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ELRCDismissedNot stated in the judgment provided· [2024] KEELRC 2266 (KLR)

Njoroge v Local Authorities Provident Fund (LAPFUND) & another (Employment and Labour Relations Petition E053 of 2024) [2024] KEELRC 2266 (KLR)

Employment and Labour Relations Court
20 September 2024
2,592 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Employment Court dismissed a challenge to staff promotions because the petitioner sued the wrong entities—the Fund itself cannot be sued, only its Board can.

What this practically means

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Executive summary

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The Petitioner/Applicant moved the court by Notice of Motion dated 16th April 2024 seeking conservatory orders to stay the implementation of a memo issued by the 2nd Respondent on 28th March 2024 titled 'Organization and Staff Restructuring' and to restrain further internal staff promotions, appointments and restructuring, pending hearing of the petition. He contended that the memo handpicked staff for promotions without fair competition, merit, advertisement or interviews, exploiting a leadership vacuum as the 1st Respondent had no Board and the 2nd Respondent was acting. The Respondents opposed, explaining that the restructuring flowed from a review of Human Resource Instruments begun in March 2023 in consultation with the State Corporations Advisory Committee and approved by the parent ministry, and that promotions were based on performance appraisals. They also raised objections on capacity and standing. The court held that the Petitioner had locus standi under Articles 22 and 258 of the Constitution. However, it found that under section 5(8) of the Local Authority Act, only the Board of the Fund, a body corporate, may sue and be sued; the Fund itself and the Acting CEO (an employee, not the employer) have no capacity to be sued. Having sued the wrong entities, the petitioner's application was defective. In any event, the petitioner had not met the threshold for conservatory orders as the respondents had followed the right channel and staff were already in their new positions. The application was dismissed with each party bearing its own costs.

Key legal issues

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01

Locus standi of the Petitioner

Holding

The Petitioner has locus standi under the Constitution to institute proceedings alleging contravention or threatened contravention of the Constitution.

Reasoning

The court relied on the progressive 2010 Constitution, which allows any person to claim that a right or fundamental freedom in the Bill of Rights has been denied, violated or threatened, and on Articles 22 and 258 which permit every person to institute proceedings claiming the Constitution has been contravened or threatened with contravention. The preliminary objection on the petitioner's standing therefore failed.

p. 5
02

Legal capacity of the 1st Respondent to be sued

Holding

The Local Authorities Provident Fund has no capacity to be sued; only its Board, established under section 5(8) of the Local Authority Act, is a body corporate with capacity to sue and be sued.

Reasoning

Section 5(1) of the Local Authority Act establishes the Fund while section 5(8) constitutes the Board as a body corporate with perpetual succession, power to sue and be sued in its corporate name. Since the statute expressly identifies the entity with capacity, the court declined to depart from the law. The Fund itself has no capacity to be sued.

p. 5
03

Capacity of the 2nd Respondent (Acting CEO)

Holding

The Acting Chief Executive Officer is an employee who signed the memo on behalf of the Fund and has no capacity to be sued as employer.

Reasoning

The court found that the Acting CEO is not the employer of the Fund's staff; he is himself an employee who merely signed the impugned memo on behalf of the Fund. Suing him does not cure the misjoinder, and the petitioner failed to identify the rightful respondent.

p. 5
04

Entitlement to conservatory orders

Holding

In any event, the Petitioner had not met the threshold for conservatory orders as the respondents followed the proper channel in promoting staff.

Reasoning

Applying the Munya principles and the MUHURI guidance on conservatory orders, the court found the respondents had reviewed their human resource instruments from March 2023 in consultation with SCAC, with ministry review and approval, before placing eight staff in new grades. The staff were already in their positions by 1st April 2024, so the petitioner failed to meet the threshold for conservatory orders.

p. 6

Legal principles established

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  • The Local Authority Provident Fund established under section 5(1) of the Local Authority Act has no legal capacity to sue or be sued; only the Board, as a body corporate under section 5(8), may sue and be sued.
  • The Acting Chief Executive Officer of the Provident Fund is an employee, not the employer, and cannot be sued merely for signing a memo on behalf of the fund.

Court orders

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  1. 1.The Notice of Motion dated 16th April 2024 is dismissed
  2. 2.Each party to meet their own costs of the application

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 22
  • Constitution of Kenya, 2010Article 258
  • Constitution of Kenya, 2010Article 159(2)(d)
  • Constitution of Kenya, 2010Article 48
  • Local Authority ActSection 5(1)
  • Local Authority ActSection 5(8)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B

Cases cited (3)

  • Gatarau Peter Munya v Dickson Mwenda Kithinji & 2 others
    (2014) eKLR
  • Muslim for Human Rights (Milimani) & 2 others v Attorney General & 2 others
    (2011) eKLR
  • Nairobi Constitutional & Human Rights Division Petition No. 2 of 2023
Jurisdiction invoked
Articles 22 and 258 of the Constitution of Kenya, 2010

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, "Njoroge v Local Authorities Provident Fund (LAPFUND) & another (Employment and Labour Relations Petition E053 of 2024) [2024] KEELRC 2266 (KLR)", Case Analysis (2024). Not stated in the judgment provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2266/eng@2024-09-20

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