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ELRCPartially AllowedPetition No. 149 of 2022· [2023] KEELRC 2004 (KLR)

Namasaka & 9 others v Kenya Medical Supplies Authority & 2 others; Public Service Commission & another (Interested Parties) (Petition E149 of 2022) [2023] KEELRC 2004 (KLR)

Employment and Labour Relations Court
27 July 2023
5,473 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~22 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled KEMSA's restructuring and redundancy unlawful because only the Public Service Commission can establish or abolish public offices.

What this practically means

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Executive summary

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Ten former managerial staff of the Kenya Medical Supplies Authority (KEMSA) petitioned the ELRC, challenging the abolition of 24 management positions, the advertisement of 31 new management vacancies, the sending of staff to work from home with ICT access denied, and the resultant redundancy process. They argued that establishment and abolition of offices in the public service is a constitutional preserve of the Public Service Commission under Article 234(2)(a) and that the process breached Section 40(1) of the Employment Act. The respondents and interested parties maintained the exercise was a Board-driven restructuring to rationalise a workforce of about 900 to an establishment of 378, that the Board had statutory hiring powers under the KEMSA Act, that Section 40 consultations were held, and that the matter was res judicata following a judgment by Maureen Onyango, J. of 27/5/2022 in consolidated Petitions E173, E174 and E187 of 2021. The Court found that KEMSA's exercise amounted to establishment and abolition of office within Article 234(2)(a) undertaken without PSC involvement and was therefore ultra vires, null and void ab initio; the resulting redundancy was unlawful under Section 40(1) and could not be sanitized by subsequent procedural compliance. The res judicata objection failed as the Article 234 issues and parties were new. The petition was allowed in part: the 31-vacancy advert was declared unconstitutional and quashed by certiorari, the redundancy process was prohibited, and costs were awarded to the petitioners. The Court made no finding on violation of fundamental rights, finding that claim insufficiently proved, and declined relief on other heads including quashing of Board and CEO appointments.

Key legal issues

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01

Whether KEMSA's restructuring constituted establishment and abolition of office reserved to the Public Service Commission

Holding

The exercise was establishment and abolition of office within Article 234(2)(a) and, undertaken without PSC involvement, was ultra vires and null and void ab initio

Reasoning

The general redundancy notice and CEO's presentations showed re-examination and redesignation of roles, introduction of new offices, remodelling and abolition of old ones, with staff competing openly for new positions. The respondents asserted the exercise was the Board's exclusive mandate. There was no evidence of PSC delegation, and KEMSA never informed the PSC. The constitutional threshold for regulating the public service rests with the PSC.

p. 10
02

Whether the redundancy process was lawful

Holding

The redundancy was unlawful and unfair ab initio and in violation of Section 40(1) of the Employment Act

Reasoning

Because the intended termination was founded on unconstitutional establishment and abolition of offices, it could not be sanitized by later purported compliance with Section 40(1). A lawful redundancy is an internal process; abolition of offices followed by open public recruitment without priority to existing staff breaches Section 40(1) and established case law on redundancy.

p. 11
03

Res judicata

Holding

The petition is not barred; the issues of establishment and abolition of office contrary to Article 234(2)(a) were new and were not determined in the earlier consolidated petitions, and some parties differ

Reasoning

The earlier judgment of 27/5/2022 concerned a general redundancy notice dated 4/11/2021 and declined to pre-empt the Section 40 process. The present issues arise from the notice of 10th June 2022 and involve Article 234 questions not heard previously; the petitioners and both interested parties were not all parties to the earlier consolidated petition. Applying Henderson v Henderson and IEBC v Maina Kiai, the bar is not satisfied.

p. 11
04

Whether the petitioners' fundamental rights and freedoms were violated

Holding

No specific finding of violation was made as the claim was not sufficiently proved; no orders issue on that head

Reasoning

Although the petition sought declarations of violation of rights under Articles 10, 73, 232, 236 and compensation, the Court found the rights claim not established on the pleadings and evidence and declined to grant relief on that basis, confining relief to the unlawfulness of the restructuring and redundancy process.

p. 12

Legal principles established

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  • Establishment and abolition of offices in the public service is a constitutional mandate of the Public Service Commission under Article 234(2)(a), and a state corporation undertaking that exercise without PSC involvement acts ultra vires the Constitution
  • A redundancy process tainted by unconstitutional establishment and abolition of offices cannot be cured by subsequent compliance with Section 40(1) of the Employment Act
  • A genuine redundancy is an internal process under Section 40(1) of the Employment Act and cannot involve abolition of offices and open public recruitment without priority to existing staff
  • Res judicata does not bar a petition raising new issues and parties not before the court in the earlier suit

Court orders

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  1. 1.A declaration that the decision of the 1st Respondent contained in the Advert published on 26th July, 2022 in its website and Daily Newspapers including the Standard Newspaper of 2nd August, 2022 for a new expanded Management team of 31 vacancies is unconstitutional, null and void ab initio
  2. 2.An order of Certiorari to remove to the Court and quash the decision of the 1st Respondent contained in the said advert for the 31 management vacancies and any other attendant and subsequent process and appointment thereof
  3. 3.An order of Prohibition prohibiting the respondents from pursuing the purported redundancy process as contained in letters of General redundancy and internal memos dated 10th June, 2022 and 15th July, 2022 as the process is tainted with illegality
  4. 4.Costs of the suit to the petitioners

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 234(2)(a)
  • Constitution of Kenya, 2010Articles 10, 73, 232, 234, 236
  • Employment Act, 2007Section 2 (definition of redundancy)
  • Employment Act, 2007Section 40(1)
  • Public Service Commission ActSections 27(1) and 28(1)
  • Kenya Medical Supplies Authority ActSections 4(1) and 9A(1)
  • State Corporations ActSection 3 (Mwongozo Code of Regulations)

Cases cited (5)

  • Manyara Muchui Anthony v Communications Authority of Kenya and 3 Others
    Petition No. E161 of 2021
  • Henderson v Henderson
    1843 All ER 378
  • The Independent Electoral and Boundaries Commission v Maina Kiai & 5 others
    [2017] eKLR
  • Africa Nazarene University v David Mutere and Others
    C.A. No. 236 of 2015
  • Thomas De la Rue (K) Limited v David Opondo Omutelema
    C.A. No. 65 of 2012
Jurisdiction invoked
Articles 10, 73, 232, 234 and 236 of the Constitution of Kenya, 2010; Employment and Labour Relations Court jurisdiction over employment and constitutional rights in labour matters

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, "Namasaka & 9 others v Kenya Medical Supplies Authority & 2 others; Public Service Commission & another (Interested Parties) (Petition E149 of 2022) [2023] KEELRC 2004 (KLR)", Case Analysis (2023). Petition No. 149 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2004/eng@2023-07-27

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