Annual Report 2012

KENYA LAWANNUAL REPORT 2012

Vision Accessible Public Legal Information towards an Enlightened Society

Mission To Provide Universal Access to Public Legal Information by Monitoring and Reporting on the Development of Jurisprudence for the Promotion of the Rule of Law

Core valuesThe guiding principles in the operations of Kenya Law are:

i. Integrity;

ii. Altruism (We Care);

iii. Accountability;

iv. Independence;

v. Reliability;

vi. Professionalism in Service;

vii. Innovation;

viii. Teamwork;

ix. Customer Focus; and

x. Quality

SloganWhere legal information is public knowledge

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KENYA LAW ANNUAL REPORT 2012 ............................................................................................................i

TABLE OF CONTENTS ..................................................................................................................................ii

Organizational Profile .................................................................................................................................. iv

Source of Mandate: .................................................................................................................................. iv

Mandate ................................................................................................................................................... iv

LETTER FROM THE CHAIRMAN ..................................................................................................................1

Editors statement ......................................................................................................................................2

The Council of Kenya Law .........................................................................................................................3

Kenya Law Management Team ..................................................................................................................5

PERFORMANCE REVIEW/ OPERATIONAL HIGHLIGHTS 2012.....................................................................7

1. Formulating the 2013-2017 strategic plans ....................................................................................7

2. Monitoring and evaluation of Kenya Laws activities ......................................................................8

3. Revision of the Laws of Kenya ........................................................................................................8

4. Rebranding of Kenya Laws Products ..............................................................................................9

5. Marketing the KENYA LAW brand .................................................................................................9

6. Reclaim of Lost Jurisprudence ......................................................................................................10

7 Report of Judicial Opinions Collected from the Superior Courts of Record in 2012...................... 10

8. Human Resource Development ...................................................................................................18

9. Embracing universal accessibility .................................................................................................18

10. Financial Review .........................................................................................................................19

11. ICT Development ........................................................................................................................20

12. Sales ............................................................................................................................................20

13. Research and Development .........................................................................................................21

14. Strategic alliances and partnerships .............................................................................................21

TABLE OF CONTENTS

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TABLE OF CONTENTS

OUR STRATEGIC PROGRESS / MEASURING OUR PERFORMANCE- .........................................................22

OUTLOOKS and RISKS ...............................................................................................................................24

Outlook ...................................................................................................................................................24

Principal Risk Factors ...............................................................................................................................24

SELECTED CONFERENCES AND TRAININGS .............................................................................................27

OUR PRODUCTS: SELECTED PUBLICATIONS ............................................................................................29

FINANCIAL REVIEW ...................................................................................................................................31

Report of the Independent Auditor: An Overview of Kenya Laws Performance ........................................31

Statement of comprehensive Income for the year 2011/2012: ..............................................................31

Statement of Financial Position as at 30th June 2012 .............................................................................32

Statement of Kenya Law Members Responsibilities ..................................................................................34

Statement of Comprehensive Income for the year ended 30 June 2012 ....................................................35

Statement of Financial Position as at 30th June 2012.................................................................................36

Statement of Cash flow for the year ended 30th June 2012 .....................................................................37

Statement of changes in equity for the year ended 30th June 2012 ......................................................38

Notes to the Financial Statements for the year ended 30th June 2012 .......................................................39

1. Significant accounting policies ....................................................................................................39

CORPORATE SOCIAL RESPONSIBILITY ......................................................................................................41

KENYA LAW STAFF .....................................................................................................................................42

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Organizational ProfileOrganization: The Kenya Law

Organization type: Semi-autonomous state agency (SAGA) State Corporation

Parent Act: The National Council for Law Reporting Act, Act No. 11 of 1994.

Parent Ministry: The Judiciary State Corporation Ranking and Classification: Service State Corporation, PC3C

Organizational Structure: The Council Of Kenya Law with Secretariat managed by a Chief Executive Officer.

Flagship Brand NameKenya Law

Address of Principal Office and Contacts:Milimani Commercial Courts, Ground Flr., Ngong Road

P.O. Box 10443-00100, Tel (+254 020) 2712 767, Mobile: 0718 799 464/ 0736 863 309

NAIROBI KENYA

Email: [email protected]. Facebook Group : Kenya Law Reports

Youtube: www.youtube.com/kenyalawreports

Website: www.kenyalaw.org

Mandate and FunctionsSource of Mandate:

The National Council for Law Reporting Act, section 3

Legal Notice No. 29 of 2009

Mandate:

1. To Publish the Kenya Law Reports and related publications;

2. To revise, consolidate and publish the Laws of Kenya;

3. To perform such other functions as may be conferred by statute.

KENYA LAWANNUAL REPORT 2012

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FOREWORD FROM THE CHAIRMAN

It gives me great pleasure to present, on behalf of the Members of the Council, the Annual Report of the National Council for Law Reporting for the year ended 31st December 2012.In 2012, the Judiciary launched the Judiciary Transformation Framework (20122016). This framework, along with the Judiciary Strategic Plan for the same period, will be the reference points for the strategic direction of the Judiciary in reclaiming, reforming and repositioning its place as a vital, effective and independent arm of government. The role of the Judiciary in the development of a robust, indigenous, patriotic and progressive jurisprudence is a major component of this framework as is, necessarily, the role of the Council in capturing, preserving and reporting on the elements of this jurisprudence. More importantly, the Council is now discharging its mandate in the context of a country that has enacted a new Constitution and a Judiciary that is going through a phase of transformation and its role cannot be underestimated. Even as it captures the emerging jurisprudence, the Council has started to look back at previous judicial opinions that have been key in the evolution of Kenyas jurisprudence and which have been left out of reporting.

As part of the replenishment of the infrastructural, financial and human resource capacity of the Judiciary, the Council has benefited from a larger resource basket that has enabled it to be more effective in its operations for now and the years to come, and the milestones contained in this report are emblematic of this.

The optimal resourcing of the Council and the effective discharge of its mandate to serve not only the Judiciary and the legal sector but also to meet the Mwananchis need for open, accessible and understandable public legal information remains my commitment and that of the other Members of the Council.

Even as we take upon the challenges of years that are ahead of us, I remain thankful to our partners, our stakeholders, to the Members of the Council and its staff for their support during 2012.

The Hon. Justice (Dr.) W.M. Mutunga, D.Jur, SC, EGH

Chief Justice/ President, Supreme Court of Kenya

Chairman of the Council

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FROM THE EDITOR

2012 was yet another eventful year for the National Council for Law Reporting. It marked the conclusion of the Councils Strategic Plan for 2009-2012 and the commencement of the exercise for the formulation of a new strategic plan.The new strategic plan for the 20132017 will present an opportunity for the Council to incorporate in its planning the Constitution of Kenya, 2010; the Second Medium Term plan 2012 2017 of Vision 2030; the Judiciary Transformation Framework 2012 2016 and the Judiciary Strategic Plan 2012 2016.

In 2012, the financial outlook and sustainability profile of the Council improved enormously. The Council secured Kshs. 288M for the 2012-2013 financial year. This was an unprecedented increment in its revenue allocation from the Consolidated Fund which was critical in the implementation of key projects and activities. More importantly, this allocation is a major step towards optimizing the resourcing of the Council and consolidating its place as a vital and sustainable service corporation. For the first time in its history, the Council exceeded the break-even when it realised a revenue of over Ksh. 25M from the sale of its publications, representiing a 232% increment from the previous financial year. The Council also made a net surplus of Ksh. 58, 102,255 as compared to the previous net deficit of Ksh. 7,582, 480.

During the year, the Council re-engineered a number of its vital policies and internal systems and processes in response to the need to incorporate the values and principles of the Constitution of Kenya, 2010 and the aspirations of a transforming judiciary as expressed in the Judiciary Transformation Framework 2012-2016. Key among these was the revision and updating of the Editorial Policy for the Kenya Law Reports and the compilation of the Law Revision Manual.

The Council also moved a step closer towards delivering the first revised and updated version of the complete Laws of Kenya in over two decades under a consultancy project funded by the Financial and Legal Sector Technical Assistance Project (FLSTAP).

With the commencement of the publication of the weekly KLR Updates which follow from the convening of weekly case selection meetings, the Council has now moved its cycle of law reporting from annual to weekly.

As further set out in this report, the Council achieved several other significant milestones in the terms and conditions of service and welfare of its members of staff and in ICT infrastructure and ICT applications that improved efficiency and service delivery

Michael M. Murungi

Chief Executive Officer/Editor.

