Republic v National Treasury and Economic Planning & another; Law Society of Kenya (Ex parte Applicant) (Judicial Review Application E198 of 2024) [2025] KEHC 8955 (KLR) (Judicial Review) (23 June 2025) (Judgment)
Neutral citation:
[2025] KEHC 8955 (KLR)
Republic of Kenya
Judicial Review Application E198 of 2024
RE Aburili, J
June 23, 2025
Between
Republic
Applicant
and
The National Treasury and Economic Planning
1st Respondent
The Attorney General
2nd Respondent
and
The Law Society of Kenya
Ex parte Applicant
The Government practice of paying professional subscription fees for public officers gave rise to a legitimate expectation of continuity
The National Treasury issued a circular cutting 100% of Government funding for professional and trade body subscriptions. The Law Society of Kenya challenged the directive, arguing it was irrational, discriminatory, and issued without public participation. The court found that the National Treasury’s mandate to rationalize expenditure was a legally grounded function meant to promote fiscal sustainability, efficiency and alignment with national priorities. Further, the failure to engage the affected professionals or their representative bodies fell short of the constitutional and administrative law requirements of procedural fairness. The court finally held that the historical practice of funding practising licence fees for public officers, absent any statutory prohibition or prior consultation, gave rise to a legitimate expectation of continuity or, at minimum, a fair and transparent process before withdrawal.
Constitutional Law – doctrine of legitimate expectation – factors leading to the establishment of the doctrine of legitimate expectation - whether the longstanding Government practice of paying statutory professional subscription fees for public officers absent any statutory prohibition or prior consultation, gave rise to a legitimate expectation of continuity or a fair and transparent process before withdrawal.Constitutional Law – national values and principles of governance - public participation – whether the National Treasury’s 100% cut on professional subscription fees without public participation and stakeholder consultation violated constitutional and procedural fairness requirements - Constitution of Kenya, article 10; Fair Administrative Action Act (Cap. 7L), section 4. Constitutional Law - public finance – National Treasury – mandate of the National Treasury – rationalization of Government expenditure – whether the National Treasury had the legal mandate to rationalize Government expenditure, including issuing circulars limiting payment of professional body subscription fees by ministries, departments and agencies - Constitution of Kenya, articles 201 and 225(1).Judicial Review – judicial review orders - certiorari, prohibition and mandamus - what was the nature of the judicial review orders of certiorari, prohibition and mandamus, and under what circumstances could they be issued.
Brief facts
On July 5, 2024, the 1st respondent (the National Treasury and Economic Planning) issued Circular No. 8/2024 (the circular) to all accounting officers/principal secretaries of all ministries, departments, and agencies (MDAs). In the circular, the 1st respondent was said to have issued directives that the Government would control expenditures by initiating austerity measures on the provisions for operations and maintenance, which would be undertaken in, among others, all MDAs. According to the ex parte applicant (the Law Society of Kenya) the 1st respondent, via the circular, imposed a 100% cut on membership fees, dues, and subscriptions to professional and trade bodies, which, in effect, gravely affected it and its members. The applicant stated that the new directives by the 1st respondent were irrational and discriminatory as they were imposed on the applicant's members without public participation and thus amounted to a forceful variation of their contracts without their involvement. The applicant averred that all in-house counsel working in MDAs stood to be affected by the new directives, which would force them to pay for their own practicing licence fees while employed in the public service. The new directives according to the applicant, amounted to a breach of legitimate expectations of individual in-house counsel who work in various MDAs.The ex parte applicant sought for among other orders an order of certiorari to quash the decision of the 1st respondent issued via the circular, an order of prohibition restraining the 1st respondent from enforcing and/or implementing the circular and an order of mandamus compelling the 1st respondent to reinstate the budget for subscription fees and levies to professional bodies.
Issues
- Whether the longstanding Government practice of paying statutory professional subscription fees for public officers absent any statutory prohibition or prior consultation, gave rise to a legitimate expectation of continuity or a fair and transparent process before withdrawal.
- Whether the National Treasury’s 100% cut on professional subscription fees without public participation and stakeholder consultation violated constitutional and procedural fairness requirements.
- Whether the National Treasury had the legal mandate to rationalize Government expenditure, including issuing circulars limiting payment of professional body subscription fees by ministries, departments and agencies.
- What was the nature of the judicial review orders of certiorari, prohibition and mandamus, and under what circumstances could they be issued?
Held
- The 1st respondent played a central role in the management of public finances in Kenya, particularly in the rationalization of budget and expenditure. Its powers and responsibilities were primarily grounded in the Constitution of Kenya and the Public Finance Management Act (Cap. 412A). Article 201 of the Constitution provided that public finance shall be managed in a manner that promoted transparency, accountability, and effective use of resources. Under article 225(1) of the Constitution, the 1st respondent was responsible for ensuring that expenditure of public money was lawful and effective. The statutory role of the 1st respondent could be found in the Public Finance Management Act; the Act outlined the specific functions and powers of the 1st respondent.
- In practice, budget rationalization referred to the reprioritization, restriction or reduction of expenditures to align with available resources and national development priorities. In that regard, the 1st respondent could identify non-core or non-essential spending; reallocate funds to priority sectors; or issue circulars or directives limiting certain categories of expenditure (for example professional body subscriptions, hospitality, and travel). Such decisions were typically guided by the medium-term expenditure framework (MTEF), resource ceilings issued to MDAs, recommendations of Pending Bills Committees or special audit reports. Therefore, the 1st respondent’s mandate to rationalize expenditure was a legally grounded function meant to promote fiscal sustainability, efficiency and alignment with national priorities.
- While the 1st respondent had broad powers under the Public Finance Management Act, those powers must be exercised within the bounds of the Constitution, particularly respecting the principles and values espoused in article 10 of the Constitution and the Bill of Rights. Those values, principles and or rights included transparency, consultation and fair administrative action.
