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Supreme CourtPartially AllowedPetition 14, 14A, 14B & 14C of 2014 (Consolidated)

Communications Commission of Kenya & 5 others v Royal Media Services Ltd & 5 others

Supreme Court of Kenya
29 September 2014
42,700 words in judgment
View original judgmentRead on Kenya LawDownload the judgment (PDF) Watch case
AI-assisted case brief
·~171 min to read original · ~4 min brief

The bottom line

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Supreme Court upheld the communications regulator's power to license broadcasters after the 2010 Constitution.

What this practically means

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The Supreme Court decided that the Communications Commission of Kenya (now Communications Authority) was legally allowed to issue broadcasting licences even after the new Constitution took effect. The Court also said the 'must-carry' rule, which requires signal distributors to carry local channels, is fair and does not violate copyright. It rejected claims that Royal Media Services had a legitimate expectation to get a licence, because the government official who made promises lacked authority.

Executive summary

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This was an appeal from the Court of Appeal's decision which had overturned the High Court's dismissal of a constitutional petition by Royal Media Services, Nation Media Group, and Standard Group. The core dispute concerned the digital migration from analogue to digital terrestrial television broadcasting in Kenya. The Supreme Court addressed five main issues: the constitutionality of the Communications Commission of Kenya (CCK) under Article 34 of the Constitution; whether the media houses had a legitimate expectation to be issued a Broadcast Signal Distribution (BSD) licence; whether the 'must-carry' rule infringed their intellectual property rights; whether the High Court petition was barred by issue estoppel; and whether the Court of Appeal's orders exceeded its jurisdiction. The Supreme Court held that the CCK was not unconstitutional and was lawfully mandated to continue licensing during the transition period. It distinguished between Article 34(3), which governs licensing procedures, and Article 34(5), which mandates Parliament to establish a media standards body (the Media Council of Kenya). The Court found no legitimate expectation for a BSD licence, as the promises made by the Permanent Secretary were not lawful and the ICT Policy was a general statement, not a specific promise by the licensing authority. The 'must-carry' rule was held not to infringe intellectual property rights, as it fell under the 'fair dealing' exception to copyright. The Court also found that the High Court petition was barred by issue estoppel regarding the denial of the BSD licence, as the same issue had been finally determined by the Public Procurement Administrative Review Tribunal. Consequently, the Supreme Court set aside the Court of Appeal's orders, including the order to issue a BSD licence to the media houses and the declaration nullifying the licence issued to Pan African Network Group. The Court directed the Communications Authority of Kenya (successor to CCK) to consider the media houses' application for a BSD licence within 90 days, to align the existing licence with constitutional imperatives, and to set new timelines for digital migration. Each party was ordered to bear its own costs.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.whether the Communications Commission of Kenya was the body contemplated under Article 34 of the Constitution
  2. 2.whether the 1st, 2nd and 3rd respondents had a legitimate expectation to be issued with a Broadcast Signal Distribution (BSD) licence
  3. 3.whether the 1st, 2nd and 3rd respondents’ intellectual property rights were infringed by the appellants
  4. 4.whether the petition filed at the High Court was barred by 'issue estoppel', and amounted to an abuse of the Court process, for being a collateral attack against the decision by the Public Procurement Administrative Review Board [Tribunal]
  5. 5.whether the final orders of the Court of Appeal were in excess of the powers and jurisdiction conferred by the Constitution

Key legal issues

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01

Whether the Communications Commission of Kenya (CCK) was the body contemplated under Article 34 of the Constitution to regulate airwaves and issue BSD licences.

Holding

The CCK was not unconstitutional. The Constitution did not envisage a legal vacuum, and existing laws, including the Kenya Information and Communications Act establishing the CCK, remained in force subject to being construed to conform with the Constitution. The body under Article 34(5) is the Media Council of Kenya, not the CCK.

Reasoning

The Supreme Court held that the Constitution's transitional provisions (Fifth and Sixth Schedules) were designed to ensure a harmonious transition without a legal vacuum. The CCK was established by the Kenya Information and Communications Act, 1998, which remained in force after the 2010 Constitution. The Court distinguished between Article 34(3), which guarantees freedom of establishment subject to licensing procedures, and Article 34(5), which mandates Parliament to establish a body to set media standards. The Court found that the Media Council Act, not the Kenya Information and Communications Act, was the legislation enacted to give effect to Article 34(5). Therefore, the CCK was lawfully mandated to continue licensing until Parliament enacted new legislation, and its actions were not automatically void upon the Constitution's promulgation.

