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ELRCDismissedPetition No 2 of 2023· [2023] KEELRC 1339 (KLR)

Rukaria v Attorney General; Debasso & another (Interested Parties) (Petition 2 of 2023) [2023] KEELRC 1339 (KLR)

Employment and Labour Relations Court
25 May 2023
2,212 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court ruled that a sacked state corporation chairperson can sue as an employee, so the case must be fully heard rather than struck out.

What this practically means

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Executive summary

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The petitioner, appointed by the President on August 05, 2022 as chairperson of the Kenya National Trading Corporation (KNTC) for three years, challenged the revocation of his appointment on February 10, 2023 and the concurrent appointment of the 1st interested party. The 1st interested party and the Attorney General filed preliminary objections contending that the Employment and Labour Relations Court lacked jurisdiction for want of an employer-employee relationship, and that the suit was fatally defective. The objection based on the joinder of the President succeeded by consent on April 28, 2023, when the President was struck out leaving the Attorney General as sole respondent. The Court, through Byram Ongaya, Principal Judge, framed the sole remaining issue as whether the petition should be struck out because a board chairperson of a state corporation is not an employee. Distinguishing the Court of Appeal decision in Rift Valley Water Services Board v Asanyo, which concerned a director of a Companies Act company, the Court held that a chairperson of a statutory body under the State Corporations Act is a public or state officer and thus a servant of the people, following Narok County Government v Birir (rejecting the pleasure doctrine) and the Omtatah KRA decision. It further held that the existence of an employment relationship was a disputed question of mixed fact and law - the petitioner had exhibited payslips, and honorarium and allowances could even support employee status - so the objections failed the Mukisa Biscuit pure-point-of-law test. The preliminary objections were dismissed with costs in the cause, and parties directed to take dates for the expedited hearing of the application or main petition.

Key legal issues

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01

Whether the ELRC has jurisdiction over a dispute concerning revocation of a state corporation chairperson's appointment

Holding

The dispute relates to employer-employee relationship; a chairperson of a statutory state corporation is a public/state officer, so the preliminary objection on jurisdiction fails.

Reasoning

The Court distinguished Rift Valley Water Services Board, which concerned a director of a Companies Act company governed by its Memorandum and Articles. Here the petitioner chaired a statutory body under the State Corporations Act. Following Omtatah and Narok County Government v Birir, public officers are servants of the people, governed by constitutional and statutory employment provisions, so the dispute falls within the Court's employment jurisdiction.

p. 2
02

Whether honorarium and allowances negate an employment relationship

Holding

Payments such as honorarium and sitting allowances may actually support employee status; in any event the question is one of mixed fact and law for the full hearing.

Reasoning

The 1st interested party argued the petitioner only earned an honorarium and allowances per Government rates. The Court reasoned such payments may qualify the petitioner as an employee on piece-work rates, arrangements familiar in employment relationships, and the petitioner exhibited payslips. These are disputed facts requiring evidence at full hearing, so the objection cannot succeed as a pure point of law.

p. 4
03

Whether the preliminary objections raise a pure point of law

Holding

No; the objections depend on disputed facts (existence of employer-employee relationship) and so fail under the Mukisa Biscuit test.

Reasoning

Relying on the petitioner's submissions, the Court applied the principle that a preliminary objection must rest on undisputed facts or on the assumption that pleaded facts are correct. Since the existence of an employment relationship was disputed and the petitioner exhibited payslips, the objection was of mixed fact and law and could not be determined summarily.

p. 5

Legal principles established

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  • A preliminary objection must be based on a pure point of law on undisputed facts or on the assumption that pleaded facts are correct.
  • Board members and chairpersons of state corporations are public/state officers engaged in public employment governed by constitutional and statutory provisions, distinguishing them from directors of Companies Act companies.
  • Whether an employer-employee relationship exists may be a disputed point of fact requiring a full hearing rather than summary striking out.

Court orders

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  1. 1.The preliminary objections are dismissed with costs in the cause
  2. 2.Parties to take directions for the expeditious hearing and determination of the petitioner's application or the main petition as directions may issue

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 143(2)
  • Constitution of Kenya, 2010Article 236
  • Constitution of Kenya, 2010Article 47
  • Constitution of Kenya, 2010Article 260
  • Constitution of Kenya, 2010Article 73, 80(c) and 232
  • Employment and Labour Relations Court Actsection 12
  • Employment Actgenerally (2007)
  • Companies Actgenerally
  • State Corporations Actgenerally

Cases cited (8)

  • The Attorney General & Others –Versus- David Ndii and 79 Others
    {2022]eKLR
  • Rift Valley Water Services Board & 2 Others –Versus- Geoffrey Asanyo & 2 others
    Nakuru Civil Appeal No 61 of 2015
  • McMillan –Versus- Guest
    [1942] AC p. 561
  • Parsons –V- Albert J. Parsons and Sons Ltd
    [1979] ICR p.271
  • Narok County Government and Another–Versus- Richard Bwogo Birir and Another
    (2015) 5JELR 104466 (CA)
  • Okiya Omtatah Okoiti –Versus- Attorney General & 2 Others, Francis K. Muthaura (AMB) & 5 Others (Interested Parties)
    [2019]eKLR
  • Mukisa Biscuit Manufacturing Co. Ltd –Versus- West End Distributors Ltd
    (1969) EA 696
  • Attorney General & Others –Versus- Okiya Omtata Okoiti & 14 Others
    (2020)eKLR
Jurisdiction invoked
Section 12 of the Employment and Labour Relations Court Act, 2011

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, "Rukaria v Attorney General; Debasso & another (Interested Parties) (Petition 2 of 2023) [2023] KEELRC 1339 (KLR)", Case Analysis (2023). Petition No 2 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1339/eng@2023-05-25

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