- The court had to refrain from determining issues employment and labour relations raised in the application as those were issues that were beyond the jurisdiction of the court. The court was expressly barred by article 165(5) of the Constitution from hearing and determining disputes relating to employment and labour relations.
- The 1st respondent was mandated by law to issue circulars and even limit expenditure on what it considered non-essential services having regard to the financial situation in Kenya. Historically, Government departments had paid those fees and subscriptions to professional bodies for their employees, recognizing them as essential to enabling officers to perform their statutory functions lawfully. The court acknowledged the statutory and constitutional mandate and role of the 1st respondent and the necessity of implementing such austerity measures due to the significant fiscal shortfall.
- The 1st respondent had the legal authority to rationalize Government spending under the Public Finance Management Act including issuing expenditure guidance. The 1st respondent may reprioritize allocations in light of macroeconomic constraints. However, statutory discretion must be exercised in conformity with constitutional values and principles. Discretion must not be abused or exercised arbitrarily.
- It was incumbent upon the 1st respondent to, in accordance with constitutional dictates, conduct public participation through stakeholder engagement and consultations prior to issuing directives like the one impugned therein. While the 1st respondent claimed to have held budget consultations with MDAs, no evidence had been provided to demonstrate that the ex parte applicant or other directly affected professionals and the professional bodies that those professionals subscribed to and pay subscription fees on an annual basis were consulted before the circular was issued. It was equally surprising that the 1st respondent had not outlined its statutory mandate in all those matters complained of. It was not enough to say that there was budgetary constrains and or deficit.
- Public participation was a core national value under article 10 of the Constitution. When an administrative decision impacted specific groups of people especially professionals, by modifying established practices or entitlements, the decision-maker had a duty to conduct focused and meaningful consultations with those affected, even if no consensus was obtained from the public participation exercise. Article 10(2)(a) of the Constitution enshrined public participation as a binding national value.
- Besides change of policy, the circular impacted the statutory compliance obligations of public servants. Advocates working for State agencies were not exempt from paying for annual practicing licenses. The employers paid such fees for annual practicing certificates on behalf of their professional employees. The employees would not be eligible to execute legal documents such as commissioning of oaths or appearing in court or drafting pleadings as advocates if their practicing certificates were not renewed for the year. They would as a consequence be treated as unqualified persons and therefore lacked the capacity to represent the agencies in legal matters. Those were some of the issues that would have arisen during public participation process before eliminating such fees.
- The failure to engage professional bodies or affected MDAs prior to the issuance of the circular was a breach of article 10 of the Constitution and section 4 of the Fair Administrative Action Act. The impugned directive, which effectively shifted the burden of paying statutory practising fees to individual counsel employed in public service, constituted a significant policy shift. As such, it was mandatory that those affected were engaged. Section 4 of the Act provided that every person had the right to be given written reasons for any administrative action that was taken against him. The failure to engage the affected professionals or their representative bodies fell short of the constitutional and administrative law requirements of procedural fairness.
- The 1st respondent’s historical practice of funding practising licence fees for public officers, absent any statutory prohibition or prior consultation, gave rise to a legitimate expectation of continuity or, at minimum, a fair and transparent process before withdrawal. The abrupt revocation of that support, without transitional measures or meaningful engagement with affected persons, not only defeated that expectation but also offended the constitutional guarantees of fair administrative action that was expeditious, efficient, lawful, reasonable and procedurally fair, under article 47 of the Constitution.
- The power of the court in judicial review was limited to examining the legality, reasonableness and procedural fairness of administrative decisions. In granting an order of certiorari which was discretionary, the court must weigh several things even if a body or authority committed an illegality or acted unprocedurally. The order was not automatic; the remedy must be the most efficacious.
- The impugned circular was issued on July 7, 2024 at the commencement of the new financial year 2024/2025. Annual practicing/ subscription fees were usually paid at the beginning of the calendar year. The affected professionals had to settle those fees by themselves. The circular was not issued to last permanently. The circular was issued to MDAs on the revision of the FY 2024/2025 specifically under the recurrent budget estimate which was lapsing in a week’s time on June 30, 2025. The applicant did not at the leave stage seek for any stay of implementation of the circular, although it sought for leave to apply for prohibition to restrain the 1st respondent from implementing the circular and mandamus to reinstate the budget for subscription of fees and levies for professional bodies.
- The application was filed two months after the circular came into effect and no stay of implementation of the circular was sought and obtained from the court. The court encountered the file in March 2025, nine months into the financial year and now it was a few days to the end of the financial year. Certiorari was a tool for checking abuse of administrative authority. Even if the budget cut was implemented, the court may quash the decision to pronounce on the legality for future guidance.
- The order of prohibition looked to the future to prohibit the action contemplated. The applicant sought to prohibit the 1st respondent from implementing the circular dated July 5, 2024 eliminating fees and or levies payable to professional bodies in the financial year which was ending in a week’s time. On the facts presented before the court, there was no mention or indication that the circular was to remain in place for the subsequent financial years. It would be superfluous to prohibit an act which had already taken place.
-
Mandamus was a remedy that compelled the performance of a statutory or public duty that a public body had unlawfully refused or failed to perform. To succeed, the applicant must show:
- The existence of a clear legal duty;
- that the duty was owed to the applicant;
- that the duty had not been fulfilled; and
- that there was no alternative remedy.
- Mandamus could not compel expenditure of funds not appropriated, the exercise of discretion in a particular way, or the performance of impossible or past acts (that was undoing past budget execution in a lapsed year). That was because Government budgets were annual and subject to parliamentary appropriation under articles 221–228 of the Constitution, and section 39 of the Public Finance Management Act. Once a financial year lapsed, the budget expired and no public officer had a duty or power to reallocate or reinstate funds to that year.
