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ELRCDismissedNot stated in the judgment extract

Charles Kasisi & 9 others v Kenya Broadcasting Corporation; Communicitons Workers Union & another (Interested Parties) [2021] KEELRC 271 (KLR)

Employment and Labour Relations Court
25 November 2021
1,336 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~5 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled that state corporations cannot hide behind statutory immunity to avoid paying judgments when they haven't paid what they owe.

What this practically means

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Executive summary

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The Kenya Broadcasting Corporation, the respondent in a successful employment claim by 257 former employees, moved the court seeking a permanent injunction restraining execution of Proclamation Notices dated 27th September 2021, and declarations that the proclamations were bad in law and breached section 47(a) of the Kenya Broadcasting Corporation Act, which bars execution or attachment against the Corporation. Judgment had been delivered in the claimants' favour on 11th November 2020, and a schedule of payments confirmed by the court on 26th January 2021 fixed the decretal sum at Ksh.39,807,518. The Corporation had filed a Notice of Appeal and an application before the Court of Appeal but no stay of execution had issued, and the auctioneers proclaimed its goods on 27th September 2021. The claimants opposed, arguing that section 47(a) does not exempt the Corporation from paying its decrees but obliges the Managing Director to pay judgment sums out of revenue without delay. The court framed three issues: whether execution should be restrained; whether the proclamation was lawful; and whether it breached section 47(a). Holding that the statute must be read as a whole, the court found the restriction on execution conditional upon the Corporation paying without delay, which it had not done. The Warrants were held improper but the execution process otherwise valid since no stay existed. The injunction and declaratory reliefs were refused; the Warrants and Proclamation were placed in abeyance for 14 days to allow payment, failing which the claimants could move the court, with interest continuing to accrue. Costs were awarded to the claimants.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the claimants should be restrained from executing the judgment herein
  2. 2.Whether the Proclamation Notice dated 27th September, 2021 is lawful
  3. 3.Whether the Proclamation Notice dated 27th September, 2021 is in breach of section 47(a) of the Kenya Broadcasting Corporation Act

Key legal issues

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01

Whether execution against the Kenya Broadcasting Corporation is barred by section 47(a) of the Kenya Broadcasting Corporation Act

Holding

The restriction on execution is conditional; the Corporation is not exempt from paying its decrees, and having failed to pay, it cannot rely on section 47(a) to stop execution

Reasoning

The court held that the statutory provision must be read in whole and not in part. Section 47(a) prohibits execution or attachment against the Corporation but obliges the Managing Director to pay judgment sums out of revenue without delay. Because the respondent had not paid the decretal sum confirmed on 26th January 2021, it had not complied with section 47(a) and could not invoke it to defeat the claimants' valid decree.

p. 2
02

Whether the Proclamation Notice and Warrants of Attachment dated 27th September 2021 were lawful

Holding

The Warrants were not strictly proper under section 47(a), but the execution process was otherwise valid since no stay was in place; they were placed in abeyance for 14 days to allow payment

Reasoning

The court found the claimants held a valid judgment and there was no order of stay despite the respondent's appeal. Strictly, the warrants were improper as against the Corporation without the Managing Director first paying from revenue, but since the respondent itself had not paid, the equitable response was a 14-day window for compliance rather than an injunction.

p. 3
03

Whether the respondent's challenge to the tabulated decretal amount could be determined

Holding

No orders had been sought or framed on that question, so the court declined to determine it

Reasoning

The respondent disputed the schedule of payments, alleging an extra month and unjust enrichment of Ksh.4,722,314. The court noted that no orders were sought or framed to address that matter in the application, so the confirmed sum stood and the respondent was directed to pay it.

p. 3

Legal principles established

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  • Section 47(a) of the Kenya Broadcasting Corporation Act must be read as a whole; the bar on execution against the Corporation is qualified by the Managing Director's duty to pay judgments from the Corporation's revenue without delay
  • A decree-holder may proceed with execution where the judgment debtor has not satisfied a valid decree, and a pending appeal without a stay does not stop execution

Court orders

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  1. 1.The respondent shall within 14 days pay the decretal sum of Ksh.39,807,518 to the claimants as per the judgment delivered on 11th November 2020
  2. 2.The Managing Director of the Corporation shall ensure compliance pursuant to section 47(a) of the Kenya Broadcasting Corporation Act
  3. 3.The Warrants of Attachment and Proclamation dated 27th September, 2021 are placed in abeyance for 14 days to allow payment
  4. 4.If there is no payment, the claimants shall be at liberty to move the court as appropriate and the amounts owing shall continue to attract interest at court rates from the date due until payment in full
  5. 5.The respondent shall pay the claimants' costs

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Original employment and labour relations jurisdiction; the court retained conduct of its own decree and execution proceedings

Relief refused

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Permanent injunction prohibiting the claimants from executing the Proclamation Notices dated 27th September 2021

Execution is lawful; section 47(a) does not bar execution absolutely but only on condition that the judgment sum be paid without delay from the Corporation's revenue, and the respondent had not paid

p. 3

Declaratory orders that the Proclamation Notices are bad in law and of no legal consequence and breach section 47(a) of the Kenya Broadcasting Corporation Act

The execution process was held valid; the Warrants were improper only because section 47(a) requires payment from revenue first, but the respondent had not complied

p. 2

Costs of the application to the respondent

Costs were awarded to the claimants instead

p. 3

Costs

The execution process is valid and the respondent shall pay the claimants costs.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

Whereas there is a general restriction on execution against the property of the Corporation, the same is qualified.
p. 2Interpretation of section 47(a) of the Kenya Broadcasting Corporation Act
The matter that there is an appeal and application seeking stay of execution, there is no order stopping execution herein.
p. 3Effect of pending appeal without stay on execution
The Warrants of Attachment and Proclamation dated 27 th September, 2021 are placed in abeyance to allow the respondent 14 days to pay the sum of Ksh.39, 809, 518.
p. 3Final orders
The execution process is valid and the respondent shall pay the claimants costs.
p. 3Final orders and costs

Issues in the judgment

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minor

The decretal sum is stated inconsistently in the final orders as Ksh.39,809,518 whereas the judgment earlier records the confirmed sum as Ksh.39,807,518

minor

The judgment refers to the applicant as 'respondent' and the claimants as 'respondent [claimants herein]' in the prayer, creating confusion in party designations

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, "Charles Kasisi & 9 others v Kenya Broadcasting Corporation; Communicitons Workers Union & another (Interested Parties) [2021] KEELRC 271 (KLR)", Case Analysis (2021). Not stated in the judgment extract. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/271/eng@2021-11-25

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