Supreme Court Rules NHIF Must Comply with SRC in Setting Staff Pay

The Supreme Court of Kenya has issued a major blow to the National Health Insurance Fund (NHIF) after ruling that its employees are public officers and the Salaries and Remuneration Commission (SRC) has authority over their remuneration.

In a landmark ruling issued on Friday, May 30, the judges settled a dispute between NHIF, the Kenya Union of Commercial Food and Allied Workers (the Union), and the SRC over the validity of collective bargaining agreements (CBAs) negotiated without SRC's input for the period 2013-2015.

Despite the SRC's guidelines requiring public institutions to seek its advice on salaries and benefits, NHIF and the Union proceeded with negotiations independently.

When they later submitted the CBA to the SRC, the commission rejected the proposed salary increases, citing unsustainability and non-compliance with its directives, and recommended lower percentage increases and allowances, which the Union found unacceptable.