- Where performance was no longer possible, courts did not issue futile or impossible orders. Mandamus was a forward-looking remedy, not a tool to undo or reverse fully executed fiscal policies. Once a budget cycle was complete, it became a matter of public accounts oversight, not judicial enforcement, especially where, like in the instant case, there was no evidence or pleading that the budget cut would transcend the budget year in which event, a new cause of action which was not pleaded would arise.
- No declaration was sought and the court would not issue substantive orders which were never pleaded and or sought in judicial review proceedings. There being no statutory obligation to fund a specific entity in perpetuity, like constitutional commissions under article 249(3) of the Constitution, the court would not issue mandamus in the manner that was pleaded in the matter.
- The impugned decision was made in violation of the constitutional value of public participation, procedural fairness and legitimate expectation, the threshold for intervention was met.
Application partly allowed.
Orders
- An order of certiorari was issued quashing the circular insofar in so far as it directed a 100% cut on membership fees, dues and subscriptions to trade bodies.
- As the circular took effect and had been enforced covering the period that it was intended to last, during the 2024/2025 financial year which was ending on June 30, 2025, prohibition could not issue.
- As there was no stay of implementation of the decision contained in the circular, mandamus was overtaken by events. The court could not reinstate the budget which had since lapsed. The prayer for mandamus was declined.
- Each party shall bear its own costs.
Citations
CasesKenya
- British American Tobacco Kenya PLC v Cabinet Secretary for the Ministry of Health & 2 others; Kenya Tobacco Control Alliance & another (Interested Parties); Mastermind Tabacco Kenya Limited (Affected Party) Petition 5 of 2017; [2019] KESC 15 (KLR) - (Applied)
- Communications Commission of Kenya & 5 others v Royal Media Services Limited & 5 others Petitions 14, 14A, 14B & 14C of 2014; [2015] KESC 13 (KLR) (Consolidated) - (Applied)
- Judicial Service Comission v Mbalu Mutava & another Civil Appeal 52 of 2014; [2015] KECA 741 (KLR) - (Applied)
- Kago, David Wanyeki v Kenya National Examinations Council Petition E227 of 2021; [2021] KEHC 4639 (KLR) - (Applied)
- Kenya Human Rights Commission & another v Attorney General & another; Law Society of Kenya & another (Interested Parties) Petition E179 of 2022; [2024] KEHC 15702 (KLR) - (Applied)
- Kenya National Examination Council v Republic ex parte Geoffrey Gathenji Njoroge & 9 others Civil Appeal 266 of 1996; [1997] KECA 58 (KLR) - (Applied)
- Kenya Revenue Authority v Universal Corporation Ltd Civil Appeal (Application) 150 of 2018; [2024] KECA 1103 (KLR) - (Applied)
- Kenya Revenue Authority v Universal Corporation Ltd Civil Appeal (Application) 150 of 2018; [2024] KECA 1103 (KLR) - (Explained)
- Keroche Industries Limited v Kenya Revenue Authority & 5 others Miscellaneous Civil Application 743 of 2006; [2007] KEHC 3680 (KLR) - (Applied)
- Kiambu County Government & 3 others v Robert N Gakuru & others Civil Application 97 of 2014; [2014] KECA 157 (KLR) - (Applied)
- Municipal Council of Mombasa v Republic & another Civil Appeal 185 of 2001; [2002] KECA 8 (KLR) - (Applied)
- National Assembly & another v Okoiti & 55 others Civil Appeal E003 of 2023 & E016, E021, E049, E064 & E080 of 2024; [2024] KECA 876 (KLR) (Consolidated) - (Applied)
- National Super Alliance (NASA) Kenya v Independent Electoral and Boundaries Commission & 2 others Civil Appeal 258 of 2017; [2017] KECA 342 (KLR) - (Applied)
- Njoroge & 2 others v Ministry of Interior and National Administration Kenya & 2 others Judicial Review Application 2 of 2024; [2025] KEHC 4587 (KLR) - (Applied)
- Rawal, Kalpana H & 2 others v Judicial Service Commission & 6 others Civil Applications 11 & 12 of 2016 & Ad Litem 1 of 2012; [2016] KESC 3 (KLR) (Consolidated) - (Applied)
- Republic v Cabinet Secretary, Ministry of Health; Kambona (Exparte); Kenya Nutritionists & Dieticians Institute (Interested Party) Miscellaneous Application 329 of 2019; [2022] KEHC 11412 (KLR)
- Republic v County Director-Physical Planning Department- Kiambu County & 3 others ex-parte Shainaz Shamshudin & 2 others Miscellaneous Civil Application 126 of 2016; [2016] KEHC 1100 (KLR) - (Applied)
- Republic v Kenya National Examination Council & 2 others ex-parte LMB & 319 others Judicial Review Application 3 of 2018; [2018] KEHC 4711 (KLR) - (Applied)
- Republic v Public Procurement Administrative Board & 2 others Judicial Review 216 of 2012; [2013] KEHC 6343 (KLR) - (Applied)
- Robert N Gakuru & others v Governor Kiambu County & 3 others Petition 532 of 2014; [2014] KEHC 7516 (KLR) - (Applied)
- Wagunza, Zachariah & another v Office of the Registrar Academic Kenyatta University & 2 others Judicial Review Miscellaneous Application 155 of 2013; [2013] KEHC 6908 (KLR) - (Applied)
- Advocates Act (cap 16) sections 27, 28 - (Interpreted)
- Civil Procedure Rules, 2010 (cap 21 Sub Leg) order 53 rule 3(1) and rule 4 - (Interpreted)
- Constitution of Kenya article 47(1) - (Interpreted)
- Employment Act (cap 226) section 10(5) - (Interpreted)
- Fair Administrative Action Act (cap 7L) section 4(1) - (Interpreted)
- Law Reform Act (cap 26) section 8 - (Interpreted)
- Public Finance Management Act, 2012 (Act No 18 of 2012) In general - (Cited)
Judgment
1.Pursuant to leave granted on September 5, 2024, by Ngaah J, the ex parte applicant, the Premier Bar Association, the Law Society of Kenya filed their substantive motion dated September 12, 2024. The application is brought under section 8 of the Law Reform Act and order 53 rule 3(1) and rule 4 of the Civil Procedure Rules.
