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ELRCDismissedELRC Cause (Nairobi), filed 7th December 2018· [2024] KEELRC 1437 (KLR)

Mbuthia & 45 others v Kenya National Farmers Federation [Sued Through Its Chairman, Nduati Kariuki, Secretary Professor Kaburu M’ribiru and Its Treasurer Grace Ngambi]; Kenfap Services Limited & another (Interested Parties) (Cause 1593 of 2018) [2024] KEELRC 1437 (KLR)

Employment and Labour Relations Court
14 June 2024
2,759 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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A Kenyan employment court threw out a Kshs. 134 million group claim because the lead claimant never got valid written authority from the workers he claimed to represent.

What this practically means

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Executive summary

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Forty-six Claimants, former employees of the Respondent, an umbrella farmers' organization founded in 1946, filed a Statement of Claim on 7th December 2018 seeking salary arrears for 36 months (October 2015 to September 2018), 12 months' salary for constructive and unfair termination, and service pay, totalling Kshs. 134,683,007, plus costs, interest and leave to execute against two Interested Parties described as special purpose vehicles holding the Respondent's assets. The Respondent denied unfair termination, asserting the fixed-term contracts expired in December 2015 without renewal, some claimants resigned, and no constructive dismissal occurred; it also challenged the authority to act. Only the 1st Claimant, Charles Mbuthia, gave evidence; the Respondent's CEO Daniel Mwenda also testified. The Court framed three issues: whether the Claim was properly before the Court; whether the contracts were terminated fairly and lawfully; and whether the prayers were merited. It found the Claim unsustainable: the letter of authority under Rule 9(2) of the E&LRC [Procedure] Rules, 2016 was unsigned by at least 20 claimants, the 1st Claimant having appended only his own initials; the authority irregularly merged a retainer agreement; and presenting such a claim amounted to the worst form of abuse of court process. Endorsing Ndung'u Mugoya and John Kariuki and applying its own decision in Charles Kimani Waweru v. Kenya Kazi Services, the Court declined the Claim without reaching the merits and ordered the 1st Claimant personally to pay the Respondent's and Interested Parties' costs.

Key legal issues

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01

Authority to prosecute a representative claim under Rule 9 of the E&LRC [Procedure] Rules, 2016

Holding

The Claim was unsustainable: the 1st Claimant appended his own initials (CMK/GMK) instead of the signatures of at least 20 claimants, and the authority irregularly merged a retainer agreement.

Reasoning

Rule 9(2) requires a letter of authority signed by all other parties on whose behalf the suit is instituted. The Court held that authority is manifested by signatures; initials by the lead claimant do not satisfy the rule. The rule guards against fictitious claims and protects innocent persons from being bound by litigation they know nothing of. The Court endorsed decisions equivalent to Order 1 Rule 12 of the Civil Procedure Rules and found the Claim an abuse of process.

p. 6
02

Whether the substantive claims (salary arrears, unfair termination, service pay) required determination

Holding

The Court declined to determine the substantive issues, finding it unnecessary given the failure of authority.

Reasoning

Having found the Claim unsustainable on the threshold question of authority, the Court held it was not useful to examine whether the contracts were unfairly terminated or whether Kshs. 134,683,007 was owed. It also rejected the 1st Claimant's claim that dissenting claimants were coerced, finding such claimants had never given authority and were well-advised to disown the Claim.

p. 7
03

Costs liability where a claim is presented without authority of all named claimants

Holding

Only the 1st Claimant who filed, swore the verifying affidavit, gave evidence and prosecuted the Claim was ordered to pay costs, not the claimants who had not authorized the suit.

Reasoning

Relying on its decision in Charles Kimani Waweru & 226 Others v. The Kenya Kazi Services Limited, the Court held that a lead claimant who prosecutes a claim without clear authority should personally meet the costs. Although two other claimants were named in the authority, they took no part in the proceedings, so the 1st Claimant assumed full responsibility.

p. 8

Legal principles established

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  • Under Rule 9(2) of the E&LRC Procedure Rules, 2016, a letter of authority must be signed by all persons on whose behalf a claim is brought; without signature there is no evidence of authority and the action taken is void.
  • Presenting a claim without clear authority of the persons on whose behalf it is brought is an abuse of court process.
  • A letter of authority under Rule 9 should not incorporate a retainer agreement between claimants and their advocates.
  • A lead claimant who files and prosecutes a claim without clear authority bears the costs personally.

Court orders

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  1. 1.The Claim is declined.
  2. 2.Costs to the Respondent and the Interested Parties, to be paid by the 1st Claimant, Charles Mbuthia.
Jurisdiction invoked
Employment and Labour Relations Court [Procedure] Rules, 2016, Rule 9

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, "Mbuthia & 45 others v Kenya National Farmers Federation [Sued Through Its Chairman, Nduati Kariuki, Secretary Professor Kaburu M’ribiru and Its Treasurer Grace Ngambi]; Kenfap Services Limited & another (Interested Parties) (Cause 1593 of 2018) [2024] KEELRC 1437 (KLR)", Case Analysis (2024). ELRC Cause (Nairobi), filed 7th December 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1437/eng@2024-06-14

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