“It is not a free-floating oracle to shower advisory circulars on remuneration and allowances randomly on every public entity it thinks of.” – High Court, 2025.

Last week, the Court issued a defining judgment clarifying HR governance in State Corporations and Public Universities. The Court reaffirmed that State Corporations form part of the public service, bringing their staff squarely under the constitutional oversight of the Public Service Commission (PSC) unless expressly excluded under Article 234(3) – such as JSC and TSC.

Key takeaways:
The Public Service Commission has exclusive authority to approve HR instruments – structures, establishments, HR manuals and career progression guidelines. SCAC’s role is strictly advisory wherein section 5(3) of the State Corporations Act was declared unconstitutional for sidestepping PSC in approving staff terms and conditions.

The Salaries and Remuneration Commission cannot issue direct advisories to State Corporations; all remuneration advice must be channelled through PSC. AG advisories are binding only until tested. The Court emphasised that they may be quashed where the AG acts irrationally, unlawfully or contrary to the rule of law.

This judgment restores constitutional order, cures institutional overlap and brings long-needed clarity to HR management across the public sector.