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ELRCPartially AllowedPetition filed 4th November 2013 (Industrial Court, Nairobi)· [2014] KEELRC 1257 (KLR)

Nicholas Mwenda Mtwaruchiu & 7 Others v Ethics And Anti Corruption Commission & 5 Others [2014] KEELRC 1257 (KLR)

Industrial Court of Kenya
16 September 2014
4,891 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Industrial Court ruled the EACC's vetting and job terminations were invalid because the Commission lacked required members and denied employees fair process.

What this practically means

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Executive summary

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The Petitioners, former employees of the Kenya Anti-Corruption Commission absorbed into the Ethics and Anti-Corruption Commission, challenged the termination of their employment between March and April 2013 following a vetting process conducted under Section 34(3) of the Ethics and Anti-Corruption Commission Act. They claimed violations of Articles 27, 28, 29(f), 31, 35, 41, 43, 47, 48 and 50 of the Constitution, sought declarations, reinstatement, damages and a declaration that Section 34(2), (3) and (4) of the Act was unconstitutional. The defence contested jurisdiction, pleaded res judicata based on prior decisions, and challenged the joinder of the Interested Parties. The Court held it had jurisdiction over the constitutional claims in so far as they arose from the employment relationship, following the USIU decision. It rejected the res judicata plea and struck out the Petition against the Interested Parties for want of legal basis. It upheld the constitutionality of Section 34, holding the Petitioners' offices were not statutory offices saved by the Sixth Schedule. Critically, the Court found the Commission was not properly constituted at the time of vetting, having only two members and no Chairperson contrary to Article 250(1), rendering the vetting and terminations a nullity; it further found the vetting failed the procedural fairness test in Section 41 of the Employment Act. Declarations of rights violations and damages failed for want of particulars. The Court awarded salary and allowances for the unexpired contract period, payable within thirty days, ordered certificates of service, and ordered each party to bear their own costs as the Petition succeeded only in part.

Key legal issues

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01

Jurisdiction of the Industrial Court to entertain constitutional claims in employment matters

Holding

The Court has jurisdiction to interpret and enforce the Bill of Rights in labour and employment matters, but not an open licence to issue orders unrelated to the employment relationship.

Reasoning

Article 162(2) establishes courts with the status of the High Court for employment disputes; Section 12 of the Industrial Court Act confers exclusive jurisdiction over employment disputes. Following USIU, excluding the Industrial Court from Bill of Rights enforcement in employment matters would create parallel jurisdiction with the High Court. However, the jurisdiction does not extend to matters beyond the employment relationship, such as the legality of the 3rd and 4th Interested Parties' appointments.

p. 7
02

Proper constitution of the Commission at the time of vetting

Holding

The Commission was not properly constituted with only two members and no Chairperson; the vetting and resulting terminations were a nullity.

Reasoning

Article 250(1) requires each commission to have at least three members including the Chairperson. At the time of the vetting, only two members sat, with the 1st Interested Party acting in two capacities. A purposive reading cannot cure this fundamental flaw, and acting capacity under Article 259(3)(b) does not remedy the shortfall in numbers.

p. 10
03

Procedural fairness of the vetting process

Holding

The vetting process failed the Section 41 Employment Act procedural fairness test; termination would have been unfair even with proper mandate.

Reasoning

No reasons were given for termination, no appeal avenue existed, panel members overlapped, and the Petitioners could not test the veracity of adverse evidence. Where disciplinary action is in view, due process under Section 41 requires explanation of reasons and opportunity to respond with access to documents and witnesses.

p. 10
04

Constitutionality of Section 34(2), (3) and (4) of the Ethics and Anti-Corruption Commission Act

Holding

The provision is constitutional; the Petitioners' offices were not statutory offices saved by Section 31 of the Sixth Schedule.

Reasoning

Section 8(6) of the Anti-Corruption and Economic Crimes Act merely empowered the defunct KACC to create administrative offices, which did not enjoy the statutory protection of the Sixth Schedule. Legislation is presumed constitutional and the Petitioners did not rebut that presumption.

p. 9
05

Res judicata

Holding

The Ruth Muganda and ACIYE cases did not decisively determine the issues raised by the Petitioners; the claim is not res judicata.

Reasoning

The prior cases dealt with specific issues arising from the plaintiffs' employment contracts, namely whether KACC employees were properly in office after expiry of contracts. None of the Petitioners were parties to those cases, and the legality of the vetting and termination was not decisively determined there.

p. 8

Legal principles established

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  • For a commission to be properly constituted, it must have at least three members as required by Article 250(1) of the Constitution.
  • Where disciplinary action including termination of employment is in view, the affected employee must be subjected to due process under Section 41 of the Employment Act, 2007.
  • The Industrial Court has jurisdiction to interpret and enforce the Bill of Rights in employment and labour matters.
  • Presumption of constitutionality applies to legislation challenged before the Court.
  • Joiner of high ranking officials without legal basis creates unnecessary cost and should be discouraged.

Court orders

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  1. 1.Declaration that the vetting undertaken by the 1st Respondent that led to the termination of the Petitioners' employment was a nullity, as were all decisions arising therefrom including the termination
  2. 2.Petitioners to be paid their full salary and allowances for the period they would have served under their last contracts with the 1st Respondent
  3. 3.The 1st Respondent to compute and pay the specific sums within thirty days from the date of judgment
  4. 4.The 1st Respondent to issue the Petitioners with Certificates of Service
  5. 5.Each party to bear their own costs
  6. 6.Petitioners' case against the Interested Parties struck out for improper joiner

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 2, 20(1), 23, 27, 28, 29(f), 31(c), 31(d), 35, 41, 43, 47, 48, 50, 50(1), 73(1)(a), 156, 162(2) & (3), 250(1), 250(9), 250(11), 259(3)(b), 79; Sections 31(1) and (2) of the Sixth Schedule
  • Industrial Court ActSection 12(1)(a)
  • Ethics and Anti-Corruption Commission ActSections 5, 8, 9 of Schedule 2, 20, 34(1), 34(2), 34(3), 34(4)
  • Anti-Corruption and Economic Crimes ActSections 8(1), 8(6)
  • Employment ActSection 41
  • Interpretation and General Provisions ActSection 53

Cases cited (8)

  • Samuel Kamau Macharia and Another v Kenya Commercial Bank Limited and 2 Others
    [2012] eKLR
  • Moses Tompu Kuya and 5 Others v Attorney General and 2 Others
    Petition No. 65 of 2008
  • United States University (USIU) v Attorney General
    [2012] eKLR
  • Rashid Allogoh & Others v Haco Industries
    Civil Appeal No. 498 of 2009
  • Ruth Muganda v Kenya Anti-Corruption Commission and Director of Public Prosecutions
    Nairobi High Court Misc. Application No. 288 of 2012
  • African Centre for International Youth Exchange (ACIYE) and 2 Others v Ethics and Anti-Corruption Commission & Jane Muthaura
    Nairobi High Court Petition No. 334 of 2012
  • Gideon Mwangangi Wambua and Another v Independent Electoral and Boundaries Commission and 2 Others
    [2013] eKLR
  • Rebbecca Ann Maina and 2 Others v Jomo Kenyatta University of Agriculture and Technology
    [2014] eKLR
Jurisdiction invoked
Article 162(2) and (3) of the Constitution and Section 12 of the Industrial Court Act, 2011

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Nicholas Mwenda Mtwaruchiu & 7 Others v Ethics And Anti Corruption Commission & 5 Others [2014] KEELRC 1257 (KLR)", Case Analysis (2014). Petition filed 4th November 2013 (Industrial Court, Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1257/eng@2014-09-16

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