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Annual Report 2014

Law Society of Kenya

Regulations 1962, that an ORDINARY GENERAL MEETING of the Society is convened for and shall take place in the The Ballroom, of the Hilton Hotel, junction of Moi Avenue/City Hall Way, Nairobi, at 11:00 a.m. on Saturday 21st March 2015.

AGENDA

1. The Secretary to read the Notice Convening the meeting.

2. Adoption of the Agenda.

3. Silence in tribute to members departed.

4. Confirmation of the minutes of the Ordinary General Meeting held on Saturday 15th March 2014 and the Special General held on Saturday 27th September 2014.

5. Matters Arising.

6. Report of the Council pursuant to section 30(2) of the Law Society of Kenya Act, No. 21 of 2014.

7. Presentation by the Council of the Accounts and Balance Sheet for the year ended 31st December 2014, pursuant to Section 38(2) of the Law Society of Kenya Act and the appointment of auditors.

8. Notice of Motions by members given to the Secretary(if any).

9. Any other business which may be admitted in accordance with the provisions of Regulation 35.

BY ORDER OF THE COUNCIL

APOLLO MBOYA, HSCSECRETARY/CEO

The Law Society of Kenya

Lavington, opp Valley Arcade, Gitanga RoadP.O Box 72219-00200 Nairobi, KenyaDropping Zone 149 – Revlon PlazaTel: +254 20 387 4664Cell: +254 720 904983Fax: +254 20 387 5534Website: www.lsk.or.ke

Our Ref: G/2

Date: 27th January, 2015

TO: ALL MEMBERS OF THE LAW SOCIETY OF KENYA

Eric Mutua (President), Lilian Omondi (Vice-President),Grace Okumu (Coast Representative), Godfrey Kitiwa (Up-country Representative),

Caroline Khasoa Wanyonyi (Up-Country Representative), James Mwamu, Allen Gichuhi, Gertrude Angote, Jennifer Shamalla, Alan Kosgey, Eric Theuri, Dennis Mosota


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TIC

E

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TO ALL MEMBERS 27th January 2015

THE LAW SOCIETY OF KENYA ANNUAL DINNER & DANCE TO BE HELD ON SATURDAY, 21ST MARCH 2015, TSAVO BALLROOM, THE HILTON HOTEL, JUNCTION OF MOI AVENUE/CITY HALL WAY, NAIROBI

I am pleased to inform you that the Law Society of Kenya Annual Dinner and Dance will be held at the Hilton Hotel, Tsavo Ballroom, Nairobi, on Saturday, 21st March 2015 from 6.30 pm.

The cost of the dinner per person is Ksh 4,000/- and Ksh 7,000/- per couple inclusive of table wine. Vegetarians are requested to indicate on the slip.

Members who wish to attend should complete the booking slip below and return the same together with the amount payable to the Secretariat.

CPD Accreditation: Half (1/2) UnitDress Code: Strictly Formal

APOLLO MBOYA, HSCSECRETARY/CEO

The Secretary/CEOLaw Society of KenyaLavington, opp. Valley Arcade, Gitanga Road P.O Box 72219 - 00200 Nairobi | Kenya

I, wish to attend the Law Society of Kenya Dinner and Dance to be held on Saturday, 21st March 2015 at the Hilton Hotel, Nairobi.Name of my spouse/guest (if any):

i)

ii)

I enclose herewith my cheque/cash of Kshs payable to the Law Society of Kenya to cover the charges for the Annual Dinner and Dance.

Number of vegetarians SIGNED

DATE


Lavington, opp. Valley Arcade, Gitanga Road P.O Box 72219 - 00200 Nairobi | Kenya

Tel: +254 720-904983, 020-2625391, 020-8155295 Cell: +254 720 904983Fax: +254 20 387 5534

Email: [email protected]; www.lsk.or.ke

© The Law Society of Kenya, 2015

P.O. Box 72219 – 00200

Nairobi – Kenya

Edited by: Apollo Mboya, Harold Ayodo & Beatrice Mwangi

Design & Layout by: Noel Lumbama (Noel Creative Media Ltd)

Printed by: Noel Creative Media Ltd

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Law Societ y of Kenya 2014 A nnual Repor t

Contents Introduction ii

Council members ii-iii

1. Annual General and Special General Meeting 1

2. Practice Matters 2

3. Lsk International Arbitration Centre 6

4. Administrative Matters 10

5. Court Cases 11

6. Reports of The Committees of Law Society of Kenya 21

7. Reports of The Representatives of Law Society of Kenya to Committees and Various Institutions 35

8. Branch Reports 43

9. Conference and Events 55

10. Engagement with Partners 60

11. Publications of The Law Society 62

12. List of deceased Advocates 63

The Law Society of Kenya Annual Report and Financial Statements For The Year Ended 31 December 2014 65

The Advocates’ Benevolent Association Report of The Board of Management 95

The Advocates’ Benevolent Association Annual Report and Financial Statements 101

Eric Kyalo Mutua, President Lilian Renee Omondi, Vice President

James Mwamu Caroline Khasoa, Member

Godfrey Kitiwa, Member

INTRODUCTIONDuring the reporting period, the Council Members were as follows:

President Eric Kyalo Mutua

Vice President Lilian Renee Omondi

Coast Member Grace Okumu

Upcountry Member Godfrey Kitiwa

Upcountry Member Caroline Khasoa

Member James Mwamu

Member Allen Gichuhi

Member Gertrude Angote

Member Jennifer Shamalla

Member Alan Kosgey

Member Eric Theuri

Member Dennis Mosota

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Council Members

Apollo Mboya, CEO/Secreatry

Allen Gichuhi, Member

Alan Kosgey, Member

Grace Okumu, Member

Dennis Mosota, Member

Eric Theuri, Member

Gertrude Angote, Member

Jennifer Shamalla, Member

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Captions

1. Senior Counsel Committee during a meeting at The Serena Hotel, Nairobi.

2. Igeria & Ngungi Advocates Football Captain receives the overall winners trophy from Chief Registrar of the Judiciary Ms. Ann Amadi.

3. Ms. Irene Ndegwa, Advocate receives the Pro Bono Lawyer of the Year Award from Amnesty International (Kenya) Executive Director Mr. Justus Nyang’aya at the Hilton Hotel, Nairobi in December last year.

4. The immediate former East Africa Law Society (EALS) President Mr. James Aggrey Mwamu addressing the regional Annual Conference and Annual General Meeting at The Serena Hotel in Kigali Rwanda in 2014.

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Annual General and Special General MeetingThe Law Society of Kenya Annual General Meeting was held on 16th March, 2014, at the Mara Ballroom, Intercontinental Hotel, Nairobi. The meeting was attended by 1,808 members. In attendance were Ruth Sebatindira, President-Uganda Law Society, Omar Shaaban, Secretary General-Zanzibar Law Society, Mr. Kabayabaya Onesime, Council Member-Burundi Bar Association and Thierry Ngoga, Registrar-Kigali International Arbitration Centre.

The Special General Meeting was held on 27th September, 2014 at Tsavo Ballroom, Hilton Hotel attended by 544 members.

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Mr. Wilfred Nderitu making his contributions during the Annual General Meeting in 2014

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Practice Matters

The Council engaged the Chief Justice, the Principal Judge, Heads of High Court Divisions and the Judicial Service Commission on various practice issues. The Council identified issues and took action as follows:

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ISSUES ACTION TAKEN

Case Backlog and Cause Lists

Despite increased number of judicial officers, Case Backlog continues to persist in the High Court Civil Division mainly because of inefficient Case Management strategies. These engagements culminated to the conduct of a service week in the civil division of the High Court, Milimani Nairobi between the 23rd and 27th February, 2015. Fourteen High Court judges drawn from various stations across the country heard a record 2,884 old cases on Monday 23rd February, 2015 at the Nairobi Milimani High Court Civil Division. The cause list was shared with members.

The cases, which have been listed for public perusal, will be dealt with on the first day of a crash initiative targeting over 15,000 civil cases, some of which have been in the court system for 35 years. Each judge is expected to handle nearly 215 cases daily.

In a bid to reduce backlog of criminal cases in 2014, the Judiciary undertook a service week on criminal matters and also established various Bar-Bench Committees in different courts.

