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Court declares SRC-approved public service pay rises unconstitutional

Justice Lawrence Mugambi said the national and county governments breached the Constitution by implementing the salary increases without maintaining the legally required 35 percent wage-bill-to-revenue ratio.

NAIROBI, Kenya, Feb 1 – The Milimani High Court has declared unconstitutional the Salaries and Remuneration Commission’s (SRC) decision to approve salary increases for public servants for the 2023/2024 and 2024/2025 financial years.

The court found that the pay rises were approved without adequate public participation and failed to meet constitutional requirements on fiscal responsibility and independence.

In his ruling, Justice Lawrence Mugambi said the national and county governments breached the Constitution by implementing the salary increases without maintaining the legally required 35 percent wage-bill-to-revenue ratio.

“The increase in salaries of state and public officers was undertaken in contravention of the Constitution,” the judge ruled, citing the failure to adhere to the wage bill ceiling.

Justice Mugambi directed the SRC to file annual affidavits for the next four years, detailing how it intends to achieve and sustain the 35 per cent wage-bill-to-revenue ratio.

The affidavits, to be filed every 30th June from 2026 to 2030, must outline collaborative measures being implemented with other stakeholders, as well as steps taken to curb abuse in the payment of allowances and benefits.

The court further ordered that the filings should include directives issued by SRC on remuneration control, an annual percentage reductions in the wage-to-revenue ratio and savings achieved each year

“For the next four and a half years, the 1st Respondent shall file an affidavit in this Court on 30th June of each year, commencing 30th June 2026 and ending on 30th June 2030,” the ruling stated.

The High Court also ordered that all public officers and institutions must seek approval from the SRC before making any adjustments to salaries, benefits or allowances.

Justice Mugambi ruled that where the SRC declines or advises against such changes on grounds of fiscal unsustainability or any other reason within its constitutional mandate, the decision must be respected.

The judgment reinforces the SRC’s oversight role in managing public sector pay and underscores the constitutional requirement for fiscal discipline amid mounting pressure on government finances.

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