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Dr. Willy M. Mutunga,

D. Jur., SC, EGH - Chief Justice, President of the Supreme Court of Kenya/Chairman

Mr. Anthony Ombwayo

Principal Litigation Counsel, office of The Hon. The Attorney General

Mrs. Gladys B. Shollei

Chief Registrar, The Judiciary

Prof. James Otieno-Odek

Dean, School of Law, University of Nairobi

The Hon Mr. Justice Philip K. Tunoi

Judge of the Supreme Court of Kenya

The Hon Lady Justice Jessie Lesiit

Judge of the High Court of Kenya

THE COUNCIL OF KENYA LAW (AS AT JANUARY 1, 2012)


Mr. Evans Monari

Advocate, Law Society of Kenya

Mrs. Florence Mwangangi

Advocate, Law Society of Kenya

Mr. Paul Sang

Snr. Printer, Government Printer

Mr. Michael Murungi

CEO & Editor of the Council Secretary to the Board

Members co-opted into the Board to serve in advisory roles from time to time:

1. The Inspectorate of State Corporations - Represented by Mr. Christopher Ombega, Senior Assistant Inspector General

2. Office of the Clerk of the Kenya National Assembly - Represented by Mr. Jeremiah M. Nyegenye, Head, Office of Legal Counsel

3. Directorate of Personnel Management, Ministry of State for Public Service - Represented by Mrs. Flora Mutua, Snr. Management Analyst.

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Mr. Michael M. Murungi - Editor / Chief Executive Officer

Michael M. Murungi is a manager, a law reporter and an ICT legal expert. He is the Chief Executive and Editor at the National Council for Law Reporting a semi-autonomous state corporation in the Judiciary of Kenya. In that capacity, he exercises editorial oversight over the Kenya Law Reports, which are the official law reports of Republic of Kenya, as well as the official Laws of Kenya, among other publications.

He is the author of Cyber Law in Kenya and is Kenyas designated contributor to the International Encyclopaedia of Cyberlaw published by Wolters Kluwer.

Michael has lectured at the Catholic University of Eastern Africa and spoken at local and international conferences on law reporting, legal publishing, access to information and ICT law. He has a Masters Degree in ICT law and has professional training in legal practice, management and arbitration.

Ms. Esther 0. Nyaiyaki Senior Assistant Editor / Deputy Chief Executive Officer (Outgoing)

Esther N. Onchana was the Deputy CEO at the Kenya Law (Kenya Law). She has over seven years experience in law reporting and law revision. She holds a Bachelors of Law undergraduate degree and and a postgraduate degree in International Conflict Management from the University of Nairobi (2012). She has consulted in areas of access to legal information, gender, & children rights, and land and environment rights in Kenya. She is currently the Registrar of the Supreme Court.

Ms. Mutindi Musuva Team leader, HR and Administration Department

Mutindi holds a Bachelors degree in Business Management, a Higher National Diploma in Human Resource Management and Diploma in ICT. She is currently pursuing a Masters degree in Business Administration. Prior to joining the National Council for Law Reporting, Mutindi worked with a lead-ing local bank; I&M Bank Ltd as a Human Resources Officer and with a recruitment firm; myJobsEye.com as a Recruitment Consultant. Mutindi is a member of Kenya Institute of Management and the Institute of Human Resources Management.

Ms. Anne M. Asugah Assistant Editor, Team leader, LOK Department (Outgoing)

Ann Muthoni Asugah was the Assistant Editor and Team Leader Laws of Kenya Department at the Kenya Law (Kenya Law Reports) in charge of statute revision and consolidation. She is an advocate of the High Court of Kenya having been admitted to the bar in June 2002.She holds a Bachelors degree in Law from the University of Nairobi, a postgraduate diploma from the Kenya School of law and is currently pursuing a Masters Degree in Business Administration at the Jomo Kenyatta University of Agriculture and Technology. She has both academic and professional credentials in management having attended several courses dealing with legislative drafting, performance management, managing legal resources in the semantic web and project management. She is a member of the Law Society of Kenya, Institute of Certified Secretaries of Kenya and the Kenya Institute of Management. Ann has also published two books dealing with discriminatory laws, Case Management in the Judiciary with the help of Federation of Kenya Lawyers (Kenya Chapter). She is currently the Deputy Registrar of the Supreme Court.

KENYA LAW MANAGEMENT TEAM


Wambui Kamau: Team Leader Laws of Kenya Department.

Wambui Kamau holds a Bachelor of Laws Degree from the Catholic University of Eastern Africa and a diploma in law from the Kenya School of Law. She is currently pursuing her Masters of Law (LLM) in Law, Democracy and Governance from the University of Nairobi. Wambui worked for the Laws of Kenya department for two and a half years as a legal researcher progressing on to an assistant law repoter prior to becoming the team leader in February 2013.

Ms. Monica M. Achode Research and Development Department

Monica Achode is an advocate of the High Court of Kenya having been admitted to the bar in February 2008 and is a member of the management team at the Kenya Law.She holds a Bachelors degree in Law from the Moi University, a postgraduate diploma from the Kenya School of law and a Masters Degree in Gender and Development from the University of Nairobi. She has both academic and professional credentials in management having attended several courses dealing with procurement in gov-ernment entities as well as strategic and managerial leadership.

She is a member of the Law Society of Kenya as well as the Federation of Women Lawyers. Monica has also consulted on and published a book relating to Children and the Law.

Linda Awuor Ochieng : Senior Law Reporter and Head of the Research and Development department

Linda Awuor Ochieng holds a degree in Law from the University of Nairobi and a diploma in Law from the Kenya School of Law. She is currently pursuing a Masters degree in Environmental Law and Policy at the University of Nairobi, Kenya. Prior to being a Senior Law Reporterof the R & D department, she was part of the Bench Research Hotline, a helpdesk established by Kenya Law to give legal research support to judicial officers in Kenya.

Mr. Pascal O. Oluoch Team leader, Finance Department

Pascal joined Kenya Law in January 2005as an Assistant Accountant.He holds a BBM in Accounting From Moi University and is a Certified Public Accountant of Kenya (CPA K). He has been member of the Institute of Public Accountants of Kenya (ICPAK) since 2011.Pascal is currently pursuing an MBA Program in Strategic Management.

Mr. Martin Mbui Ag Team leader, ICT Department

Martin Michael Mbui holds a masters degree in Computer Science from the Nairobi University 2012, a Bachelors in Science in Information Technology from JKUAT 2006, and is currently pursuing a second masters degree in information systems from the University of Nairobi. He joined Kenya Law in September 2008, and has over six years experience in Computer and Network systems Implementation. He has been consulted in a wide range of ICT issues, and has been involved in Technology Advancing System Solutions. Prior to Joining Kenya Law, he was the head of IT in Happiness Business Center (HBC) in Dar-es-Salaam, Tanzania.

Mr. MayakaTeam leader, ICT Department

Michael M. Mayaka was the team Leader of the ICT Department.He holds a Bsc. Degree in Information Technology from Moi University 2005. He joined Kenya Law in December 2009, and has over eight years experience in web and systems development. During his tenure at Kenya Law, Mr. Mayaka demonstrated his dexterity in the ICT department and was soon accorded the mandate of leading the department. Prior to joining Kenya Law, he was the Senior Systems Engineer at DEW- CIS Solutions, Kenya where he played a lead role in deploying ERP, Service Desk & Document management systems in CCK and Babcock University, Nigeria. He was instrumental in Pioneering Case Management System & Service Desk in the Seychelles Supreme Court & Kenyan Judiciary. Mr. Mayaka is currently serving as the Deputy Director of ICT at the Judiciary.

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PERFORMANCE REVIEW/ OPERATIONAL HIGHLIGHTS 2012

1. Formulating the 2013 - 2017 strategic plans

In order to be effective in its operations, the Kenya Law reviewed its 5 year strategic plan during a four day workshop held at the Silver springs Hotel on the 11th 14th September 2012, with the aid of Eliud and Associates consultants. The aim of the strategic planning workshop was:

To develop and eventually implement the Kenya Law Strategic Plan for 2013-2017 that will be aligned with the Medium Term Plan 2012-2017 of the Vision 2030, the Constitution of Kenya 2010, the Judiciary Transformation Framework 2012 -2016 and the Judiciary Strategic Plan 2012-201;

To undertake a comprehensive stakeholder analysis;

To formulate clear and gripping vision, mission and objectives of Kenya Law;

To assess the strategies that will ignite innovation within Kenya Law;

To effectively assess the conditions of the internal operations and clarify the leverage points to improve performance within Kenya Law;

To formulate an action plan for each strategy, with milestones and deliverables, timelines and accountability;

To measure impacts;

To perform continuous revisions;

To ensure accountability through continuous monitoring and evaluation.

