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Court of AppealDismissedCivil Appeal 157 of 2009· [2016] KECA 842 (KLR)

Mwau v Mullei & 3 others

Court of Appeal
23 September 2016
8,453 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~34 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that a mere recommendation cannot be quashed, parliamentary speech is absolutely protected, and defamation belongs in ordinary suits, not judicial review.

What this practically means

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Executive summary

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John Harun Mwau appealed against the dismissal by Wendoh, J. of his judicial review application seeking mandamus, certiorari and prohibition against the Governor of the Central Bank, the Central Bank of Kenya, the Minister for Finance and the Clerk to the National Assembly. His grievance was that reports and letters linked him to Charterhouse Bank, tax evasion and criminal offences, and that he was never heard or shown the reports. The Court of Appeal (GBM Kariuki, Asike-Makhandia and Otieno-Odek, JJA) dismissed the appeal in a single unanimous judgment. It affirmed the trial court on every ground. It held that the letter of 20th March 2006 from the Governor to the Minister contained only a recommendation, not a decision, and so was not quashable by certiorari; that no inspection report was ever produced before the trial court; that claims founded on character and reputation are private-law defamation matters for which judicial review is inappropriate; that Sections 4, 12, 19 and 29 of the National Assembly (Powers and Privileges) Act confer absolute privilege over parliamentary proceedings, barring orders to quash them or compel production of Hansard; that Section 31(5) of the Banking Act insulated the respondents from liability for confidential communications received in discharge of their functions, the letter having entered the public domain through production in a criminal case; and that the appellant failed to identify any statutory power exceeded by the respondents. The trial court's erroneous reference to counsel's presence in a criminal case was held not to be the ratio of its decision and to have caused no prejudice. The appeal was dismissed with costs.

Key legal issues

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01

Whether the letter of 20th March 2006 contained a quashable decision

Holding

The letter contained only a recommendation; no decision existed capable of being quashed by certiorari

Reasoning

The court analysed the letter's contents, which recommended inspection of Charterhouse Bank and withdrawal of its licence. It held that a recommendation means a decision is yet to be made; the decision maker may or may not act on it. Until acted upon, there is no decision capable of being quashed. The letter therefore did not satisfy the requirement of an identifiable decision under Order 53 Rule 7.

p. 8
02

Parliamentary privilege and judicial review

Holding

Sections 4, 12, 19 and 29 of the National Assembly (Powers and Privileges) Act confer absolute privilege; courts cannot quash parliamentary proceedings or compel production of Hansard without leave

Reasoning

The court examined the statutory provisions and held that freedom of speech and debate in Parliament is the single most important parliamentary privilege, tied to parliamentary sovereignty and separation of powers. It found no exception for reckless or dishonourable conduct, and held that a person wronged by parliamentary proceedings cannot apply for judicial review except where an Act of Parliament is unconstitutional.

p. 10
03

Reputation claims and the proper forum

Holding

Claims founded on character and reputation are private-law defamation matters; judicial review is inappropriate

Reasoning

The court held that the law of libel and slander provides adequate and effective remedies in private law, and judicial review remedies are not the primary remedies in a suit founded on defamation. The appellant's grievance on reputation was therefore before a wrong forum and outside the scope of judicial review, consistent with the public-law/private-law distinction drawn in the cited authorities.

p. 9
04

Confidentiality of Central Bank inspection information

Holding

Section 32(2)(c) protects inspection information as confidential, and Section 31(5) insulates the respondents from liability for good-faith disclosure

Reasoning

Applying breach-of-confidence principles from Coco v Clark and the limitations in Attorney General v Observer Ltd, the court held the appellant supplied no information and so could not assert breach of confidence. The production of the letter by court order in the criminal case put it in the public domain, and the public interest favoured disclosure. Section 31(5) further insulated the respondents from liability.

p. 12
05

Ultra vires and breach of statutory duty

Holding

The appellant failed to demonstrate that the respondents acted in excess of their statutory powers under Section 3 of the Central Bank Act and Section 32 of the Banking Act

Reasoning

The court held that a claimant alleging ultra vires conduct must identify the nature and extent of the statutory power conferred and prove the act complained of exceeds it. The respondents' powers to investigate banks were conferred by statute; the appellant failed to show that their actions were unauthorised by those provisions, so the trial court's finding was affirmed.

