Gakuru & others v Governor Kiambu County & 3 others (Petition 532 of 2013 & 12, 35, 36, 42 & 72 of 2014 & Judicial Review Miscellaneous Application 61 of 2014 (Consolidated)) [2014] KEHC 7516 (KLR) (17 April 2014) (Judgment)
Robert N. Gakuru & Others v Governor Kiambu County & 3 others [2014] eKLR
Neutral citation:
[2014] KEHC 7516 (KLR)
Republic of Kenya
Petition 532 of 2013 & 12, 35, 36, 42 & 72 of 2014 & Judicial Review Miscellaneous Application 61 of 2014 (Consolidated)
GV Odunga, J
April 17, 2014
Between
Robert N Gakuru & Others
Petitioner
and
The Governor Kiambu County
1st Respondent
The Deputy Governor Kiambu County
2nd Respondent
The Executive Committee Kiambu County
3rd Respondent
The Hon Attorney General
4th Respondent
Court declares that the Kiambu Finance Act, 2013, violated the Constitution as it had been enacted without meeting the legal threshold for public participation.
The court held that the Kiambu Finance Act, 2013, was not enacted through a process that met legal public participation requirements and was therefore null and void. It explained that a one day newspaper advertisement relating to public participation, in a locality where the newspaper was not affordable to most of the population ,was insufficient to meet the legal requirements for public participation.
Constitutional Law - devolution - County Governments - legislative authority of County Assemblies - public participation in legislation and other business of the County Assembly - whether public participation was required even where a Bill had been rejected by the assembly and a fresh Bill introduced as opposed to mere amendments being effected to the Bill- Constitution of Kenya 2010, article 10, 196 and 174; County Government Act, sections 87 and 88.Constitutional Law - devolution - County Governments - functions and powers of County Governments - levying of taxes and charges - whether levying of taxes on transportation of goods produced within a county by a County Government was contrary to article 209 of the Constitution - Constitution of Kenya 2010, articles 209 and 210, 4th schedule.
Brief facts
The Kiambu County Assembly enacted and passed the Kiambu Finance Act, 2013 (the Act), which sought to levy taxes on every stone transported from the County’s quarries. The applicants thereafter petitioned the court to make a declaration that the Act violated the provisions of the Constitution and was therefore null and void. It was their submission that there was no public participation in the enactment of the impugned Act which led to the Act having unreasonable and punitive provisions some leading to double taxation and further that the taxes proposed to be levied by the Act were out of the scope of taxes that could be levied by the County Governments as per the Constitution of Kenya, article 209.
Issues
i. Whether lack of public participation in enactment of legislation rendered the legislation null and void.ii. Whether a one-time publication in a newspaper was sufficient invitation to the members of the public to participate in the enactment of a legislation.iii. Whether public participation was required where a Bill had been rejected by the assembly and a fresh Bill introduced.iv. Whether County Governments could levy taxes on transportation of goods produced within the County.
Held
1. Articles 10, 174, 196 and 201 of the Constitution of Kenya, 2010 as read with sections 87 and 115 of the County Governments Act, 2012 provided that public participation played a central role in both legislative and policy functions of the government whether at the national or county level. It applied to the process of legislative enactment, financial management, planning and performance management.2. The nature and the extent of public participation depended on the nature of what was at hand, that did not however permit a complete blackout of the public from participation. In cases of oral public hearings the mere fact that a particular person was not heard did not render the whole process a nullity.3. Where a Bill had been rejected by the County Assembly and a fresh Bill introduced as opposed to mere amendments being made to the Bill, the principle of public participation had to apply, otherwise the principle could be defeated by the County Assembly simply rejecting a Bill in which the public had an input with its own Bill disregarding the input by the public.4. It was the duty of County Assemblies to ensure that their constituents were aware of their intention to pass legislation. Where the legislation in question involved such an important aspect as payment of taxes and levies, the duty was even more onerous.5. Whereas the magnitude of the publicity required varied in different circumstances, a one day newspaper advertisement in a county where a majority of the populace survived on less than a dollar per day and to whom newspapers were a luxury leave alone the level of illiteracy in some parts of the country was not sufficient for the purposes of public participation.6. County Assemblies could only impose property rates and entertainment taxes unless otherwise authorized by an Act of Parliament which position was emphasized by the provisions of article 210(1) of the Constitution. County Governments were empowered to impose charges on services they provided such as parking and market fees. However the levying of such taxes had to comply with the provisions of section 120 of the County Governments Act and was not to be such as to prejudice national economic policies.7. County Governments were entitled to reliable sources of revenue to enable them to govern and deliver services effectively, however that entitlement had to be exercised in accordance with the Constitution and the law and where the existing legislation was not adequate for the purposes of ensuring the efficient governance and delivery of services the County Government had to petition the National Government to increase allocation to them or enact appropriate legislation to enable them carry out their constitutional mandate.8. The power to declare legislation unconstitutional rested with the High Court pursuant to article 165(3)(d) of the Constitution and petitioning the County Government in the circumstances of the instant case could not have afforded the Petitioners an effective remedy.
Kiambu Finance Act, 2013 declared null and void, no order as to costs.
