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ELCStruck OutPetition dated 8/5/2020· [2020] KEELC 1599 (KLR)

Fredrick Okwomi Anyasi & 4 others v Kenya Railways Retrement Benefits Scheme & another [2020] KEELC 1599 (KLR)

Environment and Land Court / High Court of Kenya (presided over by B M Eboso, J)
22 July 2020
2,107 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

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Kenya's High Court struck out a pension dispute petition because the members skipped the mandatory review and appeal steps set out in the Retirement Benefits Act before going to court.

What this practically means

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Executive summary

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Five members of the Kenya Railways Retirement Benefits Scheme petitioned the court, alleging that the trustees (2nd respondents) intended to irregularly dispose of Scheme properties through public tender, reducing members' entitlements. They sought declarations of breaches of Articles 10, 35, 40, 43, 47, 57 and 64 of the Constitution and a permanent injunction against opening tenders, awarding tenders, or contracting for the sale of four named properties (in Hurlingham, Ngara, Kizingo/Mombasa and Kindaruma Road). Their motion dated 8/5/2020 additionally sought conservatory orders, an account, and an order compelling the trustees to collect outstanding sale balances of Kshs 892,270,548 before any disposal. The respondents, opposing through the affidavit of Victoria Mulwa, contended the trustees were exercising their mandate under the Trust Deed and vesting order dated 7/9/2006, liquidating assets to comply with the Retirement Benefits Act and the Retirement Benefits Authority Regulations and to pay retirement dues. They objected that the petitioners had bypassed dispute resolution mechanisms in the Retirement Benefits Act and the Trust Deed and sought striking out of the petition. The court disposed of the jurisdictional question first, as required by settled principle. It held that sections 46 and 48 of the Retirement Benefits Act and Clause 34 of the Trust Deed provide primary dispute resolution mechanisms (review by the RBA Chief Executive Officer, appeal to the Tribunal, and arbitration) which the petitioners had ignored. Applying the exhaustion doctrine in Njenga Karume, Okal and Kibos Distillers, the court found the petition premature, struck it out, declined to pronounce on the merits, and directed each party to bear their respective costs.

Key legal issues

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01

Whether the High Court had jurisdiction to entertain the constitutional petition given statutory and contractual dispute resolution mechanisms

Holding

The petition was premature and stood to be struck out because the petitioners had not exhausted the dispute resolution mechanisms under section 46 and 48 of the Retirement Benefits Act and Clause 34 of the Trust Deed

Reasoning

Section 46 of the Retirement Benefits Act allows a dissatisfied scheme member to seek review of a trustee's decision by the RBA Chief Executive Officer, and section 48 provides appeal to the Tribunal. Clause 34 of the Trust Deed provides for arbitration. The petitioners, being dissatisfied with the trustees' decision to dispose of assets, ignored these primary mechanisms and moved the court prematurely. Following Njenga Karume and Kibos Distillers, the court held the exhaustion principle applies and constitutional drafting cannot confer jurisdiction. The petition was struck out without merits findings.

p. 3
02

Whether the court should pronounce on the merits of the dispute

Holding

The court declined to make any pronouncement on the merits to avoid prejudicing the parties before the primary dispute resolution fora

Reasoning

Having found the petition premature and struck it out for want of jurisdiction, the judge reasoned that any findings on the merits of the trustees' proposed asset disposal could prejudice the petitioners or the trustees in the statutory review and tribunal proceedings they must now pursue. The court therefore confined itself to the jurisdictional question and costs, leaving all substantive questions to the appropriate fora.

p. 3

Legal principles established

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  • Whenever a question of jurisdiction is raised, the court must dispose of that question before dealing further with the matter
  • Where a clear procedure for redress of a particular grievance is prescribed by the Constitution or an Act of Parliament, that procedure should be exhausted before invoking the court's jurisdiction
  • A party cannot confer jurisdiction on a court by the craft of pleadings; original constitutional jurisdiction does not oust the jurisdiction of other competent organs

Court orders

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  1. 1.The respondents' objection to the jurisdiction of the court was upheld and the petition was struck out
  2. 2.The petitioners' notice of motion dated 8/5/2020 was disposed of by the striking out of the petition
  3. 3.Parties to bear their respective costs of the petition

Authorities

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Legislation

  • Constitution of KenyaArticles 10(2), 35(1), 40, 43(1)(e), 47(1), 57(b), 64
  • Retirement Benefits ActSections 46(1), 46(2), 48(1), 48(2)
  • Trust Deed and Rules of the Kenya Railways Retirement Benefits SchemeClause 34 (Arbitration)
  • Retirement Benefits Authority Regulationsnot specified
  • Arbitration Act No 4 of 1995referenced within Clause 34 of the Trust Deed

Cases cited (12)

  • Judicial Service Commission v Speaker of the National Assembly & Another
    (2013) eKLR
  • Dr Alfred N Mutua v Ethics & Anti-Corruption Commission (EACC) & others
    [2015] eKLR
  • British American Tobacco (K) Ltd v Attorney General & 3 others
    [2016] eKLR
  • E Muriu Kamau & Another v National Bank of Kenya Limited
    [2009] eKLR
  • Tom Kusienya and 11 others v Kenya Railways Corporation and 2 others
    High Court Petition Nos 353 of 2012 and 159 of 2012
  • Speaker of National Assembly v Njenga Karuma
    [2008] 1 KLR 425
  • Owners of Motor Vessel "Lillan S" v Caltex Oil (Kenya) Ltd
    (1989)
  • Samuel Kamau Macharia & Another vs Kenya Commercial Bank Limited & 2 Others
    [2012] eKLR
  • Phoenix of E.A Assurance Company Limited vs S. M. Thinga t/a Newspaper Service
    [2019] eKLR
  • Speaker of the National Assembly v Njenga Karume
    [2008] IKLR 425
  • Bethwell Allan Omondi Okal v Telkom (K) Ltd (Founder) & 9 Others
    [2017] eKLR
  • Kibos Distillars Limited & 4 Others vs Benson Ambuti Odega & 3 Others
    [2020] eKLR
Jurisdiction invoked
Original constitutional jurisdiction of the High Court (petition brought under Articles 10, 35, 40, 43, 47, 57 and 64 of the Constitution of Kenya), challenged on exhaustion-of-remedies grounds under the Retirement Benefits Act

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, "Fredrick Okwomi Anyasi & 4 others v Kenya Railways Retrement Benefits Scheme & another [2020] KEELC 1599 (KLR)", Case Analysis (2020). Petition dated 8/5/2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/1599/eng@2020-07-22

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