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Case Brief · caselaw.co.ke
ELRCPartially AllowedNot stated in the extract (claim filed 19th February 2010)· [2021] KEELRC 21 (KLR)

Agnes Muthoni & 34 others v Kenya Medical Research Institute (KEMRI); Union of National Research and Allied Institutes Staff of Kenya (UNRISK) (Interested Party) [2021] KEELRC 21 (KLR)

Employment and Labour Relations Court
10 December 2021
4,892 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~20 min to read original · ~4 min brief

The bottom line

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KEMRI's acting director was held in contempt for ignoring court orders to reinstate 34 sacked workers, proving Kenyan institutions cannot outwait or ignore court judgments.

What this practically means

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Executive summary

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This ruling of the Employment and Labour Relations Court at Nairobi, delivered by M. Mbaru, J on 10th December 2021, determined two competing applications arising from orders issued on 14th October 2021 directing the respondent, Kenya Medical Research Institute (KEMRI), to re-engage, redeploy and allow the claimants, 34 former employees terminated in December 2009 and unfairly reinstated by a judgment of 13th May 2010, to resume duty without loss of status, to tabulate and pay their basic salaries, and to release Kshs. 200,000 held as security for costs. By its application dated 14th October 2021, the respondent sought a stay of execution pending an intended appeal, arguing that the re-engagement orders were time-barred under section 12(3)(vii) of the ELRC Act, that the court was functus officio regarding salary payments, and that the orders were impracticable after 11 years. The court applied the Order 42 Rule 6 tests, held that substantial loss is the primary condition and that the respondent had not addressed it, and dismissed the stay application with costs. It further held that orders against a body corporate bind every director and officer under section 20(8) of the ELRC Act, so the holder of the office of director is bound even though the orders named the former director, Dr. Yeri Israel Kombe, and that compliance orders are part of execution, so the court was not functus officio. On the claimants' application dated 1st November 2021, the court applied the four-element test in Samuel M. N. Mweru v National Land Commission, found the respondent in deliberate breach, rejected the argument that the orders did not bind the acting director, and found the respondent's director, currently held by Ag. Director Prof. Samuel Kariuki, guilty of contempt of the orders of 14th October 2021, directing him to appear for mitigation and sentencing on 16th December 2021.

Key legal issues

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01

Whether the conditions for a stay of execution under Order 42 Rule 6 were met

Holding

The stay application was dismissed; the respondent failed to demonstrate substantial loss, the primary test, though it filed the application without delay

Reasoning

Order 42 Rule 6 requires demonstration of substantial loss, security for due performance, and absence of delay. Only the absence of delay was met. Substantial loss is primary and without it the other tests cannot stand, as held in National Industrial Credit Bank Ltd v Aquinas Francis Wasike and James Wagalwa v Agnes Naliaka Cheseto. The grounds raised (jurisdiction, functus officio, impracticability) were appeal grounds, not proof of loss.

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02

Whether the orders of 14th October 2021 bound the current acting director despite naming the former director

Holding

Yes; orders against a body corporate bind every director and officer under section 20(8) of the Employment and Labour Relations Court Act, 2011; the office remains intact even when the officeholder changes

Reasoning

The respondent is a body corporate and state corporation whose officers act in perpetuity. The person holding the office of director may change but the office remains. Section 20(8) requires every director and officer of a body corporate to comply with orders directed to it, and section 20(9) imposes vicarious liability for offences unless consent/connivance and due diligence are proved. The argument that the orders did not bind the office of Director General was rejected.

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03

Whether the court was functus officio or lacked jurisdiction under section 12(3)(vii) to order re-engagement and salary payments

Holding

No; the judgment of 13th May 2010 allowing reinstatement stands, and orders directing compliance are part of its execution; the court is not functus officio

Reasoning

The respondent's jurisdictional objections could not hold because the judgment allowing reinstatement was delivered on 13th May 2010 and is not a new matter. Orders seeking compliance with a judgment are part of execution. The court held it was not functus officio and that the respondent cannot rely on the passage of time to avoid compliance.

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04

Whether the respondent and its acting director were guilty of contempt of the orders of 14th October 2021

Holding

Yes; the four elements in Samuel M. N. Mweru v National Land Commission were satisfied, and the acting director was found guilty of contempt, to appear for mitigation and sentencing

Reasoning

Knowledge of the orders was not disputed as the respondent's advocate was in court when they were issued; breach was not disputed as the respondent had not complied to date. The claim that the orders were unclear failed because the respondent never moved the court for clarification, and the orders were against the respondent as a body corporate. The current director had knowledge of the orders, so personal liability attaches.

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Legal principles established

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  • Where an order is directed to a body corporate, every director and officer of the body corporate is required to comply with it, so the holder of the office of director is bound even where the order named a former officeholder
  • Substantial loss is the primary and cornerstone condition for granting a stay of execution
  • Four elements must be proved before contempt orders issue: clear and unambiguous terms, knowledge/notice, breach, and deliberateness
  • A party who considers a court order unclear must move the court appropriately rather than ignore it

Court orders

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  1. 1.The respondent's application dated 14th October 2021 seeking stay of execution is dismissed with costs
  2. 2.The ruling/orders of 14th October 2021 stand and remain valid
  3. 3.The claimants' application dated 1st November 2021 is allowed
  4. 4.The respondent's Director, a position currently held by Ag. Director Prof. Samuel Kariuki, is found guilty of contempt of court of the orders issued on 14th October 2021
  5. 5.Prof. Samuel Kariuki to appear in court on 16th December 2021 for mitigation and sentencing
  6. 6.Orders of 14th October 2021 remain valid
Jurisdiction invoked
Employment and Labour Relations Court Act, 2011 (including sections 12(3)(vii) and 20(8)-(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, "Agnes Muthoni & 34 others v Kenya Medical Research Institute (KEMRI); Union of National Research and Allied Institutes Staff of Kenya (UNRISK) (Interested Party) [2021] KEELRC 21 (KLR)", Case Analysis (2021). Not stated in the extract (claim filed 19th February 2010). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/21/eng@2021-12-10

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