2.The application seeks an order of certiorari to bring into the High Court for purposes of quashing the decision of the 1st respondent, the National Treasury and Economic Planning, issued via the Treasury Circular No 8/2024 on July 5, 2024, an order of Prohibition restraining the said 1st respondent from enforcing and/or implementing the said circular and an order of mandamus compelling the 1st respondent to reinstate the budget for subscription fees and levies to professional bodies.
3.The application is accompanied by a statement of facts dated September 3, 2024 and a verifying affidavit sworn by Florence Muturi, the Chief Executive Officer of the ex parte applicant on September 3, 2024.
4.The ex parte applicant’s case is that on June 28, 2024, the National Treasury and Economic Planning issued Circular No 6/2024, wherein it gave directives limiting the spending of the Financial Year 2024/25 to 15% of the approved budget until the approval of the Financial Year 2024/25 Supplementary Estimates No.1.
5.On July 5, 2024, the 1st respondent it is stated, issued another Circular No 8/2024 to all Accounting Officers/Principal Secretaries of all Ministries, Departments, and Agencies, stipulating guidelines on the revision of Estimates of Revenue and Expenditure for the Financial Year 2024/ 25.
6.In the said circular, the 1st respondent is said to have issued directives that the Government would control expenditures by initiating austerity measures on the provisions for operations and maintenance, which would be undertaken in, among others, all Ministries, Departments, and State Agencies.
7.According to the applicant, in its quest to rationalize the Financial Year 2024/25 Recurrent Budget, the 1st respondent, via Circular No 8/2024, imposed a 100% cut on Membership fees, Dues, and Subscriptions to Professional and Trade Bodies, which, in effect, gravely affects it and its members.
8.The applicant also states that the new directives by the 1st respondent are irrational and discriminatory as they were imposed on the applicant's members without public participation, contrary to article 10 of the Constitution of Kenya and sections 27 and 28 of the Advocates Act, cap 16 of the Laws of Kenya and thus amounts to a forceful variation of their contracts without their involvement.
9.It is the applicant’s case that the new directives were issued unilaterally, without any clear communication of the right to appeal, leaving the affected parties with no recourse to challenge the decision. The applicant also states that the 1st respondent’s actions have effectively forced these directives upon its members, compelling them to accept the terms without any meaningful dialogue or consideration of their concerns.
10.The applicant avers that all in-house counsel working in Ministries, State Departments, and Agencies stand to be affected by the new directives, which will force them to pay for their own Practicing Licence fees while employed in the Public Service.
11.According to the applicant, most in-house counsel will be unable to pay the annual fees to renew their practising certificate as from 2025 if the directives are implemented leading to the inevitable high rates of non-compliant advocates to the detriment of the public institutions whose interests will be at stake should it happen.
12.The new directives according to the applicant, amount to a breach of legitimate expectations of individual in-house counsel who work in various Ministries, Departments and Agencies.
13.The ex parte applicant’s further case is that it has attempted to resolve this matter amicably as is evidenced by their letter dated August 22, 2024 in line with fair administrative action to no avail.
The Respondent’s Response.
14.The 1st respondent filed a replying affidavit sworn by Dr Chris K Kiptoo, the Principal Secretary in the 1st respondent Ministry on March 27, 2025.
15.The 1st respondent contends that the rejection of the Finance Bill 2024 resulted to a financing gap of Kshs 346 billion which was meant to finance the FY 2024/2025 budget estimates and as a result, this necessitated rationalization of the budget by similar amount to close the financing gap.
16.That the National Treasury vide Circular No 8/2024 issued guidelines to all Ministries, Departments and Agencies on the revision of the FY 2024/25 Budget Estimates. That the guidelines provided the areas of budget cuts including the percentage cut. Among the items identified was Membership Fees, Dues and Subscriptions to professional and Trade Bodies.
17.Dr Kiptoo deposes that the budgetary process is consultative and involves many stakeholders who enrich the process through providing input to the process. Further, that the National Treasury Circular provides guidelines to Ministries, Departments and Agencies on how to process budgets including having meetings with them. It is his disposition that the Ministries, Departments and Agencies were consulted before the preparation and finalization of the supplementary estimates.
Submissions.
18.The application was canvassed by way of written submissions, with the ex parte applicant filling its submissions dated April 24, 2025.in the said submissions, the exparte applicant argues that article 47(1) of the Constitution of Kenya, 2010 and section 4(1) of the Fair Administrative Action Act cap 71 provide that every person has the right to administrative action that is expeditious, efficient, lawful, reasonable, and procedurally fair.
19.Similarly, that section 7(2) of the Fair Administrative Action Act cap 7L Laws of Kenya provides for the grounds for judicial review. These include failure to give the affected people an opportunity to be heard, procedural unfairness, unreasonableness, legitimate expectation among others.
20.In light of the foregoing, the ex parte applicant contends that its members were entitled to a decision that was lawful, reasonable and procedurally fair.
21.It is submitted that the 1st respondent’s decision was procedurally unfair and that section 5(1) of the Fair Administrative Action Act provides for the procedure to be followed in the event a decision is to be made affecting a group of people. The applicant submits that the 1st respondent did not adhere to any of the steps highlighted under section 5(1) of the Fair Administrative Action Act.