Citations
East Africa 1. Matemu, Mumo v Trusted Society of Human Rights Alliance & others Civil Appeal No 290 of 2012 - (Applied) 2. Nairobi Metropolitan PSV Saccos Union Limited & 25 others v County of Nairobi Government & 3 others Petition No 486 of 2013 - (Mentioned) 3. Njuguna, Stephen & others v Lewis Nguyai & others Petition No 118 of 2011 - (Explained) South Africa 1. Doctors for Life International v Speaker of the National Assembly and others [2006] ZACC 11; 2006 (12) BCLR 1399 - (Explained) 2. Glenister v President of the Republic of South Africa and others [2011] ZACC 6; 2011 (7) BCLR 651 - (Explained) 3. Matatiele Municipality and others v President of the Republic of South Africa and others [2006] ZACC 12; 2007 (1) BCLR 47 -(Explained) 4. Merafong Demarcation Forum and others v President of the Republic of South Africa and others [2008] ZACC 10; 2008 (5) SA 171; 2008 (10) BCLR 968 - (Explained) 5. S v Acheson 1991 (2) SA 805 - (Explained) Statutes East Africa 1. Advocates Act (cap 16) section 34 - (Interpreted) 2. Civil Procedure Rules, 2010 (cap 21 Sub Leg) order 9 - (Interpreted) 3. Constitution of Kenya, 2010 articles 1, 2(4); 47; 10; 25(b); 26 -51; 120(1); 165(3)(d); 174(c); 175(b); 185(2); 190(1); 196(1)(a)(b); 201; 202(1); 203; 209(3)(4)(5) - (Interpreted) 4. County Governments Act, 2012 (Act No 17 of 2012) sections 87, 88; 91, 115, 120 - (Interpreted) 3. Public Finance Management Act, 2012 (Act No 18 of 2012) - (Interpreted) South Africa 1. Constitution of South Africa, 1996 section 72 - (Interpreted)
Judgment
Introduction
1.This judgement is the subject of Petition Nos. 532 of 2013 filed by Robert N. Gakuru, Petition No. 12 of 2014 filed by Likambu Matatu Savings & Credit Co-operative Society Ltd and Others, Petition No. Petition No.35 of 2014 by Quarry Owners Association of Kenya, Petition No. 36 of 2014 filed by Eliud Ngugi Ngigi and Others, Petition No. 42 of 2014 filed by Gacheru Kariuki, Petition No. 72 of 2014 filed by Townlink Cabs Limited and Judicial Review Application No. 61 of 2014 filed by Patrick Kamau Kungu & Others variously against the Respondents herein. The said matters were consolidated as the issues involved in all the matters were similar and cut across the said causes.
The Case for the Petitioners/Applicants
2.In the said matters the Petitioners and the Applicants are seeking in the main a declaration that the Kiambu Finance Act, 2013 gazetted vide Kiambu County Gazette Supplement No. 8 (Act No. 3) (hereinafter referred to as the Act) violates various provisions of the Constitution and that the same is null and void.
3.The grounds on which these matters were based were that no consultations took place and no invitations were made by the Respondents before the said Act was enacted. It was further contended that the provisions of the said Act contravene the provisions of the Constitution as it contains levies and/or taxes which the Respondents are not empowered to impose.
4.From the affidavits filed in support of the petitions and the application, it comes out clearly that the petitioner/applicant’s complaint is centred on the fact that no proper public participation was factored into the enactment of the impugned Act and as a result thereof the Respondents passed a piece of legislation containing unreasonable provisions which provisions were punitive with some amounting to double taxation. Consequently, the petitioners/applicants have been subjected to discrimination in terms of taxation and hence exposing them to a real risk of closure of business and loss of livelihood thus denying them fundamental right to economic well-being and the right to earn a living contrary to the provisions of the Constitution.
5.According to the Petition No. 12 of 2014, although their views were sought at a meeting held between them and the members of the County Assembly at Windsor Hotel (hereinafter referred to as the Windsor Hotel Meeting) with respect to an earlier Bill and the draft Bill incorporated their view, the said Bill was rejected when the same was tabled in the Assembly. However when the impugned Act was gazetted, it was a departure from what was agreed between them and the Respondents in terms of the levying f taxes. In the said petition it was contended that the provisions of the impugned Act were are contrary to what the stakeholders agreed upon and that its provision placed a heavy burden upon the said petitioner.
6.The petitioners in petition no. 36 of 2014 on their part took issue with the fact that they were left out of the said Winsor Hotel meeting despite being members of Kabete Sub-County Business Owners and Services Association who are major stakeholders in the County.
7.That no consultation was done was reiterated by the applicants in Judicial Review Application No. 61 of 2014. According to them the imposition of the levies in the County will expose them to unfair competition from other meat traders from the neighbouring Counties who do not face similar levies.
8.In the submissions filed on behalf of the petitioners in petition No. 532 of 2013, it was contended that media advertisement in the Daily Nation inviting the public to Consultative forums did not indicate the Act as one of the items in the agenda. As the first Bill which was placed before the County Assembly had been rejected, it was submitted that there was a need for further consultation on the changes which were introduced therein.
9.In his submissions Dr Wangai, learned counsel for the petition in petition no. 532 of 2013 submitted inter alia that Article 10 of the Constitution provides for national values and principles of governance and Clause (2)(a) identifies among others patriotism ad participation of the people as one of such values and principles. According to hi, the people did not participate in the enactment of the Act. In his view Article 174(c) of the Constitution which talks of objects and principles of devolved government identifies the need to give powers of self-governance to the people. It was therefore submitted that the people ought to participate in the governance as well as public financing as provided for under Article 201 of the Constitution which requires openness and accountability including public financial matters. Since Article 202(1) of the Constitution talks of sharing of revenue between the National and County Governments, the County Governments can get money from the National Government. According to learned counsel Article 209 deals with areas in which the County Government can levy taxes and source revenue and these are property, entertainment and taxes levied by virtue of an Act of Parliament. However, in other areas not mentioned the County Government has no mandate to levy taxes.
