A Milimani High Court ruling has thrown a spanner into the government’s recent public service pay rises, after the court declared the salary increases for the 2023/2024 and 2024/2025 financial years unconstitutional.
Justice Lawrence Mugambi said the Salaries and Remuneration Commission (SRC) approved the pay rise without proper public participation and without meeting the Constitution’s demands on fiscal discipline.
In the judgment, the court found that both the national and county governments went ahead to implement the new salaries while failing to keep the wage bill within the legally required ceiling.
“The increase in salaries of state and public officers was undertaken in contravention of the Constitution,” Justice Mugambi ruled.
The judge said the wage bill should not exceed 35 per cent of revenue, but the court found that the government breached this requirement while rolling out the increases.
Justice Mugambi directed the SRC to begin filing annual affidavits in court for the next four years, showing how it plans to meet and sustain the 35 per cent wage-bill-to-revenue ratio.
“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 affidavits must explain the steps SRC is taking, together with other stakeholders, to reduce the wage burden and stop abuse in the payment of allowances and benefits.
The court said the filings should also include directives SRC has issued on remuneration control, the annual percentage reduction in the wage-to-revenue ratio, and the savings achieved each year.
In another key order, the High Court ruled that all public officers and institutions must seek SRC approval before making any changes to salaries, allowances, or benefits.
Justice Mugambi said if SRC declines or advises against any adjustments because they are financially unsustainable, the decision must be respected.
The ruling is expected to tighten SRC’s grip on public sector pay decisions and put more pressure on government agencies to justify wage-related spending at a time when the country is struggling with rising financial strain.
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