The Council also brought to the attention of the Chief Justice the tendency of cases removed from the cause list on account of judicial officers attending workshops.

Practice Directions Environment & Land CourtsThe Honourable the Chief Justice Gazetted new Practice Directions for the Environment & Land Courts (ELC), in the Special issue of the Kenya Gazette, Notice No. 5177 of 28th July 2014, following the efforts of Milimani ELC Bar – Bench Committee.

The Practice Directions are meant to make the operations at the ELC smooth, and geared towards making the disposal of matters easier and expeditious as part of Case Management. The practice directions are available on the LSK website (www.lsk.or.ke) for ease of access

Court of AppealThe final version of the Court of Appeal Civil Appeals and Applications Practice Directions has been finalised is scheduled for official launch in the month of March, 2015.

The Practice Directions were as a result of recommendations by Council. The participants were drawn from Court of Appeal Judges and Senior Advocates.

Mediation & Accreditation Committee

By a Gazette Notice No. 1088 of 20th February 2015, the Hon. Chief Justice, in Exercise of the powers conferred by Section 59A(1) and (2) of the Civil Procedure Act, appointed the Mediation and Accreditation Committee where the LSK is represented by Mr. John Ohaga and Ms. Gertrude Matata.

The Advocates(Remuneration)(Amendment) Order, 2014

Gazette Notice dated 11th April 2014 intimating the publication of the Advocates Remuneration Order 2014 as Gazette Supplement No. 42. The omissions to Schedule 7 thereof were also corrected through an Amendment No. 2.

http://www.lsk.or.ke

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ISSUES ACTION TAKEN

The LSK Act 2014 His Excellency the President assented to the Law Society of Kenya Act No. 21 on 24th December, 2014.

The Act repeals the Law Society of Kenya Act Cap. 18 that commenced on 30th October, 1962. The Date of Commencement of the new Act is 14th January, 2015. The salient features include:

• Section 4- the expanded functions and objects of the Society

• Section 6-the Guiding principles

• Sections 7-9- the membership and their categories

• Section 12-on Membership rights and Termination of membership (including suspension and expulsion).

• Section 15- the Organs of the Society

• Section 17-the Council (including re-designation of the Chairman and the Vice Chairman as President and Vice President respectively), composition of the Council

o three representatives of the general membership of the Society, one of whom shall be an advocate of at least twenty-five years’ standing;

o four upcountry representatives, who shall be persons who do not ordinarily practise in Nairobi or at the Coast and;

o three Nairobi representatives who shall be persons who ordinarily practises in Nairobi; and

o one coast representative, who shall be a person who ordinarily practises at the coast.

• Section 18-the Eligibility of election as President and Vice President (member of the Council.

• Section 21-the Assumption and term of office of the President and Council

• Section 24- the Branches of the Society

• Section 26- the term of office.

Moratorium on Insurance Companies

Petition No. 1178 Of 2007: Invesco Assurance Co. Ltd Versus Commissioner Of Insurance & Others came up in Court on 4th February, 2015 before Justice George Odunga who directed that the Application seeking to set aside the Orders obtained by the Petitioner on 22nd June, 2010 be heard on 5th May, 2015.

Members whose clients have been adversely affected by the orders issued on 22nd June, 2010 wishing to file any Affidavit in Support thereof were invited to do so well before the intended listing.

The list of the ancillary suits alleged to have been fraudulent were also communicated to the Members. Mr. Steve Luseno, Advocate and Ms. Lucy Kambuni SC appeared for the LSK and Commissioner of Insurance respectively. By notices published in the newspapers, the Statutory Manager of Blueshield pursuant to section 67 C (10) of the Insurance Act, has been extending the Moratorium on payments by the insurer to all policyholders and creditors.

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ISSUES ACTION TAKEN

Single Business Permit demanded by some County Governments

A number of County Governments have been demanding Law Firms to take out Single Business Permits through the County Finance Acts. In consultation with the Law Reform Commission and the Transitional Authority, respective County Governments were advised that it is unconstitutional to use the finance law as the basis of taxation. Ordinarily, taxes are imposed by sectoral laws and the finance law is used to vary rates of collection every financial year. Further, the County Governments have been advised to guard against double taxation and to stick to the four (4) taxes that the Constitution accords them: Property, Entertainment, Service Charge and any tax allowed by national legislation. Further, High Court Judge Hon. Justice Weldon Korir delivered a judgement in HC MISC. No. 53 of 2007 on March 2014 that quashed the Minister’s decision to impose Single Business Permits against Advocates. The judgement binds 47 County Governments countrywide. The LSK President Mr. Eric Mutua-who was instructed in 2007 personally pursued the matter until it was concluded in favour of LSK last year.

Professional Undertakings

Members have indicated their reluctance to accept undertakings from the law firms operating as Limited Liability Partnership (LLP). The Council prepared Guidelines on Professional undertaking and circulated to members. Professional undertakings sought were honouring an undertaking is not (and cannot be) within the control of the advocate. The issue of Professional Undertakings is being addressed in the Law Society Conditions of Sale under review.

Undercutting The Council has noted that some law firms and advocates are undercutting by charging less fee contrary to the provisions of paragraph 4 of The Advocates (Remuneration) (Amendment) Order 2014 which stipulates that an Advocate shall not agree or accept his remuneration at less than provided for by this Order. The Council has requested the Capital Markets Authority to provide information on fees charged by lawyers for various transactions filed with the Authority.

Impact of Limited Liability Partnership Act, 2011 on Legal Practice

After the enactment of the Limited Liability Act 2011 some members have proposed to register their practice under the said Act and change their names to include the initials “LLP”.

Rules 12 and 14 of the Advocates Practice Rules does not allow advocates to practice under any name other than theirs or the name of past or present member or members of the firm unless waived by the Council. The Council constituted a committee chaired by Mr. Nzamba Kitonga SC to look at the issue. The report was circulated to members and the recommendations thereof were adopted by the Council and forwarded to the Honourable Attorney General to be taken into account during the review of the Advocates Act.

The Council has therefore made a decision to halt issuing waivers and await the review of the Advocates Act and Rules.

Review of the Advocates Act Cap 16

The Hon. Attorney-General vide a letter dated 10th February, 2014 to the Kenya Law Reform Commission requested it to constitute a Committee to undertake a comprehensive status analysis of all matters pertaining to legal practitioners in Kenya including the development of a new Bill on the subject matter.

The Commission constituted a Committee comprising of key relevant institutions to undertake the task. The Commission has come up with a draft Legal Practitioner Bill which was subjected to the Committee for deliberations in February, 2015. The comments of the Committee are to be taken into account in coming up with a draft that will be subjected to members comments.

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ISSUES ACTION TAKEN

LSK Conditions of Sale On 19th December, 2013, members were informed that the Council is reviewing the LSK Conditions of Sale to align the same with the Constitution 2010 and the legislation on land. A draft Conditions of Sale was then forwarded to members for comments.

The Sub-committee of Conveyancing has completed reviewing the LSK Conditions of Sale after taking into account the comments on the draft forwarded by members in the year 2014. The proposed Conditions of Sale-Feb 2015 was again forwarded to members on 22nd February, 2015 for any further comments.

The Advocates’ (Marketing & Advertising) Rules, 2014

On 29th March, 2012 the High Court in PETITION NO. 126 OF 2011, held that Rule 2 of the Advocates (Practice) Rules against direct or indirect touting and advertising of legal services is unconstitutional in so far as it constituted a complete ban on advertising. The Council in compliance with the court’s decision formulated and circulated draft Rules for input and comments. The comments received from members were incorporated before publication as Legal Notice No. 42 with the objective of ensuring that the advertising and marketing is true and dignified; respectful of the professional ethics of the profession; and not to denigrate another advocate or the profession. Advocate & law firms can only advertise in a print medium up to four times in any given year and the advertisement shall measure not more than 0.210m x 0.297m. Advertisement can also be in the form of a plate or a plaque at the entrance to the advocate’s or advocate’s firm’s ordinary place of business and the plate or plaque shall measure not more than 0.5m x 0.35m.

