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Court of AppealPartially AllowedCivil Application E374 of 2021· [2022] KECA 873 (KLR)

Kenya Medical Research Institute v Muthoni & 34 others & another

Court of Appeal
22 July 2022
1,730 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 KEMRI's back-pay obligations but let the reinstated employees keep their jobs while the appeal continues.

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 (M'Inoti, Sichale and ole Kantai, JJA) on an application under rule 5(2)(b) of the Court of Appeal Rules for stay of execution of a ruling of the Employment and Labour Relations Court (Mbaru, J.) dated 14th October 2021. The trial court had ordered KEMRI to re-engage 35 former employees dismissed in December 2009, to tabulate and pay their back salaries from June 2016, and to release Kshs.200,000 previously deposited in court. KEMRI filed a notice of appeal and sought stay, arguing the appeal was arguable - notably on whether reinstatement remains available 11 years after dismissal under section 12(vii) of the Employment and Labour Relations Court Act, and on the alleged failure to consider its replying affidavit - and that execution would render it nugatory. The 1st respondent contended the trial court merely enforced a 2010 Industrial Court award, that the employees had already been reinstated, and that the application was largely overtaken by events and an abuse of process given a pending stay application in the trial court. The court reaffirmed the twin principles of arguability and nugatory value, holding that a pending stay application in the trial court does not oust its jurisdiction. Finding the appeal arguable and the monetary orders unimplemented and potentially unrecoverable, it granted stay limited to the back wages and the Kshs.200,000, refusing stay of the reinstatement already effected. Costs were ordered to abide the outcome of the appeal.

Key legal issues

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01

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

Holding

Applicant must show an arguable appeal and that the appeal will be rendered nugatory unless stay is granted; both conditions must be satisfied

Reasoning

The court restated the established test: an arguable appeal is one that is not frivolous and raises at least one issue deserving consideration, and the nugatory aspect concerns ensuring that what the appeal seeks to forestall does not irreversibly happen in the interim. Both limbs must be met before stay issues.

p. 2
02

Arguability of the intended appeal

Holding

The intended appeal was arguable on the questions whether reinstatement is available after 11 years and whether the applicant was denied a fair hearing

Reasoning

The court found the issue whether the remedy of reinstatement remains available after the lapse of 11 years clearly arguable, as was the complaint that the trial court failed to consider the applicant's replying affidavit and submissions on record. One arguable issue sufficed.

p. 3
03

Nugatory value as to back pay and the Kshs.200,000

Holding

Stay granted in respect of back wages and the Kshs.200,000 because the amount was substantial, unimplemented and possibly unrecoverable, and unrebutted

Reasoning

The 1st respondent conceded the back pay order had not been implemented. The applicant's assertion that the amount was substantial and might be irrecoverable was not addressed or rebutted by the respondents, so the nugatory condition was satisfied for the monetary orders.

p. 3

Legal principles established

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  • A pending stay application in the trial court does not deprive the Court of Appeal of jurisdiction under rule 5(2)(b) so long as a notice of appeal is on record
  • An arguable appeal need not raise a multiplicity of issues; one bona fide issue suffices
  • Rule 5(2)(b) confers an independent original discretion to be exercised de novo, not an appeal from the judge's discretion

Court orders

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  1. 1.Order of stay of execution of the ruling and orders of the Employment and Labour Relations Court dated 14th October 2021, except as regards reinstatement of the 1st respondent, which has already been implemented
  2. 2.Stay of execution relates to tabulation and payment of back wages as well as payment of Kshs.200,000 and accrued interest to the 1st respondent's advocates
  3. 3.Costs shall abide the outcome of the appeal

Authorities

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Legislation

  • Employment and Labour Relations Court Actsection 12(vii)
  • Court of Appeal Rulesrule 5(2)(b)
  • Court of Appeal Rulesrule 74

Cases cited (7)

  • Manchar Singh Sagoo & Another v Caroline Njeri Mwicigi & 3 Others
    [2018] eKLR

    Relied on by the applicant in support of stay of execution

  • Printing Industries Ltd & Another v Bank of Baroda (K) Ltd
    [2014] eKLR

    Relied on by the applicant in support of stay of execution

  • Ahmed Musa Ismael v. Kumba ole Ntamorua & 4 Others
    [2014] eKLR

    Relied on by the applicant in support of stay of execution

  • Dynes Muriithi & 4 Others v. Law Society of Kenya & Another
    [2016] eKLR

    Cited by 1st respondent on the nature of the Court's jurisdiction under rule 5(2)(b)

  • Teachers Service Commission v. Kenya National Union of Teachers & 3 Others
    [2015] eKLR

    Cited by 1st respondent on the nature of the Court's jurisdiction under rule 5(2)(b)

  • Stanley Kangethe Kinyanjui v Tony Ketter & 5 Others
    [2013] eKLR

    Elaboration of the twin principles of arguability and nugatory value

  • Githunguri v Jimba Credit Corporation Ltd (No. 2)
    [1988] eKLR

    Scope of the Court's independent original discretion under rule 5(2)(b)

On appeal from
Employment and Labour Relations Court at Nairobi
ELRCC No. 37 (N of 2010)
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules (application for stay of execution, injunction or stay of proceedings pending appeal)

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, "Kenya Medical Research Institute v Muthoni & 34 others & another", Case Analysis (2022). Civil Application E374 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2022/873/eng@2022-07-22

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