The strategic planning workshop was dedicated to:

Stakeholder analysis aimed at addressing the interests and information held by key stakeholders, and in turn communicates our interests and expectations from the stakeholders to establish a mutual cooperation. Responsiveness to key stakeholders is imperative throughout the strategic management process because the success and survival of an organization depends on sustaining key stakeholders according to their designation of what is valuable. If key stakeholders are not content, at least nominally, according to their standards for fulfilment, the standard prospect should be that something will change, and not in a positive way.

Part of the discussions had were on how the different environments affect productivity of Kenya Law and how to counter this through a P-PESTEL and SWOT analysis, identified our gaps through a Gap Analysis and challenges encountered, addressed these by identifying our key successes areas and lessons learned. All these gave a pathway to the development of what we want to focus on the next five years and how we want to do this.

Having a clear and compelling vision, mission and objectives is what employees subscribe to, to ensure performance in an organization. This is the cornerstone and backbone of a healthy organization culture. During the strategic planning workshop, we proposed to revise our vision to Accessible Public Legal Information


towards an Enlightened Society from To be the premier resource institution in Africa providing reliable and accessible legal information to the public. Our proposed mission read To Provide Universal Access to Public Legal Information by Monitoring and Reporting on the Development of Jurisprudence for the Promotion of the Rule of Law, while our slogan was proposed to read where legal information is public knowledge.

It is expected that we shall have our strategic plan by the end of March 2013.

2. Monitoring and Evaluation of the Kenya Laws Activities

As part of the strategy, quality assurance and performance evaluation departments mandate to continuously monitor and measure the productivity and performance of Kenya Law at both individual and departmental level, Kenya Law undertook various M&E initiatives both internally and externally. Externally, Kenya Law evaluated its progress in the alignment and implementation of its activities in accordance with the Constitution of Kenya 2012 for the two quarters in the period of April-September 2012. As a result, Kenya Law submitted its first report on the progress of the implementation of the Constitution of Kenya to the Commission for the Implementation of the Constitution of Kenya (CIC).

Internally, Kenya Law adopted the Performance Appraisal System (PAS) which is a critical component of the overall human resource management function in the larger Civil Service. This was as a result of the recommendations and learning attained from the Managers weeklong training at the Kenya Institute of Management on performance appraisal and management course held on the May 7-11 2012. It was predicated upon the principle of work planning, setting of agreed performance targets, feedback and reporting. The overall objective of the PAS was to manage and improve performance of Kenya Law by enabling a higher level of staff participation and involvement in planning, delivery and evaluation of work performance.

The specific objectives of the PAS were to:

Link individual performance with organization performance

Enable Supervisors and Appraisees to continuously assess work progress

Assess the learning and development needs of staff on a timely basis

Promote communication and encourage continuous feedback between Appraisee and Supervisor

Set the basis on which a staffs performance is monitored and evaluated as stipulated in the individual work plan

Improve the quality of work through better planning, on-going discussions and fair participatory appraisal

Provide information for decision making on administrative and human resource issues such as renewal of contracts, promotions, delegation of duties, training, deployment, rewards and sanctions.

The PAS however is in its pilot stages and it is yet to be perfected and internalised.

3. Revision of the Laws of Kenya

A complete revision of the Laws of Kenya had not been done for over 20 years. The Laws of Kenya had run into over 600 individual chapters/statutes with approximately 30,000 pages of legislative content and subsidiary legislation. Every year, new legislation or amendments to existing legislation and regulations made under Acts of Parliament (subsidiary legislation) were passed by Parliament and added to the body of Kenyan Law, while some Acts and

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Regulations were amended or repealed altogether.

The need for the comprehensive updating and revision of the laws of Kenya as contemplated under the Revision of the Laws Act (chapter 1 of the Laws of Kenya) became critical. Due to capacity constraints, the attorney general delegated the power to revise the laws of Kenya to the Kenya Law through the legal notice no. 29 0f 2009. It was backdated to 2007 as the Kenya Law was updating their database without the authority of the attorney general.

The Kenya Law, together with Lexis Nexis Pty, partnered to provide revised, updated and accurate chapters of the Laws of Kenya in print and electronic format, whilst ensuring the sustainability with regards to the future updating of the Laws of Kenya. By the beginning of the year, the Laws of Kenya department had revised close to 500 chapters of the Laws of Kenya. Mid- year, the department engaged Lexis Nexis (pty), a publishing firm in South Africa to fully take charge of the revision exercise. This commenced in July 2012 and is in place up till March 31st 2013. The Editorial work was completed by December 2012. This means all the laws of Kenya up till August 31st are fully updated.

4. Rebranding of the Kenya Laws Products

The Kenya Law has adopted a new name for its product base and unveiled a fresh look in line with its strategic plan and Vision 2030. The Kenya Law embarked on a strategic rebranding exercise in a bid to spur institutional transformation. The new brand highlights Kenya Laws commitment to maintain world-class law reporting standards, continuously improve on creativity and innovation, adopt information communication technology solutions and enhance customer service delivery.

The exercise kicked off during the strategic planning review exercise with a series of changes in Kenya Laws vision, mission and corporate slogan and with internal communication to prep staff to adopt a new customer centered service delivery attitude.

The flagship brand Kenya Law Reports will now be known as Kenya Law. The new corporate identity will be anchored on a new logo and slogan Where Legal Information Is Public Knowledge. This rebrand is timely as Kenya Law is looking for creative ways to enhance its public image through a thorough rebranding exercise so as to engage with the public and make our products more known to our stakeholders.

5. Marketing the Kenya Law Brand

The Kenya Law was involved in many marketing stunts to promote the visibility of its products. Kenya Law entered into an agreement with Citizen TV under the Mashtaka Sponsorship. The main objective of the Kenya Law was to sponsor the legal production program in a bid to increase the visibility of the Kenya Law brand and to create awareness about the services the organization offers i.e. free public legal information.

Other objectives included but are not limited to:

Raising awareness about the Kenya Law brand;

Promoting Kenya Law products;

Creating legal awareness through script influence

Kenya Law Advertised on Citizen TV through the Mashtaka Sponsorship Program for a period of 6 months from June November 2012. Kenya Law also advertised with Nairobi Law Monthly Magazine for the whole year where advertisements on new or existing publications were published.


See Graphs Below:

Figure: Total Number of Judicial Opinions Received Per Month

Of importance was the display and exhibition of our products on many events such as have been listed in the conferences attended section of this report, which included the pocket size Constitutions of Kenya 2010, Kenya Law Reports, Laws of Kenya Volumes, Braille Persons with Disabilities Act and the KLR Website that was running live. The exhibitions went a long way for Kenya Law in explaining our mandate to the public which is the provision of public legal information, sensitizing them on where to find our products and how to access our website for services such as Cause List, Case Search, Bills, Acts and the Kenya Gazette. We were most glad to engage the public on our mandate as well as various issues that came up. There was an overwhelming demand for the pocket size constitution of Kenya 2010 which saw us give away over 100,000 copies for free.

6. Reclaim of Lost Jurisprudence

This exercise involves tracking and reporting of past court decisions which , though may not have been reported by the Kenya Law earlier for one reason or the other, have a special character i.e. originality in exposition of law and salient principles; have thoroughness and of high juristic quality and contribute to the growth of jurisprudence. These decisions are being mopped up, compiled and reported in special law reports.

7. Reports on all judgments collected in 2012Human Resource Development

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Figure: Total Number of Judicial Opinions Received Per Court


HIGH COURT OF KENYA

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Figu

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Figure: Total Number of Judicial Opinions Received Per Judge

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Figure: Total Number of Judicial Opinions Received Per Month


Figure: Total Number of Judicial Opinions Received Per Judge

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Figu

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Tota

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of Ju

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Rec

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The Kenya Law was involved in various activities through the year.

The year kicked off to a strong start with Thanks Giving and the Annual Staff Conference held on February 3, 2012 at Panari Hotel. This event combined a prayer and thanks giving session, a group counseling session and prize giving for the Team Player and Team Leader of the year.

The Kenya Law also participated in the Uwazi soccer tournament held in May 2012 which was held at Impala Ground and organized by ICJ. The theme of the tournament was An informed citizen, a transparent Government, a Prosperous Kenya. The Kenya Laws development partners, Mathare Roots Youth Group, MRYG formed part of the team representing the Kenya Law in the tournament and won the soccer cup for 2012. The Family fun day was held in July 2012 during with the Kenya Law MRYG (Mathare Roots Youth Group Memorandum of Understanding was launched.) Members of staff and their families had an opportunity to interact with MRYG as well as discuss opportunities for future collaborations.