p. 13
06

Speculation and malice against the trial court

Holding

The trial court's factually incorrect reference to counsel's presence in the criminal case was not the ratio of its decision and caused no prejudice

Reasoning

The court noted that counsel's presence or absence in the criminal case was never a ground urged in the judicial review application. The incorrect statement was not the ratio decidendi of the dismissal, and the appellant failed to show any prejudice. Courts do not litigate on speculation or apprehension, and the respondents were not the publishers of the press articles.

p. 14

Legal principles established

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  • A distinction exists between a recommendation and a decision; a recommendation not acted upon is not a decision capable of being quashed by certiorari
  • Parliamentary proceedings are absolutely privileged and cannot be questioned or reviewed by courts absent an exception such as unconstitutionality
  • Judicial review remedies are inappropriate in claims founded on defamation; character and reputation are private-law matters
  • Section 31(5) of the Banking Act insulates the Central Bank and its officers from liability for good-faith disclosure of confidential information received in discharge of their functions
  • To succeed in an action for breach of statutory duty or ultra vires, the claimant must identify the specific statutory duty or power violated

Court orders

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  1. 1.The appeal is dismissed with costs

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 22(1) and (2)
  • Civil Procedure Act and RulesOrder 53 Rule 7
  • National Assembly (Powers and Privileges) Act, Cap 6Sections 4, 12, 19(1), 29
  • Banking Act, Cap 488Sections 31(5), 32(1), 32(2)(c)
  • Central Bank of Kenya Act, Cap 491Section 3

Cases cited (13)

  • Selle v Associated Motor Boat Co.
    [1968] EA 123

    Duty of a first appellate court to analyse and re-assess evidence and reach its own conclusions

  • Jabane v Olenja
    [1986] KLR 661

    Appellate court will not lightly differ from trial judge's findings of fact

  • Ephantus Mwangi v Duncan Mwangi Wambugu
    (1982-88) 1 KAR 278

    Interference with findings of fact only where based on no evidence

  • Mwanasokoni v Kenya Bus Services
    (1982-88) 1 KAR 870

    Same principle on appellate interference with findings of fact

  • R v Secretary of State for Transport ex parte London Borough of Richmond upon Thames No. 3
    (1995) LR 409

    Want of an identifiable decision is not fatal to a judicial review application

  • Commissioner of Lands v Kunste Hotel
    (1995-1996) 1 EA 1

    Judicial review is concerned not with private rights

  • R v British Broadcasting Corporation – Ex Parte Lavelle
    (1983) 1 WLR 1302

    Judicial review is in the purview of public law, not private law

  • R v The Judicial Commission of Inquiry into the Goldenberg Affair ex parte Saitoti
    HC Misc. App. No. 102 of 2006

    A court cannot question decisions covered by Sections 4 and 12 of the National Assembly (Powers and Privileges) Act

  • Prebble v Television New Zealand
    (1994) 3 All ER 407; [1995] 1 AC 321

    Courts will not allow challenges to what was said or done within Parliament in performance of its legislative function

  • Bwana Mohamed Bwana v Silvano Buko Bonaya
    Civil Application No. 20 of 2014 (UR)

    Courts do not speculate; courts litigate on factual issues

  • Michael Sistu Mwaura Kamau v Ethics & Anti-Corruption Commission & 3 others
    (2015) eKLR

    Proceedings before a court should not be based on speculation or apprehension

  • Coco v A. N. Clark (Engineers) Ltd
    [1969] R.P.C. 41

    Essential ingredients of the cause of action for breach of confidence

  • Attorney General v Observer Limited
    (1990) 1 AC 109

    Limitations to confidentiality: public domain, trivia, and public interest favouring disclosure

On appeal from
High Court of Kenya at Nairobi
Nairobi Miscellaneous Application No. 186 of 2006
Jurisdiction invoked
First appeal to the Court of Appeal under the Constitution and applicable appellate statute (not expressly stated in the judgment)

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, "Mwau v Mullei & 3 others", Case Analysis (2016). Civil Appeal 157 of 2009. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2016/842/eng@2016-09-23

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