NAIROBI, Kenya – The Court of Appeal has overturned a ruling by the Employment and Labour Relations Court (ELRC), affirming that the Salaries and Remuneration Commission (SRC) has the final say in determining salaries and benefits for public officers, including employees of the National Social Security Fund (NSSF).
The ruling, delivered on February 28, 2025, by Justices Asike Makhandia, Agnes Kalekye Murgor, and Sankale ole Kantai, clarified that NSSF employees fall under the category of public officers as defined by Article 230 of the Constitution of Kenya, 2010.
This decision effectively nullifies the ELRC’s earlier verdict, which had excluded State corporations from SRC’s regulatory oversight.
The dispute dates back to 2016 when the NSSF, the Kenya Union of Commercial Food and Allied Workers, and the Attorney General challenged an SRC directive from 2012 that sought to regulate salary negotiations at NSSF.
The ELRC had ruled in their favor, limiting SRC’s control over State corporations.
However, SRC appealed, arguing that the lower court had misinterpreted its constitutional mandate.
“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,” the Court of Appeal ruled.
With this latest judgment, the appellate court has reinforced SRC’s jurisdiction over remuneration in State corporations, asserting that all salaries drawn from the national budget or internally generated funds must fall under its purview.
The ruling provides clarity on SRC’s role at both national and county levels, reaffirming its mandate as outlined in the Constitution and the SRC Act, 2011.