The HR department also revamped its welfare scheme to the staff by providing and extending the judiciary Mortgage scheme to members of staff. Further still, there was a launch of the Kenya Law welfare scheme that was curtailed to cater for members of staff during hours of dire need. An ethnic audit was also done in May that led to the signing of an MOU with Amani Counseling Center for the provision of counseling services to members of staff when need be.

The Kenya Law family continued to grow as Kenya Law was joined by Rashid Indany Driver, Josephine Mutie Data Processor, Phoebe Jumah Legal Proof Reader, Kenneth Oduor Archivist, Lydia Midecha- Assistant Project Officer and Collins Kiptoo and Vivian Etyang as Legal Researchers. With the continuing growth of the Kenya Law family, there was also need to expand the physical space, and hence the judiciary provided additional space on the 5th floor to cope with this expansion.

The annual Retreat was held in Watamu and facilitated by Integrity International Consultant. Members of staff had an opportunity to learn from one another and develop a stronger team spirit.

Towards the close of the year, the HR and Admin Department was involved in the comprehensive process of the review of the strategic plan for 2012 2017. Tetralink International also duly procured also was awarded the tender to review and update Kenya Laws Human Resources Polices and Career Guideline.

8. Embracing Universal Accessibility

People with disability constitute on average 10% of any countries population and are often part of the most marginalised group in society. Although developmental issues affect most people in Kenya, people with disabilities face an acute vulnerability. For instance, poverty is both a cause and a consequence of disability: a lack of access to basic health care and sanitation may lead to an otherwise preventable disability; while lack of a public sector infrastructure and services may leave a person with disability unemployed and destitute. Articles 54, 55, 56 defines persons with disabilities as the youth, minorities and marginalized groups.

In light of the marginalisation people with disability face, Kenya Law has embraced universal accessibility to strengthen accessibility of legal information by these persons. Under chapter 4, Article 35 of the constitution of Kenya- the right to information held by the state Access to public information is now a constitutional right. Kenya Law is aware of its constitutional obligation to make

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public legal information accessible. Accessibility includes affordability, the language and the formats in which the information is provided and the time and places where it can be accessed.

Through the PRIDE IMPACT IS project in conjunction with the Rockefeller foundation, Kenya Law aims to redress the socio-economic exclusion of these classes of persons by giving them an opportunity to provide goods and services to Kenya Law, while at the same time providing universally accessible information through various formats i.e. in Plain English and Swahili, and through our website in accordance to the guidelines for Universal Web Content Accessibility. A first consultancy under the PRIDE initiative saw Kenya Law develop guidelines for the translation of legal documents from English to Swahili and guidelines for universal web accessibility and internationalization.

9. Financial Review

The GOK through the Budget Review and Outlook Paper (BROP) indicated that the Kenyan economy was operating in the background of an uncertain world economy evidenced by:

i) A weakening global economic environment and,

ii) Uncertainty in the world commodity prices.

Locally, the Kenyan economy was faced with the expenditure pressures associated with salary demands by the education and health sectors, programmes facilitating the implementation of the new constitution and the smooth transition to decentralisation, preparations for the General elections.

Priority social sectors of education and healthcare were given priority in resource allocation and hence received the lions share of the allocations.

The economic sectors of Agriculture and livestock also received priority to boost productivity and to deal with the threat of food insecurity in the country.

Despite these challenges, the GOK enhanced Kenya Laws budget to Kshs.259, 200,000 for the 2012/2013 FY representing a 24.3% increment as compared to Kshs. 208,571,700 received in the 2011/2012 FY. Even though Kenya Law received this budget increment, the allocation was still way below the Kshs. 377,688,294.80 presented to MOF as our resource requirements for the 2012/2013 period.

Kenya Law also received Kshs. 15,949,877 from the Rockefeller foundation to fund an IMPACT- I.S. project for improving public access to information through impact sourcing. The total Appropriation In Aid (A-In-A) collected in the year to December 2012 was Kshs. 3,595,877.

Expenditure

In 2012, Kenya Law has continued to record 100% absorption of our approved budget of Kshs. 208,571,700.


10. ICT Development

The ICT department in 2012 acquired new servers, desktop, and laptops via a grant from the World Bank in association with the Kenya ICT board. These have gone a long way in ensuring efficiency and effectiveness in service delivery in Kenya Law

The department also underwent various trainings locally and abroad. These include the African Lii training for Legal Information Institutes from different African countries workshop held in Johannesburg, South Africa, where Martin Mbui trained the represented Kenya Law in sharing knowledge on the technologies used in Legal Publishing. Among the many African countries represented were; South Africa, Zimbabwe, Zambia, Uganda, Botswana and Kenya. The department was also represented in the Law via Internet conference held at the Cornel University, Newyork, USA.

During the year, the department was involved in the IMPACT IS project which entailed the developing of the guidelines for universal web accessibility and internationalization, and the universal accessibility policy statement. This will go a long way in ensuring that information disseminated to the public is accessible by persons of all abilities and also provided in the national language Kiswahili, as per the Constitution of Kenya, 2010.

In order to ensure that Kenya Law operated at maximum efficiency, the I.C.T Department also migrated to a new Internet Service Provider (ISP). As a result of the dedicated support of the new ISP, internet downtime has reduced to less than 1%.

The ICT Department also launched a new online product in the year ended 2012. Case Updates is a weekly digest of recent precedent-setting judicial opinions from the superior courts of record. It was developed and deployed using the latest technological tools available and has received accolades from members of the legal fraternity along with the public.

Moreover, the department in partnership with Strathmore University and Samsung are developing an application to be used in handheld mobile devices such as iPads and Tables to enable easier and friendly access to our materials and publications.

In conjunction with the Lexis Nexis PTY group, the department developed a technological solution to assist in the revision and updating of all the chapters of the Laws of Kenya, and to publish the laws in print form as well as electronic multimedia and interactive CD-ROM formats. The electronic solution entailed development of a user interface with an Administration System, Online Interface & Navigation and CD/DVD Interface & Navigation; Systems Development including XSD Design , XML Content Management, Content HyperText routines, Content generation using XSL (Online & CD/DVD) , CD/DVD Generation & Security, Administration System and Search Engine Development ; database Development including User Access controls, Audit Structures, Version control structures and XML Storage. This solution is going to ensure reliable and secure access to the Kenya Law information by implementing platforms that enable open access to this information while maintaining high level of scalability and robustness.

11. Sales

The total sales revenue of the year 2012 was 25.7 million. This was the best year ever in Kenya Law in terms of sales. The sale increased by 232% from last year.

21KENYA LAW

ANNUAL REPORT 2012

12. Research and Development

Kenya Law, through the research and development department saw to it that legal research, training and library services were revamped during the year. In partnership with the Judiciary Training Institute and Katiba Institute, there was an induction training course for the Legal Researchers whose objectives were: To induct the Legal Researchers into the Judiciary and to share with them the mandate, vision, mission and values of the Judiciary; to clarify and elaborate on the role and job description of a Legal Researcher; To give the Legal Researchers instruction on the theoretical and practical knowledge on the proper discharge of their professional duties; and to understand and respond to the needs and expectations of the Legal Researchers and to outline the institutional support available to enable them to effectively fulfil their mandate. Apart from this, the department ensured that the organisation had access to and has established a digital library which contains digital archive of all Council information and subscriptions to various journals and other publications that are relevant to Kenya Law.

13. Strategic Alliances and Partnerships

The organisation established strategic partnerships with various government and non-government agencies to facilitate the carrying out of its mandate. These include the Judiciary Training Institute and Katiba Institute which Kenya Law partnered with to carry out the induction training for judicial researchers, CHAKITA, Waabeh, and Digital Data Divide to share and learn about universal accessibility for our product, the Virginia Tech university to develop ICT solutions for Kenya Law and Africanlii to offer trainings to other Legal Information Institutes that are coming up amongst others.


OUR STRATEGIC PROGRESS / MEASURING OUR PERFORMANCE

In measuring our performance and assessing the results we achieved in delivering strategic legal information dissemination services during the year, we look to our planned outcomes in the business excellence model, the deliverables and associated key performance indicators as set below. In addition to the activities and achievements described above, the following information summarizes our progress against those key performance indicators for the year.

