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ELRCPartially AllowedPetition dated 5th December 2019 (Nairobi, ELRC)

Moses Banda v Cabinet Secretary for the National Treasury and Planning; Kenya Post Office Savings Bank (Postbank) (Interested Party) [2020] KEELRC 450 (KLR)

Employment and Labour Relations Court
18 September 2020
6,997 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~28 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled the Treasury Cabinet Secretary could not lawfully revoke a state corporation board member's appointment without notice, reasons, and a hearing.

What this practically means

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Executive summary

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The Petitioner, Moses Banda, was appointed a member of the Board of Kenya Post Office Savings Bank (Post Bank) by Gazette Notice of 21st September 2018 for a three-year term expiring September 2021. On 12th November 2019 the Cabinet Secretary for the National Treasury revoked his appointment by Gazette Notice No. 10740 with effect from 6th November 2019, without notice, reasons or a hearing. The Petitioner sued under Articles 25, 27, 28, 33, 41, 47, 48 and 50 of the Constitution, seeking declarations of violation, compensation, certiorari to quash the Gazette Notice and a permanent injunction against his replacement. The Respondent and Interested Party defended the revocation as an exercise of ministerial discretion in the bank's and public interest, arguing that the State Corporations Act's removal provisions did not apply to Postbank. The court framed four issues and held, first, that the Petitioner is a public officer under Article 260 since Postbank is a state corporation. Second, following Ronoh Sitienei v Pharmacy and Poisons Board, revocation of a board member's appointment is governed by sections 6(2) and 7(3) of the State Corporations Act, reserving revocation to the President; the Respondent therefore lacked authority, and in any event gave no notice, reasons or hearing, contrary to Article 47, Section 4 of the Fair Administrative Action Act and Article 236. However, violations of Articles 25, 33, 41 and 50 were not proved; Article 41 does not apply to board membership, and no trial occurred to ground fair-trial claims. The court declared the revocation unconstitutional, quashed the Gazette Notice, restrained the Respondent from appointing a replacement unless the Petitioner's term lapses or he is lawfully removed, and awarded general damages of Kshs.300,000. Punitive damages were refused. Costs were awarded to the Petitioner.

Questions the Court framed

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

  1. 1.Whether the Petitioner is a public officer by virtue of his membership to the Board of Postbank (Interested Party)
  2. 2.Whether the Respondent has the statutory authority and power to revoke the appointment of the Petitioner as was done by Gazette Notice No. 10740, Vol. CXXI-No. 155
  3. 3.Whether the Respondent violated the Petitioner's fundamental rights and freedoms as protected under Articles 25, 27, 28, 33, 41, 47, 48, & 50 of the Constitution
  4. 4.Whether the Petitioner should be granted the reliefs and orders sought in his Petition

Key legal issues

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01

Status of the Petitioner as a public officer

Holding

The Petitioner is a public officer under Article 260 because he sits on the Board of a state corporation.

Reasoning

The court applied Article 260's definition of public officer and Article 232(2), which extends public service values to state corporations. It aligned itself with the Omtatah decision holding that board members of state corporations are public officers within public or state service, governed by constitutional and statutory provisions on public employment.

p. 7
02

Respondent's statutory power to revoke

Holding

The Respondent lacked power to revoke; removal of board members is governed by sections 6(2) and 7(3) of the State Corporations Act, with revocation reserved to the President.

Reasoning

The court agreed with Ronoh Sitienei that section 7(3) of the State Corporations Act is the specific provision for revocation, revocable only by the President within statutory safeguards. The Kenya Post Office Savings Bank Act is silent on revocation, so sections 6(2) and 7(3) of the State Corporations Act apply. None of the section 6(2) grounds were established.

p. 7
03

Violation of fair administrative action and due process

Holding

The revocation breached Article 47, Section 4 of the Fair Administrative Action Act and Article 236 - no notice, reasons or hearing were given.

Reasoning

The stated ground of protecting the bank's and public interest was unsupported by evidence. No grounds were given and the Petitioner was informed only after gazettement. Article 236 due process in removal of public officers was similarly not followed.

p. 7
04

Alleged violations of Articles 25, 33, 41 and 50

Holding

Not proved; Article 41 inapplicable since the Petitioner is not an employee, and there was no trial for fair-trial rights.

Reasoning

The court found the Petition pleaded violations with reasonable precision, satisfying Anarita Karimi Njeru, but the evidence established only Article 47 and Article 236 violations. The discrimination claim under Article 27 was not expressly addressed in the court's findings on the pleaded rights.

p. 8

Legal principles established

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  • A member of the board of a state corporation is a public officer governed by constitutional and statutory provisions on public service
  • Revocation of a board member's appointment of a state corporation is governed by section 7(3) of the State Corporations Act and may only be done by the President
  • An appointing authority must give prior notice, reasons and an opportunity to respond before revoking an appointment; failure violates Article 47 and Section 4 of the Fair Administrative Action Act

Court orders

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  1. 1.A declaration that the 1st Respondent violated the petitioner's fundamental rights and freedoms under Articles 47 and 236 of the Constitution and Section 4 of the Fair Administrative Action Act
  2. 2.An order of certiorari quashing Gazette Notice No. 10740, Vol. CXXI-No. 155 of 12th November 2019 revoking the petitioner's appointment to the Board of the Interested Party with effect from 6th November 2019
  3. 3.A permanent injunction restraining the Respondent from appointing any other person to replace the petitioner unless his term expires or he is removed in accordance with the law
  4. 4.General damages of Kshs.300,000.00 payable by the Respondent to the Petitioner
  5. 5.Respondent to pay the Petitioner's costs of the suit

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Article 23(1) and (3) of the Constitution - enforcement of Bill of Rights under Article 22

Relief refused

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Declarations of violation of Articles 25, 27, 28, 33, 41 and 50

No proof of breach; Article 41 inapplicable as Petitioner not an employee; no trial occurred to found fair-trial/presumption-of-innocence claims

p. 8

Punitive damages

Conditions for award not proved

p. 8

Costs

The Respondent shall pay the Petitioner's costs of this suit.

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.

1. A declaration be and is hereby issued that the 1 st Respondent has violated the petitioner’s fundamental rights and freedoms as protected under Articles 47 and 236 of the Constitution and Section 4 of the Fair Administrative Action Act.
p. 8declaration of violation
2. An order of certiorari be and is hereby issued to quash the Gazette Notice No. 10740, Vol. CXXI-No. 155 issued on 12 th November 2019 by the respondent revoking the appointment of the petitioner as a member of the Board of the Interested Party with effect from 6th November 2019.
p. 8certiorari quashing gazette notice
4. With respect to prayer B, the Petitioner is awarded general damages in the sum of Kshs.300,000.00 to paid by the respondent.
p. 8general damages
I however do not find any proof of breach of the petitioner’s fundamental rights and freedoms under Articles 25, 33, 41 and 50. Specifically, Article 41 is not applicable to the Petitioner as he is not an employee in the manner contemplated therein.
p. 8rights not proved
The Responded shall pay the Petitioner’s costs of this suit.
p. 8costs

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, "Moses Banda v Cabinet Secretary for the National Treasury and Planning; Kenya Post Office Savings Bank (Postbank) (Interested Party) [2020] KEELRC 450 (KLR)", Case Analysis (2020). Petition dated 5th December 2019 (Nairobi, ELRC). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/450/eng@2020-09-18

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