Local Authorities Provident Fund Board v County Government of Narok & another (Cause E008 of 2022) [2023] KEELRC 1977 (KLR)
The bottom line
#Kenya's Employment Court struck out LAPFUND's KES 1 billion claim against Nakuru County, holding only the High Court can hear such debt disputes.
What this practically means
#Executive summary
#Key legal issues
#Whether the ELRC has jurisdiction over a claim by LAPFUND against a county government for non-remittance of provident fund contributions
The court has no jurisdiction; the dispute is not between employer and employee and the Claimant does not fall within Section 12 categories
The court found there is no employer-employee relationship between the Claimant and the Respondents, the employees are not parties, and the Claimant is neither a trade union nor an employers' organization. Following binding Court of Appeal decisions restricting ELRC jurisdiction to Section 12, the claim to enforce a statutory/contractual obligation falls outside the court's jurisdiction and belongs in the High Court.
Whether a court without jurisdiction may transfer the cause to a competent court
No; a court without jurisdiction cannot order transfer as that would sanitize an illegality
Following the Supreme Court in Albert Chaurembo and the Court of Appeal in Phoenix of EA Assurance, the court held that once it lacks jurisdiction it must down its tools; nothing is before it capable of transfer, so the cause is struck out rather than transferred to the High Court.
Whether the preliminary objection was properly founded on law
Yes; the PO raised pure questions of law on jurisdiction
Applying the Mukisa Biscuits test, the court held that the objection was based purely on points of law (jurisdiction under Section 12 of the ELRC Act) discernible without calling evidence, and was therefore properly before the court for determination in limine.
Legal principles established
#- A preliminary objection must be based on pure points of law, not contested facts
- A court without jurisdiction cannot order transfer of a cause to another court
- The ELRC's jurisdiction is restricted to the parties and matters specifically provided for under Section 12 of the ELRC Act
Court orders
#- 1.A declaration that the cause is improperly before the court for lack of jurisdiction
- 2.The cause is struck out
- 3.Each party to meet own costs
- Jurisdiction invoked
- Article 162(2) of the Constitution and Section 12 of the Employment and Labour Relations Court Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Local Authorities Provident Fund Board v County Government of Narok & another (Cause E008 of 2022) [2023] KEELRC 1977 (KLR)", Case Analysis (2023). ELRC Cause at Nakuru (statement of claim dated March 4, 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1977/eng@2023-07-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.