Advocates Dress Code Dress code is old age acceptable etiquette for the legal profession taught at the School of Law and applicable in many Commonwealth jurisdictions. Section 81 of the Advocates Act permit the Council of the Society with the approval of the Chief Justice to make rules and that the dress code has always been in force and the current one was revised in January 2013.Under section 23 of the Advocates Act all members are subject to any rule of the Society for the time being affecting members

Mr. Donald Kipkorir successfully defended the LSK in the High Court of Kenya Nairobi Constitutional & Human Rights Division Milimani Law Courts Petition No. 33 of 2013 Andrew Barney Khakula-Vs Law Society of Kenya & Another which challenged the Dress Code as unconstitutional.

Code of conduct for the Legal Profession

With the support of the Business Advocacy Fund, the Council has embarked on the process of coming up with a Comprehensive Code of Conduct for the Legal Profession to replace the current Digest of Professional Conduct and Etiquette. A Steering committee composed of Mr. Chacha Odera, Mr. Kioko Kilukumi, Mr. Kyalo Mboobu, LSK President and Vice President, Council Members Ms. Jennifer Shammalla, Mr. James Mwamu and Ms. Gertrude Angote has been established to guide the process. It held its first meeting in January 2014 and the second two day workshop on 27th -28th February, 2015. A technical committee has also been constituted co-opting two young lawyers.

Concept paper on the institutionalisation of mentorship program

Justice Lee Muthoga, SC has come up with a Concept Paper for the institutionalization of a mentorship Program within the LSK. The Paper is undergoing review and consultations among the LSK Welfare, Young Lawyers, Continuing Professional Development and Medico- Legal Committees with a view to designing a diverse and long term mentorship strategy for young advocates.

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LSK International Arbitration Centre

The Council had selected Tectura International Ltd architects and following the resolution of the Annual General Meeting in March, 16th 2013 that the Council proceeds to engage the necessary consultants towards construction of the proposed building in South C in Nairobi, PKF (Financial Advisors) and Mwanzoni Ltd (Project Managers) were engaged.

Some members of the Society filed a suit Petition No. 507 of 2014 Deynes Muriithi & 3 others Versus the LSK & Another, challenging the construction of the LSK International Arbitration Centre. Following the hearing of an interlocutory application, on 9th January 2015, the court issued orders staying the resolutions of members (relating to the financing of the project) that were passed at the Special General Meeting held on the 27th September 2014, pending the determination of the main petition. The judge also issued a conservatory order restraining the society from pegging the issuance of practicing certificates to the payment of the levy for the Centre. In the same ruling the court directed that “for the avoidance of doubt, the orders of this court issued herein above do not prevent any member of the Law Society who is willing to pay the amount demanded as a levy for the international Arbitration Centre from making such payment.”

The court did not however, STOP the construction of the LSK International Arbitration Centre. Decision to undertake the project were taken in several previous Annual General Meetings of the

Society and not at the Special General Meeting held on the 27th September 2014.

The Law Society appealed to the High Court Decision and the matter was heard on 17th February 2015. The Ruling of the Court of Appeal is scheduled for 24th April, 2015.

In November 2014, the Council, constituted a Technical Committee to deal with the issues of establishing the viability of shareholding in the development of LSK International Arbitration Centre and the legal issues around a Special Purpose Investment Vehicle as proposed by some members.

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High Court Judge Lady Justice Jacqueline Kamau addressing members during the Special General Meeting

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Project Concerns and FactsFollowing the consultative meetings held on 13th February, 2015 and 27th February, 2015 in Nairobi and Mombasa respectively (the committee is scheduled to hold similar meetings in Kisumu, Eldoret, Kisii, Nakuru, Nyeri, Meru and Machakos) where the Mwaniki Gachoka led Committee was collecting views from members the following issues were raised by members.

CONCERN FACT

1. It is at the SGM held on 27.09.14 where Resolutions to construct the IAC were the resolution to develop the IAC was passed in AGMs of 2012, 2013 and 2014. made.

2. The IAC costs Kshs. 600 Million Kshs. 608 million is cost of brick and mortar only. and not Kshs. 1.2 Billion. The difference is arrived at as follows:

i) 5% Fluctuations Kshs.30,000,000/-

ii) 12% Consultants Kshs.79,000,000/-

iii) 16%VAT Kshs. 87,000/-

iv) 35%Finishes (upto and including spoons) Kshs.123,000,000/-

v) Land Value Equity Kshs. 90,000,000/-

vi) Construction Period Finance Costs Kshs.164,000,000/-

vii) 4% Preliminaries Kshs. 24,000,000/-

TOTAL Kshs.597,000,000/-

3. The cost element cannot be known Bill of Quantities are developed and executed in or disclosed before Bills of 6 stages as follows:

Quantities. (i) Approximate cost based on design for client budget purpose.

(ii) Adjustments based on design economics.(iii) Production of BQ on receipt of production

drawings and details. To be availed in 14 days.

(iv) Perfecting all contracts and construction modalities.

(v) Cost control and valuation for interim payment certificates.

(vi) Final Accounts and close-out Modalities.

4. The project is not well thought The Financial Advisor and Project Manager have out in terms of financial prudence. prepared a feasibility study and a financial model on

loan repayment. Already circulated to members.

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CONCERN FACT

5. Members who practice outside The LSK Act 2014 has established 8 branches with Nairobi shall not derive benefit statutory mandate. LSK must fund the said branches. from IAC. Funds from the IAC shall be used to fully fund

branches otherwise we must increase the annual subscription threefold. Second ADR is for all.

6. The consultants are charlatans and Tectura International, PKF, Bills Partners Ltd (RMS) briefcase companies. are firms of international repute.

7. Council made decision to peg Council only executes resolutions by the AGM. payment of the IAC building fund Council could not have made such a decision before the to the issuance of Practising deadline of 28.2.15. Council has not made such a Certificate. decision.

8. All Advocates are to pay a sum of Advocates below 5 years in practice are to pay Kshs. 50,000/- at once. Kshs. 13,000/- per year for 3 years.

9. The resolutions in the SGM held You may pick and ask any member (at random) who on 27.09.14 were orchestrated by attended. They will confirm that an overwhelming the President and Council. majority supported the resolutions.

10. Contractual documents and All documents were disclosed prior to the suit save drawings have not been disclosed for contracts for professionals, which had a

confidentiality clause, which have been circulated the after court order.

11. No consultation or public The project manager circulated a questionnaire on participation was done. 25.09.2013.

12. Council has expanded money in paying AGM of 15.03.2014 authorised Council to pay consultants without authority. consultants. The architect could not undertake

drawings without being paid.

13. Notice for SGM was issued 3 days SGM notice was issued on 18.8.14 and an e-mail before the meeting. reminder 3 days before the meeting.

14. Only a few lawyers attended the SGM. A total of 547 members attended the SGM.

15. Advocates are not interested in Over 2000 members have now voluntarily paid. making payments.

Members who appreciate the benefits of the project have continued to pay the sums indicated in the 2015 demand notes.

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Project Progress Highlights

n EIA and Borehole consultants’ final payment under consultancy services is due after securing of EIA and Borehole licenses. The associated invoices have been forwarded to you for approval and payment.

n Stage 2 payments (detailed design stage) are due to all other consultants as follows:

Project Manager 4,205,544Architect 9,312,146Quantity Surveyor 2,821,862Mechanical and Electrical Engineer 1,410,931Civil and Structural Engineer 2,116,397Surveyor 290,000Borehole Consultant 165,950EIA Consultant-underpayment 6,000Total 20,328,830

Detailed Design

n Production drawings have been finalized.

n A Bills of Quantities has been prepared and is set to be reviewed by the team before tendering process

Statutory Approvals

n Architectural drawings/ plans approval has been secured.

n EIA License has been secured-this is a mandatory requirement for ground breaking and for any construction works on site.

n Borehole drilling permit and EIA License has been secured- borehole drilling will now commence once funds are secured from the bank.

n Structural drawings/ plans have been submitted to NCC and approval is expected this month.

Fundraising Matters

n Application for construction loan has been done, term sheets secured and negotiated with the banks. Two banks (Housing Finance and KCB) have been shortlisted and final selection is underway.

n The two banks have approved the application, offer letters will be issued and processing commence once the outcome of the court ruling on the project is known.

n As at 20th February, 2015, a total of 2159 members had paid Ksh. 50,031,840.

