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The High Court has annulled President William Ruto’s Executive Order No. 3 of 2024, which dealt with the management of State corporations, declaring several provisions of the State Corporations Act unconstitutional for encroaching on the powers of the Public Service Commission (PSC).
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Justice Chacha Mwita ruled that sections 5(3) and 27(c) of the Act contradict Article 234(2) of the Constitution, which grants the PSC exclusive authority over public service matters.
“The President cannot exercise powers that are constitutionally assigned to the Public Service Commission,” Justice Mwita stated. “Therefore, sections 5(3) and 27(c) of the State Corporations Act are unconstitutional, null, and void to the extent that they confer such powers.”
President Ruto’s Executive Order, issued on May 24, 2024, through Gazette Notice No. 6265 Vol. CXXVI-No. 70, introduced new rules governing board appointments, staff management, and terms of service within State corporations.
The order placed the Office of the President at the core of human resource and governance supervision — a move that was strongly opposed by the PSC and governance stakeholders.
Section 5(3) of the Act allowed parastatal boards to recruit staff “on terms and conditions approved by the Cabinet Secretary in consultation with the Committee,” while section 27(c) granted the State Corporations Advisory Committee (SCAC) authority to advise on appointments, transfers, and dismissals.
Justice Mwita noted that, combined with the Executive Order, these provisions effectively established a parallel administrative system that undermined the PSC’s constitutional mandate.
The court emphasized that although the President may provide broad policy guidance, such directives cannot override or interfere with the functions of independent constitutional commissions.
