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Court of AppealAllowedCivil Application No. 189 of 2020· [2020] KECA 421 (KLR)

Youth Enterprise Development Fund Board & another v Moriasi Arabu Josiah [2020] KECA 421 (KLR)

Court of Appeal
7 August 2020
1,503 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 contempt proceedings against Youth Fund officials, ruling that appeals shouldn't be worthless when punishment looms.

What this practically means

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Executive summary

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This is a single-judgment ruling of the Court of Appeal at Nairobi (Ouko, P., J. Mohammed and S. ole Kantai, JJ.A.) on a Notice of Motion dated 29th June 2020 brought under rule 5(2)(b) of the Court of Appeal Rules by the Youth Enterprise Development Fund Board and its Chairman, seeking stay of execution and proceedings pending an intended appeal against a ruling of Wasilwa, J. of the Employment and Labour Relations Court delivered on 25th June 2020 in ELRC Petition No. 65 of 2020. The dispute concerned whether the respondent was entitled to be retained as Chief Executive Officer of the Board after his three-year fixed-term contract had, according to the applicants, lapsed by effluxion of time; the ELRC had ordered stay of the termination on 4th May 2020 and later expanded its orders. The respondent threatened contempt proceedings, and the applicants faced imminent punishment. Applying the twin principles from Stanley Kargethe Kinyanjui v Tony Ketter - arguability and nugatory-ness - the court found two arguable grounds in the draft memorandum and held that imminent penal consequences for contempt rendered the appeal nugatory absent stay, drawing on Dr. Christopher Ndarathi Murungaru v KACC and distinguishing the purely civil approach in Silverstein v Chesoni. The court also indicated that the public interest forms part of the second limb under the liberal thinking of the Constitution of Kenya, 2010. The Motion was allowed: execution of the 25th June 2020 ruling and all consequential orders was stayed pending the intended appeal, with costs of the Motion in the intended appeal. The decision binds subordinate courts and tribunals on the rule 5(2)(b) principles.

Key legal issues

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01

Whether the intended appeal was arguable

Holding

Yes - the draft memorandum raised arguable points, including whether the contract lapsed by effluxion of time and whether the judge expanded the 4th May 2020 order without hearing the applicants; one arguable point suffices.

Reasoning

The court perused the draft memorandum of appeal and identified two proposed grounds: that the judge erred in finding termination rather than lapse of a fixed-term contract, and that the judge varied the earlier order without giving the applicants a hearing. It reiterated that a single bona fide arguable ground, not one that must succeed, meets the threshold, and did not make definitive findings on the merits.

p. 2
02

Whether the appeal would be rendered nugatory absent stay

Holding

Yes - the applicants faced imminent contempt punishment, and penal consequences must be treated differently from purely civil matters.

Reasoning

The respondent had filed an application to cite the applicants for contempt of court and they had been summoned. Relying on the Murungaru decision, the court held that unlike purely civil matters where costs can cure an abortive hearing, penal consequences such as a fine or imprisonment cannot be reversed or compensated, so an appeal would be rendered nugatory if the applicants were punished for contempt before the appeal was heard.

p. 2

Legal principles established

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  • On an application under Rule 5(2)(b) the applicant must satisfy both twin principles: an arguable appeal and that it would be rendered nugatory absent stay; a single bona fide arguable ground suffices.
  • Matters involving penal or contempt consequences are treated differently from purely civil matters; imminent criminal sanctions render an appeal nugatory absent stay.
  • A modern liberal interpretation under the Constitution of Kenya, 2010 requires the Court to also consider the public interest as part of the second nugatory limb.

Court orders

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  1. 1.Stay of execution of the ruling delivered by the ELRC on 25th June, 2020 and all consequential orders pending hearing and determination of the intended appeal
  2. 2.Costs of the Motion to be in the intended appeal

Authorities

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Legislation

  • Constitution of Kenya
  • Court of Appeal RulesRule 5(2)(b)
  • Court of Appeal RulesRule 75

Cases cited (3)

  • Stanley Kargethe Kinyanjui v Tony Ketter & Others
    [2013] eKLR
  • Dr. Christopher Ndarathi Murungaru v Kenya Anti-Corruption Commission & Another
    [2006] eKLR
  • Silverstein v Chesoni
    [2002] KLR 867
On appeal from
Employment and Labour Relations Court of Kenya at Nairobi
Petition No. 65 of 2020
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules

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, "Youth Enterprise Development Fund Board & another v Moriasi Arabu Josiah [2020] KECA 421 (KLR)", Case Analysis (2020). Civil Application No. 189 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2020/421/eng@2020-08-07

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