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Administrative Matters

4.1 Register of Law FirmsThe Council realised the need to start a register of Law firms in order to document the trade names of Advocates. An electronic system has been deployed to facilitate the scanning of the Certificates of Business Names of law firms for ease of reference. All members are required to attach copies of Certificate of Business Names to their application forms for 2015 Practicing Certificates.

4.2 Public Interest pro bono case referral tracking systemThe Public Interest Department is now populating the pro bono case referral tracking system for all the legal aid and public interest cases the LSK is involved in. With the Public Interest Litigation Strategy to guide the strategic litigation, the database has the following features:

n Log inn Profiling of pro bono lawyers n Case tracking system of cases taken up n Referral monitoring system n Management reports on the pro bono cases n Management and manipulation of pro bono cases

4.3 The Compliance and Ethics Department The Compliance and Ethics Department was automated with a comprehensive case management system which can now permit the issuance of Certificates of Good Standing instead of letters. Information on disciplinary cases including the parties, their advocates, proceedings and decisions continues to be populated to enable electronic access by the staff for the purposes of answering various queries. The system automatically generates hearing notices, cause lists and proceedings for effective management of the Department.

4.4 Staff team BuildingThe Staff Team Building took place on Friday 30th & Saturday 31st January 2015 at Enashipai. The President, Vice, other council members-Jennifer Shamalla, James Mwamu, Eric Theuri and Gertrude Angote also attended.

The focus was on culture transformation and geared towards improved service delivery, developing trust and mutual respect, open communication, building strong teams, appreciating differences and creating ownership of LSK goals and objective.

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Court Cases

5.1 Nairobi High Court of Kenya Misc Criminal Application No. 336 of 2013-Laws Society of Kenya Vs Cabinet Secretary Treasury & Attorney GeneralProf. PLO Lumumba, Advocate acting on pro bono basis on behalf of the Law Society as interested party. The trial court in the Milimani Criminal Case No. 552 of 2012 Republic Vs Maina Njenga disqualified Mr. Paul Muite, SC from representing his client allegedly on the basis of conflict of interest as a prosecution witness and defence counsel. The Honourable Court ordered a stay of proceedings in the Milimani Criminal Case No. 552 of 2012 Republic Vs Maina Njenga pending determination of the High Court Appeal

5.2 Petition No. 148 of 2014 LSK –Vs– Attorney General (In The Matter (Motor Vehicle, Third Party Risks), Amendment Act 2013)Mr. Fred Ngatia, Advocate acting on pro bono basis filed the case on behalf of the LSK pro bono and Dr Gibson Kamau Kuria took over the conduct of the case. Despite representation to Parliament and to His Excellency the President, the President on 24th December, 2013 assented to the Insurance (Motor Vehicle, Third Party Risks), Amendment Bill, 2013 amending the Insurance (Motor Vehicle Third Party Risks), Act Cap 405 and thereby introducing a schedule of structured payment of compensation under the Act similar to that under the Work Injury Benefits Act; providing a maximum compensation in respect of death or fixed compensation for each body part based on individual income levels, nature and extent of injury sustained; among others.

5.3 Supreme Court Petition No. 13a of 201 (Consolidated with Petition Nos. 14 & 15) Law Society of Kenya & 2 Others Versus The Centre For Human Rights and Democracy & 11 Others

Mr. Charles Kanjama, Advocate acted on pro bono basis on behalf of the Law Society and the question before the Supreme Court was “whether Section 23(2) of the Sixth Schedule to the Constitution of 2010 ousts the jurisdiction of the High Court to review the decision of the Judges and Magistrates Vetting Board declaring a Judge (or Magistrate) as being unsuitable to continue serving as such.” Various Petitions and Judicial Review Applications concerning the vetting of judges and magistrates are as follows:

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a) Constitutional Petition No. 11 of 2012 The Centre For Human Rights and Democracy & 2 Others Vs The Judges & Magistrates Vetting Board & 2 Others and Hon. Justice Mohammed Ibrahim, Hon. Justice Roselyn Nambuye, & Law Society of Kenya (Interested Parties).

b) Judicial Review Application No. 295 of 2012 Hon. Lady Justice Jeanne Gacheche Vs Judges & Magistrates Vetting Board & Judicial Service Commission.

c) Nairobi Constitution Petition No. 433 of 2012 Hon. Justice R.S.C. Omolo Vs Judges & Magistrates Vetting Board, Attorney General & Judicial Service Commission.

d) Nairobi Constitution Petition No. 434 of 2012 Hon. Justice S.E.O. Bosire Vs Judges & Magistrates Vetting Board, Attorney General & Judicial Service Commission.

e) Nairobi Constitution Petition No. 438 of 2012 Hon. Justice Joseph Nyamu Vs Judges & Magistrates Vetting Board, Attorney General & Judicial Service Commission.

The Supreme Court clarified that by the terms of the Constitution itself, the High Court’s general supervisory powers over quasi-judicial agencies, and its mandate in the safeguarding of the fundamental rights and freedoms of the Constitution, by no means qualify the ouster clause which reserves to the Judges and Magistrates Vetting Board the exclusive mandate of determining the suitability of a Judge or Magistrate in service as at the date of promulgation of the Constitution, to continue in service.

The decision of the Supreme Court is that none of the Superior Courts has the jurisdiction to review the process or outcome attendant upon the operation of the Judges and Magistrates Vetting Board by virtue of the Constitution, and the Vetting of Judges and Magistrates Act.

5.4 Supreme Court of Kenya At Nairobi Petition No. 5 of 2013 Raila Odinga & Another versus IEBCC & OthersMr. Charles Kanjama appeared on behalf of the Law Society of Kenya as an interested party.

The Supreme Court through the Summons dated 22nd July, 2013 under the hand of the Registrar, invited the Chairman of LSK on 1st August, 2013 to appear before it to have a conversation to the effect that in the course of the proceedings in the Supreme Court Election Petition, a news item was carried in the Daily Nation Newspaper issue dated Thursday, 28th March, 2013, at page 5 attributed to him. The Chairman complied and appeared through his learned counsel Prof. Tom Ojienda, SC.

Daily Nation Newspaper story was as follows:

“Lawyers take on top court

“Law Society of Kenya boss Eric Mutua has faulted a ruling by the Supreme Court to reject additional evidence. Mr. Mutua said the decision to expunge an affidavit by the Cord could set a precedent for future rulings. The Court rejected an 839 page affidavit because it was filed without its consent”

On 13th March, 2014, the Supreme Court Ruling ended the conversation between itself and the LSK Chairman after the Court satisfied itself that in issuing the statement which

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triggered the summons, the Chair of the LSK had no intention to undermine the authority of the Court or to vilify the Judges. The Court proceeded to discharge the summons to the LSK Chairman issued by the Registrar dated 22nd July, 2013. On the reference to the submissions by Counsel regarding the balance between constructive criticism of Court rulings and the need to maintain the authority of the Court and integrity of judicial proceedings, the Court promised to deliver a detailed ruling/directions on Notice.

5.5 Nairobi High Court Petition No.520 of 2013 Law Society of Kenya -Vs- Samuel Kimaru (Traffic Police Commandant & National Police Service CommissionMr. Wamuti Ndegwa filed the petition on behalf of LSK in public interest following increase of road traffic accidents attributed mainly to the failure of the Traffic Commandant to discharge legal duties of ensuring enforcement of the Traffic Act, Highway Code, National Police Service Act and all the applicable laws. This had led to the death of over 3,000 people and injuries in the year 2014.

The Traffic Commandant was subsequently transferred. The matter is awaiting determination.

5.6 Nairobi High Court of Kenya Civil Case No. 310 of 2013 [O.S] Bryan Yongo Versus The Chief Justice of Kenya & 5 Others- Mr. Njoroge Regeru on pro bono defended the Law Society of Kenya. The plaintiff sought orders that Ahmednasir Abdullahi, SC be struck off the Roll of Advocates and Senior Counsel by reason that he is not qualified to practice as an advocate on account of an alleged forged Certificate of Completion of Pupillage dated 26th November 1992.

Lady Justice Ougo proceeded to dismiss the suit with costs for, inter alia, being time barred, and the suit against the Law Society was struck off as the Judge was of the opinion that the Council for Legal Education was the proper party to be sued.

