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ELCDismissedNot stated in the judgment (arising from decree issued 19th March 2024)· [2024] KEELC 1662 (KLR)

Prof. Tom Ojienda & Associates v Nairobi City County & Cooperative Bank of Kenya (Garnishee)

High Court of Kenya
5 April 2024
5,332 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

The bottom line

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Kenya's High Court blocked a law firm's attempt to attach a county government's bank funds, confirming government accounts remain shielded from execution.

What this practically means

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Executive summary

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The Decree Holder, Prof. Tom Ojienda & Associates, moved the court by Notice of Motion dated 27th March 2024 under Sections 1A, 1B and 3A of the Civil Procedure Act and Order 23 Rule 1 of the Civil Procedure Rules, 2010, seeking a garnishee order Nisi against Cooperative Bank of Kenya over funds held to the credit of Nairobi City County, to satisfy a decree of Kshs.43,582,145.40 issued on 19th March 2024 upon a taxed advocate-client bill of costs. On certification as urgent, the court declined to issue the order Nisi ex parte and instead directed counsel to address the import of Section 21(4) of the Government Proceedings Act, which prohibits execution against the Government and County Governments. Senior Counsel Ojienda SC argued that Section 21(4) and (5) were discriminatory contrary to Article 27 and had been declared unconstitutional in the Absa Bank Kenya PLC v Kenya Deposit Insurance Corporation decision. Counsel for the Garnishee noted the account was a revenue account used for tax collection. The court framed two issues. On the first, it held that the Absa decision made observations about discrimination but no express and unequivocal declaration of invalidity under Articles 2(4) and 23, and that the only precipitate decision, Kisya Investments Ltd v Attorney General, upheld the constitutionality of the prohibition on execution against Government assets. On the second, the court held that an order Nisi would constitute unlawful execution against the County Government, violating Section 21(4) and the Rule of Law, invoking the Macfoy dictum on void acts. The prayer for an order Nisi was declined, with the court pointing the Applicant to judicial review avenues under Article 47, the Fair Administrative Actions Act, the Law Reform Act and Order 53.

Key legal issues

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01

Whether Section 21(4) of the Government Proceedings Act was declared unconstitutional in the Absa Bank case and is thus inoperative

Holding

No declaration of invalidity was made in the Absa Bank case; the judge's observations on discrimination were not precipitate declaratory orders under Articles 2(4) and 23. The only precipitate decision on Section 21 is Kisya Investments Ltd v Attorney General, which upheld the constitutionality of the prohibition on execution against the Government.

Reasoning

The court examined the paragraphs of the Absa ruling relied on by the Applicant and found them to be observations, not express declaratory orders. A declaration of invalidity has serious ramifications and courts must speak with clarity. The Kisya Investments decision, by a two-judge bench, considered and upheld Section 21, and remains binding absent an appellate reversal.

p. 5
02

Whether the Applicant established grounds for a garnishee order Nisi against funds of the County Government

Holding

The order Nisi was declined because it would constitute execution and attachment against the County Government contrary to Sections 21(4) and (5) of the Government Proceedings Act, which remain alive on the statute books.

Reasoning

Relying on the Macfoy dictum on void acts and the Rule of Law under Article 10(2), the court held that an order issued contrary to express statutory provisions is illegal, void and would create absurdity and anarchy. The court noted, however, that the Applicant may still compel compliance with the decree through judicial review mechanisms.

p. 9
03

Opportunity for the Attorney General where constitutionality of a statute is in question

Holding

Superior courts interrogating the constitutionality of a statute should afford the Attorney General an opportunity to address the court, in line with Articles 10(2) and 156 of the Constitution.

Reasoning

The court, for the sake of posterity and observance of national values, advised that the Attorney General be heard whenever the constitutionality of an Act of Parliament is under consideration, reflecting the Attorney General's role as principal legal adviser to the Government.

p. 9

Legal principles established

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  • A declaration of unconstitutionality and invalidity must be explicit and unequivocal under Articles 2(4) and 23 of the Constitution and cannot be inferred by supposition, speculation or inference.
  • Observations by a judge that a statute is discriminatory do not amount to a declaration of invalidity absent express declaratory orders.
  • An order of the court made contrary to the express provisions of a statute is illegal, void and bad in law and inimical to the Rule of Law.
  • The immunity from execution in Section 21(4) of the Government Proceedings Act does not render the Government immune from compliance with judgments, which may be pursued through judicial review under Article 47, the Fair Administrative Actions Act, the Law Reform Act and Order 53.

Court orders

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  1. 1.The request for an Order Nisi is declined.
  2. 2.No execution by way of attachment can be commenced or maintained against the Government or County Government while Section 21 of the Government Proceedings Act remains undeclared unconstitutional in a suitable constitutional petition.
  3. 3.It is so ordered (ruling dated, signed and delivered at Nairobi on 5th April 2024).

Authorities

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Legislation

  • Civil Procedure ActSections 1A, 1B, 3A
  • Civil Procedure Rules, 2010Order 23 Rule 1; Order 51 Rule 1; Order 53
  • Government Proceedings ActSections 21(1), (2), (3), (4) and (5); Section 13A
  • Constitution of Kenya, 2010Articles 2(4), 10(2), 23, 259, 27(1) and (2), 47, 156
  • Fair Administrative Actions ActNot specified
  • Law Reform ActSections 8 and 9
  • Contempt of Court ActNo. 46 of 2016
  • The Constitution of Kenya (repealed)Section 70 proviso; Sections 70, 72, 75, 82

Cases cited (8)

  • Absa Bank Kenya PLC vs Kenya Deposit Insurance Corporation [UR]
    Milimani Commercial Case No. E411 of 2023
  • Waweru & 3 Others [Suing as Officials of Kitengela Bar Owners Association & Another] vs National Assembly & 2 Others; Institute and Certified Public Account [ICPK] & 2 Others
  • Ngaywa Ngigi & Kibet Advocates vs Invesco Assurance Ltd; Diamond Trust Bank [Garnishee]
    [2020]eKLR
  • Choice Investment Ltd vs Jeromnmon [Midland] Bank Ltd [Garnishee]
    (1981) 1 ALL 225
  • Otieno Ragot & Co Advocates vs City Council of Nairobi
    [2015]eKLR
  • Silvya Merie v James Mwangi Kaguya & 2 Others
    [2022]eKLR
  • Kisya Investments Ltd versus Attorney General & another
    [2005] eKLR
  • Benjamin Leonard Macfoy v United Africa Co. Ltd
    [1961] 3 All E.R. 1169
Jurisdiction invoked
Sections 1A, 1B and 3A of the Civil Procedure Act (Cap 21) and Orders 23 Rule 1 and 51 Rule 1 of the Civil Procedure Rules, 2010

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, "Prof. Tom Ojienda & Associates v Nairobi City County & Cooperative Bank of Kenya (Garnishee)", Case Analysis (2024). Not stated in the judgment (arising from decree issued 19th March 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/1662/eng@2024-04-05

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