Court Rejects SRC Bid to Cut Judges’ Car Allowance

The Court of Appeal has dismissed an application by the Salaries and Remuneration Commission (SRC) seeking to reverse the decision on the judges’ car allowance, dealing the commission’s blow in its efforts to scale down what it termed an unsustainable public wage burden.

In its appeal, the SRC claimed the judiciary had overstepped its boundaries by meddling in its affairs, which are solely its responsibility.

The commission asked the court to allow its decision on the reduction of the car allowance to take effect, stating it was within its powers.

The matter was sparked by the longstanding benefits policy for officers serving the government.

SRC cited the July 7, 2011, circular issued by the Head of Public Service introducing the car allowance, which was taxed and capped at Ksh 2 million for judges and other senior officers.

The allowance was gradually increased to Ksh 5 million in 2015 and later to Ksh 10 million in 2018.

SRC’s Case on Wage Bill and Equity

The commission stated that the car allowance had exerted pressure on the finances of the government and had resulted in inequality among state officers.

In this respect, the commission stated that the car allowance had undermined the sustainability of the government and equity in the compensation packages.

Moreover, the commission stated that the judges were already enjoying other forms of compensation in the form of vehicles provided by the government and other forms of transport allowances.

The commission also stated that there existed a car loan scheme for all state officers at the rate of 3 percent annually.

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Court’s Determination and Legal Reasoning

However, the arguments of the commission were rejected by the appellate court judges, and the appeal was deemed to have no merit.

“It is dismissed in its entirety. Being a matter touching on the public interest, we make no order as to the costs,” the court stated.

The court was categorical in their evaluation of the arguments of the SRC, and the court further stated, “In our view, the complaint by the SRC does not amount to much.”

In their evaluation of the arguments of the SRC, the court explained the powers of the SRC in the context of the payment of the benefits that have already accrued.

The court stated, “The obligation to pay arises once the salaries are determined and the benefits accrue.”

The court further stated that the powers of the SRC are limited to reviewing the systems of remuneration and that the commission has no powers to deny the payment of the benefits that have already accrued.

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Public Interest and Fiscal Concerns Addressed

The judges also dismissed the commission’s concerns regarding public interest and fiscal concerns, finding them not compelling in this case.

“The posture taken by the SRC that the decision poses substantial risks to Kenya’s fiscal sustainability and governance integrity rings hollow.”

The appeal case is now dismissed, and this decision sustains the existing car allowance framework for judges, maintaining the status quo in the face of ongoing debates regarding public sector pay and fiscal discipline.

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