5.7 Milimani Nairobi High Court Petition No. 286 of 2014 Honourable Attorney General-Vs- LSK & Council of LSKThe Council of the Law society of Kenya considered the issue regarding Government of Kenya legal representations on the matters touching on the claim and subsequent payments made to First Mercantile Securities Corporation (FMSC and Universal Satspace (North America) LLC to the Ksh. 1.4 Billion. The Council commenced three concurrent and related but distinct processes as follows:

1. Mr. James Mwamu, Advocate filed in the Nairobi Milimani High Court Petition No 213 of 2014 to stop the said payments which were subsequently made following Executive Directive by His Excellency the President. The Parties have filed their written submissions and ruling is awaited.

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2. The Council issued a Notice to Show Cause why Certificate of Dishonour should not be issued to Hon. Prof. Githu Muigai, Mr. Njee Muturi, Solicitor General and Ms. Muthoni Kimani, Senior Deputy Solicitor General for their conduct in the transactions leading to the said payments to First Mercantile Securities Corporation (FMSC) and Universal Satspace (North America) LLC.

3. The Council also filed a petition with the National Assembly for the removal from Office of the Attorney General. The Departmental Committee of Justice and Legal Affairs in its report of August, 2014 recommended that the Office of the Attorney General Act, 2012 should be amended to provide for express provisions on the procedure for removal of the Attorney General from office by way of an inclusively process.

The Honourable Attorney General opted to be represented by Waweru Gatonye, Advocate, Assa Nyakundi Kibagendi, Advocate, Cecil Miller, Advocate, Peter Wena, Advocate and Rono Kibet, Advocate.

On 3rd July, 2014, the Attorney General moved to court by way of Nairobi High Court Petition No. 286 of 2014 and served us with a Court Order on 27th June, 2014, restraining the Council from holding any meeting to discuss his conduct in relation to the matters under enquiry.

5.8 Supreme Court Reference No. 2 of 2014-Advisory Opinion under Article 163(6) of the Constitution in the Matter of National Land Commission and the Cabinet Secretary for LandsMr. Allen Gichuhi, Advocate and Mr. Dennis Mosota, Advocate acting on pro bono enjoined LSK as an interested party. Parties have filed written submissions. The Court directed that the parties explores negotiations within 90 days from 16th November, 2014 after dismissal of the preliminary objections by the Cabinet Secretary for Lands. The negotiations failed and the parties went back to court on 11th February, 2015 and were directed to take a date within 21 days for the hearing of the matter.

5.9 Nairobi Petition No 35 of 2014 Kenya County Government Workers Union Versus NSSFMr. George Kithi, Advocate is representing the LSK on pro bono basis. The matter was consolidated with two other petitions No. 34 and 270 of 2014 on the enhanced NSSF new rates which is another source of Government revenue from the formal tax system.

The parties have exchanged their written submissions.

5.10 Nairobi High Court (JR) No 164 of 2014 Child in Family Focus-Kenya Versus Attorney General & AnotherMr. Joram Mwenda Guantai, Advocate handled the matter on pro bono on behalf of LSK as an interested party. The Cabinet Secretary Ministry of Labour, Social Security and Services had

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purported to exempt the Child Welfare Society of Kenya from registration and supervision by the Adoption Committee with respect to adoption of children in Kenya.

The Court held that the Cabinet Secretary, had abused his power by purporting to grant a blanket exemption to Child Welfare Society of Kenya (CWSK) from the provisions of Section 177 of the Children Act and the Regulations thereto through a Special Issue of the Kenya Gazette No 142 (Legal Notice No. 206) dated 25th October, 2013.

The Court observed that the Cabinet Secretary purported exercise of powers was in bad faith and proceeded, by an Order of Certiorari to quash the said Legal Notice.

5.11 Nairobi High Court Petition No. 209 of 2014 The Law Society of Kenya –Vs- Kenya Railway Corporation & Attorney GeneralMr. Eric Masese, Advocate acting on pro bono basis filed a petition on behalf of the Law Society for an Order of Certiorari before the Superior Court seeking to quash unconstitutional and unlawful award for the construction of the Standard Gauge Railway contract was disallowed with no order as to costs on 21st November, 2014. An Appeal has been filed against the decision of the High Court.

5.12 Nairobi High Court Constitutional Petition No. 160 of 2013, Rose Wangui Mambo & Others Versus Limuru County Club & Others.Ms. Rose Mbanya entered appearance on pro bono on behalf of the Law Society of Kenya as Interested party with a view to assist the court to arrive at just and fair decision in accordance with the constitution. Three female golfers were expelled by Limuru Country Club allegedly after opposing a rule introduced that locked them out from participating in the Club’s elections.

The Honourable Court held that it has jurisdiction to intervene in the affairs of private members’ clubs, and in particular to address alleged violations of fundamental rights and freedoms arising from dealings between the Limuru Country Club, (a private members club) and its membership following a resolution by the Board of Directors of the Club amending part of the Club’s by-law .

On 7th March, 2014, the Court

i. Quashed the resolution passed by the Board members and subsequently approved at the General Meeting of the Club excluding the participation of female members in the Club General Meetings for being contrary to Articles 27 and 33 of the Constitution.

ii. Issued an Order of Mandamus directed to the Limuru Country Club to reinstate the petitioners namely Ms. Rose Mambo, and Ms. Caroline Wangari Ngugi to full membership of the Club with all attendant benefits and privileges.

iii. Directed the Kenya Ladies Golf Union to ensure that orders (i) and (ii) above are implemented in so far as the same affect the membership or handicaps of the petitioners.

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5.13 Nairobi High Court Petition Number 318 of 2012 Law Society of Kenya –Vs- The Attorney General and Two OthersProf. Kithure Kindiki, Advocate and Mr. John Chigiti, Advocate acted for the Law Society of Kenya pro bono. The Statute Law Miscellaneous (Amendment) Act 2012 brought into effect the following amendments which affected and aggrieved members:

(a) Transferring the role of the vetting of magistrates who were serving by the date of entry into force of the constitution of Kenyan 2010 from the Judges and Magistrates Vetting Board to the Judicial Service Commission;

(b) Allowing non-Kenyan lawyers from the Commonwealth to be admitted to practice law in Kenya without Kenyans being given reciprocal market access in the countries concerned;

(c) Allowing the Chief Justice to decide/issue guidelines on the remuneration of in-house Counsel; and

(d) Converting the Advocates Disciplinary Committee into a Tribunal.

The Law Society of Kenya filed petition No. 318 of 2012 contesting the Constitutionality and legality of the said amendments with respect to the principle of public participation, the doctrine of reciprocity, trade in services, independence of the Bar and the use of a Statute Law Miscellaneous Act in effecting substantive amendments. The parties highlighted the submissions on 30th January, 2013.

In the judgement delivered on 19th March 2013, the Court held that the provisions of the Statute Law (Miscellaneous Amendments) Act, 2012 amending the Vetting of Judges and Magistrates Act, the Law Society of Kenya Act and the Advocates Act are not inconsistent with the Constitution and declined to grant the reliefs sought with no order as to costs. The Law Society has filed a Notice of CIVIL APPEAL NO. 96 OF 2014,the Memorandum of appeal was lodged and served upon the Respondents.

5.14 Nairobi High Court Criminal Case No.75 of 2011 Republic-Vs-Mohammed Ismael Madey & 3 Other (Murder of Anthony Nahashon Ngunjiri)Mr. Joel Mbaluka, Advocate is watching brief on pro bono on behalf of LSK. On 17th February, 2014, the matter could not proceed as Justice Kimaru disqualified himself on personal grounds and directed the file to be placed before Justice Muchemi, Criminal Division on 19th February, 2014 for mention to take directions. The Court directed that the proceedings be typed and supplied to all parties for mention on 18th March 2014. Further directions were given for the case to start de novo. The matter is scheduled for hearing on 9th -12th & 17th March, 2015.

