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Court of AppealAllowedCivil Application No. NAI. 102 of 2015 (UR 83/2015)· [2015] KECA 522 (KLR)

Nation Media Group Limited v Kilonzo (Civil Application 102 of 2015) [2015] KECA 522 (KLR)

Court of Appeal
17 July 2015
4,093 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal paused a big employment case so judges can first decide whether a key Employment Act section used in unfair dismissal defences is constitutional.

What this practically means

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Executive summary

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This interlocutory ruling of the Court of Appeal at Nairobi (G.B.M Kariuki, J. Mohammed and Otieno-Odek JJ.A) determined a Notice of Motion dated 16th April 2015 by Nation Media Group Limited seeking a stay of further proceedings in Employment & Labour Relations Court Industrial Cause No. 2355 of 2012, brought under Rule 5(2)(b) of the Court of Appeal Rules pending Civil Appeal No. 108 of 2015. The dispute arose after Makau J dismissed the applicant's preliminary objection founded on Section 45(3) of the Employment Act, relying on Lenaola J's decision in Samuel Momanyi v SDV Transami declaring that section unconstitutional. The court found two arguable points: the constitutionality of Section 45(3) and whether a High Court declaration of unconstitutionality confers jurisdiction on the Employment & Labour Relations Court. It noted divergent views among ELRC judges on the question, and quoted the Supreme Court's Mary Wambui Munene decision on the retrospective or prospective effect of declarations of invalidity without deciding the point. On nugatory value, the court held the applicant's defence stood or fell with Section 45(3), so the appeal would be rendered nugatory without a stay. The application was allowed: further proceedings before the ELRC were stayed pending the appeal, with costs of the application to abide the appeal's outcome. The ruling does not itself determine the constitutionality of Section 45(3), which remains for the full appeal.

Key legal issues

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01

Arguability of the intended appeal on the constitutionality of Section 45(3) of the Employment Act

Holding

The intended appeal raises an arguable point of law on whether Section 45(3) is unconstitutional, notwithstanding that the applicant is not directly appealing the Lenaola J decision but the ruling of Makau J adopting it.

Reasoning

The court noted prima facie divergent views among Employment & Labour Relations Court judges on the constitutionality of Section 45(3), citing Rika J in Danish Jalango and Radido J in Mercy Njoki Karingithi. Given this diversity, the constitutionality of the section and the effect of the Momanyi declaration were at the core of the intended appeal and therefore arguable.

p. 4
02

Nugatory value and stay of further proceedings

Holding

The applicant's defence and intended appeal would be rendered nugatory if the constitutionality of Section 45(3) were not determined by an appellate court, warranting a stay of the trial proceedings.

Reasoning

The court held that the foundation and substratum of the applicant's defence was Section 45(3), so the declaration of unconstitutionality effectively removed its defence. Since the appeal's fate depended on that constitutional question, precedence had to be given to its determination, justifying a stay of the Labour Court proceedings pending appeal.

p. 6
03

Retrospective effect of a declaration of unconstitutionality (noted but not determined)

Holding

The court declined to decide the merits of retrospectivity, quoting the Supreme Court's guidance in Mary Wambui Munene that declarations of invalidity operate retrospectively from the date of inception unless limited, on a case-by-case basis.

Reasoning

To avoid pre-empting the intended appeal, the court quoted extensively from the Supreme Court decision in Mary Wambui Munene, including its reliance on South African, Indian and Irish authority, on whether declarations of unconstitutionality operate retrospectively or prospectively, leaving the question open for the full appeal.

p. 5

Legal principles established

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  • A constitutional question with the potential to abridge an individual's right or entitlement should be given precedence in hearing and determination, and an appeal whose foundation rests on such a question will be rendered nugatory if the constitutional issue is not first determined on appeal.
  • The thresholds under Rule 5(2)(b) for stay of proceedings are that the intended appeal is arguable and that, absent stay, it will be rendered nugatory.

Court orders

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  1. 1.Stay of further proceedings in Employment & Labour Relations Court Cause No. 2355 of 2012 (Onesmus Musyoki Kilonzo v Nation Media Group Limited) pending the hearing and determination of Civil Appeal No. 108 of 2015
  2. 2.Costs of the application to abide the outcome of Civil Appeal No. 108 of 2015

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 27(1)
  • Constitution of Kenya, 2010Articles 1, 10, 163, 159, 259
  • Constitution of Kenya, 2010Articles 28, 41(1), 47, 48, 50(1), 87(1)
  • Employment ActSection 45(3)
  • Court of Appeal RulesRule 5(2)(b)
  • Supreme Court Act, 2011Section 3
  • Elections ActSection 76(1)(a)

Cases cited (8)

  • Samuel Momanyi v SDV Transami & Another
    (2012) eKLR
  • Danish Jalango & another v Amicabre Travel Services Limited
    Industrial Cause No. 1068 of 2012
  • Mercy Njoki Karingithi v Emerald Hotels Resorts & Lodges Limited
    2014 eKLR
  • Mary Wambui Munene v Peter Gichuki Kingara & two others
    Supreme Court Petition No. 7 of 2014
  • Sias Moise v Transitional Local Council of Greater Germiston
    Case CCT 54/00
  • Keshavan Madhava Menon v The State of Bombay
    [1951] INSC
  • A v. The Governor of Arbour Hill Prison
    [2006] IESC 45, [2006] 4 IR 88
  • Samuel G. Momanyi v Attorney General & Another
    (2012) eKLR
On appeal from
Employment & Labour Relations Court at Nairobi
IND. C.C. No. 2355 of 2012
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules (application for stay of further proceedings pending appeal)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Nation Media Group Limited v Kilonzo (Civil Application 102 of 2015) [2015] KECA 522 (KLR)", Case Analysis (2015). Civil Application No. NAI. 102 of 2015 (UR 83/2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2015/522/eng@2015-07-17

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