22.The applicant also submits that the 1st respondent has failed to adduce any proof that Ministries, Departments and Agencies (MDAs) were consulted before this decision was made. That in any case, consultations with the MDAs does not count as public participation.
23.The applicant relies on the case of Republic v County Government of Kiambu and exparte Robert Gakuru & Jamofastar Welfare Association, Judicial Review Case No 434 of 2015 where the court observed that public participation is not a mere cosmetic venture or a public relations exercise.
24.It also relies on the case of Zachariah Wagunza & another v Office of the Registrar Academic Kenyatta University & 2 others [2013] eKLR where the court relied on the case of Municipal Council of Mombasa v Republic & Umoja Consultants Limited Civil Appeal No 185 of 2001 where the court is said to have stated that Judicial Review concerns itself with whether the affected party was given an opportunity to be heard.
25.For the definition of legitimate expectation, the ex parte applicant relies on the case of Republic v County Director Physical Planning Department Kiambu County, County Planning Technical Committee Kiambu County, Physical Planning Liason Committee Kiambu County, The County Government of Kiambu and Shainaz Shamshudin Jamal, Munira Sumar Miscellaneous Civil Application No 126 of 2016 where the court while defining legitimate expectation observed that as per the definition provided under Halsbury’s Laws of England 4th Edition, a legitimate expectation arises from a public authority’s representation, promise, or consistent practice, and is protected by courts to uphold fairness, predictability, and certainty.
26.The ex parte applicant submits that its members have consistently had their membership fees dues, and subscriptions to professional and trade bodies paid by their employers and that consequently, the 1st respondent’s decision to have a 100% cut is an affront to their legitimate expectations.
27.The applicant also places reliance on the case of Republic v Cabinet Secretary, Ministry of Health and Oscar Kambona and Kenya Nutritionists & Dieticians Institute, Miscellaneous Application 329 of 2019 where the court relied on Council of Civil Service Unions versus Minister for the Civil Service (1985) AC 374, 410 for what constitutes illegality as a ground for judicial review.
28.The ex parte applicant further submits that the 1st respondent contravened the provisions of section 10(5) of the Employment Act which requires that any attempt to revise a contract must be done in consultation with an employee and that notice of such change must be in writing.
29.It is submitted that the 1st respondent, in its decision issued vide Circular No 8/2024, altered the employment terms of the members of the ex parte applicant without giving any regard to their views and that this action was outside its statutory mandate as only the employer of the ex parte applicant’s members can cause a variation of the employment terms.
30.In conclusion, the ex parte applicant submits that for the foregoing reasons, the 1st respondent’s decision was irrational, procedurally unfair, illegal, irrational, devoid of public participation, with no opportunity to appeal, thereby offending the ex part applicant’s members’ legitimate expectations and ultra vires to its statutory mandate.
31.The respondents did not file any written submissions despite the court having granted them leave to file the same on April 28, 2025.
Analysis and Determination.
32.I have considered the application and the accompanying affidavit, statutory statement and annexures which include the impugned directive. I have also considered the submissions and arguments in support of the application.
33.The issues arising for determination are:i.Whether the 1st respondent’s decision to eliminate budgetary allocations for professional membership fees via Treasury Circular No 8/2024 was lawful and required adherence to the principles and values of public participation espoused in article 10 of the Constitution.ii.Whether the impugned directive violated the legitimate expectations and constitutional rights of the applicant’s members to fair administrative action.iii.Whether the applicant is entitled to the judicial review remedies of certiorari, prohibition, and mandamus.iv.What orders should this court make?
On whether the 1st respondent’s decision to eliminate budgetary allocations for professional membership fees via Treasury Circular No 8/2024 was lawful and required adherence to the principles and values of public participation espoused in article 10 of the Constitution.
34.To resolve the above issue, it is important to first and foremost, appreciate the role of the National Treasury in budget and expenditure rationalization in Kenya. I will therefore summarize that role here in order to determine whether the decision in the circular was lawful and procedurally fair.
35.The National Treasury plays a central role in the management of public finances in Kenya, particularly in the rationalization of budget and expenditure. Its powers and responsibilities are primarily grounded in the Constitution of Kenya, 2010 and the Public Finance Management Act, No 18 of 2012 (PFMA).
36.Under the constitutional, article 201 provides that public finance shall be managed in a manner that promotes transparency, accountability, and effective use of resources.
37.Under article 225(1), the National Treasury is responsible for ensuring that expenditure of public money is lawful and effective.
38.The stator role of the National Treasury can be found in the Public Finance Management Act, (PFMA), 2012. The Public Finance Management Act outlines the specific functions and powers of the National Treasury, including:a)Formulation of Budget Policy. Under section 12(1)(a) & (b), the National Treasury is responsible for managing the national government’s budget preparation process and promoting transparency and accountability in public finance.b)Expenditure Control and Rationalization-section 13 of the Act mandates the National Treasury to promote efficient, effective, and economic use of public resources.Section 14(1)(a) of the Act authorizes the Cabinet Secretary for the National Treasury to issue guidelines to MDAs on budget implementation and financial management.
39.Section 15(2)(b) of the Act allows the Treasury to suspend or limit expenditures or commitments when necessary due to insufficient resources.c)Budget Execution Oversight. Under section 39(1) of the Act, the Treasury ensures that funds are spent according to the law and that budget implementation is aligned with government priorities.d)Power to Issue Circulars: The National Treasury may issue circulars, guidelines and instructions, including on rationalization of expenditures, such as freezing or limiting specific spending (eg, training, foreign travel, or professional fees) to ensure fiscal discipline.
40.In practice, budget rationalization refers to the reprioritization, restriction or reduction of expenditures to align with available resources and national development priorities. In this regard, the National Treasury can identify non-core or non-essential spending; reallocate funds to priority sectors; or issue circulars or directives limiting certain categories of expenditure (eg, professional body subscriptions, hospitality, and travel).