5.15 Nairobi High Court Petition No. 21 of 2010 & Nairobi Industrial Court No. 717(N) OF 2009 Betty Sungura Nyabuto –Vs- Law Society of KenyaMr. Lucas Naikuni, Advocate is acting for the Law Society of Kenya on pro bono basis. The LSK was sued in Industrial Court No. 717(N) of 2009 for wrongful termination of employment

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contract. On 9th July, 2010 the industrial Court awarded the Claimant Kshs. 4,541,766 by a consent that was not authorised by the Council. The LSK applied for review of the award and on 13th July 2010 the Industrial Court granted an order for stay of execution on condition that LSK pay the claimant a sum of Ksh 1,500,000 and set the hearing for 30th July, 2010. On the said date, the industrial court proceeded to order execution of the award without according LSK a hearing. The LSK filed a Constitutional Reference in the Nairobi High Court Petition No. 21 of 2010 challenging the decision of the Industrial Court.

On 20th January, 2012 the High Court delivered a judgment to the effect that the LSK’s rights under section 77(9) of the old Constitution were infringed by the Industrial Court action of 30th July, 2010 by failing to accord a fair hearing to LSK. The High Court set aside the proceedings and order of the Industrial Court and reinstated the LSK’s application for hearing. An out of court settlement could not be achieved and on 28th October, 2013, LSK application to review award was heard inter parte. The LSK filed its written submission on 5th December, 2013. On 3rd October, 2014, the Industrial Court dismissed the application of LSK.

5.16 Nairobi High Court JR No. 404 of 2014 LSK versus Cabinet Secretary for Transport & Infrastructure & 5 OthersMr. Harrison Kinyanjui Advocate acting on pro bono basis filed the case on behalf of LSK to challenge the enforcement of Public Notice denoting points at which 50 KPH speed limits purportedly commences in the City of Nairobi stopping the arbitrary arrest of motorists on allegations of speeding. The National Transport and Safety Authority had also demanded that members of the public possessing private motor vehicles older than 4 years from the date of manufacture to subject their said vehicles to mandatory annual inspection conducted by the Director of Motor Vehicles Inspection Unit as a precondition for their use on Kenyan Roads.

LSK obtained a stay on 29th October 2014.

5.17 Nairobi High Court Petition No. 618 of 2014 LSK Versus Cabinet Secretary of Lands, Housing and Urban Development, National Construction Authority & AGMr. Alan Kosgey, Advocate acting on pro bono basis filed the case on behalf of LSK to challenge the Legal Notice No 74 of 6th June, 2014 gazetting the National Construction Authority Regulations 2014 which imposes 0.5% construction levy on all construction works whose value exceeds Ksh 5 million, in contravention of Articles 43(1) (b), 185(4)(a) and (b), 201 and Part 2 of the Fourth Schedule of the Transitional and Consequential Provisions of the Constitution. The due process leading up to the enactment of Regulations 25 was not adhered to as required by the constitution and section 5 of the Statutory Instruments Act (No.23 of 2013).

On 18th December, 2014, the Court issued a prohibitory order against the respondents from obtaining and or collecting any payments under the Regulations from LSK in respect of the construction of the International Arbitration Centre pending hearing and determination of the Petition.

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5.18 Nairobi High Court Constitutional Petition No. 45 of 2014 - Anthony Njenga Mbuti & 5 Others -V- Attorney-General & 3 OthersMr. Nzamba Kitonga, SC enjoined LSK as Amicus Curiae in the challenging the constitutionality of the practice of the arbitrary penal provisions which allow police to arrest without probable cause contrary to Article 49 of the Constitution and allows courts to detain without a proper trial contrary to Article 29 of the Constitution since a peace bond process takes the form of a quasi-civil manner and fundamentally reshapes a criminal trial by reversing the burden of proof. The SC highlighted the similarity of the peace bond statutes with the repealed Vagrancy Act which allowed police to arrest people simply on the basis that they looked suspicious.

The AG and the ODPP responded by stating that the provisions were lawful, with internal management processes including appeals and that the bad practices highlighted in should not be used to castigate the entire law.

Justice Ngugi reserved her ruling to December, 5th 2014 but counsels were later informed that the decision will be delivered on notice.

5.19 High Court Case No.457 of 2013 LSK-vs-Kenya Human Rights Commission & Leigh Day Solicitors (In the Matter of Mau Mau Compensation) Mr. Harrison Kinyanjui, Advocate filed the case on behalf of LSK on pro bono basis against Leigh Day Solicitors under the freedom of information laws for the production of the information of the compensation settlement. This was necessitated in public interest following complaints by victims of the British atrocities that the names of over 50,000 persons were passed over to the 2nd Defendant by the 1st Defendant without any Client/Advocate instructions and the 2nd Defendant proceeded to file suit in London being Ndiku Mutua & Others –V- Commonwealth Office Case No. HQO9X02666 OF 2012 on behalf of victims in Kenya during colonial period.

The victims also allege that they have either not been compensated or that they never agreed to the compensation that was reached on their behalf by Leigh Day Solicitors with the Government of the United Kingdom. In the Ruling delivered on 16th September, 2014, the court dismissed the application by the Mau Mau Governing Council of Kenya seeking to be enjoined in the suit since it does not have capacity to sue or be sued.

The Defendant’s application on the mode of service is coming for hearing on 15th April, 2015.

5.20 Nairobi High Court Constitutional Petition No. of 2014 - LSK & 5 Others -V- Attorney-General & Judicial Service CommissionMr. Nzamba Kitonga, SC on behalf of the LSK on pro bono basis challenged the decision of the H.E. The President of the Republic of Kenya for failing, refusing and/or neglecting to

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perform his constitutional duties of appointing those recommended to him by the Judicial Service Commission on 11/1/2014 and when he did so, after five months on 27/6/2014, he only performed the said duties partly by appointing, swearing-in and gazetting only 11 of the judges out of the 25 names recommended. The Parties have filed their written submissions and the hearing is 12th March, 2015.

5.21 Nairobi High Court Constitutional Petition No. 628 & 630 of 2014 – Coalition for Reforms & Democracy versus Republic of Kenya & Attorney GeneralMr. Nzamba Kitonga, SC enjoined LSK as Amicus Curiae on pro bono basis in the case challenging the several clauses in the Security Laws (Amendment) Act No 19 of 2014 which was assented to on 19th December, 2014. The Petitioners prayed for various orders which in principle sought to have the said Act declared as unconstitutional.

Before the enactment, the LSK had submitted a detailed memorandum to the relevant committees of the National Assembly pointing out the clauses that were contrary to the constitution and suggested amendments.

On 2nd January, 2015, the court granted conservatory orders suspending the following Clauses in The Security Laws (Amendment) Act, No 19 of 2014 together with the amendments to the respective Statutes pending the hearing and determination of these petitions:

l Clause 12 which inserted section 66A to the Penal Code.

l Clause 16 which inserted section 42A to the Criminal Procedure Code.

l Clause 26 which inserted section 20A to the Evidence Act.

l Clause 29 which inserted section 59A to the Evidence Act.

l Clause 48 which inserted section 16A to The Refugees Act.

l Clause 56 which repealed and substituted Part V of The National Intelligence Service Act.

l Clause 58 which amended Section 65 of the National Intelligence Service Act by deleting the word “Parliament” and substituting therefor the words “National Assembly”.

l Clause 64 to the extent that it introduces sections 30A and 30F of The Prevention of Terrorism Act.

On 23 February, 2015, High Court declared sections 12, 16, 20, 26, 34, 42, 48, 64, 66, and 95 unconstitutional.

5.22 Malindi High Court Constitutional Petition No. 9 LSK versus the Inspector General of PoliceAfter the terrorist attack in Mpeketoni, Lamu and the subsequent imposition of 6.00 pm – 6.00am curfew on 20th June, 2015, a Committee of the council undertook a fact finding mission to Lamu on 9th -11th October, 2014 to ascertain reports of human rights violations by the security forces.

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The mission ascertained the following:

l Infringement and gross violations of human rights including on civil liberties, socio-economic and torture.

l Deployment of the military without authority of the National Assembly as required by Article 238(2) of the Constitution

Mr. Anthony Oluoch, Advocate on pro bono basis on behalf of LSK filed a petition for the lifting of the curfew. The case was transferred to Malindi by Hon Lady Justice Mumbi Ngugi pursuant to Rule 8 of the High Court Petition Practice Rules. The matter came up on 10th December, 2014 and the Attorney General was given 4 days to file its reply. On 5th January, 2015, the Counsel attended Court for the ruling on the conservatory orders to lift the Curfew but the ruling by Justice Chitembwe was not ready and will be on notice.

