Win for SRC as court upholds its mandate on public officers’ salaries

The Court of Appeal has overturned a decision by the Employment and Labour Relations Court (ELRC), reaffirming the Salaries and Remuneration Commission’s (SRC) authority in determining salaries and benefits for public officers across all State corporations, including the National Social Security Fund (NSSF).

The judgment, delivered on February 28, 2025, by Justices Asike Makhandia, Agnes Kalekye Murgor, and Sankale ole Kantai, ruled that NSSF employees are indeed public officers under Article 230 of the Constitution of Kenya, 2010.

This decision effectively nullifies the ELRC’s earlier verdict, which had declared SRC’s directive of July 4, 2012, inapplicable to State corporations.

The Appellate court found that the ELRC had misinterpreted the Constitution and the law in its determination that NSSF employees were not subject to SRC regulations.

“In reaching the conclusion that the employees of the NSSF are not subject to the requirements of the Salaries and Remuneration Commission Act and regulations, we find that the Employment and Labour Relations Court misapprehended the Constitution and the law, and in so doing, arrived at the wrong decision, as a consequence of which it is necessary to interfere with that decision,” the ruling read in part.

The dispute dates back to 2016 when NSSF, the Kenya Union of Commercial Food and Allied Workers, and the Attorney General challenged SRC’s directive regulating salary negotiations at NSSF.

The ELRC had initially ruled in favor of the petitioners, effectively limiting SRC’s oversight. However, SRC appealed, arguing that its constitutional mandate to regulate public officers' remuneration had been undermined.

The Court of Appeal’s ruling reinforced SRC’s jurisdiction over remuneration in State corporations, stating that salaries paid from either Parliament’s annual national budget or funds retained by State corporations fall under SRC’s purview.

The judgment provides clarity on SRC’s role at both national and county government levels, reaffirming the commission’s oversight as outlined in the Constitution and the SRC Act, 2011.