41.Such decisions are typically guided by the Medium-Term Expenditure Framework (MTEF), resource ceilings issued to MDAs, recommendations of Pending Bills Committees or special audit reports.
42.It therefore follows that the National Treasury’s mandate to rationalize expenditure is a legally grounded function meant to promote fiscal sustainability, efficiency and alignment with national priorities.
43.While the Treasury has broad powers under the PFMA, these powers must be exercised within the bounds of the Constitution, particularly respecting the principles and values espoused in article 10 and the Bill of Rights. These values, principles and or rights include transparency, consultation and fair administrative action.
44.The impugned circular, dated limits spending and is part of an expenditure rationalization effort by the National Treasury. It directed those public entities shall during the financial year 2024/2025, not pay for professional memberships and subscriptions for their officers. The Treasury cited the need to curb non-essential spending due to budgetary constraints occasioned by the rejection of the Finance Bill, 2024 Act, which led to a significant budget deficit amounting to Kshs. 346 billion, and as a result, austerity measures had to be taken and implemented to rationalize public expenditure.
45.The applicant contends that this circular undermines legal compliance by public officers who are legally required to be in good standing with professional bodies such as legal practitioners. Further, that it tends to unilaterally vary the terms of employment of those employees contrary to section 10(5) of the Employment Act. I must however refrain from determining issues employment and labour relations raised in the application as those are issues that are beyond the jurisdiction of this court. This court is expressly barred by article 165(5) of the Constitution from hearing and determining disputes relating to employment and labour relations.
46.That said, as I have stated above, the National Treasury is mandated by law to issue circulars and even limit expenditure on what it considers non-essential services having regard to the financial situation in the country.
47.Historically, government departments have paid these fees and subscriptions to professional bodies for their employees, recognizing them as essential to enabling officers to perform their statutory functions lawfully.
48.This court therefore does acknowledge the statutory and constitutional mandate and role of the National Treasury and the necessity of implementing such austerity measures due to the significant fiscal shortfall.
49.The applicant cites articles 10 and 47 of the Constitution and argues that the impugned action was unilateral and lacked any meaningful public participation, disrupted a legitimate expectation of government-paid compliance with statutory bodies and was irrational and unfair, breaching public officers’ right to fair administrative action.
50.Therefor on whether the 1st respondent’s decision to eliminate budgetary allocations for professional membership fees and subscriptions via Treasury Circular No 8/2024 was lawful and procedurally fair, there is no dispute that the National Treasury has the legal authority to rationalize government spending under the PFMA, 2012 including issuing expenditure guidance. The Treasury may reprioritize allocations in light of macroeconomic constraints.
51.However, statutory discretion must be exercised in conformity with constitutional values and principles. As has been repeatedly stated by courts in this country, discretion must not be abused or exercised arbitrarily.
52.It was incumbent upon the National Treasury to, in accordance with constitutional dictates, conduct public participation through stakeholder engagement and consultations prior to issuing directives like the one impugned herein.
53.While the 1st respondent claims to have held budget consultations with Ministries, Departments and Agencies, no evidence has been provided to demonstrate that the ex parte applicant or other directly affected professionals and the professional bodies that those professionals subscribe to and pay subscription fees on an annual basis were consulted before Circular No 8/2024 was issued. It is equally surprising that the 1st respondent has not outlined its statutory mandate in all these matters complained of. It is not enough to say that there was budgetary constrains and or deficit. What would be the legal basis for such decisions?
54.Public participation is a core national value under article 10 of the Constitution. When an administrative decision impacts specific groups of people especially professionals, by modifying established practices or entitlements, the decision-maker has a duty to conduct focused and meaningful consultations with those affected, even if no consensus is obtained from the said public participation exercise.
55.Article 10(2)(a) of the Constitution enshrines public participation as a binding national value. The court in Doctors for Life International v Speaker of the National Assembly (CCT 12/05) [2006] ZACC 11 explained that public participation ensures decisions reflect public interest and are not arbitrary.
56.The High Court in Robert N Gakuru & others v Governor, Kiambu County & 3 others [2014] eKLR stated that “public participation must be real and not illusory... meaningful engagement with the citizenry is essential.”
57.In National Assembly & another v Okoiti & 55 others (Civil Appeal E003 of 2023 & E016, E021, E049, E064 & E080 of 2024 (Consolidated)) [2024] KECA 876 (KLR) (31 July 2024) (Judgment)the Court of Appeal stated as follow regarding intervention by the High Court in matters policy:
58.Besides change of policy, I find that the circular impacted the statutory compliance obligations of public servants. Advocates working for state agencies are not exempt from paying for annual practicing licenses. The employers pay such fees for annual practicing certificates on behalf of their professional employees. The employees would not be eligible to eve execute legal documents such as commissioning of oaths or appearing in court or drafting pleadings as advocates if their practicing certificates are not renewed for the year. They would as a consequence be treated as unqualified persons and therefore lack the capacity to represent the agencies in legal matters. These are some of the issues that would have arisen during public participation process before eliminating such fees.
59.The failure to engage professional bodies or affected MDAs prior to the issuance of the circular was a breach of article 10 and section 4 of the Fair Administrative Action Act.
