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ELRCAllowedJudicial Review Notice of Motion dated 7th February, 2019 (ex parte applicants' application)· [2019] KEELRC 1705 (KLR)

Republic v County Assembly of Samburu Exparte Raphael Lemitin, Mark Lcharuni & Samburu Water and Sanitation Company; County Government of Samburu (Interested Party) [2019] KEELRC 1705 (KLR)

High Court of Kenya
25 April 2019
2,411 words in judgment
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The bottom line

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The High Court stopped Samburu County Assembly from disbanding a water company's board, confirming that county assemblies cannot override a company's independent corporate powers.

What this practically means

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Executive summary

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The three ex parte applicants, two directors and the Samburu Water and Sanitation Services Company, moved the High Court by Notice of Motion dated 7th February 2019 seeking an order of prohibition to stop implementation of the County Assembly of Samburu's 'Special Report on Samburu Water and Sanitation Company', an order of certiorari to quash the report and its recommendations, and costs. The report, adopted on 21st November 2018, recommended disbanding the entire board and constituting a new one within 90 days. The applicants contended the company is a public company limited by guarantee with independent corporate existence, whose directors are appointed by stakeholder bodies and whose employment contracts could not be terminated by the Assembly. The respondent, through its Clerk Patrick Leshore, asserted an oversight mandate under articles 176 and 185 of the Constitution and section 77 of the Water Act, and argued the orders were premature as no decision affecting the applicants' rights had been made and stakeholders, including the applicants, had been heard by the ad hoc committee. The court, M. Mbaru J, held that although water and sanitation is a devolved function, the company's registration under the Companies Act gave it a corporate persona whose directors' mandate could not be circumvented by an assembly resolution; doing so was ultra vires. Relying on the Gathenji, Kuria and DPP v Martin Maina authorities on prohibition and the process-focused nature of judicial review, the court granted prohibition against implementation of the report and quashed the decision, with each party bearing its own costs. Judgment delivered at Nakuru on 25th April 2019.

Key legal issues

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01

Whether the County Assembly of Samburu acted ultra vires in recommending reconstitution of the company's board

Holding

Yes - the company has an independent corporate existence under the Companies Act and its directors' mandate cannot be circumvented by the respondent's resolution

Reasoning

Both parties agreed the 3rd applicant is a body corporate under the Companies Act with articles of association and its own legal existence. Although the respondent has oversight over county organs and water is a devolved function, the company's corporate persona gives its directors the mandate to run its affairs, including audits of resources. Reversing to the assembly to recommend board reconstitution in 90 days was without power and ultra vires, justifying prohibition and certiorari.

p. 3
02

Whether an order of prohibition can issue where a decision has already been made and adopted

Holding

Prohibition may issue to restrain continued implementation of an ultra vires process; it is not confined to pre-decision situations

Reasoning

The court adopted the principles in Kenya National Examination Council v Republic ex parte Geoffrey Gathenji Njoroge and Kuria & others v AG, that prohibition lies for excess of jurisdiction, absence of jurisdiction or departure from natural justice, and may issue where the process is an abuse even after commencement. The respondent's ultra vires recommendation and its adoption warranted prohibition against implementation.

p. 3

Legal principles established

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  • An order of prohibition lies against a body acting in excess of its jurisdiction or in contravention of the laws of the land, including departure from the rules of natural justice
  • Judicial review is concerned with the decision-making process and legality, not the merits of the decision
  • The corporate mandate of a legally incorporated company's directors cannot be circumvented by a county assembly resolution; to do so is ultra vires

Court orders

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  1. 1.An order of prohibition do issue directed at the respondent, the County Assembly of Samburu and the Interested party, The County Government of Samburu in respect of the implementation of the report and recommendations to reconstitute the 3rd respondent board as recommended and adopted from the Special Report on Samburu Water and Sanitation Company Report
  2. 2.Such decision by the respondent is hereby quashed
  3. 3.Each party shall bear own costs

Authorities

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Legislation

  • Constitution of Kenya, 2010articles 176, 185(3) and (4)
  • Water Act, 2016section 77(1)
  • Companies Act

Cases cited (3)

  • Kenya National Examination Council versus Republic ex parte Geoffrey Gathenji Njoroge & 9 others
    [1997] eKLR
  • Kuria & others versus AG
    [2002] 2 KLR 69
  • Director of Public Prosecutions versus Martin Maina & 4 Others
    [2017] eKLR
Jurisdiction invoked
Judicial review jurisdiction of the High Court (orders of prohibition and certiorari)

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, "Republic v County Assembly of Samburu Exparte Raphael Lemitin, Mark Lcharuni & Samburu Water and Sanitation Company; County Government of Samburu (Interested Party) [2019] KEELRC 1705 (KLR)", Case Analysis (2019). Judicial Review Notice of Motion dated 7th February, 2019 (ex parte applicants' application). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1705/eng@2019-04-25

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