Meanwhile the curfew was lifted in the Lamu Island but still remain on the mainland.

5.23 High Court Criminal Revision no 484 of 2012. Khelef Khalofa vs Republic.Mr. Ian Maina, Advocate enjoined LSK as interested parties. The gist of the case was an allegation that Hon. Chirac Ali Mwakwere on 1st July, 2012 used hate speech during his campaigns when vying for the Matunga Constituency Parliamentary seat. The case was prosecuted by the National Cohesion & Integration Commission and the ODPP. The case was later withdrawn by the Commission and the and the Complainant felt aggrieved and filed for revision of the case.

The complainant is yet to secure a hearing date for the case.

5.24 High Court Criminal Case no 115 of 2014 Republic Vs Eratus Ngua Odhiambo alias Ediot Mr. Ian Maina, Advocate is watching brief for the LSK. In this case, one of our members Ms. Linda Irungu, Advocate was murdered by her spouse Mr. Erastus Odhiambo in Buru Buru Estate Phase Five on December, 2014.

The accused applied for Bail pending trial which application was opposed. The application for bail was denied and the accused will remain in remand until the trial on 12th, 13th and 14th October, 2015.

5.25 CMC Criminal Case No.1765/2014 Republic Versus Nicholas Chege Mwani and Meshack MburuMr. Cliff Ombeta, Advocate is watching brief for LSK. The accused were charged with the offences of robbery with violence and indecent assault following the incident in which the complainant was allegedly undressed in public.

The court heard the testimony of the complainant but thereafter the trial Magistrate was transferred. The court’s direction is awaited.

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Reports of The Committees of Law Society of Kenya The Council, pursuant to section 23(2) of the Law Society of Kenya Act, No 21 of 2014, mandated various committees Laws of Kenya to look into specific aspects relating to members interests and the Society’s statutory objectives. The Committees were as follows:

6.1 Committee on Continuing Professional Development The Committee on Continuing Professional Development (CCPD) was reconstituted in May 2014 and has a membership of 27 Advocates convened by Mr. Rautta-Athiambo, with Mr. Henry Ongicho as the Co-Convenor

The CCPD meets every first Wednesday of the Month. The Committee together with the Secretariat organized a total of 44 seminars across the country. All the events took place as advertised in the Calendar except the seminar on In-house Legal Practice which was cancelled to enable preparations for the 2014 Annual Conference.

Senior Counsel Mr. Kenneth Fraser making a presentation during a CPD Seminar in Trial Advocacy at The Panari Hotel, Nairobi

The topics that elicited good response by members were:

1) Health Law

2) Trial Advocacy- which had a Bar Bench participation

3) Capital Markets & Pension Laws

4) Public Private Partnerships

5) Constitutional Law

6) Mineral Resources

The CCPD finalized the CPD rules which were subsequently published in April, 2014.

The CCPD organized several seminars in conjunction with other Organisations. It teamed up with the Insurance Regulatory Authority to offer training on Insurance Law, National Council for Law Reporting (Kenya Law) to offer training on Landmark Moments in Kenya’s Jurisprudence in 2013 and also organized a seminar on Aviation Law together with advocates conversant with the topic.

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The CCPD had several ad hoc Committees that were tasked with among other things looking at how to popularize CPD events and have talks on mentoring and training specific categories of practitioners and came up with reports which could be adopted in future. Other achievements include:

l Template for seminar reports that has been used by session chairs representing the Committee in all seminars to document seminar outcomes.

l Sub- Committee on Accreditation handled several applications for exemption and accreditation from members and also accredited twelve independent course providers.

l 2015 CPD Calendar of events which has a total of 48 seminars, incorporating topics which were suggested by members developed during the CCPD annual retreat between 7th and 9th November, 2014.

Compliance with the CPD regulations continues to improve- as at December 2014; 5,340 members had complied compared with 4,018 members for the same period in the preceding year.

6.2 The ICT and Intellectual Property CommitteeThe Committee is convened by Ms. Jennifer Shamalla. During the reporting period, the Committee organised consultative round table meeting on Tuesday February, 24, 2015, 8.30am-12.00, Crowne Plaza Hotel, Nairobi with key private sector, civil society actors and experts on data protection and access to information, as part of the process of constructing LSK’s position on the Bills. The Committee is awaiting the outcome Nairobi High Court Constitutional Petition No. 628 & 630 of 2014 – Coalition for Reforms & Democracy versus Republic of Kenya & Attorney General enjoined LSK as Amicus Curiae in the case challenging the several clauses in the Security Laws (Amendment) Act No 19 of 2014 which was assented to on 19th December, 2014.

6.3 The in – House Counsel Committee The overall objective of the In House Committee convened by Ms. Faith Basiye is to deliberate and make recommendations to Council on all matters touching on in house counsels. The Committee has taken steps to mitigate the adverse effects of the amendments to the Advocates Act that come into effect through the Statute Law (Miscellaneous) Amendment Act 2012 on remuneration and regulation of in-house Advocates and the subsequent Judgment delivered in petition No 318 of 2012 Law Society of Kenya - vs- Attorney General and others. In this regard the Committee has been extensively involved in the review of the Advocates Act (cap. 16) into Legal Practitioners Bill as spearheaded by the Kenya Law Reform Commission. The Committee engaged the CPD Committee for the purposes of ensuring that the 2015 CPD Calendar provided for seminars on Scope, Skills and Challenges for In-House Legal Practice.

The Committee plans roll out a survey to collect information on the challenges faced by In-House Counsels.

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6.4 The Constitution Implementation and Law Reform CommitteeThe Committee is convened by Mr. Alan Kosgey, a Council member. The Committee focuses on law reform and constitutional implementation.

The committee has undertaken the review of a series of bills. Members of the Committee attended a validation forum organized by the Commission on Implementation of the Constitution (CIC) for the Draft Physical Planning Bill at the Kenya School of Government on the 24th of June, 2014. Members also participated in the stakeholders’ forum on the Labour Relations Bill at the Kenya School of Monetary studies. Additional Bills reviewed include the Mental Health Bill.

In order to facilitate a structured engagement with the CIC, the Committee nominated members as liaison persons to the thematic areas of:

Members following presentations at a Gender Training at the Laico Hotel, Nairobi

i) Executive and Security

ii) Public Finance

iii) Judiciary and Constitutional Commissions

iv) Devolve Governments

v) Bill of Rights and Citizenship

vi) Land and Environment

vii) Representation of the People and the Legislature

viii) Public Service and leadership

6.5 The Gender CommitteeThe Gender Committee is convened by Ms. Caroline Khasoa. The Committee was set up to advice the Council on all issues relating to gender in the context of the legal profession in Kenya.

Among the activities undertaken by the Committee are;

l Developed a position paper on a mechanism for the attainment of the Constitutional two-thirds gender rule following the Supreme Court advisory opinion No. 2 of 2012.

l Gender training that was held on 30th July, 2015 in Nairobi. The training focused on the Draft Reproductive Health Care Bill, 2014 and ancillary issues. The training made key recommendations on different aspects of reproductive healthcare that should be included in the Bill.

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On the recommendation of the Committee to the Council, LSK entered appearance as amicus curiae in Constitutional Petition No. 160 of 2013, Ms. Rose Wangui Mambo & Others Versus Limuru County Club & Others. The Committee felt that the club had contravened Article 27 of the Constitution which prohibits discrimination on the basis of gender. On 7th March, 2014, the Court quashed the resolution passed by the Board members and subsequently approved at the General Meeting of the Club excluding the participation of female members in the Club General Meetings for being contrary to Articles 27 and 33 of the Constitution. The Court further issued an Order of Mandamus directed to the Limuru Country Club to reinstate the petitioners.

6.6 The Editorial CommitteeThe Committee is convened by Mr. Godfrey Kitiwa. As was envisaged, the Editorial Board edited and produced one LSK Journal Volume 10(1) (2014). The Committee also produced two editions of The Advocates Magazine which was distributed to the members at the Annual Conference in August 2014, and the Special General Meeting in September, 2014, the Annual Cocktail and a CPD Seminar on Insurance Law in Kisumu in December, 2014.