02

Whether the 1st, 2nd and 3rd respondents had a legitimate expectation to be issued with a BSD licence.

Holding

The respondents did not have a legitimate expectation to a BSD licence. The promises made by the Permanent Secretary were not lawful as he lacked the capacity to make them, and the ICT Policy was a general statement of government aspirations, not a specific promise by the licensing authority (CCK).

Reasoning

The Court applied the established principles of legitimate expectation: there must be a clear, unambiguous promise by a public authority with the lawful capacity to make it, and the expectation cannot override clear statutory or constitutional provisions. The Permanent Secretary had no role in licensing under the Kenya Information and Communications Act. The ICT Policy was a general policy framework, not a promise to any specific entity. Furthermore, the respondents' claim was based on their investment in broadcasting infrastructure, but the Court noted that a BSD licence is for signal distribution, which is technically different from broadcasting. The Court also found that the procurement process was lawful and the respondents' disqualification for failing to meet the bid bond validity period was a proper exercise of CCK's powers.

03

Whether the 'must-carry' rule infringed upon the intellectual property rights of the 1st, 2nd and 3rd respondents.

Holding

The 'must-carry' rule did not infringe upon the respondents' intellectual property rights. The signal distributors were not 'rebroadcasting' the content, and the rule fell under the 'fair dealing' exception to copyright.

Reasoning

The Court, drawing from comparative jurisprudence (particularly the Philippines Supreme Court in ABS-CBN), found that the signal distributors were not 'broadcasting organizations' as they did not take financial or editorial responsibility for the content. They merely retransmitted the content without alteration. The Court also applied the 'fair dealing' criteria from Canadian law (CCH Canadian Ltd. v. Law Society of Upper Canada) and found that the purpose (public access to information), character (mere retransmission), and effect (no competition with the original work) of the dealing were fair. The Court further held that the claim of intellectual property infringement was a plain copyright claim that should have been pursued under the Copyright Act, not as a constitutional petition, invoking the principle of constitutional avoidance.

04

Whether the petition filed at the High Court was barred by issue estoppel, being a collateral attack on the decision of the Public Procurement Administrative Review Tribunal.

Holding

The High Court petition was barred by issue estoppel in relation to the 1st and 2nd respondents, as they were relitigating the same issue (denial of a BSD licence) that had been finally determined by the Tribunal. The 3rd respondent lacked locus standi on this issue.

Reasoning

The Court adopted a broad approach to issue estoppel, finding that the relief sought before the Tribunal (annulment of the decision denying the licence) was essentially the same as the relief sought in the High Court petition (an order compelling the issuance of a BSD licence). The 1st and 2nd respondents, through their consortium National Signal Networks, had participated in the Tribunal proceedings and chose not to appeal its decision to the High Court as provided by law. The Court held that the Tribunal's decision was final and binding, and the respondents could not circumvent this by filing a constitutional petition two years later. The Court distinguished the 3rd respondent, who was not a party to the Tribunal proceedings, but found it had no locus standi to challenge the denial of the licence to the consortium.

05

Whether the final orders of the Court of Appeal were in excess of the powers and jurisdiction conferred by the Constitution.

Holding

Yes, the Court of Appeal exceeded its powers by ordering the issuance of a BSD licence to the respondents without following the procurement process, and by declaring the CCK unconstitutional and its actions void.

Reasoning

The Supreme Court found that the Court of Appeal's orders violated the doctrine of separation of powers by usurping the executive function of licensing. The order to issue a licence without a tender process contravened Article 227 of the Constitution, which requires a fair, equitable, transparent, competitive, and cost-effective system for procuring goods and services. The declaration that the CCK was unconstitutional and its actions void was also in error, as the Court found the CCK was lawfully in place during the transition period. The Court of Appeal's orders were set aside, and the Supreme Court issued its own orders, including directing the 1st appellant (CAK) to consider the respondents' application for a BSD licence within 90 days.