10.With respect to the provisions of the County Governments Act No. 17 of 2012, it was submitted that it is provided in section 87 thereof that the participation of the citizens in the running of County Governments is recognised while section 91 thereof provides for platforms for citizens participation. Section 115 on the other hand provides for the participation in the county planning. In learned counsel’s view there were no such platforms hence the people of Kiambu were not consulted. Learned counsel urged this Court to define public participation and consultation.
11.Referring to the replying affidavit he submitted that what was exhibited as a form of public participation were names of persons who were paid which would not in his view constitute public participation without an agenda and minutes of the meeting and their contributions. Since the county has 1.6 million people the number of 935 people.
12.It was therefore his case that to the extent that there was no consultation the Act is unconstitutional and that the mode of taxation is also unconstitutional and that the costs be awarded to the petitioners.
13.While submitting on behalf of Mr. Magani for the petitioners in petition no. 2 of 2014, Dr Wangai contended that whereas the said petitioners were consulted on the earlier Bill the Act contained new figures which were different from the one which were contained in the Bill that was rejected. He further submitted that the mode of advertisement in the Daily Nation Newspaper did not lend itself to a proper avenue for public participation in that the advertisement was only on 17th August 2013 for a meeting to be held on 20th August, 2013 without proper circulation of the notice. To him the said advertisement cannot be a basis of consultation since the same was in any case in English language which is not the local dialect of the majority of the residents of the County. To him the advert itself was confusing in the sense that it did not speak of the Act.
14.On behalf of the petitioner in petition No. 35 of 204, it was submitted that the fact that so many suits have arisen from so many different quarters over the same Act of one legislature goes to show that there is great folly not only in the contents of the Act but also in the manner in which it was enacted. According to the petitioners herein, the public advertisement which appeared in the Daily Nation Newspaper of 17th August 2013 mentioned a discussion of the County Integrated Plan and did not address itself to the contents of the proposed Finance Bill hence had no direct bearing on the Kiambu Finance Act, 2013.
15.It was therefore submitted that the Respondents did not engage in sufficient or proper public participation hence the Act is unconstitutional. Apart from that it was contended that under Article 209 of the Constitution only he National Government may impose Income Tax, Value Added Tax, Customs and other duties and Excise Tax while a County may impose Property Tax, Entertainment Tax and any other Tax authorised by an Act of Parliament. However, both Governments may impose charges for the services they provide such as parking, trade licences etc. although the taxation and other revenue raising powers of a County cannot be exercised in a way that prejudices national economic policies, economic activities across the County boundaries or the national mobility of goods, service, capital or labour. However, it was the petitioners’ view that the levy of Kshs 1/= on every stone transported from the members’ quarries as stipulated under Schedule I part VII of the Act qualifies as a production tax since there is no service shown that the Respondents are providing. Secondly to impose taxes on the goods as they are transported as stipulated in Schedule I Part VII is a contravention of Article 209(5) which prohibits counties from prejudicing economic activities across County boundaries since the effect of the said action would be to discourage the sell of quarried stones to persons outside the County.
16.It was further submitted that to require the quarry owners to collect the said illegally imposed taxes would be to force the quarry owners to be tax collecting agents without following the law and by forcing the said quarry owners to provide free services contrary to Articles 25(b) and 209(4) of the Constitution. Since part 2(7) of the 4th Schedule to the Constitution deals with Trade Development and Regulation to include market trade licences etc. it was submitted that the Schedule does not deal with imposition of new taxes or raising of existing levies hence the imposition of the Transport taxes under Schedule I Part VII of the Act falls outside the ambit of the said Schedule 4 of the Constitution which deals with the provision of services. It was therefore submitted that even had the Respondents adhered to the requirement of public participation the actions of the Respondents would still have been illegal.
17.Submitting on behalf of the said petitioners Mr Murithi, their learned counsel while associating himself with the submissions made by Dr Wangai reiterated the contents of the written submissions filed in the said petition that the levying of Kshs 1/= per stone was a tax and not a levy since it is based on a turnover and is not therefore a licence which is a one off charge for services rendered.
18.According to the petitioners in petition No. 36 of 2014, in the exercise of the powers conferred by Article 185 of the Constitution Kiambu County Assembly prepared Kiambu County Finance Bill 2013. However the said Bill was prepared and passed without proper participation and consultation of the public/petitioners of Kabete Sub-county and to a larger extent the residents of Kiambu County contrary to sections 87 and 115 of the County Government Act, 2012 which provide for the principles of citizenship participation in the counties and public participation in county preliminary process. It was submitted that the raising of permits and licence fees by between 100% and 30% is out of reach of many of the petitioners who are small scale traders.
19.It was submitted that the Act did not provide the petitioners with timely and reasonable access to information to enable them make an informed decision contrary to Article 35 of the Constitution since many members were not aware and were never consulted on the Act. It was contended that the documents exhibited to the replying affidavit do not disclose the minutes of the proceeding and the agenda of deliberations. The omission to exhibit the minutes and proceedings of the alleged public forums weakened the legitimacy and diminishes the public confidence in the county government and leads to the conclusion that the alleged forums were not for the enactment of the Finance Bill and in any case the Finance Bill was not an item in the agenda of the forum whose agenda was ambiguous.
