Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
Caselaw
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCStruck OutPetition filed 28 May 2018 (number not stated in judgment)· [2020] KEELRC 1266 (KLR)

Ann Wangui Ngugi & 524 others v Kenya Commercial Bank Staff Pension Fund & 2 others [2020] KEELRC 1266 (KLR)

Employment and Labour Relations Court
24 April 2020
RSRadido Stephen
857 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~3 min to read original · ~4 min brief

The bottom line

#

What this practically means

#

Executive summary

#
The Petitioners, pensioners and beneficiaries of the Kenya Commercial Bank Staff Pension Fund and the Kenya Commercial Bank Staff Retirement (DC) Scheme 2006, filed a Petition on 28 May 2018 alleging violations of various constitutional articles, including Articles 27, 43(1)(e) and 47(1), relating to the computation and payment of retirement benefits. Their grievances concerned alleged unlawful amendments to the pension schemes, reliance on unilateral actuarial factors in computing pensions contrary to the Trust Deeds and Rules, and discrimination in the computation and payment of pensions. The Respondents filed a Notice of Preliminary Objection on 15 August 2019 contending, among other grounds, that the Petition was a disguised appeal against the Retirement Benefits Tribunal decision of 19 September 2014, was res judicata, and that neither the Employment and Labour Relations Court nor the High Court had jurisdiction over disputes arising from decisions of the Retirement Benefits Tribunal. Relying principally on the Supreme Court's decision in Albert Chaurembo Mumba & 7 Ors v Maurice Munyao & 148 Ors (2019) eKLR, which held that original jurisdiction over trustee/beneficiary pension disputes lies with the CEO of the Retirement Benefits Authority under section 46(1) of the Retirement Benefits Authority Act, with appeal to the Retirement Benefits Tribunal under section 48, and that both the ELRC and the High Court lack jurisdiction over such disputes, the Court upheld the preliminary objection without addressing the other grounds. The Petition was struck out with costs to the Respondents. Delivery of the ruling was delayed by the COVID-19 pandemic and it was delivered by email on 24 April 2020.

Key legal issues

#
01

Whether the Court has jurisdiction over a pension dispute between trustees and beneficiaries notwithstanding its constitutional framing

Holding

It does not; the Supreme Court in Albert Chaurembo Mumba settled that both the Employment and Labour Relations Court and the High Court lack jurisdiction over such disputes, so the preliminary objection must be upheld.

Reasoning

The Court noted that the gravamen of the petition concerned alleged unlawful amendments to pension schemes and unilateral actuarial factors - a classic trustee/beneficiary dispute. Relying on the binding Supreme Court decision in Chaurembo Mumba, jurisdiction over such disputes lies originally with the CEO of the Retirement Benefits Authority under section 46(1) of the Retirement Benefits Authority Act, with appeal to the Retirement Benefits Tribunal under section 48. A constitutional veneer could not confer jurisdiction, so the Court upheld the objection without addressing the other grounds.

p. 2

Legal principles established

#
  • Original jurisdiction over disputes between trustees and beneficiaries of pension schemes lies with the Chief Executive Officer of the Retirement Benefits Authority under section 46(1) of the Retirement Benefits Authority Act, with appeal to the Retirement Benefits Tribunal under section 48.
  • The Employment and Labour Relations Court has no jurisdiction to adjudicate disputes between trustees of pension schemes and members of the schemes.
  • The High Court also lacks jurisdiction over disputes between pension scheme trustees and pensioners.

Court orders

#
  1. 1.The Notice of Preliminary Objection is upheld
  2. 2.The Petition filed in Court on 28 May 2018 is struck out with costs to the Respondents

Authorities

#

Legislation

  • Constitution of Kenya, 2010Articles 2(1), 19, 20(3), 22(1), 23(1), 25(c), 27(1) & (2), 35(1)(b), 43(1)(e), 57(b) & (c), 47(1)
  • Retirement Benefits Authority Actsection 46(1)
  • Retirement Benefits Actsection 48
  • Employment and Labour Relations Court Actnot specified

Cases cited (2)

  • Albert Chaurembo Mumba & 7 Ors v Maurice Munyao & 148 Ors
    (2019) eKLR
  • Staff Pension Fund and Kenya Commercial Bank Staff Retirement (DC) Scheme 2006 & Ar v Ann Wangui Ngugi & 524 Ors
    Civil Appeal No. 20 of 2017
Jurisdiction invoked
Article 162(2) of the Constitution and the Employment and Labour Relations Court Act (court's jurisdiction considered vis-à-vis the Retirement Benefits Act)

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Ann Wangui Ngugi & 524 others v Kenya Commercial Bank Staff Pension Fund & 2 others [2020] KEELRC 1266 (KLR)", Case Analysis (2020). Petition filed 28 May 2018 (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1266/eng@2020-04-24

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