High Court Declares SRC's Car Allowance Cancellation Unconstitutional

The High Court has ruled in favor of judges, declaring the Salaries and Remuneration Commission’s (SRC) decision to scrap the Ksh10M taxable car allowances for judges as illegal and unconstitutional.

A three-judge bench, comprising Justices Chacha Mwita, Lawrence Mugambi, and Patricia Nyaundi, reinstated the taxable car allowances, which judges have enjoyed since 2011 but were revoked in 2021 by the SRC.

The court held that the tax allowance benefit for judges is protected under the constitution and cannot be taken away or varied.

“A declaration is hereby issued that the taxable allowance for the purchase of vehicles for judges existed before July 2021 and is a benefit payable to judges under Article 160 of the constitution and cannot be varied or set aside in disadvantage of judges,” the bench stated

The judges found the SRC’s letter revoking the car benefit to be unconstitutional, null, and void, as it threatens the independence of the Judiciary.

High Court Restores Judges' Ksh 10M Car Allowances — Chief Justice Martha Koome’s official car during a State Function in Nairobi. PHOTO/Courtesy

The Court Nullifies the SRC Letter

As a result, the court issued an order quashing the SRC letter to the extent that it purported to revoke the taxable car allowance for judges.

“An order of certiorari is hereby issued quashing the SRC letter dated July 12, 2021, to the extent that it purported to revoke the taxable car allowance for judges,” said the judges.

Furthermore, the judges ordered the Principal Secretary of the National Treasury to immediately process, pay, and continue paying the Ksh10 million taxable car allowance benefit to judges “as and when due”.

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“An order is hereby issued compelling the Principal Secretary National Treasury to forthwith process pay and continue to pay the taxable car allowance to judges as and when they are due,” directed the bench.

Court Dismisses Arguments by the Attorney General

The court dismissed arguments by the Attorney General that the benefit ceased to exist and didn’t transition into the new constitution.

Instead, they affirmed that under the repealed constitution, judges were allowed to buy duty-free vehicles, and this benefit transitioned to the new constitution.

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“We find the taxable car allowance is a benefit to judges. It’s enjoyed by holding the said office.”

This decision marks a significant victory for judges, who have been fighting to reinstate their taxable car allowances since they were scrapped in 2021.

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