20.It was therefore submitted that the Act contravened the constitutional and statutory provisions.
21.According to Mr Kiragu, learned counsel for the petitioner in petition No. 36 of 2014, apart from seeking the common prayers, his clients were seeking an order directing the County Assembly to amend the Act and lower the charges. He similarly associated himself with the submissions made by other counsel and added that his clients are representative of the people of Kabete which has residents of more than 30,000 though only 201 participants allegedly attended the consultative forum and were paid Kshs 500/- as a form of inducement.
22.The applicants in judicial review application no. 61 of 2014 on their part submitted that that the Act was superfluous as there exists a taxation regime that is applicable uniformly to a subsidiary legislation and that to the extent that there is in force subsidiary legislation No. 147 of 2008 the Act is illegal. Further the Act is discriminatory and biased as it is being enforced selectively against the 1st applicant. The applicants also submitted that there was no consultation and public participation and the rights of the residents were infringed and that the Act is an affront to public policy.
23.In his oral address Mr Mungao, learned counsel for the applicants in application no. 61 of 2014, associated himself with the foregoing submissions although the County Government has its own slaughterhouse, the fees which are being levied against the 1st applicant are not applicable to the County Government’s slaughterhouse hence the County Government’s action amount to unfair trading practices and its action is discriminatory. Since these charges do not apply to other neighbouring counties, it is likely that the slaughterhouses bordering the County will move out and leave the 1st applicant’s abattoir. It was further submitted that the charges levied in so far as they are based on the volume of trade are uncertain.
24.Citing several provisions of the Constitution, James Gacheru Kariuki, the petitioner in petition no. 42 of 2014 contended that the Finance Act contravenes the provisions of Article 120(1) and 209(3) of the Constitution and is hence illegal and unconstitutional. On his part, Anthony Ikonya Mwaniki, the Managing Director of Townlink Cabs Limited, the petitioner in petition no. 72 of 2014, while associating himself with the foregoing submissions contended that by seeking to have the petitioner pay parking fees while it is already subjected to payment of single business permit, the County Assembly has imposed double taxation since business permit includes parking.
Respondents’ Case
25.The case for the Respondents as gleaned from the replying affidavits filed herein was that the entire Kiambu County including the petitioners is represented in the County Assembly of the County Government of Kiambu (hereinafter referred to as the Assembly) by elected leaders and that the Assembly is the legislative organ of the County Government of Kiambu. According to the respondents the introduction of the Act was preceded by invitations for public participation and consultation. To this end the Bill was submitted to the Assembly for debate and consideration on 2nd October 2013 by the County Executive Committee member for finance and planning in accordance with the budget proposal for 2013-2014 financial year and prior thereto the draft Bill was published in the official website of the County on 17th August 2013 and an invitation to the public made to participate therein. Apart from that a notice was published in the Daily Nation of the same day towards the same end. A notice was also circulated to churches in the county for publication on 18th August 2013 and the public was consulted on and participated in the deliberations of the contents of the Bill on 20th August 2013 before its submission to the Assembly which was preceded with a request to the Law Reform Commission for review and confirmation.
26.Although the County Finance Bill, 2013 was rejected by the Assembly on 13th November, 2013 with recommendations on what needed to be included, it was the respondents’ position that these recommendations included in the reintroduced County Finance Bill 2013 on 3rd December, 2013 an exemption of the 6 months period having been obtained. The Respondents’ position was that the legislative process subsequent to the reintroduction of the Finance Bill, 2013 into the Assembly and the enactment of the Finance Act, 2013 did not require any consultation with the Petitioners in the manner implied or at all. An invitation to the public having been made and public participation and consultation having been undertaken before the introduction of the initial Finance Bill, 2013 into the Assembly.
27.The Bill then went through the requisite legislative process having been preceded by the widest public consultation and engagement in accordance with the Constitution, The Public Finance Management Act, 2012 and the County Government Act, 2012, hence its provisions are lawful and valid. It was contended that both stakeholders and the public were invited to participate and did participate in the process leading to the enactment of the Act and that the same neither infringes upon the Constitutional rights of the petitioners nor does in impose harsh, primitive, offensive exorbitant permit fees as alleged.
28.It was the respondents’ case that the County Government is empowered by the Constitution, the County Government Act 2012 and Public Finance Management Act 2012 to impose permit fees, licence fees, rents fees charges for services to finance its operations and provision for services which do not infringe upon the petitioners’ rights. The said levies having been sanctioned by the Act the same are lawful and proper.
29.According to the Respondents the meeting held on 17th September, 2013 at Windsor Hotel did not have anything to do with the discussions on the Finance Bill and the Act but was called to discuss broad issues of development within the County hence there was no agreement with respect to parking fees with the petitioners or at all. To them in the absence of particularisation of the constitutional provisions breached, the orders sought are not warranted.