DETERMINANTS ACTIVITIES KEY PERFORMANCE INDICATORS

TARGETS RESULTS

Leadership and Management

Involvement of all key stakeholders in setting up vision, mission and value statement in the strategic plan

Stakeholders analysis 100% 100%

Measures to evaluate the performance of the governing body Performance Contracting 100% 40%

Institute a board charter in addition to developing a code of ethics which Board, senior management and employees adhere to.

Board CharterEmployee code of Ethics

100% 0%

Develop and implement a risk management policy Risk Management policy in place 100% 50%

Put in place strategies and a system to collect, analyze & capture creative ideas from employees

System to collect, analyze and capture creative ideas from employees

100% 50%

Total 100% 48%

Human Resources Management

Development of a HR policy HR policy in place 100% 50%

Staff recruitment process in place Recruitment of staff 100% 80%

Training needs analysis and Staff training Training needs analysis and staff training done

100% 30%

Staff Welfare Programmes Systems in place to take care of welfare

100% 100%

Enhancement of Staff Career Maps Systems in place to encourage staff to develop their careers

100% 30%

Performance management system: Performance reviews documented and cascaded by HODs to either HR or CEO

Performance Appraisal and Management systems

100% 65%

Employee satisfaction survey Employee satisfaction survey 100% 72.3%

Further a program for staff retention and motivation Program for staff retention and motivation

100% 80%

SHE [safety, health and environment] policy in place OSHA policy 100% 30%

Total 100% 59.7%Customer Orientation and Marketing

Draft a reporting template for collection agents to enter customer (legal fraternity) suggestions

A reporting template for collection agents developed

100% 50%

To expand the feedback avenues Feedback avenues expanded and implemented

100% 80%

Create synergy with major bookshops Partnerships with major bookshops formulated

100% 50%

Customer satisfaction survey, and to set targets for the customer department to attain a specified number of contact customers daily.

Customer satisfaction survey done

100% 50%

Tie in rewards with good customer service delivery in collaboration with HR

Rewards scheme for customers put in place

100% 0%

Follow-up on dormant accounts by creating an Account management plan for all accounts

Account management plan put in place and implemented

100% 30%

Develop marketing plan to improve presence within the legal fraternity.

Marketing plan developed and implemented

100% 100%

Also carry out marketing audit with view of determining problem areas and opportunities and recommending a plan of action to improve the companys marketing performance

Marketing audit done. 100% 0%

Building partnerships both commercial and social with related stakeholders

Networking and partnerships formulated

100% 100%

Total 100% 51.11%

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ANNUAL REPORT 2012

Financial Management

Prioritization of funds required to drive the brand promise Funds set aside or mobilized for the branding process

100% 60%

Improve our financing model by looking for strategic partners and alternative income generating avenues

IGAs identified and acted upon. 100% 70%

More emphasis and reviews laid on internal quality control management and cost management in order to meet its long term obligations

Internal quality control systems put in place

100% 75%

Seek for authority to use any surplus income in line with the treasury regulations

AinA pumped back into the councils budget

100% 30%

Put in place a debt collection mechanism Debt collection mechanism put in place and implemented

100% 80%

Training on financial planning to assist maximize on the low liquidity

Number of financial planning trainings taken place

100% 70%

Total 100% 64.1%

Innovation, Information and Knowledge Management

Policy in place for Innovation, Information and knowledge management

ICT policy in placeInformation and Knowledge Management policy in place

100% 40%

Put in place a system/ sharing format for tapping on both tacit and explicit knowledge already in the organization1

System for tapping knowledge and ideas implemented

100% 40%

Capture system for information utilization of shared information assets (both tacit and implicit knowledge) System for KM

implemented and utilized

100% 75%

Observed structure for capturing employee suggestions System for capturing employee suggestions implemented and utilized.

100% 100%

Total 100% 63.75%

Corporate Citizenship and Environment

Set up the Companys corporate citizenship and Citizen Responsibility policy and integrate the various strands of corporate citizenship into the company strategic plan

corporate citizenship and Citizen Responsibility policy formulated and integrated into the strategic plan

100% 50%

Formulate an environmental policy and procedures and set up an environmental management system in the company with objectives, targets and responsibilities clearly defined

environmental policy and procedures formulated and an environmental management system set up

100% 20%

Total 100% 35%

Productivity and Quality

Productivity or quality policy, plans or programs in place Various editorial, financial, ICT, marketing, procurement and HR policies in place

100% 50%

Observed certified Quality Management System in place A Certified Quality Management System

100% 0%

A comprehensive performance improvement program (PIP) to make NCLR the premier law reporting organization in Kenya, the region and on to the continent

A PIP implemented 100% 75%

Staff morale surveys Surveys undertaken 100% 0%

Total 100% 31.25%

(Footnotes)

1. This would be at 100% was it not for the fact that the system is still being tried out by the ICT department and has to yet been rolled out for the whole organisation.


OUTLOOKS AND RISKS

The following discussion about outlook and risk management activities includes forward-looking statements that involve risk and uncertainties. The actual results could differ materially from those projected. Outlook

With new publications, we expect that emerging market growth should continue to be robust, although even here we expect to see a modest slowdown. A further source of volatility in the year ahead is the return of inflationary pressure, particularly in respect of key commodity costs. We anticipate significant commodity cost inflation for at least the first half of 2012, given the election period. If current trends continue then this inflationary pressure will extend also into the second half and beyond. In this environment we expect prices to rise, albeit at a lower rate than costs as competitors seek to protect market positions and offset higher commodity costs with savings elsewhere.

Faced with these challenges we will continue to focus on our long term strategic priorities of driving volume growth ahead of our markets whilst providing a steady improvement in underlying operating margin and strong cash flow. We are well placed, with an impressive presence in emerging markets, more than 75% of our business in either category leadership or number two positions, a portfolio of strong brands, an increasingly effective innovation programme and a dynamic new performance culture. These give us confidence that Unilever is fit to compete, whatever the circumstances.

Principal Risk Factors

Risks and uncertainties could cause actual results to vary from those described in forward-looking statements made within this document, or could impact on our ability to meet our targets or be detrimental to our reputation. The risks that we regard as the most relevant to our business are identified below.

We have also commented on certain mitigating actions that we believe help us manage such risks; however, we may not be successful in deploying some or all of these mitigating actions.

DESCRIPTION OF RISK WHAT WE ARE DOING TO MANAGE THE RISK

MARKETING

Volatility of emerging marketsBuilding strategic alliances and partnerships

Many years of exposure has given us the ability to be able to operate and develop our business successfully during periods of economic, political or social change.

We identify strategic that enable us to leverage external expertise more efficiently and cost-effectively develop and manage our business.

BRANDS AND INNOVATION

Design, development and roll-out of consumer/customer relevant products and services

We have processes to monitor external market trends and collate consumer, customer and shopper insight in order to develop long-term category and brand strategies. Our established process uses comprehensive marketing tools and techniques to convert category strategies into a series of projects, building on internally developed know-how and expertise. It further identifies, prioritizes and allocates resources and develops relevant brand communications. We have well-established procedures toplan and execute roll-out of products to our customers

25KENYA LAW

ANNUAL REPORT 2012

CUSTOMER

Building long-term, mutually beneficial relationships with customers

Customer consolidation and growth

Maintaining successful relationships with our customers is key to ensuring our brands are successfully presented to our consumers and are accessible at all times. Any breakdown in the relationships with customers could reduce the availability to our consumers of existing products and new product launches and therefore impact our cash flow, turnover, profits and/or profit margins.

We build and maintain consumer relationships across a broad spectrum of channels. We conduct stakeholder analysis with all our key customers, and customer service objectives, and regularly monitor progress.

FINANCIAL/TREASURY

Liquidity Risk

Liquidity is generally defined as the ability of an institution to meet its debt obligation without incurring unacceptable large losses.

Compliance and operational Risks

These are risks associated with failure to observe legal and statutory provisions and procedural requirements in the ordinary course of business

Interest Rate RisksThese ate those which exist in an interest- bearing assets e.g. a loan or a bond. It is mainly associated with the variability of the interest rates in an adverse manner or a rather increase in the interest rates

Credit RiskRefers to the risk that a borrower will default on any type of debt by failing to make payments which it is obligated to do. The risk is primarily that of the lenders disruption to our cash flows and increased collection costs.

Concentration RiskThis is a risk that the institution is exposed to due to lack of client diversification i.e. by relying heavily on one client for a huge percentage of its sales.

We have goodwill from the parent ministry (Judiciary) due to the central role we play in dissemination of legal information in Kenya. Our financial health will continue to be dependent on the Judiciary and we hope that with the financial independence of the parent ministry as per the new constitution, the Council will also be a beneficiary financially. This is already happening, in the FY 2011/2012 The Council received Kshs. 208,571,700, in the Current FY 2012/2013 The Council has received a budgetary allocation of Kshs. 259,200,000, and hence our optimism that it can only get better.

