NAIROBI, Kenya July 10 – The Supreme Court has dismissed an attraction by the defunct National Health Social Fund (NHIF) Management Board and upheld the Court of Appeal’s choice, affirming that the Salaries and Remuneration Commission (SRC) has whole jurisdiction over remuneration and advantages for workers of state companies, together with NHIF.
The apex court docket declared that SRC’s recommendation is binding on public establishments consistent with Articles 230 and 259 of the Constitution.
In its ruling, the Supreme Court clarified that NHIF is a public physique, and its staff are public officers, as their capabilities are public and their funding is from public contributions.
It maintained that SRC has constitutional authority to advise nationwide and county governments, together with state companies, on the remuneration and advantages for all public officers.
The case arose 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 sought to implement a CBA with out prior recommendation from SRC; nevertheless, the fee rejected the proposal, citing non-adherence to remuneration pointers and financial sustainability.
The matter escalated by way of the Employment and Labour Relations Court (ELRC) and the Court of Appeal earlier than being adjudicated by the Supreme Court.
In the earlier judgement by the Court of Appeal, Judges Asike Makhandia, Agnes Kalekye Murgor, and Sankale ole Kantai additionally strengthened that SRC has the constitutional mandate to control the remuneration of public officers in state companies.
They affirmed that for so long as salaries in state companies are drawn from Parliament by way of the annual nationwide finances or funds retained by the state company for functions of defraying bills as empowered by an act of Parliament, all remuneration and advantages have to be decided by SRC.