30.On behalf of the Kiambu County Assembly, it was submitted after setting out what the Respondents believe were the petitioners’ complaints and the Respondents’ response that fundamental rights and freedoms are specifically set out in Chapter Four of the Constitution of Kenya, 2010 which rights and freedoms are individually identifiable and defined from article 26 to 51 of the Constitution. It follows therefore, that a breach of any of the rights and freedoms must be specifically pleaded, particulars thereof set out and facts in respect thereof indicated in the Affidavit of a petitioners which the Petitions do not. Hence as it cannot be ascertained what actual right or freedom has been contravened and in what way, the Petitions should fail on the author of the decisions in Mumo Matemu –vs- Trusted Society of Human Rights Alliance & 5 others (2013) eKLR and Stephen Njuguna & others –vs- Hon. Lewis Nguyai & others, H.c Petition No. 118 of 2011 (UR) where it was held that:
31.It was submitted that although the Petitioners claim that the Respondent has breached Articles 1, 2, 47 and 196 (1) (a) and (b) of the Constitution, only articles 47 and 196 (1) (a) and (b) are relevant to the issues in dispute here and whereas Article 47 concerns fair administrative action, the Petitioners have not demonstrated how, in light of the evidence in the Replying Affidavit of the Respondent, this Article was contravened. Article 196 (1) (a) and (b) on the other hand relates to public participation. However, the Petitioners have again, failed to demonstrate contravention by the Respondent. It was therefore submitted that the Petitions should be dismissed for failure of adequate pleading, particulars and evidence of violation of fundamental rights and freedoms.
32.According to them, though it cannot be denied that public participation in legislation is a constitutional and statutory requirement, the Petitioners have, in their written submissions shifted from their main pleaded complaint to an alternative complaint of want of consultation. However, the fact is that there was public participation and no discussions or an agreement on the parking fees were ever held and/or made respectively, on 17th September, 2013 with the Petitioners or at all.
33.The Respondents’ case was that Article 209(4) of the Constitution donates the power to the national and county governments to impose charges for the services they provide and there was no plea or evidence whatsoever that the Respondent did not act in accordance with these constitutional requirements in the enactment of the Act. In support of this submission the Respondents relied on Nairobi Metropolitan PSV Saccos Union Limited & 25 others –vs- County of Nairobi Government & 3 others (2013) eKLR.
34.In his oral address, Mr Havi submitted that the preamble to the Act deals with fees and charges which is a power the County Government can deal with under Article 209(3) of the Constitution providing for the power to impose taxes and charges. In the 4th Schedule Part II to the Constitution the County Government has the functions and as regards trafficking and parking raised in petition No. 12 of 2014, the Respondent was empowered to levy charges and fees in respect thereof. With respect to petition No. 532 of 2013, it was submitted that it was difficult to understand the petitioner’s grievances save for complaints about burial charges and rent for housing all of which the County Government is empowered by the Constitution to deal with. Under Article 209, it was submitted the County Government may impose property rates hence the petitions in so far as they allege unconstitutionality are without merit.
35.On public participation, it was submitted that the County Government of Kiambu is an elected Government and is representative of the people of Kiambu with a County Assembly. Therefore the people of Kiambu must understand that democracy is to elect leaders to formulate policies and to govern. Public consultation and participation has been given by the Act and the Constitution hence the question of definition of participation is moot and reference was made to sections 87 and 88 of the County Government Act which provide for the principle of participation. Section 88, learned counsel submitted deals with how citizens are to participate by way of petitions yet none of the petitioners have demonstrated that any petitioned. He submitted that the Respondents have demonstrated that the County Government prepared the platform for the participation. Since the petitioners have representatives in the Assembly the court must exercise restraint in micro managing administrative action as the plethora of petitions is not indicative of the failure of the Government but that of the petitioners. In the result the court was urged to dismiss the petitions with costs.
36.On his part Mr Masese, learned for Respondents in petition Nos. 35, 36, 41, 42, 61 and 72 while associating himself with Mr Havi’s submissions submitted that under Article 185(2) of the Constitution the County Government have been given the power to legislate and provide for services in the 4th Schedule in exercise of which the Kiambu Finance Act was enacted. Learned counsel submitted that the functions and powers in the 4th Schedule in the Constitution as read with Articles 185 and 209 thereof have given the power to legislate hence the Act is as a result of powers donated by the Constitution. In support of this submission reliance was placed on Nairobi Metropolitan PSV Saccos Union Limited & 25 others –vs- County of Nairobi Government & 3 others (supra).
37.It was submitted that an Act of Parliament is presumed to be Constitutional which presumption can only be rebutted by a petitioner and in considering whether the Act is unconstitutional the Court must give effect to the provisions of the Constitution. In this case Articles 185 and 209 as read with the 4th Schedule to the Constitution mandate County Governments to provide services to residents of the County and come up with legislation.
38.With respect to the judicial review it was submitted that what is sought to be quashed is a letter rather than a decision hence the same cannot be quashed. Petition No. 72, it was submitted that the pleadings contravene section 34 of the Advocates Act as read with Order 9 of the Civil Procedure Rules as they are signed by the petitioner who did not annex evidence that he was a duly authorised agent of the petitioner. In the result he similarly urged the Court to dismiss the petitions.
Determinations
39.Before proceeding with the matters, I directed the parties to formulate the issues for determination of this Court.
40.Pursuant thereto, the following broad issues were formulated for determination by this Court.1.Whether the Kiambu Finance Act, 2013 was passed with sufficient public participation as required by the Constitution of Kenya, 2010.2.Whether the County Government of Kiambu is entitled to publish and/or raise new or existing taxes.3.Whether the levies and charges under the Kiambu Finance Act are within the meaning of the 4th Schedule of the Constitution of Kenya.
41.Before determining these issues it is important to deal with the legal provisions which are relevant to the matters before this Court.
