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ELRCPartially AllowedPetition (number not stated in judgment)· [2016] KEELRC 1751 (KLR)

Peter Macithi Muigai v Cabinet Secretary for Industrialisation and Enterprise Development & 4 others [2016] KEELRC 1751 (KLR)

Employment and Labour Relations Court of Kenya
5 February 2016
4,076 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court nullified KIRDI's CEO re-appointment because a managerial post does not qualify for the extended research-scientist retirement age.

What this practically means

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Executive summary

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The Petitioner, an NGO director, challenged the re-appointment of Dr Mechah Charles Z. Moturi as Director (CEO) of KIRDI for one year effective 30th November 2015, contending the process by the Cabinet Secretary violated Articles 10, 153 and 232 of the Constitution, ignoring objections by the Board Chairperson, the retirement age rule, term limits under Mwongozo, and the absence of a competitive process. The court distilled four issues: lawfulness of the reappointment process, the 4th Respondent's eligibility, whether the Board and Cabinet Secretary acted within the law, and entitlement to remedies. The court held the request for renewal was properly before the Board despite delayed delivery, and the 30th June 2015 Board meeting was quorate. However, it held that the 4th Respondent, aged 62 and serving in a managerial CEO position, was ineligible for re-appointment because the 2003 circular enhancing research scientists' retirement age to 65 did not cover CEOs engaged in management and administration. Clause 1.5 of Mwongozo permitting extension for continuity applied to Board members, not the CEO, who is an employee. The Board had also failed to manage the CEO's performance or plan succession, and the Cabinet Secretary unlawfully endorsed and gazetted the re-appointment. The court relied only on documents in the public domain or produced by authorised custodians, disregarding improperly obtained internal documents. The Petition was allowed: the re-appointment was nullified, Gazette Notice No 8234 quashed, and each party was ordered to bear their own costs.

Key legal issues

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01

Validity of the 4th Respondent's request for renewal notwithstanding delayed delivery

Holding

The application dated 28th May 2015 was properly before the Board despite receipt on 10th June 2015

Reasoning

The circular of 23rd November 2010 required a CEO to indicate interest at least six months before expiry of term. The request was written within the six-month window but reached the Chairman on 10th June 2015 due to delay in inter-office mail delivery. The court held that delay in normal inter-office mail delivery does not invalidate an otherwise competent application.

p. 6
02

Quorum of the Board meeting of 30th June 2015

Holding

The meeting was quorate, with five of nine substantive members present

Reasoning

Clause 1.8.3 of Mwongozo sets quorum for Boards with total membership of eight to nine at five members. The court accepted a document showing the Board comprised ten members including the CEO, i.e. nine substantive members, so attendance by five members met the quorum requirement.

p. 6
03

Eligibility of the 4th Respondent for re-appointment given his age

Holding

The 4th Respondent, aged 62, was ineligible for re-appointment as CEO because the CEO is a managerial, not a research scientist, position

Reasoning

The 2003 circular enhancing retirement age to 65 was intended to retain research scientists actively engaged in research. The CEO role under Clause 1.19 of Mwongozo is managerial leadership and administration. Holding research scientist qualifications does not extend the tenure of a CEO past the retirement age.

p. 7
04

Whether Clause 1.5 of Mwongozo permitted extension of the CEO's term for continuity

Holding

Clause 1.5 applies to Board members, not the CEO

Reasoning

The CEO, though a Board member under Clause 1.1.4, has no voting rights; his appointment is governed by a separate clause and he is an employee whose Board membership is by virtue of office. The transition/continuity provision could not therefore be applied to the CEO.

p. 7
05

Constitutionality and legality of the Board's and Cabinet Secretary's actions

Holding

Both the Board and the Cabinet Secretary acted unlawfully in renewing and gazetting the re-appointment

Reasoning

The Board failed to manage the CEO's performance or put in place a succession plan as required by Clause 1.18 and Attachment I of Mwongozo, then sought to justify the renewal on the resulting crisis. The Cabinet Secretary endorsed and gazetted an unlawful re-appointment despite concerns raised, contrary to Articles 10, 153(4) and 232.

p. 8
06

Admissibility of improperly obtained internal confidential documents

Holding

The court relied only on documents in the public domain or produced by authorised custodians

Reasoning

Counsel objected to internal confidential KIRDI documents of undisclosed source. Following Lenaola J in Okiya Omtatah Okoiti, the court held that a court will not rely on improperly obtained documents and disregarded them.

p. 9

Legal principles established

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  • A CEO of a research institute, being a managerial and administrative position, is not within the research scientist exemption enhancing retirement age to 65 years
  • A competitive process is not required on re-appointment of a public officer, but only where the candidate is eligible for re-appointment
  • A court will not confirm an unlawful action merely because its nullification creates a gap or crisis
  • A court will not rely on documents improperly obtained

Court orders

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  1. 1.The re-appointment of Mechah Charles Z. Moturi (Dr) as the Director of KIRDI for one (1) year effective 30th November 2015 is nullified
  2. 2.Gazette Notice No 8234 dated 4th November 2015 is quashed
  3. 3.Each party will bear their own costs

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 10, 153, 153(4), 232
  • Executive Order No. 7 - Mwongozo: Code of Governance in the Appointment of Chairpersons, Board Members and Chief Executive Officers of State CorporationsClauses 1.1(4), 1.1.4, 1.5, 1.8.3, 1.18, 1.19, Attachment I
  • Government circular dated 23rd November 2010 (on CEO re-application for re-appointment)
  • Government circular dated 6th August 2003 (Review of the Retirement Age for Research Scientists)
  • Government circular dated 14th May 2015
  • Circular dated 14th February 2014 by the Chief of Staff and Head of Public Service
  • Letter dated 28th April 2015 by the Chief of Staff and Head of Public Service
  • Gazette Notice No 8234 dated 6th November 2015 (Vol CXVII-No 121)

Cases cited (3)

  • Anne Kinyua v Nyayo Tea Zone Development Corporation & 3 Others
    [2012] eKLR
  • Republic v Cabinet Secretary for Education, Science & Technology & 3 Others
    [2014] EKLR
  • Okiya Omtatah Okoiti & 2 Others v Attorney General & 3 Others
    [2014] eKLR
Jurisdiction invoked
Constitutional petition under Articles 10, 153 and 232 of the Constitution of Kenya, 2010, transferred from the Constitutional and Human Rights Division of the High Court to the Employment and Labour Relations Court by order of Ngugi J dated 3rd December 2015

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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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, "Peter Macithi Muigai v Cabinet Secretary for Industrialisation and Enterprise Development & 4 others [2016] KEELRC 1751 (KLR)", Case Analysis (2016). Petition (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1751/eng@2016-02-05

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