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ELRCPartially AllowedPetition of 1st March 2016 (Amended Petition filed 28th May 2018)· [2019] KEELRC 2570 (KLR)

Okoiti v President of Kenya & 4 others (Petition 19 of 2016) [2019] KEELRC 2570 (KLR)

Employment and Labour Relations Court
31 January 2019
4,385 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~18 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled that the President cannot handpick state corporation board members — future appointments must be open, competitive and merit-based.

What this practically means

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Executive summary

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The Petitioner, Okiya Omtatah Okoiti, petitioned in the Employment and Labour Relations Court challenging the practice by the National Executive (the President, Deputy President and Cabinet) of handpicking chairpersons and members of Boards of State Corporations and similar bodies without fair, open, competitive, merit-based and inclusive recruitment and without involving the Public Service Commission. He sought declarations that such statutes and appointments are unconstitutional and void ab initio, orders quashing existing appointments, and mandamus directing a lawful recruitment process. The Respondents opposed, arguing lack of ELRC jurisdiction, breach of the Mumo Matemu pleading threshold, presidential powers under the State Corporations Act and Articles 132(2)(f) and 132(4), sub judice, and proportionality. The Court (Hellen Wasilwa J) framed three issues: jurisdiction, violation, and remedies. On jurisdiction, it held that board chairpersons and members earn retainer fees and can be regarded as employees of the government, bringing the dispute within Section 12(1) of the ELRC Act. On violation, relying on the evolution of the doctrine of pleasure and the rejection of unfettered discretion, the Court agreed that Articles 10, 27 and 232 were violated by unilateral hand-picking. On remedies, applying proportionality, it declined to nullify or quash past appointments because of the grievous ripple effects on the economy and ongoing operations, but ordered that future appointments be based on the law, the Constitution and a fair, open, competitive, merit-based and inclusive process. No order as to costs was made. The petition therefore partially succeeded.

Key legal issues

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01

Jurisdiction of the ELRC over presidential appointments of state corporation board members

Holding

The Court found jurisdiction because board chairpersons and members earn wages and can be treated as employees of the government.

Reasoning

Section 12(1) of the ELRC Act confers exclusive jurisdiction over employment and labour relations disputes under Article 162(2). Section 2 of the Employment Act defines an employee as a person employed for wages or salary. Board chairpersons and members earn retainer fees, so appointments to public offices where appointees are paid wages are employment-related, giving the Court jurisdiction over issues surrounding such appointments.

p. 7
02

Whether the appointments violated the Constitution

Holding

The Court agreed that Articles 10, 27 and 232 of the Constitution were violated by unilateral hand-picking of board appointees.

Reasoning

Drawing on the doctrine of pleasure as discussed in CA No. 2/2015 (Visram, Koome and Odek JJA) and the rejection of unfettered discretion in Wade & Forsyth, the Court held appointments must be transparent and not arbitrary. Since board members serve the public with resources drawn from taxes, appointments must comply with public law, governance and policies under Article 10, and the values of fair competition, merit and equality under Articles 27 and 232 were violated by hand-picking.

p. 8
03

Whether previous appointments should be declared null and void and quashed

Holding

The Court declined to nullify past appointments on proportionality grounds but directed that future appointments comply with the Constitution and be fair, open, competitive, merit-based and inclusive.

Reasoning

Applying proportionality, the Court weighed the Petitioner's individual rights against the interests of the wider Kenyan community. Government corporations serve a large role in the economy; setting aside existing appointments would have grievous ripple effects on the economy and the running of those bodies and on employees already serving. The Court therefore granted only prospective relief.

p. 9

Legal principles established

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  • The President cannot simply handpick persons and appoint them as Chairpersons and Board Members of State Corporation Boards; appointments must be transparent and not arbitrary
  • Appointments of board chairpersons and members who are paid wages are employment-related and fall within the ELRC's jurisdiction
  • The doctrine of pleasure has evolved so that no authority may act arbitrarily; discretionary powers must be exercised reasonably and for the public good

Court orders

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  1. 1.An order that future appointments to Boards of State Corporations should be based on the law, on the Constitution and should be fair, open, competitive, merit based and through an inclusive process.
  2. 2.There will be no order as to costs.
Jurisdiction invoked
Article 162(2) of the Constitution and Section 12(1) of the ELRC Act 2016

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, "Okoiti v President of Kenya & 4 others (Petition 19 of 2016) [2019] KEELRC 2570 (KLR)", Case Analysis (2019). Petition of 1st March 2016 (Amended Petition filed 28th May 2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2570/eng@2019-01-31

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