We have also continued to engage our development partners to fund various initiatives and programmes for which GOK funding is not available and hence ensure our financial health.

We will also continue to engage our development partners to fund various initiatives and programmes for which GOK funding is not available. With the improved budgetary allocation and good cash flow planning that we have, the Council has been and will continue to mitigate the risks that come with statutory compliance e.g. PAYE, NSSF, NHIF, HELB, Pension contribution etc.Our approved budgets, procurement plans, finance and procurement manuals and GOK circulars and manuals have also facilitated mitigation of operational and compliance risks at the Council.

The council totally eliminated this risk by ensuring that we did not finance any of our programmes by debt financing in the year under review.

The council reduced this risk by ensuring that we did not sell on credit to individual customers. The only customers sold to on credit were well known customers, mostly institutional, whose payment record has been well established.

The council continues to face this risk because we rely heavily on the judiciary as out main client in the purchase of our publications. In the year 2012, the judiciary accounted for about 70% of our total revenue. We need to diversify our market by instituting a more aggressive branding campaign to rope in more clients.


PEOPLE AND TALENT

Attracting, developing and retaining a skilled workforce to build and maintain a fit-for-purpose organization

Resource Committees have been established and implemented. These committees have responsibility for identifying future skills and capability needs, defining career paths and professional training programmes, benchmarking the elements of reward structures, both short- and long-term, and identifying the key talent and leaders of the future. Regular internal surveys should be conducted to gauge employee views and obtain feedback.

There should be an integrated management development process which includes regular performance review, underpinned by a common set of Standards of Leadership behaviors, skills and competency profiling, mentoring, coaching and training.

OTHER RISKS

NCLR is exposed to varying degrees of risk and uncertainty related to other factors including physical, environmental, political, and social and terrorism risks within the environments in which we operate, failure to complete planned divestments, taxation risks, failure to resolve insurance matters within current estimates and changing priorities of our boards of directors. All these risks could materially affect the organizations operations. There may be risks which are unknown to NCLR or which are currently believed to be immaterial.

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ANNUAL REPORT 2012

SELECTED CONFERENCES AND TRAININGS

AFRICAN LII (African Legal Information Institute) training for Legal Information Institutes from different African countries workshop

29th July - 2nd August; Johannesburg

Marcus Evans In-House Legal Training

March 8th - 9th; Tribe Hotel Nairobi

ICT Connected Kenya Summit

April 2012; Leisure Lodge Hotel, Mombasa

Performance Management

May 7, 2012 May 11, 2012, Kenya School of Goverment

Uwazi Tournament

May 12, 2012; Impala Club

Judiciary Transformation Framework Launch

May 31, 2012; KICC Grounds

KIM Annual Managers Conference

June 20 June 22, 2012, Mombasa Continental Resort

Induction Training for Legal Researches

June 25th -29th 2012; Utalii Hotel

LSK Annual Conference

August 15th -19th 2012; Leisure Lodge Mombasa,

Judicial Marches

August 21; KICC Grounds: August 22; Kikuyu Law Courts Road Show

13th Strathmore University Annual ICT Conference

September 7 - 8, 2012; Strathmore University

LSK Legal Awareness Week

September 24th -28th; Milimani Commercial Courts

ASK-Nairobi Trade Fair

October 1st - 7th 2012; Jamuhuri Park

Public Lecture at Taifa Hall

December 18, 2012; University of Nairobi

Training on Translation of legal content from English to Swahili and Universal Web-Content Accessibility and internationalization

July 11th -12th 2012; Laico Regency.

Benchmarking Tour on best practices on Law Revision with Lexis Nexis

June 2012; Durban, South Africa

Law via the Internet Conference 2012,

7-9th October 2012, Cornell University, Ithaca, New York

World Bank Financed Judiciary Projects Training

August 18-26, 2012; World Bank Hq, Washington DC


Members of The Kenya Law Training Members From The Legal

Information Institute (Lii) At The African Lii Headquarters In Rosebank

Johannesburg, South Africa.

Kenya Law Representatives at Lexis Nexis, Durban, South Africa during A

Benchmarking Tour on Best Law Revison PracticeS

Members of Kenya Law and The Judiciary at The Cornell University Law

via The Internet Conference In Ithaca New York.

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ANNUAL REPORT 2012

OUR PRODUCTS: SELECTED PUBLICATIONS

Pocket- Sized Constitutions

During the year 2012, Kenya Law through the Laws of Kenya Department published the pocket sized constitution. The marketing department in collaboration with procurement department was aggressively involved in distributing the constitutions to various Government Institutions, NGOs, Universities, Churches and various Civic Education groups. These were given out for free. The pocket sized constitutions were also distributed from Kenya Law reception to members of the public. In total approximately100, 000 constitutions were distributed across the country.

Colloquium Booklets (500) copies

This consists of the Constitution, Supreme Court and Judicial Service Commission Act. The LOK department published and ultimately distributed 500 copies of the judges colloquium booklets. 100 copies were distributed to Legal Researchers at Utalii during their training. The rest were distributed to Judges at the Annual Judges Colloquium.

Electoral and Land Laws CDs

The LOK department published two CDs, the Electoral CD containing all electoral laws for judicial officers and the Land Law CD featuring the new land laws.

Election Petitions Kenya Law Reports

The immediate aftermath of the General Election held in December of 2007 highlighted the fragile link between the application of electoral law and the stability of the countrys socio-economic and governance structures. Considerable public debate has since been generated on the condition of Kenyas electoral law and the role of the justice system in the resolution of disputes emerging from an electioneering exercise. Out of the need to provide the information necessary to inform and guide this debate and recognizing that informed and timely judicial decision-making contributes to socio-economic stability, the Kenya Law has prepared this comprehensive collection of election petitions.

The three volumes of the Election Petition Law Reports and the release of the electronic formats in CD form that cover the three volumes of landmark election petition decisions for the period 1961-2008, trace the development of judicial interpretations of the laws governing the conduct of presidential, parliamentary and civic elections in Kenya. They provide a well-referenced account of how case law has dealt with some of the lasting dilemmas of electoral law, particularly the mode of serving election petitions, the nature of the special jurisdiction of an election court and the interpretation of constitutional provisions relating to constitution making, proportional representation and the rights of minorities.

Kenya Law Reports

The Kenya Law Reports are the official law reports of Kenya and they provide summaries and the full text of precedent-setting judicial opinions of the superior courts of record in yearly volumes. As the most popular and demanding brand of the Kenya Law, the editorial department published the KLR 2010 volumes 1&2, KLR 2011 Volumes 1&2 to cover the precedent setting judicial opinions of the said years. There was also a reprint of the 1988


KLR volume to meet our customers vast needs. These publications were made possible through the conducting weekly Case Selection Meetings for selection of jurisprudential issues arising within the legal fraternity for reporting.

Special Publications

To expand our product base, and provide information needed by various stakeholders, the Editorial department published specialised publications. These included the special edition of the IEBC booklet which contains the decision of the nigh court of Kenya on the delimitation of electoral and administrative boundaries by the Independent Electoral and Boundaries commission that was delivered on July 9, 2012; the first steps in creating leadership and integrity jurisprudence booklet, which was a review of the principles of leadership, integrity and judicial ethics emanating from recent case laws and the decisions of the tribunal investigating the conduct of the Deputy Chief Justice and the Judges and Magistrates vetting board; and a publication of a Hand Book on Auctioneers Practice which is about auctioneers roles and guidance to guide on the rules and procedures to guide the auctioneer practice in Kenya .

Case back and Case Law Updates

Through our online resources and our website, the ICT and Editorial teams provided KLR Case Updates, a weekly newsletter highlighting precedent-setting judicial opinions from the superior courts of records; and generating case back services to the judges in a bid to advancing jurisprudence. There was also publication of a weekly newsletter featuring judicial opinions and excerpts from the Gazette Notices, and newspaper articles in the Star newspaper.

