Munialo v President of Kenya & 4 others; Nzoia Sugar Company Limited (Interested Party) (Employment and Labour Relations Cause E008 of 2023) [2023] KEELRC 1969 (KLR)
The bottom line
#Kenya's Employment Court struck out a challenge to Nzoia Sugar board appointments because company directors are not employees, so this court cannot hear such disputes.
What this practically means
#Executive summary
#Key legal issues
#Whether the ELRC had jurisdiction over the appointment of the chairman and directors of Nzoia Sugar Company Limited
No jurisdiction; the chairman and directors are not employees as there is no contract of service
The court examined the definitions of 'employee', 'employer' and 'contract of service' in the Employment Act and found that an employee must have a contract of service. It followed the Court of Appeal decision in Rift Valley Water Services Board v Asanyo, holding directors to be office holders, not employees, and that the court's jurisdiction under section 12 of the ELRC Act requires an employer-employee relationship, which was absent here.
Whether to follow the decision in Okiya Omtatah Okoiti v President of Kenya & 4 others (Wasilwa J) holding directors to be employees
Not followed; the Court of Appeal decision is superior under stare decisis
The court found that the Wasilwa judgment did not factor in the definition of employer requiring a contract of service. Since the Court of Appeal decision in Rift Valley Water Services Board was binding and superior, the court applied it and declined to follow the earlier ELRC decision.
Legal principles established
#- Directors appointed to a company board are not employees of that company absent a contract of service, so the ELRC lacks jurisdiction over disputes concerning their appointment
- A court without jurisdiction must down tools immediately
Court orders
#- 1.The application dated May 3, 2023 is dismissed for lack of jurisdiction
- 2.The petition of even date is struck out for want of jurisdiction
- 3.Each party to bear own costs in the application and the petition
- 4.Right of appeal in 30 days
- Jurisdiction invoked
- Article 162(2) of the Constitution and Section 12 of the Employment and Labour Relations Court Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Munialo v President of Kenya & 4 others; Nzoia Sugar Company Limited (Interested Party) (Employment and Labour Relations Cause E008 of 2023) [2023] KEELRC 1969 (KLR)", Case Analysis (2023). ELRC Petition dated May 3, 2023 with Notice of Motion of even date. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1969/eng@2023-07-27
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.