Legal principles established

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  • The 2010 Constitution did not create a legal vacuum; existing laws remain in force until replaced.
  • The Media Council of Kenya, not the Communications Authority, sets media standards under Article 34(5).
  • Legitimate expectation cannot override clear law or Constitution; a promise by an unauthorized officer is not binding.
  • The 'must-carry' rule is a fair dealing exception to copyright and does not infringe intellectual property.
  • Issue estoppel applies in constitutional matters only in the clearest cases of relitigation.

Court orders

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  1. 1.The Orders of the Court of Appeal made on the 28th of March, 2014 are hereby set aside.
  2. 2.The declaration of the Appellate Court of 28th March 2014 annulling the issuance of a BSD licence by the 1st appellant herein (CCK as it then was) to the 5th appellant herein (Pan African Network Group Kenya Limited) is hereby set aside.
  3. 3.The Order by the Court of Appeal directing the independent regulator to issue a BSD licence to the 1st 2nd and 3rd respondents herein (National Signal Networks) is hereby set aside.
  4. 4.The 1st Appellant shall, in exercise of its statutory powers, and within 90 days of the date hereof, consider the merits of applications for a BSD licence by the 1st, 2nd and 3rd respondents, and of any other local private sector actors in the broadcast industry, whether singularly or jointly.
  5. 5.The 1st appellant (CAK) shall, in exercise of its statutory powers, ensure that the BSD licence issued to the 5th appellant herein, is duly aligned to constitutional and statutory imperatives.
  6. 6.The 1st appellant (CAK), in exercise of its statutory authority, shall, in consultation with all the parties to this suit, set the time-lines for the digital migration, pending the international Analogue Switch-off Date of 17th June, 2015.
  7. 7.Upon the course of action directed in the foregoing Orders (d & e) being concluded, the 1st appellant (CAK) shall notify the Court through the Registry; and the Registrar shall schedule this matter for mention, on the basis of priority, before a full Bench.
  8. 8.This Judgment shall be transmitted to the Clerks of the National Assembly and Senate by the Registrar of the Court.

The bench

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Judges wrote separately. A dissent does not bind; a concurrence may narrow the ratio.

majority

Wrote the judgment

concurring

Wrote the judgment

The concurring judgment agrees with the main judgment's conclusion but provides a separate analysis on the nature of media freedom under Article 34, the separation of content provision and signal distribution, and the application of Article 47 on fair administrative action to the licensing process.

Upon careful consideration of the main judgment, I hereby put forth my humble opinion on certain pertinent issues in the appeal, as seen through different eyes. These views shall not change the observations made in the main judgment, which is to say that the conclusion will remain unchanged.
majority
majority
majority
Smokin Charles Wanjala
S. C. WanjalaSCJ
Currently serving
majority
Njoki Susanna Ndungu
S. N. NdunguSCJ
Currently serving
majority
On appeal from
Court of Appeal at Nairobi
Civil Appeal No. 4 of 2014
Jurisdiction invoked
Article 163(4)(a) of the Constitution
Consolidated with
Petition No. 14A of 2014, Petition No. 14B of 2014, Petition No. 14C of 2014

Relief refused

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The Court of Appeal's order directing the independent regulator to issue a BSD licence to the 1st, 2nd and 3rd respondents without going through the tendering process.

The order lacked a foundation in law as it contradicted Article 227 of the Constitution and the Public Procurement and Disposal Act. There cannot be a legitimate expectation for a grant of a licence without adherence to statutory or constitutional provisions.

The Court of Appeal's declaration that the BSD licence issued to Pan African Network Group Kenya Limited was null and void.

The Supreme Court set aside this declaration, finding that the CCK was not unconstitutional and its actions, including the issuance of the licence, were not void.

Costs

Each Party shall bear its own costs at the High Court, Court of Appeal and the Supreme Court.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

