Court suspends Ruto’s state corporations reform in urgent suit » Capital News
NAIROBI, Kenya, Jun 7 — The High Court has suspended a directive by President Ruto on the management of state corporation staff and board members.
Friday’s conservatory order followed a lawsuit filed by the Law Society of Kenya (LSK) contesting guidelines backed by the Salaries and Remuneration Commission as a direct usurpation by the Executive on the functions of the Public Service Commission (PSC).
LSK said the Guidelines violate Articles 230 and 234 of the Constitution citing an apparent attempt to establish a parallel public service under the Office of the President.
Judge Lawrence Mugambi gave a conservatory order restraining the respondents acting under their instructions from implementing the Guidelines on the Management and Terms and Conditions of Service for Board Members and Staff of State Corporations, pending an inter partes hearing.
Mugambi also suspended the Gazettte Notice No. 6265 Vol. CXXVI No. 70 published on May 24, 2024 proclaiming the Guidelines on the Management and Terms and Conditions of Service for Board Members and Staff of State Corporations.
“That a Conservatory order is hereby issued suspending the Executive Order No. 3 of 2024 promulgating the Guidelines on the Management and Terms and Conditions of Service for Board Members and Staff of State Corporations, 2024 and further, prohibiting the Respondents, their agents or any person acting on their behalf form acting or giving effect to the Executive Order No. 3 of 2024 pending the inter partes hearing of this Application,” the judge directed =.
The court ordered parties to file responses to the Petition and Application within 7 days from the date of service.
Infringement
LSK asked the court to term the Executive Order invalid, null and void.
“A DECLARATION be and is hereby issued that the Guidelines on management and Terms and Conditions of Service for Board Members and Staff of State Corporations, May 2024 are unconstitutional for violating the Powers and Functions of the Public Service Commission under Article 234(2) of the Constitution,” the LSK petitioned.
LSK asked the court to restrain the Attorney General and other respondents from implementing the guidelines on the management and terms and conditions of service for Board Members and Staff of state corporations.
The Law Society argued the President and the Chief of Staff and Head of the Public Service have infringed on the constitutional independence of the Public Service Commission contrary to Article 249 of the Constitution.
LSK sought the court to bar the President, the Chief of Staff and Head of the Public Service, and the State Corporations Advisory Committee from developing, promulgating or issuing any guidelines on the management of terms and conditions of service in the public service without the authority or approval of the Public Service Commission (PSC).
The petitioner cited Article 234(2) of the Constitution, the PSC Act and PSC Regulations.
Executive action
In a notice published in the gazette on May 24, 2024, President Ruto ordered that the guidelines for the management of State corporations in 2024 shall and do supersede the Guidelines issued in November 2004.
“I do hereby direct all Boards of State Corporations to secure the immediate implementation of the 2024 Guidelines on the Management of State Corporations (May 2024),” read the notice.
Ruto said the revised guidelines will provide salary bands and allowances for CEOs, board members, vice Chancellors, Chancellors and members of University councils.
The guidelines were also to provide a new standard for the governance and ethical behaviour of board members and staff of State corporations.
Ruto said the guideline aims to encourage productivity at the agency and employee levels while encouraging the efficient, effective, and responsible use of public resources.
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