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Court of AppealPartially AllowedApplication Nos. E067 of 2024 and E068 of 2024

Athi Water Works Development Agency & 3 others v Gikenyi B & 77 others; Moi Teaching & Referral Board & 60 others (Interested Parties) (Civil Appeal (Application) E067 of 2024 & Civil Application E068 of 2024 (Consolidated)) [2024] KECA 1512 (KLR)

Court of Appeal
25 October 2024
3,019 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal paused a High Court case challenging two state agency CEOs' appointments, ruling the High Court may lack jurisdiction over employment disputes.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Nairobi (Warsame, Gachoka and Korir, JJAA) delivered on 25th October 2024 on two applications, E067 of 2024 (by Athi Water Works Development Agency and Engineer Joseph Mwangi Kamau) and E068 of 2024 (by Moi Teaching and Referral Hospital and Dr. Philip Kiptanui Kirwa), heard together and determined by one ruling. The applications sought stay of execution of, or setting aside of, a ruling of Muhochi, J of 20th June 2024 in Nakuru High Court Constitutional Petition No. E011 of 2024, together with stay of further proceedings in the petition and setting aside of conservatory orders issued on 21st May 2024 suspending the appointment of the CEOs of Moi Teaching & Referral Hospital and Athi Water Works Development Agency. Applying the settled two-limb test under rule 5(2)(b) of the Court of Appeal Rules, the Court found the intended appeals arguable because they challenge the jurisdiction of the High Court to entertain the petition, a matter reserved for the Employment and Labour Relations Court under Articles 162(2)(a) and 165(5)(b). On the nugatory limb, the Court held that delivery of judgment scheduled for 19th November 2024 would render the appeals an academic exercise, since a court without jurisdiction acts in futility. Rejecting the argument that the Court cannot stay conservatory orders, and holding that although stay of proceedings is a weapon of last resort, these circumstances warranted it, the Court allowed both applications, staying the conservatory orders and further proceedings in the petition pending the intended appeals, with costs to abide the outcome and a direction for expeditious hearing of the appeals.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the intended appeals are arguable and not frivolous
  2. 2.Whether the intended appeals will be rendered nugatory if stay of execution/proceedings and stay of the conservatory orders are not granted

Key legal issues

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01

Whether the intended appeals raise arguable grounds under rule 5(2)(b)

Holding

The intended appeals are arguable because they raise the question of the jurisdiction of the High Court over the petition and the principles governing conservatory orders.

Reasoning

The Court reviewed the impugned ruling and the draft memorandum of appeal. The gist of the intended appeal concerned the High Court's jurisdiction and whether the impugned ruling complied with principles for conservatory orders. The Court found the jurisdictional question arguable and deserving of full interrogation, while stressing that arguability does not predict success, which lies with the bench hearing the substantive appeal.

p. 9
02

Whether the intended appeals would be rendered nugatory absent stay

Holding

Yes. If the High Court delivered judgment scheduled for 19th November 2024, the intended appeals would become an academic exercise, especially as a court acting without jurisdiction acts in futility.

Reasoning

The intended appeal challenges the High Court's jurisdiction. A judgment delivered before that question is determined would render the appeals worthless; although damages might compensate, the applicants would need fresh litigation to the detriment of the public purse. The Court invoked the principle that jurisdiction is everything, and held that despite the general rule that stay of proceedings is a last resort, the circumstances here warranted it.

p. 10
03

Whether the Court can issue stay against, or vacate, conservatory orders

Holding

Yes, where appropriate, following prior decisions of the Court.

Reasoning

The respondents contended that the Court could not issue stay against conservatory orders. The Court rejected this, relying on Cabinet Secretary for the National Treasury and Planning v Okoiti and Cabinet Secretary Ministry of Health v Aura, holding that it can vacate conservatory orders where appropriate, and noted the applicants had sought setting aside of the 21st May 2024 orders in the proceedings leading to the impugned ruling.

p. 9

Legal principles established

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  • An applicant under rule 5(2)(b) must demonstrate both that the intended appeal is arguable and that it will be rendered nugatory if stay is not granted; both limbs must be established.
  • The Court of Appeal can, where appropriate, vacate or stay conservatory orders issued by the High Court.
  • It is not enough for an applicant to assert that an appeal will be rendered nugatory; it must be demonstrated that success of the intended appeal would be worthless to the applicant, considering reversibility and compensability by damages.

Court orders

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  1. 1.Applications E067 of 2024 and E068 of 2024 allowed to the extent that an order is issued staying the conservatory orders issued on 21st May 2024 in Nakuru HCCP No. E011 of 2024
  2. 2.Stay of further proceedings in Nakuru High Court Constitutional Petition No. E011 of 2024 pending the hearing and determination of the applicants' intended appeals
  3. 3.Costs of the applications to abide the outcome of the intended appeals
  4. 4.Direction that the appeals be heard expeditiously

The bench

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One judgment of the whole court — no separate or dissenting opinions.

Mohamed Abdulahi Warsame
M. WarsameJA
Currently serving
majority
majority
majority
On appeal from
High Court at Nakuru
Nakuru High Court Constitutional Petition No. E011 of 2024
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules
Consolidated with
Application No. E068 of 2024

Relief refused

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Setting aside of the conservatory orders outright

The Court instead stayed the conservatory orders rather than vacating them, limiting relief to the extent necessary

p. 10

Costs

The costs of the applications shall abide the outcome of the intended appeals.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

Accordingly, applications E067 of 2024 and E068 of 2024 are hereby allowed to the extent that an order is hereby issued staying the conservatory orders and further proceedings in Nakuru High Court Constitutional Petition No. E011 of 2024 pending the hearing and determination of the applicants’ intended appeals.
p. 10Final orders - stay of conservatory orders and proceedings
The costs of the applications shall abide the outcome of the intended appeals. Further, we direct that the appeals be heard expeditiously.
p. 10Costs and expedition
it is not enough for an applicant to state that the appeal will be rendered nugatory. It must be demonstrated that were the intended appeal to be successful, it will be worthless to the applicant.
p. 10Nugatory test under rule 5(2)(b)
jurisdiction is everything and without jurisdiction a court has no mandate to take one further step
p. 10Primacy of jurisdiction
an order staying proceedings should be a weapon of last resort
p. 10Stay of proceedings as last resort

Issues in the judgment

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minor

The judge's name appears inconsistently spelled in the judgment as both 'Muhochi' and 'Mohochi'

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, "Athi Water Works Development Agency & 3 others v Gikenyi B & 77 others; Moi Teaching & Referral Board & 60 others (Interested Parties) (Civil Appeal (Application) E067 of 2024 & Civil Application E068 of 2024 (Consolidated)) [2024] KECA 1512 (KLR)", Case Analysis (2024). Application Nos. E067 of 2024 and E068 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/1512/eng@2024-10-25

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