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ELRCDismissedChamber Summons dated 5th October 2023 (Judicial Review)· [2023] KEELRC 3244 (KLR)

Republic v Chief Magistrates Bungoma; Wandabwa (Interested Party); Nee Chesikaki Farmers Co-op Society Limited (Exparte Applicant) (Judicial Review 4 of 2023) [2023] KEELRC 3244 (KLR)

Employment and Labour Relations Court
11 December 2023
2,369 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan court confirmed that employment disputes between co-operatives and their employees belong in magistrates' courts, not the Co-operatives Tribunal, dismissing the society's challenge.

What this practically means

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Executive summary

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The Exparte Applicant, a co-operative society, sought leave under Order 53 Rule 1 of the Civil Procedure Rules to institute judicial review proceedings for certiorari to quash a judgment of Hon. C.A.S Mutai (SPM) in Bungoma CMCC ELRC Claim No. 2 of 2021, in which KShs 928,868 plus costs was awarded to the interested party, a former Chief Executive Officer of the society, for wrongful termination. The society's core ground was that the Magistrate lacked jurisdiction because a dispute between a former member and the society should have gone to the Co-operatives Tribunal under section 76 of the Co-operative Societies Act. The application was unopposed and decided on the documents. Keli J adopted the Waki J dictum on the screening purpose of leave and then examined jurisdiction. The court held that under Article 162(2)(a) of the Constitution, section 12 of the ELRC Act and Gazette Notice No. 6024 of 22nd June 2018, the Magistrate was duly empowered to hear employment disputes where gross monthly pay does not exceed KShs 80,000, and the claimant's salary of KShs 20,400 was within that limit. On the scope of section 76, the court adopted the reasoning in Republic v Matheka Kithome, Lukenya Ranching v Kavoloto and Wakiro v Comm. of Bugisu Coop, holding that employment disputes between a society and its employee do not concern the business of a co-operative society and fall outside the Tribunal's jurisdiction. Leave was accordingly declined as the application would waste judicial time; the interim stay was vacated, with no order as to costs.

Key legal issues

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01

Whether the employment dispute between the co-operative society and its former CEO was within the Co-operatives Tribunal's jurisdiction under section 76

Holding

No - employment disputes between a society and its employee do not concern the business of a co-operative society and fall outside section 76

Reasoning

A plain reading of section 76 confines the Tribunal to disputes concerning the business of a co-operative society. An employment dispute arising from a contract of employment is not part of the society's business operations. The court adopted the interpretation in Republic v Matheka Kithome and the Lukenya Ranching and Wakiro decisions, upholding them as applicable.

p. 5
02

Whether the Magistrate had jurisdiction over the employment claim

Holding

Yes - the Magistrate was gazetted as a Special Magistrate under Gazette Notice No. 6024 and the claimant's monthly salary of KShs 20,400 was within the KShs 80,000 threshold

Reasoning

Original jurisdiction over employment disputes lies with the ELRC under Article 162(2)(a) and section 12 of the ELRC Act, but the Chief Justice gazetted Senior Resident Magistrates and above as Special Magistrates for employment matters with a pay threshold. The claimant's stated salary of KShs 20,400 fell within the Magistrate's competence.

p. 4
03

The purpose of the leave stage in judicial review

Holding

Leave screens out frivolous, vexatious or hopeless applications at an early stage

Reasoning

The court adopted the dictum of Waki J in the Kondo case as cited with approval by Njuguna J, that leave is meant to eliminate frivolous or hopeless applications, ensure only fit cases proceed, prevent waste of court time and remove uncertainty for public authorities.

p. 3

Legal principles established

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  • Employment disputes between a co-operative society and its employee fall outside the jurisdiction of the Co-operatives Tribunal under section 76 of the Co-operative Societies Act
  • Magistrates of the rank of Senior Resident Magistrate and above, gazetted under Gazette Notice No. 6024 of 22nd June 2018, have jurisdiction over employment disputes where the employee's gross monthly pay does not exceed KShs 80,000

Court orders

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  1. 1.The application for leave by way of Chamber Summons dated 5th October 2023 is dismissed for lack of merit
  2. 2.The order of stay hinged on the application for leave is vacated
  3. 3.No order as to costs
On appeal from
Chief Magistrate's Court, Bungoma
CMCC ELRC Claim No. 2 of 2021
Jurisdiction invoked
Order 53 Rule 1 of the Civil Procedure Rules (leave to apply for judicial review)

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, "Republic v Chief Magistrates Bungoma; Wandabwa (Interested Party); Nee Chesikaki Farmers Co-op Society Limited (Exparte Applicant) (Judicial Review 4 of 2023) [2023] KEELRC 3244 (KLR)", Case Analysis (2023). Chamber Summons dated 5th October 2023 (Judicial Review). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3244/eng@2023-12-11

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