42.Article 10 of the Constitution of Kenya provides as follows:
43.Article 174 of the Constitution provides:
44.Article 196 on the other hand provides:
45.Article 201 of the Constitution provides:
46.Section 87 of the County Government Act, 2012 provides:
47.Section 115 of the same Act provides:1.Public participation in the county planning processes shall be mandatory and be facilitated through—(a)mechanisms provided for in Part VIII of this Act; and(b)provision to the public of clear and unambiguous information on any matter under consideration in the planning process, including—(i)clear strategic environmental assessments;(ii)clear environmental impact assessment reports;(iii)expected development outcomes; and(iv)development options and their cost implications.2.Each county assembly shall develop laws and regulations giving effect to the requirement for effective citizen participation in development planning and performance management within the county and such laws and guidelines shall adhere to minimum national requirements.
48.These being constitutional provisions one needs to keep in mind the words of Mahomed, Ag. JA in Namibian case of S v Acheson 1991 (2) SA 805 (Nm HC) at 813 that:
49.From the foregoing provisions it is clear that public participation plays a central role in both legislative and policy functions of the Government whether at the National or County level. It applies to the processes of legislative enactment, financial management and planning and performance management.
50.Due to its centrality it is important to determine what exactly amount to public participation.
51.This principle has been dealt with by the South African Constitutional Court in a number of matters. It must be appreciated that the Constitution of South Africa has several similarities to our own current Constitution. To appreciate these similarities it is necessary to reproduce section 72 of the Constitution of South Africa. The said section provides:
52.In order to understand how the South African Constitutional Court has interpreted the principle of public participation, I will reproduce in extenso the pronouncements of the said Court in the following cases.
53.In Doctors for Life International vs. Speaker of the National Assembly and Others (CCT12/05) [2006] ZACC 11; 2006 (12) BCLR 1399 (CC); 2006 (6) SA 416 (CC), Ngcobo, J who delivered the leading majority judgement expressed himself as follows:
54.While appreciating that political participation is also contained in international instruments the Judge then proceeded to determine what constitutes participation in the following terms:
55.Public participation ought not to be seen as a derogation from Parliamentary representation or representation at the County Assembly level. This the Judge recognised by expressing himself as follows:
56.What then does facilitation of public participation connote? The issue was dealt with by the Judge thus:
57.The issue of who and to what extent the issue of public participation ought to be determined was dealt with as follows:The standard of reasonableness is used as a measure throughout the Constitution, for example in regard to the government’s fulfilment of positive obligations to realise social and economic rights. It is also specifically used in the context of public access to and involvement in the proceedings of the NCOP and its committees. Section 72(1)(b) provides that “reasonable measures may be taken” to regulate access to the proceedings of the NCOP or its committees or to regulate thesearching of persons who wish to attend the proceedings of the NCOP or its committees, including the refusal of entry to or removal from the proceedings of the NCOP or its committees. In addition, section 72(2) permits the exclusion of the public or the media from a sitting of a committee if ‘it is reasonable and justifiable to do so in an open and democratic society.’ Reasonableness is an objective standard which is sensitive to the facts and circumstances of a particular case. “In dealing with the issue of reasonableness,” this Reasonableness is an objective standard which is sensitive to the facts and circumstances of a particular case. ‘In dealing with the issue of reasonableness,’ this Court has explained, ‘context is all important.’ Whether a legislature has acted reasonably in discharging its duty to facilitate public involvement will depend on a number of factors. The nature and importance of the legislation and the intensity of its impact on the public are especially relevant. Reasonableness also requires that appropriate account be paid to practicalities such as time and expense, which relate to the efficiency of the law-making process. Yet the saving of money and time in itself does not justify inadequate opportunities for publicinvolvement. In addition, in evaluating the reasonableness of Parliament’s conduct, this Court will have regard to what Parliament itself considered to be appropriate public involvement in the light of the legislation’s content, importance and urgency. Indeed, this Court will pay particular attention to what Parliament considers to be appropriate public involvement.What is ultimately important is that the legislature has taken steps to afford the public a reasonable opportunity to participate effectively in the law-making process. Thus construed, there are at least two aspects of the duty to facilitate public involvement. The first is the duty to provide meaningful opportunities for public participation in the law-making process. The second is the duty to take measures to ensure that people have the ability to take advantage of the opportunities provided. In this sense, public involvement may be seen as “a continuum that ranges from providing information and building awareness, to partnering in decision-making.”This construction of the duty to facilitate public involvement is not only consistent with our participatory democracy, but it is consistent with the international law right to political participation. As pointed out, that right not only guarantees the positive right to participate in the public affairs, but it simultaneously imposes a duty on the State to facilitate public participation in the conduct of public affairs by ensuring that this right can be realised. It will be convenient here to consider each of these aspects, beginning with the broader duty to take steps to ensure that people have the capacitybeginning with the broader duty to take steps to ensure that people have the capacity to participate…….”