60.The Supreme Court in the case of British American Tobacco Kenya PLC v Cabinet Secretary for the Ministry of Health & 2 others; Kenya Tobacco Control Alliance & another (Interested Parties); Mastermind Tabacco Kenya Limited (Affected Party) [2019] KESC 15 (KLR) held as follows regarding public participation as a constitutional value:1.Similarly, in British American Tobacco Ltd v Cabinet Secretary for the Ministry of Health & 5 others [2017] KECA 763 (KLR) the Court of Appeal observed thus:
62.The court in Kenya Human Rights Commission v Attorney General & another [2018] eKLR also noted that:
63.The Court of Appeal in Kiambu County Government & 3 others v Robert N Gakuru & Others [2017] eKLR noted that:
64.The court in Njoroge & 2 others v Ministry of Interior and National Administration Kenya & 2 others [2025] KEHC 4587 (KLR) while quashing the Cabinet Secretary’s directives observed thus:
65.In the case of Independent Electoral Boundaries Commission (iebc) v National Super Alliance (nasa) & 6 others, Civil Appeal No 224 Of 2017 [2017] eKLR, the Court of Appeal held that:
66.The impugned directive, which effectively shifts the burden of paying statutory practising fees to individual counsel employed in public service, constitutes a significant policy shift. As such, it was mandatory that those affected are engaged as stipulated in the decisions which I have cited above.
68.Section 5 of the Fair Administrative Action Act, the Act implementing article 47 of the Constitution stipulates that:5. Administrative action affecting the public(1)In any case where any proposed administrative action is likely to materially and adversely affect the legal rights or interests of a group of persons or the general public, an administrator shall
69.The Court of Appeal case of Judicial Service Commission v Mbalu Mutava & another [2015] eKLR held that:
70.Additionally, section 4 of the Act provides that (2) Every person has the right to be given written reasons for any administrative action that is taken against him.(3)Where an administrative action is likely to adversely affect the rights or fundamental freedoms of any person, the administrator shall give the person affected by the decision. Prior and adequate notice of the nature and reasons for the proposed administrative action; an opportunity to be heard and to make representations in that regard; and notice of a right to a review or internal appeal against an administrative decision, where applicable
71.In the court’s view, the failure to engage the affected professionals or their representative bodies fell short of the constitutional and administrative law requirements of procedural fairness.
Whether the impugned directive violated the legitimate expectations and constitutional rights of the Applicant’s members.
72.The doctrine of legitimate expectation was authoritatively defined in Council of Civil Service Unions v Minister for the Civil Service [1985] AC 374, and adopted by Kenyan courts in Keroche Industries Ltd v Kenya Revenue Authority & 5 others [2007] KLR 240, which latter case is discussed below.
73.The doctrine encapsulates that where a public body by past practice, promise, or conduct leads a party to expect certain treatment, a departure from that expectation requires consultation or justification.
74.The 1st respondent in its response to the application indicates that it has, over the years, relied on budgetary allocations for the payment of membership and practising licence fees for its members of professional bodies such as the Law Society of Kenya, working in the public service. That the failure to assent to the Finance Bill created a financing gap which necessitated the rationalization of the recurrent budget.
75.Thus, it is not in dispute that in this case, the Government had over the years consistently paid these subscriptions to professional bodies such as the applicant herein. That long-standing and repeated conduct gave rise to a legitimate expectation among professional public servants and professional bodies like the applicant that such facilitation would continue and therefore, absent, fair notice and stakeholder engagement was a necessity and a mandatory requirement.
76.The deposition of the Principal Secretary, the National treasury, of the consistent past practice, in the absence of express statutory exclusion, creates a legitimate expectation of continuity or, at the very least, of prior consultation before withdrawal of the benefit.
77.A five-judge bench of the High Court in the case of Kalpana H Rawal v Judicial Service Commission & 4 others [2015] eKLR exhaustively discussed the doctrine of legitimate expectation citing various judicial pronouncements on the doctrine in a decision that was affirmed by the Court of Appeal. The said bench observed as follows:.
78.The Supreme Court in the Communication Commission of Kenya & 5 others vs Royal Media Services Ltd & 5 Others, [2014] eKLR also explained the principle of legitimate expectation as follows:
79.The court further laid down the principles that govern a successful invocation of the doctrine of legitimate expectation as follows:
80.The Court of Appeal in Kenya Revenue Authority v Universal Corporation Ltd [2020] eKLR also had occasion to shed light on the principles that guide the Court while applying the doctrine of legitimate expectation. In agreeing with various High Court decisions, the Learned Judges of Appeal made the following summary of when legitimate expectation arises:
81.In the case of David Wanyeki Kago v Kenya National Examinations Council [2022] KEHC 26897 (KLR) it was stated as follows on the issue of legitimate expectation:
82.In Keroche Industries Limited v Kenya Revenue Authority & 5 others Nairobi [2007] eKLR the court dealt with the doctrine in the following terms:
83.Guided by established jurisprudence on the doctrine of legitimate expectation including the decisions in Kalpana H Rawal, Royal Media Services, Universal Corporation Ltd, David Wanyeki Kago, and Keroche Industries, it is evident that where a public authority has, through consistent past practice or representation, created a lawful and reasonable expectation, it is bound to honour that expectation unless there exists a compelling public interest justifying a departure.
84.In this case, the 1st respondent’s historical practice of funding practising licence fees for public officers, absent any statutory prohibition or prior consultation, gave rise to a legitimate expectation of continuity or, at minimum, a fair and transparent process before withdrawal. The abrupt revocation of this support, without transitional measures or meaningful engagement with affected persons, not only defeats that expectation but also offends the constitutional guarantees of fair administrative action that is expeditious, efficient, lawful, reasonable and procedurally fair, under article 47.
85.Accordingly, the impugned directive cannot stand in the face of these well-settled legal principles.
Whether the applicant is entitled to the judicial review remedies of certiorari, prohibition, and mandamus
86.The power of this court in judicial review is limited to examining the legality, reasonableness and procedural fairness of administrative decisions.
87.In the Ugandan Case of Pastoli v Kabale District Local Government Council & others [2008] 2 EA 300 the court stated inter alia
88.The above decision evenly fits in the circumstances of this case. The 1st respondent in issuing the circular, acted within the law that allows it to issue circiulars and even implement budgetary cuts. However, as the implementation was to directly affect the applicant’s members, public participation and consultation was not discretionary. Additionally, notice ought to have been issued alerting them of the intention to effect the budgetary cuts in view of the statutory requirement that such members must take out a paid annual fees before they can be allowed to practice law. Part of the annual practicing certificate levy is utilized by the applicant for administrative expenses and therefore abruptly stopping the levy would adversely affect the operations of the Bar Association besides excluding its members from practicing their profession, noting that it is an offence t practice without taking out a current practicing certificate.
