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A landmark five-judge bench ruling has definitively upheld judges' entitlement to a KES 10 million taxable car grant, rebuffing the SRC's fiscal intervention.
The silence in the Court of Appeal chamber on March 25, 2026, was heavy with constitutional weight as a five-judge bench handed down a ruling that effectively ended a half-decade standoff between the Judiciary and the Salaries and Remuneration Commission. The verdict brought to a decisive close a protracted legal battle over the entitlement of Kenyan judges to a taxable car allowance, solidifying the legal position that such benefits, once granted, cannot be unilaterally dismantled by the state’s wage regulator.
This ruling, delivered by Justices George Odunga, P. Kiage, W. Karanja, Weldon Korir, and K. M'inoti, confirms that judges are entitled to a taxable car grant of up to KES 10 million, payable every four years. For the average Kenyan citizen, this is a significant fiscal development for the Judiciary, it is a constitutionally protected affirmation of independence. The conflict highlights the precarious balance between the government's push for fiscal austerity—led by the Salaries and Remuneration Commission (SRC)—and the entrenched constitutional protections designed to keep the bench free from executive and external pressure.
At the heart of the dispute was the interpretation of Article 160(4) of the Constitution of Kenya 2010. This provision expressly states that the remuneration and benefits payable to, or in respect of, a judge shall not be varied to the disadvantage of that judge. The SRC, tasked with streamlining the national wage bill and curbing public spending, had argued that the car allowance was an unsustainable perk and a form of double-dipping, given that judges already enjoy other transport benefits.
The Court of Appeal, however, took a broader view, framing the allowance not as a mere perk to be trimmed, but as a "ring-fenced" benefit that transitioned into the current constitutional dispensation. The judges noted that the allowance, which evolved from a pre-2010 duty-free car grant, had been formalized through various circulars issued by the Head of Public Service in 2011, 2015, and 2018. According to the bench, the SRC's attempt to revoke this facility in July 2021 was an exercise of power that trespassed upon a constitutionally protected space.
The tension between the SRC and the Judiciary reflects a recurring theme in Kenyan governance: the collision between fiscal oversight and institutional independence. The SRC, under its mandate, seeks to enforce uniformity and sustainability in public sector compensation. The commission’s contention was that the car grant was financially untenable and that as a commission, it held the ultimate authority to set and review state officer remuneration under Article 230(4).
Conversely, the Judicial Service Commission (JSC) and the Kenya Judges and Magistrates Association (KJMA) argued that the SRC’s intervention was an infringement on the autonomy of the judiciary. They maintained that judicial independence is not merely about the freedom to rule on cases but also about the security of terms and conditions, which prevents the executive or its agencies from leveraging financial pressure to influence the bench. The Appellate Court’s decision suggests that while the SRC has the discretion to set salaries, it lacks the authority to erode established constitutional protections that serve as a barrier against potential interference.
This legal journey began in 2021 when the SRC issued a letter seeking to revoke the car allowance. This triggered a cascade of litigation, moving through the High Court—which ruled in favor of the judges in May 2024—and ultimately landing at the Court of Appeal. Along the way, the SRC attempted to have the judges recuse themselves, citing a conflict of interest since the judges themselves were the beneficiaries of the allowance. The court dismissed this application by invoking the doctrine of necessity, reasoning that if every competent judge were disqualified, the wheels of justice would grind to a halt.
The saga is a reflection of the evolving relationship between state institutions. For the public, the dispute raises valid questions about government spending. Critics of the ruling will point to the KES 9.8 billion estimated cost over four years—a figure the SRC cited during earlier hearings—as evidence of a disconnect between the judiciary and the reality of the struggling national economy. Supporters, however, argue that the cost is a necessary premium for a Judiciary that remains shielded from political and economic bullying.
As the dust settles, the ruling leaves a clear roadmap for future interactions between oversight commissions and constitutional offices. The court signaled that silence is not consent the SRC, which had been aware of the circulars regarding these allowances for years, could not retrospectively claim they were illegal or unrecognized. Furthermore, the decision re-emphasizes that public interest litigation, such as the initial petition filed by Peter Mwangi Gachuiri, remains a potent tool for testing the limits of government power.
The Judiciary now stands with its financial privileges intact, but the narrative of "judicial overreach" versus "fiscal discipline" is likely to persist in public discourse. Whether this victory encourages the SRC to seek legislative remedies or prompts a more cautious approach to future benefit reviews remains to be seen. For now, the bench has spoken: constitutional protections are not merely suggestions, and the independence of the third arm of government is non-negotiable, even when the price tag is measured in billions.
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