Wamuzi News Ke
In a landmark ruling that shakes the foundations of state governance, the High Court has struck down William Ruto’s Executive Order No. 3 of 2024 governing state-corporation appointments, declaring significant sections of the State Corporations Act unconstitutional and void.
Executive Order Dismantled, PSC Mandate Reaffirmed
The justice in charge delivered a decisive blow to the Executive when she ruled that the Order—which had placed board appointments, staffing and terms of service for parastatals under the direct oversight of the President’s office—violated Article 234(2) of the Constitution by usurping powers exclusively granted to the Public Service Commission (PSC).
Sections 5(3) and 27(c) of the State Corporations Act, which empowered the President and the State Corporations Advisory Committee to approve staff hiring and board terms, were declared invalid. The court held that any reallocation of PSC’s constitutionally protected mandate must follow the delegation rules laid out in Article 234(5) — a process the Executive Order bypassed.
Major Repercussions for State Corporations and Governance
The fallout is immediate and wide-ranging. Thousands of board appointments and staffing decisions made under the guidelines issued by the Order are now subject to challenge and review. State corporations must now return to the PSC for membership approvals and human-resource decisions.
Public-service observers view the ruling as a stern reinforcement of the separation of powers and institutional independence: the Executive branch cannot simply appropriate functions designed for independent commissions. The judgment insists that merit, impartiality and professionalism must underpin public-service governance — not political intervention.
Why This Serves as a Political Setback
For President Ruto, the ruling constitutes one of the most significant judicial rebukes of his administration’s governance reforms to date. The Executive Order had been viewed as a strategic move to consolidate control over state corporations—often key engines of policy implementation and patronage. With the court’s decision, the Administration must now recalibrate its approach to state-corporation oversight.
Critics argue the original Order risked creating a parallel public service structure, eroding the independence of public agencies and exposing appointments to partisan capture. The court’s decision places this risk firmly under the spotlight.
Moving Forward — What to Expect
- The government must now revise or withdraw the Executive Order and related guidelines to comply with the judgment.
- State-corporation boards and senior staff who took office under the nullified framework may face review, suspension or reappointment under PSC authority.
- The PSC will re-assert its full oversight role, likely increasing its scrutiny of appointments, transfers, review of contracts and staff terms across any entity deemed part of the public service.
- The ruling may trigger legislative reform: parliamentary committees and legal experts are expected to reassess structures, scopes and oversight provisions of state-corporation governance.
The High Court’s landmark ruling declares that the President cannot bypass the Public Service Commission in matters of board appointments, staffing and governance of state corporations. With the Executive Order voided and key sections of the State Corporations Act struck down, Kenya’s public-service architecture has entered a new era — one grounded in constitutional discipline and institutional boundaries.
