I built this company. I've watched its value fall 62% in four years. Today its minority shareholders vote to hold the board to account, a vote we cannot win but will not stay silent on. Here's why. #WPPScangroup, @WPP
WHY COURT OF APPEAL DISMISSED, WITH COSTS, THE NSSF PRAYER FOR STAY
NSSF Board of Trustees v Kenya Tea Growers Association & 14 Others
Civil Application No. E656 of 2022 | Delivered 29th May 2026
Coram: W. Karanja, K. M’inoti & P. Nyamweya, JJ.A.
Background
NSSF sought to stay the ELRC judgment of 19th September 2022 (Nduma, Wasilwa & Mbaru JJ.) which declared the NSSF Act No. 45 of 2013 unconstitutional, null and void
The ELRC had found the Act unconstitutional principally because the Senate was not involved in its legislative passage, violating the bicameral requirement
The ELRC also struck down the Act for: violating the Competition Act by creating a statutory monopoly favouring NSSF; usurping the Salaries and Remuneration Commission’s mandate under Article 230(4); barring unregistered citizens from public services under Section 19(2); and unjustifiably limiting workers’ freedom of choice to opt for superior private pension arrangements
NSSF’s Arguments for Stay
The ELRC lacked jurisdiction as the petition did not arise from an active employer-employee relationship
The judgment created an immediate governance vacuum as the Managing Trustee and entire Board were appointed under the now-nullified 2013 Act
The judgment paralysed the Haba na Haba scheme, exposing 580,480 informal sector members and jeopardising Ksh.975,986,328.55 in accumulated pension funds
Reverting to Cap. 258 would cut monthly contributions back to Ksh.200, dismantling the progressive 6% matched model that had accrued Ksh.7,282,604,569.74 in enhanced contributions
Members would lose 10% compounded investment returns earned in 2021
Employers demanding refunds for contributions above Ksh.200 would trigger catastrophic financial hardship and cripple the Fund’s ability to pay current retirees
Section 41 burial and emigration grants would be instantly frozen
Respondents’ & Interested Parties’ Opposition
Kenya Tea Growers Association: NSSF operated safely under Cap. 258 for nine years without complaint; no irreparable damage if stay denied; unconstitutional statute should not be preserved
Federation of Kenya Employers (FKE): No legal vacuum exists; employers have smoothly continued remitting under Cap. 258 following earlier judicial directives; the 2013 Act was never fully implemented; granting a stay would force an unconstitutional law onto employers and employees
Both urged dismissal with costs
The Court’s Legal Test Applied
The twin-limb test from Stanley Kangethe Kinyanjui v Tony Ketter & 5 Others [2013] eKLR governed the application: (1) the appeal must be arguable — raising a bona fide point worthy of consideration, not necessarily destined to succeed; and (2) the appeal would be rendered nugatory if stay is not granted
The Court’s Findings
On arguability: the Court found the appeal arguable on the question of whether Senate concurrence was required, accepting this as a bona fide point worthy of consideration — first limb satisfied
On nugatory: the Court found NSSF had completely failed this limb — it provided no documentary proof of its claimed financial collections, no accounts, and no evidence of how or to what extent it would be destabilised; mere repeated assertions of destabilisation without evidence are insufficient
The Court further accepted that Cap. 258 automatically fills the legislative void, meaning no lacuna existed that would render a successful appeal worthless
The consent order of 14th July 2014 staying core provisions of the 2013 Act already remained in force pending final determination of the appeal, further undermining the urgency and nugatory claim
Outcome
Application dismissed with costs to the 1st and 2nd Respondents and 2nd Interested Party (FKE)
NSSF pays costs — a pointed signal that the court found the application lacking in evidentiary merit
The Court apologised for the delay in delivering the ruling, noting the application had escaped the drafting judge’s attention
IGNORE THIS👇
Hate how as a Kenyan, everyday feels like we are parenting Kipchirchir through his presidency because he's a toddler that wants to mess up everything.
It's all "Wacha!" "Usiguze hio" "Usiuze hio" "Usiibe hio" "Usikule pesa ya education" "Nisikupate na terrorists" for fucks sake!
Life is too short to worry about little things. Have fun. Fall in love. Regret nothing, and don't let people bring you down. Study, think, create, and grow. Teach yourself and teach others.
Game theory teaches you that your first mistake is often not choosing badly, but revealing too early how badly you want a particular outcome, because once your preference becomes visible, other people stop negotiating with your logic and start negotiating with your attachment, and attachment almost always pays more than it should.
Someone in an adjacent team once told me that because leadership doesn't acknowledge pre-incident bugs that were fixed, some people resorted to storing these kind of information with them till the incident happened.
Once the incident happened, they would jump in, solve the incident in record time, and then get credited with solving a S1/S2 incident.
Next review cycle, they would either get promoted or get good ratings.
Not saying this is ethical or good for the team/company, but the entire perf review process needs to change if companies don't want these kinds of things to happen.