58.The Judge then proceeded to deal with the evidence that was placed before it and expressed itself as follows:
59.That the nature and the extent of public participation may depend on the nature of what is at hand is not in doubt. However, that does not permit the complete blackout of the public from participation and this was similarly recognised by the Judge in holding as follows:
60.The Judge then considered the options available to the Court where the Court finds that the Constitutional threshold of public participation is not met and held:
61.The Judge added:
62.The justification for this course is to be found in Article 2(4) of our Constitution which provides as follows:
63.Dealing with a similar provision the Judge pronounced himself thus:
64.It may be argued that where the action taken is in consonance with the Constitution in its formal aspects then the mere fact that there was no public participation ought not to nullify such otherwise legal action. However the Judge dealing with the issue said:
65.However the Court cannot be blind to the effects of such action which is not “substantially” illegal and where as a result of its implementation certain rights may have been acquired and obligations undertaken which may cause chaos and lead to undesirable disruption and vacuum. Whereas that state of affairs does not legitimise the action undertaken an abrupt change may be undesirable and in such circumstances the Court may invoke its powers under Article 23(3) of the Constitution to grant an appropriate remedy including the suspension of the invalidity of the action taken with such period as would enable the authority concerned to remedy the defect.
66.On this point the Judge expressed himself as follows:
67.It must however be made clear that not all persons must be heard orally. Therefore even in cases where there are oral public hearings the mere fact that a particular person has not been so heard does not necessarily warrant the whole process being nullified. It was therefore held by the Judge that:
68.Sachs, J who concurred with Ngcobo, J had this to add:
69.According to the learned Judge:
70.In Glenister vs. President of the Republic of South Africa and Others (CCT 48/10) [2011] ZACC 6; 2011 (3) SA 347 (CC) ; 2011 (7) BCLR 651 (CC), it was held that:
71.However the caution expressed by Sachs, J in Merafong Demarcation Forum and Others vs. President of the Republic of South Africa and Others (CCT 41/07) [2008] ZACC 10; 2008 (5) SA 171 (CC); 2008 (10) BCLR 968 (CC) must always be kept in mind. In that case the learned Judge of the Constitutional Court of South Africa pronounced himself thus:
72.In this case, it is not in doubt that there was an earlier Bill which was tabled before the Assembly which Bill was rejected. According to the respondents there were certain recommendations which were made by the Assembly which recommendations were taken into account in the Bill which gave rise to the Act. The Respondents’ position is that there was no necessity for the subsequent Bill to be subject to further public participation. In fact it is not claimed that the said subsequent Bill was so subjected. According to the petitioners who were consulted earlier what was contained in the said subsequent Bill was not what had been agreed upon during the earlier consultation. In my view where a Bill has been rejected by the Assembly and a fresh Bill introduced as opposed to mere amendments, the principle of public participation must equally apply. Unless this is so the principle may be defeated by the Assembly simply rejecting a Bill in which the public has had an input with its own Bill disregarding the input by the public and not subjecting it to public participation. That in my view would defeat the very principle of public participation. As was aptly put in Merafong Demarcation Forum and Others vs. President of the Republic of South Africa and Others (supra):
73.In my view the spirit of the devolved system of governance in this country was meant to bring services to the people and to ensure equitable sharing of the resources by the people of the Republic of Kenya. It was meant to bring to end the hitherto existing centralised system of governance which was geared towards rewarding the cronies, supporters and court jesters. However the drafters of the Constitution were well aware of the risk of the country being compartmentalised into semi-states with god fathers or war lords as the chief executives. Accordingly, proper safeguards were put into place to ensure that in spite of the devolved system of governance the country remained a one unitary State and was not transformed into a confederacy. Accordingly, in legislating the County Assemblies in the devolved governments must take into account the fact that their devolved units must co-exist with other units and that their actions do not unduly infringe upon the rights of residents of other units as enshrined under the Constitution. Unless this restriction and limitation on the powers of the devolved units is observed there is a risk of some counties being a preserve of a certain class by making life intolerable for certain classes of people hence forcing them out of those counties to other counties where less stringent legislation prevail. In other words devolution was not meant to balkanise the country into fiefdoms.
74.These principles are clearly enumerated in the objects of devolution in Article 174 of the Constitution which has been reproduced elsewhere in this judgement.
75.In my view public participation ought to be real and not illusory and ought not to be treated as a mere formality for the purposes of fulfilment of the Constitutional dictates. It is my view that it behoves the County Assemblies in enacting legislation to ensure that the spirit of public participation is attained both quantitatively and qualitatively. It is not just enough in my view to simply “tweet” messages as it were and leave it to those who care to scavenge for it. The County Assemblies ought to do whatever is reasonable to ensure that as many of their constituents in particular and the Kenyans in general are aware of the intention to pass legislation and where the legislation in question involves such important aspect as payment of taxes and levies, the duty is even more onerous. I hold that it is the duty of the County Assembly in such circumstances to exhort its constituents to participate in the process of the enactment of such legislation by making use of as may fora as possible such as churches, mosques, temples, public barazas national and vernacular radio broadcasting stations and other avenues where the public are known to converge to disseminate information with respect to the intended action. Article 196(1)(b) just like the South African position requires just that. Dealing with the issue I wish to reiterate what was held in Doctors for Life International vs. Speaker of the National Assembly and Others (supra)to the effect that:
76.In my view to huddle a few people in a 5 star hotel on one day cannot by any stretch of imagination be termed as public participation for the purposes of meeting constitutional and legislative threshold. Whereas the magnitude of the publicity required may depend from one action to another a one day newspaper advertisement in a country such as ours where a majority of the populace survive on less than a dollar per day and to whom newspapers are a luxury leave alone the level of illiteracy in some parts of this country may not suffice for the purposes of seeking public views and public participation. As was held in Doctors for Life International vs. Speaker of the National Assembly and Others (supra):
