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Court of AppealPartially AllowedCivil Application No. SUP. 167 of 2018 (UR 136/2018)

SGS Kenya Limited v Energy Regulatory Commission & 2 others [2018] KECA 39 (KLR)

Court of Appeal
19 December 2018
4,649 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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Kenya's Court of Appeal allowed SGS Kenya to take a tribunal precedent question to the Supreme Court, but refused to halt the tender process while that appeal proceeds.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Nairobi (Githinji, Sichale and Otieno-Odek, JJA) on a twin application by SGS Kenya Limited for certification and leave to appeal to the Supreme Court, and for stay of the Court's judgment of 11th May 2018 in Civil Appeal No. 341 of 2017, which had set aside a High Court judicial review decision quashing the Review Board's dismissal of SGS's procurement review. The dispute arose from the termination and re-tendering of an ERC tender for marking and monitoring petroleum products. SGS proposed two questions of general public importance: whether tribunals such as the Public Procurement Administrative Review Board are bound by their prior decisions under stare decisis, and whether a quasi-judicial body's unexplained departure from its own precedent is irrational. The Court applied the Hermanus Phillipus Steyn and KPAWU tests for certification. It declined to certify the Article 47/Fair Administrative Action Act argument because those provisions were never litigated below, holding that unlitigated issues cannot transmogrify into matters of general public importance. However, on the narrow stare decisis questions, it found the issues debatable, novel and transcending the parties' private interests, and granted certification and leave to appeal to the Supreme Court. On stay, the Court held that after delivering final judgment it is functus officio and lacks jurisdiction to stay its own judgment; the proper forum is the Supreme Court. It also noted the second stay limb targeted a different tender number from that litigated. The application partially succeeded: leave granted, stay refused, and each party to bear its own costs.

Key legal issues

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01

Whether certification and leave to appeal to the Supreme Court should be granted on the two questions concerning the doctrine of precedent and quasi-judicial tribunals

Holding

Certification granted. The question whether tribunals such as the Public Procurement Administrative Review Board are bound by their prior decisions, and whether failure to give reasons for departing from them is irrational, are matters of general public importance transcending the parties' interests and fit for the Supreme Court.

Reasoning

Applying the Steyn and KPAWU principles, the Court found the issues transcend the particular case and bear on the public interest. It noted that whether tribunals are bound by stare decisis is debatable and unsettled in Kenya. Although the issue of Article 47 could not be certified because it was never litigated below, the two narrow questions identified by the applicant were properly before the Court and befit the Supreme Court's determination.

p. 5
02

Whether the Court of Appeal can stay its own judgment pending an intended appeal to the Supreme Court

Holding

It cannot. Once the Court of Appeal delivers final judgment it becomes functus officio, absent statutory authority; the proper forum for stay is the Supreme Court.

Reasoning

The Court relied on its own decision in Dickson Muricho Muriuki, reasoning that the functus officio principle is grounded on public policy favouring finality of proceedings. It also noted the second stay limb was flawed in targeting a different tender number from that litigated, and that an appellate court has no original jurisdiction to stay a tender award.

p. 5
03

Whether Article 163(4) jurisdiction of the Supreme Court may be founded on Article 47 and the Fair Administrative Action Act where those provisions were never litigated below

Holding

No. The mere clothing of an intended appeal as a question of constitutional interpretation or application does not confer jurisdiction; issues not canvassed in the courts below cannot ground a Supreme Court appeal.

Reasoning

The Court observed that Article 47 and the Fair Administrative Action Act were not subjects of interpretation or litigation before the High Court or Court of Appeal, citing Peter Oduor Ngoge and Hassan Ali Joho on the requirement that issues undergo examination in all lower courts, and Rutongot Farm on the limits of constitutional clothing.

p. 4

Legal principles established

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  • After the Court of Appeal pronounces final judgment it is functus officio and has no jurisdiction to stay its own judgment pending certification and an intended appeal to the Supreme Court; any such application for stay must be made to the Supreme Court.
  • An issue that was neither canvassed before nor determined by the High Court or the Court of Appeal cannot become a matter of general public importance warranting the Supreme Court's appellate jurisdiction under Article 163(4)(b).

Court orders

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  1. 1.Leave granted to the applicant to move to the Supreme Court in the intended appeal against the judgment of the Court of Appeal in Civil Appeal No. 341 of 2017 delivered on 11th May 2018, specifically on the two certified questions
  2. 2.No stay order granted; both limbs of the stay application declined
  3. 3.Each party to bear its own costs in this application
On appeal from
High Court
Jurisdiction invoked
Article 163(4)(b) of the Constitution (certification and leave to appeal to the Supreme Court); inherent/appellate jurisdiction of the Court of Appeal over stay of its own 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, "SGS Kenya Limited v Energy Regulatory Commission & 2 others [2018] KECA 39 (KLR)", Case Analysis (2018). Civil Application No. SUP. 167 of 2018 (UR 136/2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2018/39/eng@2018-12-19

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