Parastatals issued ultimatum to comply with human resource guidelines

Public Service Commission issues 180-day HR compliance ultimatum to parastatals. [File Courtesy]

The Public Service Commission (PSC) has asserted its dominance over State corporations' management by giving parastatals a 180-day ultimatum to secure approval for their human resource manuals. The move ends a long-standing jurisdictional tug-of-war with the State Corporations Advisory Committee (SCAC). 

In a new circular, any parastatal operating without PSC-approved guidelines after the six-month grace period will see its personnel management decisions lose legal standing.

Citing a December 2025 landmark court ruling, PSC warned that failure to align and submit their HR manuals for approval by September could render staff actions, including hiring, promotions and disciplinary measures, null and void.

The December 2025 court ruling noted that PSC has the power to receive, consider and approve or reject human resource instruments for State corporations and public universities. These are organisational structure, staff establishment, human resource manual and career progression guidelines. 

“Accordingly, all State corporations that are operating on human resource instruments that have not been approved by PSC are required to immediately review the same and submit to the Commission for approval within six months of this circular,” said PSC in the March 6 circular. 

“In the interim period, the Commission grants approval for the continued use of the existing human resources instruments for six months from the date of this circular.”

The jurisdictional fight between PSC and SCAC is currently unfolding in a case where the Anti-Counterfeit Authority (ACA) is engaged in a fight with its director of legal services and corporation secretary, Johnson Otieno Adera.

ACA in February this year interdicted Adera, but he protested the process through a suit at the High Court in which he argued that the ACA HR manual was not approved by PSC. 

“The impugned manual (Human Resource Policy and Procedures Manual) is unconstitutional and illegal and does not form part of the contract of service with the respondent (ACA) on account of being contrary to the Constitution and Statute,” he said in court papers. 

Adera last week got a reprieve from the court, which stayed disciplinary action awaiting a ruling on his application to quash the interdiction letter. The ruling is expected to be delivered on April 8 by Justice Hellen Wasilwa.