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Court of AppealDismissedNot stated in judgment

Cabinet Secretary, Ministry of Labour and Social Protection & 2 others v Central Organisation of Trade Unions [2019] KECA 937 (KLR)

Court of Appeal
22 February 2019
1,830 words in judgment
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The bottom line

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Kenya's Court of Appeal refused to halt orders restricting NSSF Board meetings because the government failed to prove the appeal would be pointless without a stay.

What this practically means

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Executive summary

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The Cabinet Secretary for Labour, the Attorney General and the National Social Security Fund applied to the Court of Appeal under Rule 5(2)(b) for a stay of execution of orders made by the Employment and Labour Relations Court (Makau, J.) on 17th January 2018. Those orders had granted leave to the Central Organization of Trade Unions (COTU) to commence judicial review proceedings and, after an interpartes hearing, directed that leave operate as a stay of all future NSSF Board and committee meetings pending determination of the suit or the gazettement of COTU's nominee, Francis Atwoli, whichever came first. The applicants argued that the appeal was arguable, that the Board had been wrongly restrained despite quorum compliance, and that the Cabinet Secretary had already forwarded the gazette notice for publication. The Court restated the settled twin principles for Rule 5(2)(b) applications: an applicant must demonstrate an arguable appeal and that the appeal would be rendered nugatory absent stay. The Court accepted the appeal was arguable, finding bona fide grounds on jurisdiction and orders issued against the Board as an interested party. However, on the nugatory limb, the Court found the applicants' affidavits did not establish a prima facie case that the impugned orders would irreparably affect the essential core of the Board's functions; future deliberations could cure any pending exercises, and the applicants could return to the trial court. Having failed on one of the twin limbs, the application was dismissed with costs. Each case under Rule 5(2)(b) turns on its own facts and the conflicting claims of both sides.

Questions the Court framed

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

  1. 1.Whether the intended appeal is arguable
  2. 2.Whether, absent a stay, the intended appeal would be rendered nugatory

Key legal issues

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01

Twin principles for stay under Rule 5(2)(b)

Holding

An applicant must demonstrate an arguable appeal and that the appeal will be rendered nugatory absent stay; satisfying only one limb is insufficient

Reasoning

The Court restated the settled principles from Stanley Kangethe Kinyanjui v Tony Ketter, confirming that arguability requires only one bona fide arguable ground, while nugatory-ness requires proof that what is sought to be stayed is irreversible or not compensable in damages. Both limbs must be satisfied. The applicants satisfied the arguability limb but failed on the nugatory limb.

p. 2
02

Nugatory-ness assessed on facts and conflicting claims

Holding

Whether an appeal is rendered nugatory depends on whether the effect of the stay order is reversible or compensable in damages, judged case by case and against both sides' claims

Reasoning

Relying on Reliance Bank v Norlake Investments and Sicpa Securities, the Court held the applicants' generalized averments about board paralysis did not establish irreparable harm to the essential core of the Board's functions. Future deliberations could cure pending exercises of functions, and the applicants could return to the trial court for interpartes hearing.

p. 3

Legal principles established

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  • An applicant under Rule 5(2)(b) must satisfy both limbs - arguability and nugatory-ness - and failure on either limb defeats the application

Court orders

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  1. 1.Dismissal of the notice of motion dated 27th November 2018 seeking stay of execution
  2. 2.Costs of the application awarded to the respondent

The bench

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One judgment of the whole court — no separate or dissenting opinions.

Mohamed Abdulahi Warsame
M. WarsameJA
Currently serving
majority

Wrote the judgment

majority

Wrote the judgment

majority

Wrote the judgment

On appeal from
Employment and Labour Relations Court at Nairobi
Not stated in judgment
Jurisdiction invoked
Sections 3, 3A and 3B of the Appellate Jurisdiction Act; Section 8 of the Law Reform Act; Rule 5(2)(b) of the Court of Appeal Rules

Relief refused

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Stay of execution of the ELRC order of 17th January 2018 pending the intended appeal

Applicants failed to establish that the appeal would be rendered nugatory absent a stay

p. 3

Costs

Application dismissed with costs to the respondent.

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 applicants, having failed to satisfy us on the nugatory aspect, we find that this application lacks merit and must fail and is dismissed with costs.
p. 3Disposition
An arguable appeal is not one which must necessarily succeed, but one which ought to be argued fully before the Court; one which is not frivolous.
p. 2Arguability standard
the applicants have still not established a prima facie case that the state of affairs created by the orders of the Court will irreparably affect or negate the very essential core of the functions of the Board
p. 3Failure to establish nugatory-ness

Issues in the judgment

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minor

Citation year of Reliance Bank Ltd v Norlake Investments appears misprinted as '[200] 1 EA 227'

minor

Paragraph numbering jumps from 16 to 18; paragraph 17 is absent from the judgment text

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, "Cabinet Secretary, Ministry of Labour and Social Protection & 2 others v Central Organisation of Trade Unions [2019] KECA 937 (KLR)", Case Analysis (2019). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/937/eng@2019-02-22

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