Kenya Law Review Journal

The Research and Development department published The Kenya Law Review Journal Volume 2 (2008 2010). The next edition of the journal containing papers delivered during the 2011 Annual Judges Colloquium is currently at an advanced stage of editing and will soon be going to print. The department, in conjunction with the editorial department also updated and consolidated the KLR index (1976 - 2009)

31KENYA LAW

ANNUAL REPORT 2012

FINANCIAL REVIEW

Report of the Independent Auditor: An Overview of Kenya Laws Performance

The following are the major highlights of Kenya Laws performance in the financial year 2011/2012:Kenya Law published loco copies each of Twelve (12) Kenya Law Reports as follows; KLR 1989, KLR 1992, KLR 1993 and KLR 1994, KLR 2008-2010 consolidated index, Election Petition Law Reports (EPLR) Vol 1,

Vol 2 and Vol 3, and Gender Based Violence (GBV) Law Report. Kenya Law also did reprints of KLR 2002 V1 and V2 as well as KLR 2003.These Law Reports are a compilation of decisions of superior courts of record which are precedent setting and / or contribute to the development of jurisprudence. In the same period, Kenya Law published 1,000 copies each, of five (5) issues of the KLR monthly, a monthly publication of precedent setting judicial opinions from the superior courts of record. These have been issued free of charge to the Judges and magistrates for use as reference material in identification of precedent in the course of their duties.

Kenya Law also published and issued out for free, 1,000 copies each four (4) issues of the Bench Bulletin, a definitive intelligence briefing for Kenyas judicial officers, the law practitioners, managers and the business people. This is a quarterly digest of recent developments in law, particularly ,case law, new legislation in the form of Acts of parliament, rules and regulations, pending legislation contained in bills tabled before Parliament and selected Legal notices and Gazette Notices.

Statement of comprehensive Income for the year 2011/2012:

Revenues

The total revenue realized in the financial year was Kshs. 25,299,004 as compared to Kshs. 7, 629,336 in year 2010/2011. This represents a 232% increment in income from sales of Kenya Law Reports, Laws of Kenya Grey Book and other related publications. This is the highest sales Kenya Law has ever made in any financial year.

Net GOK receipts were Kshs.208, 571, 700 as compared to Kshs. 69, 685,000 in the previous period. Representing a 199% increase.

Expenditure

Total administrative expenses totalled Kshs.182, 443, 739 compared with 82,111,736 in the previous year, a 122% increase.

Salaries and wages totalled Kshs 64,553,783 as compared with 57,465,606 in the previous period, a 8.6% increase. This was attributed to recruitments of additional employees to fill vacant positions during the year. Gratuity also increased by 194% to 11,081,911 as compared with the 3,759,084.45 paid in the previous year.

Depreciation, a non-cash flow expense increased by 35.9% to Kshs 2,558,325 from Kshs 1,882,487.This was attributed to assets acquired from Kenya Laws funds and has been charged to the Income statement. There was also a substantial increase in asset donations under the World Bank programme resulting in an increase in depreciation of the same to Kshs. 17,996,869 as compared to Kshs 2,104,790 in the previous year, a 755% increase. This was debited to the statement of changes in equity as a charge on the donor fund.

Kenya Law made a Net surplus of Kshs 58,102,255 as compared to a Net deficit of Kshs 7,582,480. This is the first time ever that Kenya Law has posted a Net Surplus and has been a result of increased funding by the GOK and development partners, aggressive sales of our products and an improved budgetary control regime.


Statement of Financial Position as at 3oth June 2012

The value of Property plant and equipment increased by 309 % to Kshs.44, 413,191 as compared to Kshs 10,853,119 in the previous year. This was attributed to asset acquisitions and donations during the financial year. Trade and other receivables and prepayments increased by 189% to Kshs 14,778,211 up from Kshs 5,115,287 in the previous year. The increase mainly attributed to prepayments of Kshs. 10,977,628 for rent deposit and medical scheme fund. The others were attributed to receivables from book debtors and salary advances. The Retained losses reduced by 149.8% to a retained surplus Kshs 19,337,689 from Kshs 38,794,566 in the previous year. Other reserves have been revised to Kshs. 42,626,463.The Asset donation component treated as other reserves in the last financial year has now been transferred to the Capital fund. The Capital fund grew by 114.4% to Kshs.59, 559,225 from Kshs.27, 775,486. This is attributed mainly to asset donations from the ICT Board, as the Fund custodian and administrator of the World Bank funded Transparency Communication Infrastructure Project (TCIP).Kenya Law received donations of ICT equipment worth Kshs. 49,780,608 in the financial year under review. Trade and other payables reduced by 16.8% to Kshs 45,121,527 from Kshs 38,638,882 in the previous year. Kenya Law was able to pay up most of our outstanding liabilities due to adequate GOK budgetary allocation and improved collections from the sales of our products. Additional information on organisationss performance for the financial year 2011/2012 is detailed in the financial statements shown from page to below.

33KENYA LAW

ANNUAL REPORT 2012

REPUBLIC OF KENYA

KENYA NATIONAL AUDIT OFFICE

REPORT OF THE AUDITOR-GENERAL ON KENYA LAW FOR THE YEAR ENDED 30 JUNE 2012

REPORT ON THE FINANCIAL STATEMENTS

I have audited the accompanying financial statements of Kenya Law set out on pages 10 to 24, which comprise the statement of financial position as at 30 June, 2012, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information in accordance with the provisions of Article 229 of the Constitution of Kenya and Section 14 of the Public Audit Act, 2003. I have obtained all the information and explanations which, to the best of my knowledge and belief, were necessary for the purpose of the audit.

Managements Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.

The management is also responsible for the submission of the financial statements to the Auditor-General in accordance with the provisions of Section 13 of the Public Audit Act, 2003.

Auditor-Generals Responsibility

My responsibility is to express an opinion on these financial statements based on the audit and report in accordance with the provisions of Section 15 of the Public Audit Act, 2003. The audit was conducted in accordance with International Standards on Auditing. Those standards require compliance with ethical requirements and that the audit be planned and performed to obtain reasonable


Statement of the Council Members Responsibilities

The State Corporations Act Cap 446 of laws of Kenya requires the Council to keep proper books of accounts that disclose with reasonable accuracy its financial position. The Act also requires the Council to prepare financial statements for each financial year that give a true and fair view of its state of affairs. Such statements should be submitted to the Kenya Audit office for Audit purposes. The Council is also responsible for the safeguarding of its assets.

The Council members accept responsibility for the annual financial statements, which have been prepared in accordance with appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with International Financial Reporting Standards and the requirements of Government Financial Regulations and procedures.

The Council members are of the opinion that these financial statements give a true and fair view of the Councils state of affairs and further accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of financial statements as well as adequate systems of internal financial controls.

]So far nothing has come to the attention of the Council members to indicate that the Kenya Law will not remain a going concern for at least the next twelve months from this statement.

The Hon Dr. Willy M. Mutunga, Chairman

Mrs. G B Shollei, Member

Mr. Michael M Murungi, Secretary

35KENYA LAW

ANNUAL REPORT 2012

Statement of Comprehensive Income for the year ended 30th June 2012

DETAILS 2011 /2012 2010 /2011

A. INCOME Note Kshs Kshs

Appropriations - in - Aid and Revenue

Receipts

Sales of Kenya law reports Laws of Kenya

and other related publications

8 25,299,004 7,629,336

Cost of Sales 8 (10,273,838) (3,098,247)

Gross Profit 15,025.166 4,91.089

Total GOK Grants 9 208,571,700 69,685,000

Other grants 9 15,949,877 263,844

Other income 9 999,251 49,323

Total grants and other income 225, 520,828 65.998,167

Total Income 240.545,994 74,529,256

.

B. EXPENDITURE

Administrative expenses 10(a) (182,293,580) (82,003,657)

Finance charges 20(b) (150,159) (108,079)

Total Recurrent expenditure (182,443,739) (82,111,736)

Net Surplus 58,102,255 (7,582,480)


Statement of Financial Position as at 30th June 2012

NON CURRRENT ASSETS Notes 2011 /2012 2010 /2011

Property plant & Equipment 2 44,413,191 10,853,119

Sub Total 44,411,191 10,853,119

CURRENT ASSETS

Inventories 5 44,816,014 54,281,286

Trade and other Receivables 4 14,778,211 5,115,287

Cash and bank balances 3 63,947,488 1,736,268

Sub Total 121,541,711 61,132,841

Total Assets 167,954,904 71,985,960

CAPITAL & LIABILITIES

Capital fund balance 6 23,565,276 23,565,276

Retained earnings 6 19,337,689 (38,764,566)

Other reserves 6 78,620,422 46,836,673

Sub Total 121,521,377 11,617,181

Current Liabilities

KCB Bank Account - OM 7 - 649,695

Trade and other payables 7 45,121,527 38,638,882

Audit fees 7 1,310,000 1,060,000

Sub Total 46,431527 40,348,577

Total 167,954,904 71,985,960

The Financial statements set on pages 1-24 were signed on behalf of the council on the dates shown here below by:

