Public Service Cabinet Secretary Geoffrey Ruku has confirmed that the government is preparing a major overhaul of employment terms for civil servants, proposing to move over 1 million workers from permanent and pensionable jobs to fixed 5-year renewable contracts.
The proposal, which Ruku described as a key pillar of public sector reform, is expected to be presented to Cabinet in the coming weeks for approval before being tabled in Parliament as a legislative amendment. If adopted, the change would affect the majority of national and county government employees currently on permanent terms, excluding only a small category of constitutional office holders and certain specialised cadres.
Ruku said the shift is intended to improve performance accountability, flexibility in workforce management and alignment of public service with national development priorities. “The current permanent and pensionable structure was designed for a different era,” Ruku said during a meeting with public service union leaders. “It has become rigid, expensive and sometimes disconnected from results. A 5-year contract system will allow us to reward high performers, address underperformance decisively and adapt the workforce to emerging needs such as digital transformation, climate resilience and economic recovery.”
Under the proposal, contracts would be renewable based on performance appraisals, delivery of key result areas and availability of budget. Non-renewal would not automatically constitute dismissal but would require clear justification and due process. The CS emphasised that the change would not affect existing pension entitlements accrued up to the transition date, with new employees entering under a contributory pension scheme similar to what is used in the private sector and some parastatals.
The plan has already triggered strong reactions from public service unions. Kenya National Union of Teachers Secretary-General Collins Oyuu warned that the proposal could destabilise the workforce and erode morale. “Teachers, nurses, doctors, administrators and county workers have dedicated their careers under permanent terms,” Oyuu said. “Moving to short-term contracts creates fear and uncertainty. It could lead to politicisation of renewals and loss of experienced staff. We will resist any attempt to undermine job security.”
The Union of Kenya Civil Servants also expressed deep concern, describing the move as an attempt to casualise the public service. “Permanent and pensionable terms are part of what attracts and retains talent in government,” the union stated. “Five-year contracts will make civil service a revolving door, discourage long-term commitment and expose workers to arbitrary non-renewal.”
Ruku countered that the reform includes safeguards to protect workers from unfair treatment. “Contracts will be performance-based, not politically driven,” he said. “We will establish clear, transparent appraisal systems involving independent panels where necessary. This is not about firing people; it is about ensuring the public gets value for money and services are delivered efficiently.”
The proposal aligns with the government’s broader agenda to rationalise the public wage bill, which currently consumes over 48 percent of recurrent expenditure. Treasury officials have long argued that the permanent structure creates automatic salary escalations through annual increments and promotions regardless of performance, contributing to fiscal strain.
Critics within Parliament and civil society have raised alarm over potential abuse. “In a country where political patronage is common, 5-year contracts could become tools for rewarding loyalty and punishing dissent,” said one opposition MP. “We need iron-clad legal protections to prevent victimisation.”
The government has promised extensive consultations with unions, Parliament and stakeholders before finalising the policy. Ruku said the transition would be phased, starting with new hires and gradually applying to existing staff over several years to avoid disruption.
Public reaction has been divided. Some Kenyans support the idea of performance-linked contracts, arguing that permanent employment in government has sometimes bred complacency. Others fear it would weaken job security and bargaining power for workers in an already tough economy.
As the proposal heads to Cabinet, the debate is expected to intensify over the coming weeks, with unions threatening industrial action if consultations are inadequate. The outcome will shape not only the future of public service employment in Kenya but also the government’s ability to balance fiscal discipline with fair labour practices.
