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Court of AppealPartially AllowedCivil Application No. E329 of 2021 (Rule 5(2)(b) Motion)· [2021] KECA 38 (KLR)

Attorney General v Katiba Institute & 2 others (Civil Application E184 of 2021) [2021] KECA 38 (KLR)

Court of Appeal of Kenya
23 September 2021
2,837 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal paused a High Court ruling that invalidated state corporation board appointments, keeping the old legal regime in force while the appeal is decided.

What this practically means

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Executive summary

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This is a single-judgment, unanimous interlocutory ruling of a three-judge bench of the Court of Appeal in Nairobi, delivered on 23rd September 2021 by Asike-Makhandia, Nyamweya and Mumbi-Ngugi JJ.A. The Attorney General, as applicant, moved the Court under Rule 5(2)(b) of the Court of Appeal Rules seeking stay of execution of a High Court judgment of 27th May 2021 which had declared unconstitutional the presidential and cabinet appointments of chairpersons and board members of numerous state corporations notified in Gazette Notices 5569-5623 of June 2018, and had declared that such appointments fell within the mandate of the Public Service Commission. Applying the settled Rule 5(2)(b) test - arguability and nugatory-ness - the Court found the first limb satisfied, noting that even one arguable ground suffices and that the respondents had conceded arguability. On the second limb, it accepted unchallenged evidence that the nullification of the appointments had paralysed the affected corporations through lack of quorum, left employees unpaid and created a lacuna curable only by Parliament. Applying the Supreme Court's public-interest reasoning in Gatirau Peter Munya v. Dickson Mwenda Kithinji, the Court held that the resulting limbo was contrary to the public interest and that the appeal would be rendered nugatory absent stay. It rejected the respondents' arguments that the declaratory judgment was incapable of execution and that any stay should be conditional on competitive re-appointment. The Court granted a suspension and stay of the judgment and decree pending the appeal, and ordered that the impugned statutory provisions continue in force pending the appeal. Costs were made to abide the outcome of the appeal. The ruling does not disturb the High Court judgment; it preserves it pending the substantive appeal.

Key legal issues

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01

Arguability of the intended appeal

Holding

The intended appeal was arguable; the respondents themselves conceded this and the applicant's grounds on the interpretation of Articles 10 and 232 were not idle.

Reasoning

The court restated the Rule 5(2)(b) test from Stanley Kang'ethe Kinyanjui v. Tony Ketter and the single-ground principle from Silverstein v. Chesoni and University of Nairobi v. Ricatti. Since even one arguable ground suffices and the respondents conceded arguability, the first limb was readily met.

p. 4
02

Whether the appeal would be rendered nugatory absent stay, including the public interest dimension

Holding

The appeal would be rendered nugatory without stay because the nullification of the appointments paralysed state corporations, left employees unpaid and created a legal lacuna that only Parliament could cure, a situation contrary to the public interest.

Reasoning

The court accepted, uncontested, that boards lacked quorum under section 81(e) and (f) of the State Corporations Act, salaries were unpaid, and no new appointments could be made until Parliament amended the impugned statutes. Applying the Supreme Court's public-interest reasoning in Gatirau Peter Munya, it held the resultant limbo was not in the public interest and that execution of the judgment was nonetheless possible.

p. 5
03

Whether the High Court judgment was incapable of execution for want of a positive order

Holding

The respondents' contention that the declaratory judgment was incapable of execution was rejected; the declarations had practical consequences that the stay could preserve.

Reasoning

The court held that although the judgment was declaratory, its effect - halting board operations and invalidating the enabling statutory provisions - was real and executable. It therefore rejected the argument that no order capable of being stayed existed, noting the employees' hardship and institutional paralysis resulting from the declarations.

p. 5

Legal principles established

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  • An applicant for stay under Rule 5(2)(b) must demonstrate that the appeal is arguable and that it will be rendered nugatory in the absence of stay.
  • A single arguable ground suffices to satisfy the arguability limb; it need not be a ground that must succeed, only one that merits full argument.
  • Public interest is a legitimate consideration in the nugatory-ness assessment where a judgment paralyses operations of state corporations providing essential services.

Court orders

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  1. 1.Suspension and stay of execution of the judgment and decree of the High Court pending the hearing and determination of the appeal
  2. 2.Status quo to be maintained such that the impugned sections and provisions of the Acts specified in Paragraph 122(b) of the High Court judgment of 27th May 2021 continue to be in force and to operate pending the appeal
  3. 3.Costs of the application to abide the outcome of the appeal

Authorities

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Legislation

  • Constitution of KenyaArticle 10(2)(c)
  • Constitution of KenyaArticle 27(3)
  • Constitution of KenyaArticle 232(2)(g)-(i)
  • Constitution of KenyaArticle 234(2)(a)(ii)
  • Constitution of KenyaArticle 234(3) and (4)
  • Constitution of KenyaArticles 2(1), 2(2), 3(1), 249 and 38
  • Constitution of KenyaSection 7 of the Sixth Schedule
  • Public Officer Ethics ActSection 22
  • Public Service (Values and Principles) ActSection 10
  • State Corporations ActSection 81(e) and (f)
  • Court of Appeal RulesRule 5(2)(b)
  • Court of Appeal RulesRule 75

Cases cited (9)

  • National Bank of Kenya Limited v. Geoffrey Wahome Muotia
  • Gatirau Peter Munya v. Dickson Mwenda Kithinji & 2 others
  • Republic v. Oakes
  • Lake Victoria South Water Services Board v. Seline Akoth Oyiengo
  • Raphael Kakenei Muloki & another v. Cabinet Secretary of Lands & 2 others
  • Safaricom Ltd. v. Ocean View Beach Hotel Ltd & 2 Others
  • Stanley Kang'ethe Kinyanjui v. Tony Ketter & 5 Others
  • Silverstein v. Chesoni
  • University of Nairobi v. Ricatti Business of East Africa
On appeal from
High Court of Kenya, Constitutional & Human Rights Division
Petition challenging Gazette Notices 5569-5621 and 5622-5623 of 5th and 7th June 2018
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules, founded on a notice of appeal filed under Rule 75 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, "Attorney General v Katiba Institute & 2 others (Civil Application E184 of 2021) [2021] KECA 38 (KLR)", Case Analysis (2021). Civil Application No. E329 of 2021 (Rule 5(2)(b) Motion). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/38/eng@2021-09-23

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