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Court of AppealDismissedCivil Appeal No. 37 of 2015· [2015] KECA 117 (KLR)

Murang’a County Public Service Board v Grace N. Makori & 3 others

Court of Appeal of Kenya
23 December 2015
8,065 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~32 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal ruled that Murang'a County must absorb seconded health workers on permanent, pensionable terms, affirming their legitimate expectation of equal treatment.

What this practically means

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Executive summary

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The Court of Appeal at Nyeri (Waki, Nambuye and Kiage JJ.A) dismissed this first appeal against the judgment of Ongaya J. of the Employment and Labour Relations Court, which had declared ESP health workers employed by the National Government and seconded to Murang'a County entitled to retention on permanent and pensionable terms from the expiry of their three-year contracts. The appellant, the County Public Service Board, argued it had exclusive staffing autonomy, that the judge lacked jurisdiction, had granted unpleaded retrospective relief, and had ignored the budgetary cycle and the National Government's funding obligation under Article 187(2)(a). The court rejected each ground. It held that devolution rests on functional and institutional integrity and cooperation rather than autonomy, so the PSC and Ministry of Health letters merely communicated a pre-existing national absorption policy agreed with the Council of Governors and did not usurp the Board's mandate. The respondents' expectation of equal treatment with the already-absorbed first batch was legitimate and constitutional, grounded in Articles 27 and 41. Their contractual status did not make them any less PSC appointees seconded under Section 138(1) of the County Governments Act. Health services were an assigned county function, not a transferred one, so no Article 187 funding obligation arose. The judge had accommodated the budgetary cycle by allowing compliance by 1st August 2015, and there was no variance between relief granted and prayer one. The appeal was dismissed with costs.

Key legal issues

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01

Whether the learned Judge lacked jurisdiction

Holding

The ELRC had jurisdiction; the appellant's complaint went to interpretation of terms of service, not jurisdiction

Reasoning

The court accepted the Lillian S dictum as restated in Mumo Matemu but found no jurisdictional defect: no one contended the judge lacked competence to entertain the dispute. Questioning how a judge construed terms of service is wholly different from acting without jurisdiction. The complaint on jurisdiction was therefore misconceived.

p. 5
02

Whether the PSC/MOH letters unlawfully encroached on the appellant's exclusive staffing mandate under Article 235 and Section 59 of the County Governments Act

Holding

They did not; they merely communicated a pre-existing national policy predating devolution, adopted through consultation with the Council of Governors

Reasoning

Article 189(1) commands respect for functional and institutional integrity, not autonomy; Article 6 and Article 189(2)-(4) require consultation and cooperation. The Constitution created a bridge, not a wall, between levels of government. The letters communicated agreed policy implemented by two-thirds of counties and did not usurp the appellant's mandate.

p. 12
03

Whether the respondents were entitled to absorption on permanent and pensionable terms

Holding

Yes; they had a legitimate, constitutional expectation of equal treatment with the first batch of ESP workers already absorbed

Reasoning

National government policy, accepted by the Council of Governors, was that ESP workers be absorbed on permanent and pensionable terms at contract expiry. The appellant had notice of the policy from January 2014. It could not resile from obligations freely entered into or lawfully inherited, and discriminating against the second batch violated Articles 27 and 41.

p. 13
04

Whether the judge granted relief not prayed for by pegging absorption to expiry of the three-year contracts

Holding

No variance existed between the declaration and prayer one, which referenced the Cabinet Secretary's letter of 24th January 2014

Reasoning

The letter itself communicated that absorption should be into the regular establishment on permanent terms, with 2011 employees due for absorption in 2014. The effective date corresponded to what was pleaded and communicated, consistent with the Trojan v Nagappa Chettiar principle against granting unpleaded relief.

p. 13
05

Whether Article 187(2)(a) obliged the National Government to fund the absorption

Holding

No; health services were not a transferred function but an assigned county function under the Fourth Schedule

Reasoning

Article 187 governs transfer of functions by agreement. County health services are listed as a county function in the Fourth Schedule, with only health policy national. Absent a transfer agreement, the appellant cannot demand resources under Article 187(2)(a).

p. 14
06

Whether the judge disregarded the budgetary cycle

Holding

No; the judgment expressly accommodated the budget cycle by allowing compliance by 1st August 2015

Reasoning

The judge considered the budgetary cycle and gave about three months to comply. The appellant provided no evidence of financial burden and should have provided from January 2014 when notified. The approach was consistent with Kenya Engineering Workers Union v Reliance Industries on retrospective awards, and the appellant had substantially complied.

p. 15

Legal principles established

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  • Devolution creates cooperation and consultation between national and county governments based on functional and institutional integrity, not insulated autonomy; inter-level communications of pre-existing policy do not usurp county mandates
  • County public service boards are bound by pre-existing national employment policy, communicated and mutually agreed with the Council of Governors, and employees seconded under that policy acquire a legitimate and constitutional expectation of absorption on permanent and pensionable terms at expiry of their contracts, enforceable on equality grounds
  • Contractual employees of the PSC, whatever the nature of their terms, remain PSC appointees deemed seconded to county governments under Section 138(1) of the County Governments Act

Court orders

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  1. 1.The appeal is dismissed with costs to the respondents
  2. 2.The judgment and decree of the Employment and Labour Relations Court declaring the respondents entitled to retention on permanent and pensionable terms with effect from expiry of their three-year contracts stands affirmed
On appeal from
Employment and Labour Relations Court at Nyeri
E.L.C. Petition No. 1 of 2015
Jurisdiction invoked
First appeal under the Employment and Labour Relations Court jurisdiction; constitutional provisions on devolution (Articles 6, 187, 189, 235) and fair labour practices (Articles 27, 41) under consideration

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, "Murang’a County Public Service Board v Grace N. Makori & 3 others", Case Analysis (2015). Civil Appeal No. 37 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2015/117/eng@2015-12-23

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