Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCStruck OutPetition No. 202 of 2019· [2020] KEELRC 92 (KLR)

Kenya National Union of Nurses v Trustees of the County Pension Fund & 8 others; Ethics and Anti-Corruption Commission(Interested Party) [2020] KEELRC 92 (KLR)

Employment and Labour Relations Court of Kenya
10 December 2020
10,375 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~42 min to read original · ~4 min brief

The bottom line

#

Kenya's Employment Court struck out a nurses' union pension petition because pension disputes must first go through the Retirement Benefits Authority's process, not straight to court.

What this practically means

#

Executive summary

#
The Kenya National Union of Nurses, a trade union representing 27,000 county government employees, petitioned the ELRC seeking declarations that Laptrust is a public entity subject to audit by the Auditor General, orders prohibiting the Board of Trustees of the Local Authority Pension Fund from functioning pending a public audit, orders removing Hon. Hosea Kili as Chief Executive Officer for conflict of interest, orders evicting the County Pension Fund from Laptrust premises, and declarations that the Council of Governors' executive order directing county workers to join the County Pension Fund, and Rule 3(6) of the Local Authorities Pension Trust Rules, 2007, are unconstitutional. Respondents raised preliminary objections on jurisdiction, contending that pension disputes fall outside the ELRC's jurisdiction and that the Petitioner had failed to exhaust the review mechanism before the CEO of the Retirement Benefits Authority under section 46 and the Tribunal under section 48 of the Retirement Benefits Act. Relying on the Supreme Court's decision in Albert Chaurembo Mumba and Court of Appeal authority including Kibos Distillers and Okal v Telkom, the Court held that although it has jurisdiction over employer-employee disputes, pension fund matters fall under the Retirement Benefits Act's dispute resolution process, which must be exhausted first. Finding the Petitioner had rushed to Court, the Court struck out the Petition to avoid a miscarriage of justice, expressly declining to determine the substantive issues, and made no order as to costs.

Key legal issues

#
01

Whether the ELRC has jurisdiction over the Petition concerning pension scheme governance, public audit and the adoption of the County Pension Fund

Holding

The Court lacks jurisdiction because the Petitioner did not exhaust the statutory dispute resolution mechanism under sections 46 and 48 of the Retirement Benefits Act

Reasoning

The Court accepted that its jurisdiction derives from Section 12(1) of the ELRC Act, but relying on Albert Chaurembo Mumba, Okal v Telkom, Kibos Distillers and Osman v Standard Chartered Bank, it held that pension disputes between scheme members/trustees are governed by the Retirement Benefits Act, whose ADR process before the CEO of the RBA and the Tribunal must be exhausted first. The Petitioner's claims centred on pension fund management, not employer-employee relations, so the Court downed its tools.

p. 13
02

The appropriate remedy where a petition is filed in a forum lacking jurisdiction

Holding

The Petition was struck out rather than dismissed on the merits, leaving the Petitioner free to pursue its grievances in the proper forum

Reasoning

To avoid a miscarriage of justice and given the age and importance of the questions, the Court struck out the petition instead of dismissing it with costs, explicitly declining to determine the substantive issues (public entity status, conflict of interest, unconstitutionality of Rule 3(6), validity of the Council of Governors' circulars) for want of jurisdiction.

p. 13

Legal principles established

#
  • Although the ELRC has jurisdiction over employer-employee issues, disputes concerning pension funds must first be handled through the process in the Retirement Benefits Act, commencing with review by the CEO of the Retirement Benefits Authority under section 46 and appeal to the Retirement Benefits Appeals Tribunal under section 48, with findings appealable to the ELRC

Court orders

#
  1. 1.The Petition is struck out so that the Petitioner is free to pursue its rights in the right forum
  2. 2.No order of costs
Jurisdiction invoked
Article 162(2) of the Constitution and Section 12(1) of the Employment and Labour Relations Court Act

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Kenya National Union of Nurses v Trustees of the County Pension Fund & 8 others; Ethics and Anti-Corruption Commission(Interested Party) [2020] KEELRC 92 (KLR)", Case Analysis (2020). Petition No. 202 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/92/eng@2020-12-10

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