Supreme Court upholds SRC’s final say on state corporations renumeration » Capital News

NAIROBI, Kenya Jul 10 – The Supreme Court of Kenya has dismissed an appeal by the defunct National Hospital Insurance Fund (NHIF) Management Board challenging the Salaries and Remuneration Commission (SRC) jurisdiction over the remuneration and benefits of employees of State corporations.

The case stemmed from a dispute over a Collective Bargaining Agreement (CBA) between NHIF and the Kenya Union of Commercial, Food and Allied Workers.

NHIF had negotiated and attempted to implement the CBA without first seeking advice from the SRC. The SRC rejected the proposal, citing non-compliance with remuneration guidelines and concerns over fiscal sustainability.

In its judgment, the Supreme Court clarified that NHIF is a public body and its employees are public officers, given that their roles are of a public nature and funded through public contributions.

Consequently, the SRC holds constitutional authority to advise both national and county governments—including State corporations—on the remuneration and benefits of all public officers.

In the previous judgement by the Court of Appeal, Judges Asike Makhandia, Agnes Kalekye Murgor, and Sankale ole Kantai, also reinforced that SRC has the constitutional mandate to regulate the remuneration of public officers in State corporations.

The Appeals bench affirmed that for as long as salaries in State corporations are drawn from Parliament through the annual national budget or funds retained by the State corporation for purposes of defraying expenses as empowered by an Act of Parliament, all remuneration and benefits must be determined by SRC.