89.However, in granting an order of certiorari which is discretionary, the court must weigh several things even if a body or authority committed an illegality or acted unprocedurally. The order is not automatic, the remedy must be the most efficacious. Halsbury’s Laws of England 4th edition volume II page 805 paragraph 1508 states as follows:
90.According to Halsbury’s Laws of England 4th Edn Vol 1(1) para 12 page 270:
91.In the case of Republic v Public Procurement Administrative Review Board & 2 others [2019] eKLR where Mativo J (as he then was) stated:
92.The circular which is impugned was issued on July 7, 2024 at the commencement of the new financial year 2024/2025. Annual practicing/ subscription fees are usually paid at the beginning of the calendar year. It follows that the affected professionals have had to settle those fees by themselves. The circular was not issued to last permanently. The circular was issued to MDAs on the revision of the FY 2024/2025 specifically under the recurrent budget estimate which is lapsing in a week’s time on June 30, 2025. The applicant did not at the leave stage seek for any stay of implementation of the said circular, although it sought for leave to apply for prohibition to restrain the 1st respondent from implementing the circular and mandamus to reinstate the budget for subscription of fees and levies for professional bodies.
93.The application was filed two months after the circular came into effect and no stay of implementation of the circular was sought and obtained from the court. I encountered the file herein in March 2025, nine months into the financial year and now it is a few days to the end of the said financial year.
94.The question is whether the orders sought can issue.
95.On whether certiorari can issue, certiorari is a tool for checking abuse of administrative authority. Even if the budget cut was implemented, the court may quash the decision to pronounce on the legality for future guidance. In the often-cited case of Pastoli v Kabale District Local Government Council [2008] 2 EA 300, it was held that Judicial review is about legality, not just results.
96.As for the order of prohibition, it looks to the future to prohibit the action contemplated. The applicant seeks to prohibit the 1st respondent from implementing the circular dated July 5, 2024 eliminating fees and or levies payable to professional bodies in the financial year which is ending in a week’s time. In Republic v Kenya National Examination Council ex-parte Gathenji & others Civil appeal No 260 of 1996 the Court of Appeal stated that prohibition looks to the future so that if a tribunal were to announce in advance that it would consider itself not bound by the rules of natural justice, the High Court would be obliged to prohibit it from acting contrary to the rules of natural justice. However, where a decision has been made, whether in excess of jurisdiction or whether in violation of the rules of natural justice, an order of prohibition would not be efficacious against the decision made. Prohibition cannot quash a decision which has already been made. It can only prevent the making of a contemplated decision.
97.In this case, on the facts presented before this court, there is no mention or indication that the circular was to remain in place for the subsequent financial years. That being the case and the decision having been implemented, it would be superfluous to prohibit an act which has already taken place.
98.On whether mandamus can issue where the impugned decision has already been implemented, mandamus is a remedy that compels the performance of a statutory or public duty that a public body has unlawfully refused or failed to perform. To succeed, the applicant must show:a.The existence of a clear legal duty;b.That the duty is owed to the applicant;c.That the duty has not been fulfilled;d.That there is no alternative remedy.1.However, mandamus cannot compel expenditure of funds not appropriated, the exercise of discretion in a particular way, or the performance of impossible or past acts (ie, undoing past budget execution in a lapsed year). This is because Government budgets are annual and subject to Parliamentary appropriation underArticles 221–228 of the Constitution, and section 39 of the Public Finance Management Act (PFMA), 2012. Once a financial year lapses, the budget expires and no public officer has a duty or power to reallocate or reinstate funds to that year.
100.In addition, where performance is no longer possible, courts do not issue futile or impossible orders. Mandamus is a forward-looking remedy, not a tool to undo or reverse fully executed fiscal policies. Once a budget cycle is complete, it becomes a matter of public accounts oversight, not judicial enforcement, especially where, like in the instant case, there is no evidence or pleading that the budget cut would transcend the budget year in which event, a new cause of action which was not pleaded would arise.
101.In the often-cited case of Kenya National Examinations Council v Republic ex parte Geoffrey Gathenji Njoroge & 9 others [1997] eKLR, the Court of Appeal stated as follows regarding mandamus remedy:
102.It is also worth noting that no declaration was sought and the court would not issue substantive orders which were never pleaded and or sought in judicial review proceedings. Again, there being no statutory obligation to fund a specific entity in perpetuity, like constitutional commissions under article 249(3), this court would not issue mandamus in the manner that was pleaded in this matter.
103.Consequently, for the reasons above, the court having found that the impugned decision was made in violation of the constitutional value of public participation, procedural fairness and legitimate expectation, this court is satisfied that the threshold for intervention is met. The application partially succeeds to the extend that the court makes the following orders:i.An order of certiorari is hereby issued quashing Treasury Circular No 8/2024 insofar in so far as it directed a 100% cut on Membership fees, Dues and Subscriptions to Trade Bodies.ii.As the circular took effect and has been enforced covering the period that it was intended to last, during the 2024/2025 financial year which is ending on June 30, 2025, prohibition cannot issue.iii.As there was no stay of implementation of the decision contained in the circular, mandamus was overtaken by events. The court cannot reinstate the budget which has since lapsed. The prayer for mandamus is declined.iv.Each party shall bear its own costs.v.This file is closed.
DATED SIGNED AND DELIVERED AT NAIROBI VIRTUALLY THIS 23RD DAY OF JUNE, 2025R.E. ABURILIJUDGE