The Hon Dr. Willy M. Mutunga, Chairman

Mrs. G B Shollei, Member

Mr. Michael M Murungi, Secretary

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ANNUAL REPORT 2012

Statement of Cash flow for the year ended 30th June 2012

CASH FLOWS FROM OPERATING ACTIVITIES

2011/2012 2010/2011

Kshs Kshs

Net Surplus /(Deficit) from operations 58,102,255 (7,582,480)

Add Back : Non cash payments

Depreciation expense 2,558,325 1,882,487

Armotisation expense 34,200

Finance charges - 108,079

Net cash generated from/(used) in operations2,558,325 (5,557,714)

Cashflows from changes in working capital

Increase/decrease in Receivables and prepay-ments (9,662,924) (121,790)

Increase/decrease in inventories 9,465,272 2,005,059

Increase/decrease in payables 6,482,645 6,768,487

Increase / decrease in audit fees 250,000 (990,000)

Net Cash generated from changes in working capital 6,534,993 7,661,756

Cashflows from financing activities

Payments to pong agencies limited - (668,017)

Net cash generated from financing activities - (668,017)

Cash flows from investing activities

Imprest repayments / reimbursements - (3,817)

Purchase of fixed assets (4,334,658) (889,100)

Net cash generated from investing activities (4,334,658) (892,917)

Net increase in cash and cash equivalents 62,860,915 543,108

Cash and cash equivalents B/F 1,086,573 1,193,160

Cash and cash equivalents C/F 63,947,488 1,736,268

Bank overdraft (649,695)

Total Cash and cash equivalents C/F 63,947,488 1,086, 571


Statement of changes in equity for the year ended 30th June 2012

Item Capital Fund Retained Earnings Other Reserves Total

2010/2011

Balance b/f 1/7/2010 23,565,276 (31,182,086) (1,532,437) (9,149,247)

Retained loss for the year - (7,582,480) - (7,582,480)

Library books donated by financial and legal sector technical assistance programme (FLSTAP)

- - 1,544,000 1,544,000

Kenya Law Reports Books printed / donations by financial and legal sector technical assistance pro-gramme (FLSTAP)

- - 44,384,900 44,384,900

Stocks received from Colourprint limited

- - (1,770,000) (1,770,000)

Computers donated by financial and legal sector technical assistance programme (FLSTAP)

6,315,000 - - 6,315,000

Depreciation charge on Computers donated by financial and legal sec-tor technical assistance programme (FLSTAP)

(2,104,790) - - (2,104,790)

Balance C/f 27,774,486 (18,764,566) 42,626,463 31,637,383

2011/2012

Balance b/f 1/7/2011 27,775,486 (8,764666) 42,626,461 31,637,383

Retained / Profit (loss) for the year - 58,102,255 - 58,102,255

Computers donated by financial and legal sector technical assistance programme (FLSTAP)

49,780,608 - - 49,780,608

Depreciation charge on Computers donated by financial and legal sector technical assistance pro-gramme (FLSTAP)

(17,996,869) - - (17,996,869)

Balance C/F 59,559,225 19,337,689 42,626, 463 121,523,377

39KENYA LAW

ANNUAL REPORT 2012

Notes to the Financial Statements for the year ended 30th June 2012

Significant accounting policies

Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs).

The Plant, Property and equipment movement schedule is prepared on a depreciated value basis.

The Financial statements are presented in Kenya Shillings (Kshs.) and all values are rounded off to the nearest Shilling except when otherwise indicated.

Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to Kenya Law and the revenue can be reliably measured, i.e. it is recognized when earned rather than when cash is received.

Expenditure recognition

Expenditure is recognized to the extent that it is indicative that the economic benefits will flow out of Kenya Law and the expenditure can be reliably estimated or measured, i.e. it is accrued when incurred rather than when payment is made.

Depreciation policy

The opening balance of Property, Plant and equipment represent their written down values at the closure of the previous year.

Acquisitions during the year are added to the opening balances at the beginning of the year to give the totals for the year.

Assets donated by development partners are added to assets and capitalized under other components of equity and the depreciated amounts deducted thereof annually to determine the carrying values for the subsequent year.

Depreciation is computed on a reducing balance basis at annual rates estimated to write off carrying values of assets over there estimated useful lives. A full charge is made in the year of acquisition. No charge is made in the year of disposal.

The annual depreciation rates in use are as follows: -

Motor vehicles 20%

Computers, networking and other IT equipment 331/3% -

Office furniture and fixtures -10%

Office Equipment 15%

Policy on provisions

Provisions are recognized when Kenya Law has a present obligation as a result of past or current events, for which it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of such obligation.


Intangible assets represent intellectual property. The historical value is Kshs.171; 000.This amount is amortizable over a period of five years.

Cash and cash equivalents

For purposes of the cash flow, cash and cash equivalents comprise cash balances in Kenya Laws bank accounts, bank overdrafts and cash in hand.

Accounts Receivables

Accounts receivables comprise of the amounts due / unpaid from customers who purchased the Kenya Law Reports in the course of the year and balances unpaid of the salary advances issued to Kenya Law employees.

Accounts Payables

Accounts Payables comprise of the amounts due / unpaid to our suppliers and statutory deductions in the year.

Inventories

Inventories are valued at the lower of cost of printing or net realizable value.

Gratuity

Gratuity is computed at 31% of the basic salary, and is payable at the end of the period or duration of the contract.

Contribution to NSSF

Kenya Law contributes the minimum of Kshs.200 per month for each employee to complement their personal contributions to the National Social Security Fund (NSSF).

Kenya Law had a total of sixty one (61) employees at the close of the financial year ended 3oth June 2012.

Appropriation -In-Aid.

A total of Kshs. 23,531,954 (Twenty three million five hundred and thirty one thousand nine hundred and fifty four) was collected in the financial year under review. The same was transferred to the Registrar High Court as Appropriation -In-Aid (A-In-A) as at 3o June 2012

Item

2011/2012 2011/2012

A-In-A for the financial year 23,531,954 3,727,677

Totals 23,511,954 1,727,677

41KENYA LAW

ANNUAL REPORT 2012

CORPORATE SOCIAL RESPONSIBILITY

The Sales and Marketing department organized for a CSR activity at Gaitumbi PCEA Church on July 22, 2012. Members of staff from LOK Department- Wambui, Moses, Yvonne and Carolyne from marketing department joined the congregation where a presentation was done regarding the Devolved Government during the church service. Handouts on the devolved government were also distributed to all in the congregation. Pocket sized Constitutions were later given out to the church.

Kenya Law also participated in the education of Bumula Youths for Equal Opportunities on the Bill of rights under the Constitution, the role of the youth and the structure of devolved government. The Bumula Youths for Equal Opportunity is a registered youth group which carries out community projects in Bungoma County.

Members of Gaitumbi PCEA Church Listening to

the Devolution Talk by Kenya Law

Members

of the pu

blic displ

aying a c

opy of th

e

Constituti

on that wa

s distribut

ed by Keny

a Law


KENYA LAW STAFF 2012

The Kenya Law Team During a Staff Retreat

43KENYA LAW

ANNUAL REPORT 2012

Anne Asugah- Team Leader

Wambui Kamau

Christian Bernard Ateka

Vivian Etyang

Collins Limo

Moses Wanjala

Laila Mbevi

Evelyn Emaase

Julie Mbijiwe

Naomi Mutunga

Yvonne Kirina

Geofrey Andare

Eva Murage

Dorcas Kasia

LAWS OF KENYA

Cornelius Lupao

Andrew Halonyere

Njeri Githanga

Emma Kinya Mwobobia

Phoebe Ida Ayaya

Nelson Tunoi

Innocent Ayatollah

Phoebe Juma

Catherine Moni

Cicilian Mburunga

Josephine Mutie

John Muriuki

Lisper Wanja

Irene Wakio

Jenipher Ogada

Musa Okumu

Pauline Achieng

Esther Adero

Mary Waruguru

Humphrey Khamala

Steve Ouma

Patricia Nasumba

Rose Nafula

Thomas Muchoki

James Onguso

Janepher Muthoni

LAW REPORTING DEPARTMENT

CEO

DEPUTY CEO

Mr. Michael M. Murungi

Esther N. Onchana


RESEARCH AND DEVELOPMENT

Linda Awuor - Team Leader

Monica Achode

Siphira Gatimu

Kenneth Oduor

Ivy Njoki

FINANCE DEPARTMENT

Pascal Othieno - Team Leader

Andrew Kiarie

Pauline Wangui

John Paul Mutugi

Annual Report 2012

Documents