The Orders of the Court of Appeal made on the 28th of March, 2014 are hereby set aside.
p. 83 Final Orders - Setting Aside of Court of Appeal Decision
The declaration of the Appellate Court of 28th March 2014 annulling the issuance of a BSD licence by the 1st appellant herein (CCK as it then was) to the 5th appellant herein (Pan African Network Group Kenya Limited) is hereby set aside.
p. 83 Final Orders - Reinstatement of BSD Licence to 5th Appellant
The Order by the Court of Appeal directing the independent regulator to issue a BSD licence to the 1st 2nd and 3rd respondents herein (National Signal Networks) is hereby set aside.
p. 83 Final Orders - Setting Aside of Order to Issue Licence to Respondents
The 1st Appellant shall, in exercise of its statutory powers, and within 90 days of the date hereof, consider the merits of applications for a BSD licence by the 1st, 2nd and 3rd respondents, and of any other local private sector actors in the broadcast industry, whether singularly or jointly.
p. 83 Final Orders - Direction to CAK to Consider Licence Applications
Each Party shall bear its own costs at the High Court, Court of Appeal and the Supreme Court.
p. 83 Costs Order
Hence it is our conclusion that, CCK was not only legally mandated to regulate airwaves and licensing under the 1998 and 2009 Acts, but also, the promulgation of the Constitution of 2010 did not render its actions immediately unconstitutional.
p. 46 Constitutionality of CCK
It is clear from the two statutes that the body contemplated by Article 34(5) of the Constitution is the Media Council of Kenya, and not the successor to the CCK.
p. 40 Body under Article 34(5) - Media Council of Kenya
There cannot be a legitimate expectation against clear provisions of the law or the Constitution.
p. 57 Legitimate Expectation Cannot Override Law
We would hold that the 'must-carry' rule which required the appellants to carry the signals of the 1st, 2nd and 3rd respondents, is by no means inconsistent with the requirement of fairness.
p. 53 Must-Carry Rule and Fair Dealing
We thus conclude that issue estoppel is applicable to this case, with regard to the question as to whether the 1st, 2nd and 3rd respondents should have been issued with a BSD licence.
p. 67 Application of Issue Estoppel

Key timeline

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28 March 2014
Court of Appeal issued orders annulling a BSD licence and directing CCK to issue a licence to Royal Media Services.
2014
Supreme Court set aside the Court of Appeal orders and directed CCK to reconsider all BSD licence applications within 90 days.
17 June 2015
International analogue switch-off date referenced in the Supreme Court's orders for digital migration.

Practical implications

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For lawyers

Licensing and legitimate expectation after Constitution

The Supreme Court clarified that the Communications Authority retains licensing powers under existing statutes until new legislation. Lawyers should advise clients that legitimate expectation claims require a lawful promise from the actual licensing authority, not general policy statements. The 'must-carry' rule is constitutionally valid, so broadcasters must comply.

For businesses

Broadcast licensing and must-carry compliance

Businesses in broadcasting and signal distribution must note that the 'must-carry' rule is enforceable. The Court upheld it as a fair dealing exception. Companies should ensure their distribution agreements include carriage of local channels as required. Also, the regulator must reconsider licence applications within 90 days, so businesses should engage proactively.

For individuals

Your rights to diverse local TV channels

The 'must-carry' rule ensures that signal distributors carry a minimum number of Kenyan channels, protecting access to local content. Individuals benefit from diverse broadcasting. The ruling also means the regulator continues to operate under existing laws, so consumer complaints about licensing or signal distribution can still be directed to the Communications Authority.

Frequently asked questions

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What did the Supreme Court decide in the Royal Media Services case in Kenya?+

The Supreme Court ruled that the Communications Authority could continue licensing broadcasters after the 2010 Constitution. It set aside orders that would have forced the regulator to issue a licence to Royal Media Services, and instead directed it to reconsider all applications fairly.

Is the 'must-carry' rule legal in Kenya?+

Yes, the Supreme Court upheld the 'must-carry' rule requiring signal distributors to carry local Kenyan channels. The Court said it does not violate copyright because it falls under fair dealing, and it promotes access to diverse local content.

Can a government promise give you a right to a broadcasting licence in Kenya?+

No. The Court said a legitimate expectation must be based on a clear promise by an official with lawful authority. A promise by a Permanent Secretary who has no role in licensing cannot create a legal right to a licence.

What is the role of the Communications Authority of Kenya after the 2010 Constitution?+

The Supreme Court confirmed that the Communications Authority (formerly CCK) continues to regulate broadcasting and issue licences under existing laws until Parliament enacts new legislation. The Media Council of Kenya handles media standards, not licensing.

Later judgments citing this (25)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Communications Commission of Kenya & 5 others v Royal Media Services Ltd & 5 others", Case Analysis (2014). Petition 14, 14A, 14B & 14C of 2014 (Consolidated). Source: https://new.kenyalaw.orghttps://new.kenyalaw.org/akn/ke/judgment/kesc/2014/53/eng@2014-09-29

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.