Deputy Governors who are not provided with an official residence or a leased house by their counties are entitled to housing allowance, the Labour Relations Court has ruled in a landmark decision that could have significant financial consequences for counties across the country.
Justice Onesmus Makau upheld a magistrate court ruling awarding former Kirinyaga Deputy Governor Peter Ndambiri Sh5.7 million in housing benefits.
The judgment confirms that circulars issued by the Salaries and Remuneration Commission (SRC) in 2017 and 2019 regarding housing benefits are legally binding.
The case arose from a long-standing dispute between Mr Ndambiri and the Kirinyaga County government, reflecting broader challenges deputy governors face, particularly when political differences exist with their governors.
“The award of Sh5.7 million to the respondent (Ndambiri) by the trial court was supported by the evidence on record and it must stand,” Justice Makau said, dismissing the county government’s appeal.
He added that the SRC circulars were not suggestions but legally binding directives requiring counties to provide deputy governors with housing benefits, echoing a previous Constitutional Court ruling that denying these benefits was discriminatory and unconstitutional.
The dispute centered on whether Ndambiri was eligible to receive the housing allowance directly, as the county argued he did not prove he rented a house during his term from 2017 to 2022.
However, the court found that the county’s failure to provide either an official residence or a leased house meant he was entitled to Sh90,000 per month throughout his tenure under Governor Anne Waiguru.
The SRC circulars advised counties to provide official residences or lease houses at a rent not exceeding Sh185,000 in Nairobi, Mombasa, and Kisumu, and Sh90,000 elsewhere.
The circular also urged counties to prioritize funding for building official residences. Ndambiri served his full term without receiving either a housing benefit or an official residence.
When he requested payment for rent in lieu, the county claimed his gross salary of Sh621,000 already included the allowance. The magistrate court rejected this argument, ruling that the provision of housing was a statutory obligation.
Other former deputy governors, including Caroline Karugu of Nyeri and Hillary Chongwony of Bungoma, have pursued similar claims.
The Kirinyaga County government had argued that paying the housing allowance separately would exceed the legal salary prescribed for deputy governors. It also maintained that Ndambiri’s gross salary was meant to cover housing, but the courts disagreed.
The case traces its origins to a 2016 Constitutional Petition filed by the Council of Governors against SRC. The High Court recognized deputy governors as state officers entitled to housing benefits, prompting SRC to issue circulars.
However, the circulars were never gazetted, leaving counties uncertain about direct payments to deputy governors—an issue now clarified by Justice Makau’s ruling.
