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Court of AppealPartially AllowedCivil Appeal E767 of 2023· [2024] KECA 1926 (KLR)

Board of Trustees, Telposta Pension Scheme v Retirement Benefits Appeals Tribunal & 3 others

Court of Appeal
20 December 2024
6,729 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~27 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal ruled that judges reviewing administrative decisions must examine the merits when the Fair Administrative Action Act is invoked, not just procedure.

What this practically means

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Executive summary

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The Board of Trustees of the Telposta Pension Scheme appealed against a High Court judicial review judgment (Chigiti, J, 16th August 2023) which had dismissed its bid to quash a Retirement Benefits Appeals Tribunal decision of 13th February 2017. The Tribunal had allowed an appeal by Boniface Mariga and 948 others, directing the trustee to compute and pay benefits using a formula of 1/480ths of final pensionable salary per complete month of service, with interest. The High Court held it was confined by Order 53 to process and procedure, found no material error of law, and dismissed the application as an appeal disguised as judicial review. The Court of Appeal (Musinga, P, Gatembu Kairu and Mativo, JJA) treated the appeal as a first appeal and framed three issues. It held the learned judge erred by overlooking that the appellant had expressly invoked section 11 of the Fair Administrative Action Act alongside Order 53, and by confining himself to procedural impropriety. Relying on Suchan Investment, Uwin Investments, Dande and Pharmaceutical Manufacturers, the court reaffirmed that judicial review under the 2010 Constitution is constitutionally and statutorily underpinned, and that the expanded grounds under section 7 of the Fair Administrative Action Act may require an element of merit review determined by the pleadings. The appeal was allowed on that ground alone; the remaining issues (abdication of adjudicatory powers and the merits of the orders) were left undetermined. The High Court judgment was set aside and substituted with an order allowing the appellant's notice of motion; the Tribunal's decision was set aside and the dispute remitted to the Tribunal for re-hearing. Each party was ordered to bear its own costs of the appeal.

Key legal issues

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01

Whether the High Court judge erred by failing to undertake a merit review of the Tribunal's decision

Holding

Yes. The judge overlooked that the appellant had invoked section 11 of the Fair Administrative Action Act alongside Order 53, and confined himself to procedural impropriety, thereby failing to determine issues properly presented before him.

Reasoning

The applications expressly cited section 11 of the Fair Administrative Action Act, enacted under article 47(3) to operationalise the right to fair administrative action. The impugned decision was an administrative action within section 2 of the Act. Section 7 permits some element of merit review, as confirmed in Suchan Investment and Uwin Investments. The judge's statement that he was limited by Order 53 was unsupported by the record, and he erred in holding he lacked jurisdiction to conduct merit review.

p. 8
02

Whether the Tribunal abdicated its duties by directing the appellant to compute and pay benefits per an established formula

Holding

Not determined; the appeal succeeded on the first ground alone.

Reasoning

Having found the judge erred in limiting himself to procedural review, the court held the appeal merited on that ground alone and expressly declined to determine the remaining issues, including abdication of adjudicatory powers and the merits of the orders sought.

03

Whether the orders sought before the High Court were merited

Holding

The appeal was allowed and the High Court judgment substituted with an order allowing the appellant's notice of motion; the Tribunal's decision was set aside and remitted for re-hearing.

Reasoning

The court allowed the appeal on the merit-review ground, set aside the High Court judgment and decree, substituted an order allowing the notice of motion dated 11th April 2017, set aside the Tribunal's decision of 13th February 2017, and remitted the dispute to the Tribunal for re-hearing.

p. 12

Legal principles established

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  • Judicial review under the 2010 Constitution is no longer merely a common law remedy; it enjoys constitutional and statutory underpinning, and the expanded grounds under the Fair Administrative Action Act may require an element of merit review.
  • A judge who confines judicial review to process and procedure where the applicant has invoked section 11 of the Fair Administrative Action Act errs in law.
  • The dual approach to judicial review must be determined based on the pleadings and procedure adopted by parties at the inception of proceedings.

Court orders

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  1. 1.The appeal is allowed
  2. 2.The judgment and decree of Chigiti, J delivered on 16th August 2023 in JR No 141 of 2017 are set aside and substituted with an order allowing the appellant's notice of motion dated 11th April 2017
  3. 3.The 1st respondent's decision dated 13th February 2017 is set aside and the dispute remitted back to the 1st respondent for re-hearing
  4. 4.Each party shall bear his/its own costs of this appeal
On appeal from
High Court of Kenya at Nairobi
JR. Misc. Civil Application No. 141 of 2017
Jurisdiction invoked
First appeal to the Court of Appeal from the High Court's judicial review decision (constitutional and statutory appellate jurisdiction; proceedings invoked Article 47 of the Constitution and section 11 of the Fair Administrative Action Act)

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, "Board of Trustees, Telposta Pension Scheme v Retirement Benefits Appeals Tribunal & 3 others", Case Analysis (2024). Civil Appeal E767 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/1926/eng@2024-12-20

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