77.Similarly in Matatiele Municipality and Others vs. President of the Republic of South Africa and Others (2) (CCT73/05A) [2006] ZACC 12; 2007 (1) BCLR 47 (CC), where Ngcobo, J held that:
78.It was contended that the entire Kiambu County including the petitioners is represented in the County Assembly of the County Government of Kiambu (hereinafter referred to as the Assembly) by elected leaders and that the Assembly is the legislative organ of the County Government of Kiambu and that the people of Kiambu must understand that democracy is to elect leaders to formulate policies and to govern. In other words the Respondents’ position is that since the people of Kiambu have delegated to the Assembly the task of legislating and formulating policy, the action taken by the members of the Assembly must be taken to reflect the intentions of the petitioners and the residents of the Kiambu County. In my view, this position cannot be upheld in light of the clear constitutional and legislative provisions. If the stand taken by the Respondents was correct it would defeat the very requirement of public participation in legislative and policy decisions. My view has been reinforced by the decision in Matatiele Municipality and Others vs. President of the Republic of South Africa and Others (2), (supra) where Ngcobo, J expressed himself inter alia as follows:
79.In support of their position that there was public participation, the Respondents have exhibited an advertisement in the Daily Nation of 17th August, 2013. However, a careful perusal of the said advert reveals that apart from the mention of the Finance Bill in the title of the advert and the mention of the Bill in passing, there was not much mention of the said Bill. In other words there was no attempt to exhort the public to participate in the process of the enactment of the Bill. In my view there was no “facilitation”. That the Finance Bill was an important Bill cannot be doubted. Its effect on the people of Kiambu in terms of ordering their way of life was bound to be far reaching. It was therefore crucial that the information going out to the public be clear and ought not to have admitted any ambiguity. The other document relied upon were list of certain persons. However, the said lists only referred to County Integrated Development Plan and not the Finance Bill. There is no evidence at all that at the said meetings the participants were invited to comment on the said Bill let alone that the contents of the same were availed to them.
80.The next issue for determination is the scope of Article 209(3)(4) and (5) of the Constitution. The said Article provides as follows:(3)A county may impose—(a)property rates;(b)entertainment taxes; and(c)any other tax that it is authorised to impose by an Act of Parliament.(4)The national and county governments may impose charges for the services they provide.(5)The taxation and other revenue-raising powers of a county shall not be exercised in a way that prejudices national economic policies, economic activities across county boundaries or the national mobility of goods, services, capital or labour.
81.It is therefore clear that the County Assembly may only impose property rates and entertainment taxes unless otherwise authorised by an Act of Parliament and this position is emphasised by the provisions of Article 210(1) of the Constitution which expressly provides that no tax or licensing fee may be imposed, waived or varied except as provided by legislation. County Governments are however empowered to impose charges on services they provide. Such service would include parking and market fees. However to levy charges on the stones quarried unless authorised by an Act of Parliament or any services rendered by the County Governments towards that end would be clearly illegal. Further the levying of such taxes ought not to be such as to prejudices national economic policies, economic activities across county boundaries or the national mobility of goods, services, capital or labour. Tariffs and pricing of services must however comply with the provisions of section 120 of the County Government Act. The Court however is not entitled to interfere with the Tariffs and pricing of services simply on the ground that the Court would have decided otherwise since the Court ought not to substitute its opinion for that the County Government. As long as the provisions of the Constitution and the relevant legal provisions are complied with and the applicable principles are taken into the Court ought not to interfere.
82.I must however stress that County Governments are under Article 175(b) of the Constitution entitled to have reliable sources of revenue to enable them to govern and deliver services effectively. However this entitlement must be exercised in accordance with the Constitution and the law and where the existing legislation is not adequate for the purposes of ensuring the efficient governance and delivery of services the County Government ought to petition the National Government to increase allocation to them or enact appropriate legislation to enable them carry out their constitutional mandate as required under Articles 190(1), 202 and 203 of the Constitution.
83.It was contended on behalf of the Respondents that the petitioners/applicants ought to have petitioner the County Government pursuant to section 88 of the County Government Act. Whereas the said section provides for the right by a citizen to petition in writing the county government on any matter under the responsibility of the county government, it is clear that the power to declare legislation unconstitutional rests with the High Court pursuant to Article 165(3)(d) of the Constitution. Accordingly the right to petition the County Government in the circumstances of this case would not have afforded the petitioners/application an effective remedy hence that option cannot be taken to oust the jurisdiction of this Court to hear determine and grant the orders sought herein.
84.Having considered the foregoing the inescapable conclusion I come to is that there was no public participation as contemplated under the Constitution and the County Government Act, 2012.
85.In the instant case, it has not been alleged that any interests have been acquired under the said Act that would militate against the immediate nullification of the said Act. Accordingly, I hereby declare that the Kiambu Finance Act, 2013 gazetted vide Kiambu County Gazette Supplement No. 8 (Act No. 3) violates the Constitution and that the same is null and void.
86.On the issue of costs, it is clear that a number of the petitions were brought on behalf of the wider public in particular the people of Kiambu and just as I would have held had the petitions/application been unsuccessful, there will be no order as to costs.
87.Orders accordingly.
DATED AT NAIROBI THIS 17TH DAY OF APRIL 2014G V ODUNGAJUDGEDelivered in the presence of:Dr Wangai for the Petitioners in Petition No. 532 of 2013.Mr. Mwaniki the Petitioner in Petition No. 72 of 2014Mr James Kariuki the Petitioner in Petition No. 42 of 2014Mr Nakhone for the Respondents