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Court of AppealPartially AllowedCivil Application E020 of 2020· [2022] KECA 526 (KLR)

Kenya Bureau of Standards v Kwale International Sugar Company Ltd & 4 others

Court of Appeal
6 May 2022
1,784 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 a Kshs. 10 million judgment against the standards bureau, but only partially, pending the main appeal's outcome.

What this practically means

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Executive summary

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Kenya Bureau of Standards moved the Court of Appeal at Mombasa under Rule 5(2)(b) for stay of execution of a High Court judgment (Ogola, J., 7 November 2019) which, in a constitutional petition by Kwale International Sugar Company, declared that a multi-agency team including the Bureau had illegally raided and sealed the company's factory, warehouses and stores, violated its constitutional rights, and ordered a mandatory injunction to lift the seizures, renewal of the standardization permit, Kshs. 10,000,000.00 in compensation, compensation for 8995 bags of sugar, and costs. The 1st respondent opposed, arguing the application was res judicata and an abuse of process given the earlier dismissed Civil Application 84 of 2019, and moot because the factory had reopened and the permit renewed. The court held the earlier application had concerned a different decision - a document of 7th March 2019 held not to be a judgment in law - so this application, directed at the 7th November 2019 judgment, was neither res judicata nor abusive. On the merits, applying Stanley Kangethe Kinyanjui v Tony Ketter, the court found the intended appeal arguable, citing complaints that the Judge descended into the arena and awarded unpleaded damages. On nugatory impact, the court tailored its relief: the status quo as at 16th February 2022 continues pending determination of the main appeal, Civil Appeal No. 2 of 2020, and execution of the monetary orders is stayed. Costs abide the outcome of the main appeal.

Key legal issues

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01

Res judicata and abuse of process

Holding

The application is neither res judicata nor an abuse of process because the earlier dismissed application concerned a different decision (the 7th March 2019 'judgment' which was not a judgment in law), whereas this application concerns the judgment of 7th November 2019.

Reasoning

The court distinguished the earlier Civil Application 84 of 2019, which sought stay of a document labelled a 'judgment' but held not to be a judgment as understood in law. The present application targets the subsequent, distinct judgment of 7th November 2019, which could not have been the subject of the earlier application, so res judicata does not arise.

p. 3
02

Whether the intended appeal is arguable

Holding

The appeal is arguable; complaints that the Judge descended into the arena, reframed the 1st respondent's case, ignored the Standards Act in ordering unconditional permit renewal, and awarded Kshs. 10,000,000.00 without foundation suffice.

Reasoning

Applying the established principles, the court held that an arguable appeal is one that is not frivolous and ought to be argued fully. The memorandum of appeal raised complaints touching on the Judge's conduct, statutory provisions under the Standards Act, and an unpleaded damages award, satisfying the arguability threshold.

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Whether the appeal will be rendered nugatory

Holding

A partial stay was warranted: the status quo as at 16th February 2022 continues pending determination of Civil Appeal No. 2 of 2020, and execution of the monetary orders (Kshs. 10,000,000.00 and compensation for 8995 bags) is stayed.

Reasoning

Bearing in mind that nugatory-impact turns on each case's own facts, the court noted controversy over the state of the seizures, that the main appeal had been heard and judgment reserved, and that the applicant is a public body while the 1st respondent's means are unknown, justifying the tailored orders.

p. 3

Legal principles established

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  • An arguable appeal need not be one that must succeed, but one that is not frivolous and ought to be argued fully before the court.
  • In considering whether an appeal will be rendered nugatory, each case must depend on its own facts and peculiar circumstances.
  • Res judicata does not bar a subsequent application directed at a different decision of the High Court from that dealt with in the earlier application.

Court orders

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  1. 1.That the status quo as at 16th February 2022 be maintained pending the determination of Civil Appeal No. 2 of 2020
  2. 2.A stay of execution of the judgment in respect of the orders for payment of Kshs. 10,000,000.00 and compensation for 8995 bags of sugar pending the hearing and determination of Civil Appeal No. 2 of 2020
  3. 3.Costs of the application to abide the outcome of the main appeal

Authorities

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Legislation

  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 159
  • Appellate Jurisdiction ActSection 3
  • Appellate Jurisdiction ActSection 3A
  • Court of Appeal RulesRule 5(2)(b)
  • Court of Appeal RulesRule 47
  • Standards Act

Cases cited (6)

  • Gatirau Peter Munya vs. Dickson Mwenda Kithinji & 2 others
    [2014] eKLR

    Public interest and nugatory-impact principles in stay applications

  • Attorney General & another vs. Phoenix Global Kenya Limited & 5 others
    [2019] eKLR

    Stay of execution principles cited by the applicant

  • Independent Electoral & Boundaries Commission vs. Maina Kiai & 5 others
    [2017] eKLR

    Res judicata, cited by the 1st respondent

  • Muchanga Investments Limited vs Safaris Unlimited (Africa) Ltd & 2 others
    Civil Appeal No. 25 of 2002 [2009] KLR

    Abuse of the process of the court, cited by the 1st respondent

  • Stanley Kangethe Kinyanjui vs. Tony Ketter & others
    [2013] eKLR

    Established principles on arguability and nugatory impact in Rule 5(2)(b) applications

  • Joseph Gitahi Gachau & Another v. Pioneer Holdings (A) Ltd. & 2 others
    Civil Application No. 124 of 2008

    Definition of an arguable appeal

On appeal from
High Court of Kenya at Mombasa
Jurisdiction invoked
Article 159(2)(d) of the Constitution; Sections 3 and 3A of the Appellate Jurisdiction Act; Rules 5(2)(b) and 47 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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Later judgments citing this (1)

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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, "Kenya Bureau of Standards v Kwale International Sugar Company Ltd & 4 others", Case Analysis (2022). Civil Application E020 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2022/526/eng@2022-05-06

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