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Court of AppealPartially AllowedCivil Appeal No. 271 of 2012· [2017] KECA 338 (KLR)

Attorney General & another v Crispinus Ngayo Musundi [2017] KECA 338 (KLR)

Court of Appeal
22 September 2017
2,635 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 ruled that a dismissed public officer's right to be heard can be met through written responses, upholding dismissal and cancelling terminal benefits.

What this practically means

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Executive summary

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This was a first appeal by the Attorney General and the Public Service Commission against an award of the former Industrial Court (Mukunya, J.) dated 1st July 2011, which had found that Crispinus Ngayo Musundi, a District Accountant dismissed for gross misconduct following financial irregularities at Lugari District Treasury, was wrongfully terminated because he was denied an oral hearing. The trial court substituted summary dismissal with normal termination and awarded terminal benefits of Kshs. 875,235/= plus three months' salary. The Court of Appeal allowed the appeal. It held that the respondent was informed of the charges through the Accountant General's letter of 19th January 2004 and was given repeated opportunities to respond in writing, including to a show-cause notice and on appeal. Relying on R v Immigration Appeal Tribunal ex-parte Jones and Kenya Revenue Authority v Murgani, the court held that the right to be heard under the rules of natural justice need not be oral and may be satisfied by written representation, provided basic fairness procedures are complied with. The dismissal was proportionate to the misconduct, which the respondent conceded on cross-examination, and conformed to the then-applicable Public Service Commission Regulations made under the repealed Service Commissions Act; the Employment Act, 2007 did not apply as it commenced after the dismissal. Under Regulation 28 of the Regulations, a dismissed officer forfeits pension and terminal benefits. The impugned judgment was set aside and the respondent's claim dismissed, with each party bearing its own costs in the appeal and the court below.

Key legal issues

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01

Whether natural justice required an oral hearing before dismissal of a public officer

Holding

No. The right to be heard may be satisfied through written representation; whether an oral hearing is necessary depends on the subject matter, circumstances and nature of the decision, and the respondent was given ample opportunity to respond in writing at every stage.

Reasoning

Relying on R v Immigration Appeal Tribunal ex-parte Jones and the Court of Appeal's earlier decision in Kenya Revenue Authority v Murgani, the court held that decision-making bodies are masters of their own procedure provided they achieve the fairness appropriate to their task. The respondent was furnished with the charges, invited to respond in writing, given 21 days to show cause, and his appeal was considered.

p. 4
02

Whether the respondent was informed of the charges against him

Holding

Yes. The letter dated 19th January 2004 clearly set out the charge of financial mismanagement at Lugari District Treasury with particulars, defeating the claim that he was not informed of the charges.

Reasoning

The court found on the evidence that the Accountant General's letter of 19th January 2004 set out the charge and its details, and the respondent responded in detail to each allegation by his letter of 19th February 2004. The claim of non-notification therefore had to fail.

p. 4
03

Whether the dismissal for gross misconduct was wrongful

Holding

No. The respondent conceded financial irregularities during his tenure at Lugari District Treasury, and dismissal was proportionate to conduct that caused a total breakdown of the employment relationship.

Reasoning

Applying the contextual test from McKinley v B.C. Tel and Dowling v Workplace Safety and Insurance Board, misconduct warranting dismissal is that which strikes at the heart of the employment relationship. The respondent's concession on cross-examination established the misconduct, and the disciplinary procedure followed the applicable Public Service Commission Regulations made under the Service Commissions Act.

p. 5
04

Whether the respondent was entitled to terminal benefits

Holding

No. Regulation 28 of the Public Service Commission Regulations, 2005 (repealed) provides that a dismissed public officer forfeits all rights to pension, gratuity, allowance or other retiring award.

Reasoning

Since the dismissal was justified and not wrongful, the trial court's award of terminal benefits aggregating Kshs. 875,235/= had no legal basis. The forfeiture provision applied to a public officer dismissed from service.

p. 5
05

Whether the Employment Act, 2007 applied to the dismissal

Holding

No. The Act commenced on 2nd June 2008, after the dismissal, and was not applicable to a cause of action arising earlier; the applicable procedure was the Public Service Commission Regulations made under the Service Commissions Act (both repealed).

Reasoning

The court accepted, consistent with the respondent's own concession, that the Employment Act, 2007 was not in force at the time of dismissal, and that the disciplinary procedure adopted by the Commission conformed to the then-applicable regulations.

p. 5

Legal principles established

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  • The right to be heard under the rules of natural justice need not be by oral hearing; written representation satisfies the audi alteram partem rule provided basic fairness procedures are complied with
  • On a first appeal, the Court of Appeal must revisit and analyse the evidence afresh and reach its own independent conclusion, bearing in mind it did not see or hear the witnesses

Court orders

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  1. 1.Appeal allowed
  2. 2.Impugned judgment of the Industrial Court dated 1st July 2011 set aside
  3. 3.Respondent's claim filed before the Industrial Court on 19th March 2009 dismissed
  4. 4.Each party to bear its own costs both in the appeal and in the court below

Authorities

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Legislation

  • Constitution of Kenyaright to fair hearing (invoked via natural justice argument)
  • Service Commissions Act (repealed)generally
  • Public Service Commission Regulations (repealed)Regulation 29(1)
  • Public Service Commission Regulations, 2005 (repealed)Regulation 28
  • Employment Act, 2007generally (commencement 2nd June 2008)
  • Legal Notice No. 32 of 1998removal of requirement for oral hearings at the Public Service Commission

Cases cited (8)

  • Seascape Ltd vs. Development Finance Company of Kenya Ltd
    [2009] KLR 384
  • Michael Dowling vs. Workplace Safety and Insurance Board
    [2004] CAN LII 436
  • Nampak Corrugated Wadeville vs. Khoza
    (JA 14/98) [1998] ZALAC 24
  • Onyango vs. Attorney General
    [1986-1989] EA 456
  • Ridge vs. Baldwin
    [1964] AC 40
  • R vs. Immigration Appeal Tribunal ex-parte Jones
    [1988] I WLR 477
  • Kenya Revenue Authority vs. Menginya Salim Murgani
    [2010] eKLR
  • Mc Kinley vs. B.C. Tel
    [2001] 2 S.C.R 161
On appeal from
Industrial Court of Kenya (now Employment and Labour Relations Court)
Industrial Cause No. 120 (N) of 2009
Jurisdiction invoked
First appeal to the Court of Appeal under its appellate jurisdiction (Constitution and Appellate jurisdiction Act framework invoked implicitly; judgment frames the appeal as a first appeal requiring fresh evaluation of evidence)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (6)

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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, "Attorney General & another v Crispinus Ngayo Musundi [2017] KECA 338 (KLR)", Case Analysis (2017). Civil Appeal No. 271 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2017/338/eng@2017-09-22

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