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ELRCDismissedNotice of Motion dated 15th October 2018 (arising from Kisumu ELRC Cause No. 370 of 2015)· [2019] KEELRC 34 (KLR)

Kenya County Government Workers Union v Migori County Government [2019] KEELRC 34 (KLR)

Employment and Labour Relations Court
10 December 2019
1,413 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Migori County lost its bid to escape a Kshs 134.7 million staff salary debt because it had already agreed to pay it in a court-approved settlement.

What this practically means

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Executive summary

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The County Government of Migori, as applicant, brought a notice of motion dated 15th October 2018 seeking to set aside a consent judgment of 5th July 2016 in Kisumu ELRC Cause No. 370 of 2015, under which it agreed to pay arrear salaries of Kshs. 134,743,591.60 owed to members of the claimant union formerly employed by the defunct Municipal Council of Migori, payable in two instalments. Only Kshs. 28,000,000 had been paid. The applicant relied on Gazette Notices Nos. 858 and 2701 of 2017, which prescribe that liabilities of defunct local authorities must be verified by the County Assets and Liabilities Committee and authorized by the Intergovernmental Relations Technical Committee and National Treasury before payment, and sought leave to enjoin the Committee as third party. The union opposed, showing the debt had been verified, funds budgeted and approvals obtained. Applying the Brooke Bond v Mallya principles as set out in Goodman Agencies Ltd v Attorney General, Judge Mathews N. Nduma held that no ground for setting aside a consent judgment - fraud, collusion, contrary policy, or insufficient or misapprehended material facts - was established. The subsequent Gazette notices did not invalidate the consent judgment, which predated the legislation and whose debt had been verified and budgeted for. The Kakamega mandamus decision was distinguished. The application was dismissed with costs on 10th December 2019.

Key legal issues

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01

Whether subsequent Gazette Notices Nos. 858 and 2701 of 2017 render the consent judgment voidable and settable aside

Holding

No; the applicant did not demonstrate that the consent judgment violated the subsequent legislation on settlement of liabilities of defunct local authorities

Reasoning

The court noted the applicant itself presented the debt to the County Assets and Liabilities Committee, which verified it without dispute. The County had budgeted for the arrear salaries, the budgetary request was submitted for approval, and no queries or rejection were shown. Partial settlement had occurred. The consent judgment predated the legislation and all necessary steps under the new procedure had been taken by the respondent.

p. 2
02

Whether grounds exist to set aside a consent judgment

Holding

None of the recognized grounds - fraud, collusion, violation of court policy, insufficient material facts or misapprehension - were established

Reasoning

Applying Brooke Bond (T) Limited v Mallya as quoted in Goodman Agencies Ltd v Attorney General, the court found nothing that would have hampered entry of the consent judgment at the time it was made. The consent was entered into willingly and had been partially settled, with the balance lawfully budgeted for.

p. 2
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Whether County Secretary, County Government of Kakamega v Republic Exparte Ali Adan applies

Holding

Distinguishable; the Court of Appeal in that case did not address setting aside a partially settled consent judgment with budgetary approval obtained

Reasoning

The court held that the Kakamega decision concerned mandamus and the authority of a county government to make payment, and predated consideration of the new liabilities-settlement procedure. The consent judgment here was entered before that legislation and the respondent had taken all necessary steps to validate it under the new regime.

p. 3

Legal principles established

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  • A consent judgment entered with the consent of counsel is binding and cannot be varied or discharged unless obtained by fraud, collusion, agreement contrary to court policy, or where given without sufficient material facts or in misapprehension of them

Court orders

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  1. 1.The application is dismissed with costs

Authorities

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Legislation

  • Gazette Notice No. 858 of 2017modalities of settlement of liabilities incurred by defunct Local Authorities
  • Gazette Notice No. 2701 of 2017modalities of settlement of liabilities incurred by defunct Local Authorities

Cases cited (3)

  • Goodman Agencies Limited vs Attorney General and Another
    (2012) UGCOMMC 178
  • Brooke Bond (T) Limited vs Mallya
    (1975) E.A 256
  • County Secretary, County Government of Kakamega vs Republic Exparte Ali Adan and another
    (2017) eKLR
Jurisdiction invoked
Original jurisdiction of the Employment and Labour Relations Court over the suit in which the application was brought (Kisumu ELRC Cause No. 370 of 2015 consent judgment)

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, "Kenya County Government Workers Union v Migori County Government [2019] KEELRC 34 (KLR)", Case Analysis (2019). Notice of Motion dated 15th October 2018 (arising from Kisumu ELRC Cause No. 370 of 2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/34/eng@2019-12-10

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