehabilitation of Thika-Nanyuki Railway Military Cost - Kshs 3 Billion Tender Cost - Kshs 8 Billion Savings - Kshs 5 Billion Connecting Central Kenya to the railway line Economic impetus to the region Projected Income From Kshs 178 - 430 Billion per annum Provide alternative food resources with high nutritional values KN Shipyard Projected Income Kshs 5 Billion per annum Dominance of maritime domain Enhance technology transfer and capacity

28. Savings on Hardship Allowance 17 September 2020 28 SECRET SECRET Commencement date 2015 Expenditure if allowance was paid is as follows: FY 2015/16 to 2021/22 KShs 7,951,194,000.00 FY 2021/22 to 2024/25 KShs 7,951,194,000.00 * Does not include new formations, units and deployment in hardship designated areas No of pers Cost per month Cost per Year Cumulative cost from fy 2015/16 - 2024/25 18,317* 132,516,900 1,590,238,80 15,902,388,000.00

29. Recommendations 17 September 2020 29 SECRET SECRET

30. Recommendations KDF adapts unique 4 year remuneration review cycle Put Hardship Allowance in Abeyance (SRC to review and advise) Change additional pay from percentage to specific amounts (Reviewable during Pay Review) Review of X – Factor upward from 15% to 16.5% Review of military entitlement and allowances 17 September 2020 30 SECRET SECRET

31. S/no Allowance Current Rate Recommended 1. Living Quarters Expenses ( Hse Allow) Col Lt Col Maj 2Lt – Capt 58,000.00 58,000.00 58,000.00 36,000.00 70,000.00 62,000.00 60,000.00 45,000.00 2. Telephone Refund Col Lt Col Maj and Comdt KDFC 7,500.00 5,000.00 3,000.00 No Change No Change No Change 3. Entertainment Allowance Col Lt Col Comdt KDFC 18,000.00 10,500.00 7,000.00 20,000.00 12,500.00 No Change 4. Non Practice Allowance Brig ( Dr ) & Above Lt Col (Dr) – Col (Dr) Maj (Dr) Capt (Dr) 60,000.00 55,000.00 40,000.00 30,000.00 No Change No Change No Change No Change Allowances - Offrs 17 September 2020 31 SECRET SECRET

32. S/No Allowance Current rate Recommended 1. Regimental Duty Allowance DSM ASM, KAFSM and KNSM BSM, GSM and KMASM RSM, College/School SM 25% of Basic Pay 20% of Basic Pay 15% of Basic Pay 10% of Basic Pay 25,000.00 20,000.00 15,000,00 10,000.00 2. Living Quarters Expenses ( House Allowance) Warrant Officers Sgt – Ssgt Pte - Cpl 36,000.00 16,000.00 10,000.00 38,000.00 18,200.00 12,000.00 Allowances – Svc Members 17 September 2020 32 SECRET SECRET

33. S/No Allowance Recommended rate 1. Adversity Allowance 4,500.00 2. Research Allowance for DSC and NDU Participants DSC – 200,000.00 NDU – 600,000.00 3. SBU Allowance 6,000.00 Proposed New Allowances 17 September 2020 33 SECRET SECRET

34. S/No Additional Pay Recommended Rate 1. Specialized Health Worker 2,400.00 2. Special Combat Tracker 6,000.00 3. Cyber Warrior 6,000.00 Proposed Additional Pay 17 September 2020 34 SECRET SECRET

35. S/No Entitlement Current Rate Recommended 1. Road Travelling Expenses (p.a.) Married Single 45,000.00 25,000.00 55,000.00 30,000.00 2. Living Quarters to Barrack Transport Compensation 13,500.00 (Claimable) 4,500 (Lt – Maj) 3,500( WOs) 3. Messing Compensation 14,000.00 16,800.00 4. Water Compensation 1,840.00 2,100.00 5. Cleaning Material Compensation 715.00 1,100.00 6. Emergency Call Tpt Compensation Capt ( Dr ) – Maj ( Dr ) Lt – Maj 10,000.00 5,000.00 No Change 7. Bat man/ Runner Compensation Lt Col – Col 2Lt – Maj 10,000.00 3,400.00 13,500.00 4,500.00 Military Entitlements 17 September 2020 35 SECRET SECRET

36. S/no Entitlement Current Recommended 8. Special Women Sanitary Items Compensation 2,300.00 2,500.00 9. Gas and Electricity Compensation 2,774.00 3,100.00 10. Staff Car Compensation Brig Col Lt Col 46,000.00 44,000.00 42,000.00 49,000.00 47,000.00 45,000.00 11. Senior Officers’ Support Staff Compensation General Lt Gen Maj Gen Brig 69,500.00 15,600.00 15,600.00 15,600.00 81,000.00 54,000.00 40,500.00 27,000.00 12. Civilian Clothing Grant 30,000.00 40,000.00 Military Entitlements Cont… 17 September 2020 36 SECRET SECRET

37. FINANCIAL IMPLICATION Item Increment % Military entitlements and allowances KShs 12.7 Bn 6 to 18 GROWTH 17 September 2020 37 SECRET SECRET

38. Basic Pay 17 September 2020 38 SECRET SECRET

39. Basic Pay 17 September 2020 39 SECRET SECRET SRC conducted JE for KDF jobs in 2017 resulting in Job Grading KDF is not conducting job evaluation Remuneration is based on Ranks Now ready for review

40. X-Factor 17 September 2020 40 SECRET SECRET Increased operational commitments and demands leading to deterioration in following components: Danger Extended exposure to combat danger Increased probability of loss of life, loss of limb, disability, injury and PTSD Distortion in social life Spousal separation and employment Distortion and loss of household income Disruption of spouses careers Family disintegration Uncertainty in resettlement Education and career choices children

41. 17 September 2020 41 SECRET SECRET Current Basic Pay JG Rank Minimum Maximum Recommended State Offrs Gen 924,000 1,056,000 To be determined by the SRC Lt Gen 819,844 874,500 Maj Gen 732,207 823,732 Brig 532,500 710,000 E2 Col 221,058 259,005 10% Adjustment E1 Lt Col 198,267 232,301 D5 Maj 150,202 175,986 D3 Capt 114,334 133,961 D2 Lt 97,184 113,867 D1 2Lt 95,078 96,979

42. 17 September 2020 42 SECRET SECRET Current Basic Pay Cont … JG Rank Minimum Maximum Recommended D1 WO1 81,148 93,214 10% Adjustment C5 WO2 64,919 76,063 C4 SSgt 59,724 61,095 C3 Sgt 52,986 58,874 C2 Cpl 47,257 52,302 C1 LCpl 45,349 46,311 B4 SPte 34,277 42,617 B3 Pte 30,943 34,215 B2 Cdt 15,774 18,055 B1 Rec 8,749 9,545

43. FINANCIAL IMPLICATION S/No Item Increment Recommended 1. Basic Pay 4.9 Bn 10% 2. Military Entitlements & Allowances 12.7 Bn 6% to 18% 3. Grand Total 17.6 Bn 17 September 2020 43 SECRET SECRET

44. 17 September 2020 44 DISCUSSION SECRET SECRET