Civil rights activists in Kenya have taken legal action against financial institutions, seeking to enforce a constitutional limit on county spending on employee salaries and benefits. The activists, including Laban Omusundi and organizations Ignite Kenya and Sheila Kendi, claim that the Controller of Budget, Ministry of Finance, Salaries and Remuneration Commission (SRC), Senate, and Attorney General have failed to implement the law despite audit reports showing violations for several years.
The lawsuit, filed at the High Court, seeks a declaration that any county spending exceeding 35% of revenue on employee salaries and benefits is unconstitutional and illegal. The activists also want the institutions to take measures to ensure compliance with the law. The case was deemed urgent by Judge Julius Nang'ea, who ordered the activists to serve the defendants with court documents immediately, but did not grant temporary orders as requested.
The dispute centers on Section 25(1)(b) of the Public Finance Management (PFM) Act for County Governments, 2015, which stipulates that county employee salaries and benefits should not exceed 35% of total county revenue. The activists argue that this limit was set to protect financial stability and ensure that at least 65% of public revenue is used for development and citizen services.
According to the Auditor General's report, county governments spent Sh207.99 billion on salaries and benefits in the 2023/24 financial year, accounting for 45% of their total revenue. The report showed that only a few counties managed to adhere to the legal limit. Recent data also indicates that 42 counties spent between 37% and 63% of their revenue on salaries and benefits over nine months until June 2026.
The activists warn that the increase in salary spending has negatively impacted the provision of essential services such as healthcare, water, sanitation, agriculture, and road construction. They claim that this has contributed to stalled development projects, medicine shortages in hospitals, delayed payments to suppliers, and increased county debt.
The case, which lists all 47 counties as interested parties, is scheduled for further directions on October 12. The activists hope that the court will enforce the constitutional limit and ensure that counties allocate sufficient funds for development and citizen services.
The lawsuit has significant implications for county governance and financial management in Kenya. If the court rules in favor of the activists, it could lead to changes in how counties allocate their resources and potentially improve the delivery of essential services to citizens.
Key points
- The Kenyan High Court has deemed the lawsuit urgent and will hear the case on October 12.
- County governments spent Sh207.99 billion on salaries and benefits in the 2023/24 financial year, exceeding the 35% limit.
- The lawsuit seeks to enforce a constitutional limit on county spending on employee salaries and benefits to ensure financial stability and improve citizen services.