The Committee observes that while there has been improvement in submission of articles for the Magazine, very few members are submitting journal articles.

6.7 The Public Interest, Legal Aid And Human Rights CommitteeThe Committee is convened by Ms. Gertrude Angote assisted by Mr. Waikwa Wanyoike and has 22 members.

On 20th and 21st June, 2014, the Committee members participated in the annual Public Interest Environmental Law and Litigation seminar organized by the Law Society of Kenya in partnership with Environmental Law Alliance Worldwide (ELAW) and the Institute for Law and Environmental Governance (ILEG).

The Committee flagged out The Legal Aid Bill 2014 and The Eviction and Resettlement Bill 2013 as priority Bills that needs to be enacted urgently.

Members of the Committee also participated in training young members of the Bar on the need to embrace pro bono work. The sensitization trainings were conducted across the country in Mombasa, Nakuru, Kisumu, Eldoret and Nairobi.

Ms. Irene Ndegwa a member of the Committee was awarded the Pro bono Lawyer of the Year 2014. The award ceremony was held in at the Hotel Hilton on 10th December, 2014 and is a collaborative effort between the Law Society of Kenya, Amnesty International and East Africa Centre for Human Rights.

Some members of the Committee also attended training on ECOSOC rights dubbed “Emerging trends in litigating the Right to accessible and adequate Housing: Towards structured judgments” on the 10th and 11th December 2014 at the Heron Portico Hotel, Nairobi.

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The Public Interest Litigation Unit is currently populating the pro bono database that has been installed at the Secretariat with the following information:

a) List of all pro bono advocates

b) Legal aid cases and PIL cases undertaken by the LSK

c) Referral system

d) Reporting mechanism

Ms. Gertrude Angote chaired the LSK Taskforce Investigating the Lang’ata Primary School Police Brutality on 19th January 2015. The Council formed the Taskforce - in public interest - after it emerged that police used copious amount of tear gas to disperse the pupils who had teamed up with activists to protest the alleged grabbing of the school’s playground by a private developer. LSK has condemned the action by the police as barbaric and an affront to the fundamental rights of children to care and protection, security and education as enshrined in the Constitution and International law.

The terms of reference of the task force were to trace and identify the actual victims; Collect statements from victims and any other evidence including medical reports. The information has been shared with the Independent Police Oversight Authority. The Taskforce has handed its final report to the Council of LSK for implementation with appropriate recommendations including the required legal action.

6.8 The Young Lawyers CommitteeThe Committee is convened by Mr. Dennis Ben Mosota, assisted by Ms. Harriette Chiggai.

The Committee registered a team and successfully participated in the LSK Justice Cup Tournament held on the 26th July, 2014 at the Parklands Sports Club, Nairobi. The ‘Justice Cup Tournament’ is an annual event bringing together various teams drawn from stakeholders involved in the administration of justice.

Members during the Mentorship Forum for Young Lawyers at the Hilton Hotel, Nairobi

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On the 19th of September, 2014, the Committee actively participated in a young lawyer’s mentorship forum, at the Hilton Hotel, Nairobi, organized for advocates of up to five years standing. The core objective is to have mentorship sessions that will be periodically held for young lawyers. In consultations with LSK Welfare Committee, the Committee is designing a diverse and long term mentorship strategy for young advocates.

The Committee actively engaged in efforts to facilitate young advocates to attend and participate in the LSK and EALS Annual Conferences held in Mombasa and Kigali, Rwanda respectively. The aim was to provide an opportunity to the young lawyers to interact with their seniors and counterparts from different jurisdictions and ultimately assist towards professional growth and development.

Following the 2013 Presidential directive to all relevant government entities that 30% of all government procurement going forward would be allocated to women, youth and persons with disabilities, the Committee developed a draft concept on inclusion of young advocates in the procurement of legal services and is awaiting feedback on the same. The objective is to create opportunities for young lawyers in an increasingly competitive legal market.

The Committee, in consultation with Committee on Continuing Professional Development nominated a young advocate as a resource person at the annual induction program for newly admitted advocates held on the 29th November, 2014.

6.9 The Alternative Dispute Resolution CommitteeThe ADR Committee is convened by Mr. John Ohaga and its objective is to promote the benefits of ADR mechanisms and processes in conflict/dispute resolution and in the administration of justice in Kenya. The Committee has 10 active members and meets every last Tuesday of every month.

The Constitution and the Civil Procedure Rules make provision for the use of ADR and court mandated mediation. The Committee has been at the forefront in sensitizing members of the legal fraternity on ADR processes through Continuing Professional Development (CPD) seminars.

The Committee proposed an LSK Alternative Dispute Resolution Introduction Course for advocates interested in pursuing ADR. The Committee developed a draft curriculum for this purpose which is undergoing review. The entry course is to cover the basics of arbitration and mediation.

The Committee also reviewed the Nairobi Centre for International Arbitration Act of 2013 and proposed amendments to the Attorney General.

The Committee further reviewed the proposed Arbitration and Mediation Rules for the Nairobi Centre for International Arbitration, and presented their recommendations at a stakeholder’s forum held on the 26th February, 2015 at the KICC.

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By a Gazette Notice No. 1088 of 20th February, 2015, the Hon. Chief Justice, in exercise of the powers conferred by section 59A(1) and (2) of the Civil Procedure Act, appointed the Convener as one of the members of the Mediation and Accreditation Committee.

6.10 The Child Law Practitioners CommitteeThe Committee is convened by Ms. Rose Mbanya. The overall objective of the Child Law Practitioners Committee is to ensure that the practice in this area is up to the required standards, to advice the Council on all issues relating to Child Law Practice and also to look into other matters affecting the welfare of the Children.

a) Moratorium on Inter Country and Resident Adoption

On the 27th day of November, 2014, the Cabinet of the Republic of Kenya imposed “an indefinite Moratoria on inter-country adoptions of Kenya on children by foreigners. The Cabinet also revoked all licenses to conduct inter-country adoptions in Kenya with immediate effect. The action by the Cabinet was communicated to all Adoption Societies vide a letter dated 22nd December, 2014 by Hon. Samwel Kazungu Kambi, Cabinet Secretary-Labour, Social Security and Services. By a Gazette Notice No. 1092 of 20th February, 2015, the Cabinet Secretary appointed an Expert Committee to review and develop a policy and legal framework to regulate and manage child adoptions in Kenya.

The action by the Cabinet has not served the best interest of the children who need care and protection. The action has also affected the practice of law. The Presiding Judge of the Family Division, Justice Aggrey Muchelule convened consultative meeting of Family Law stakeholders on 3rd March, 2015 to discuss the developments and the way forward. In preparations, the Committee held a meeting on 25th February, 2015.

b) Children Adoption Practice and Procedure Rules

The Committee has been engaging with the with the Judiciary Rules Committee and Deputy Registrar in the Family Division on the draft Children Adoption Practice and Procedure Rules.

6.11 The Litigation and Court Users CommitteeThe Committee is convened by Mr. Allen Gichuhi Council member. It is tasked with the mandate of advising the Council of the Society on matters relating to practice of law in Courts and Tribunals in Kenya as well as liaise with the Courts and Tribunals on methods of increasing efficiency in the administration of justice of Kenya.

Improved access to justice and practice matters dominated the agenda of the Committee. The committee held several meetings with the Judiciary with a view to improving practice standards and increasing efficiency in the administration of justice.

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The Committee was engaged in the review process of the Court of Appeal Rules, a three day meeting was held in Mombasa at Whitesands Hotel on the 5th to 8th March, 2014 composed of the Court of Appeal Judges and the Committee members. The meeting was followed by a one day Court of Appeal Bar- Bench conference meeting held on the 31st October, 2014 where Judges of the Court of Appeal and members of the Bar attend. The conference attracted members from Mombasa and Nyeri. Mr. Walter Amako and Mr. Elisha Ongoya made presentations on the emerging jurisprudence in the Court of Appeal.

The proposed amendments to the Court of Appeal Rules were validated and will be submitted to the Rules Committee. Various other practice issues before the Court of Appeal were discussed mainly on how to handle backlog in the Court of Appeal and it was agreed as follows:

a) The need to establish a duty bench to handle old matters.

b) Single Judge Applications be listed on a particular day and disposed of expeditiously.

c) Fixing of dates by consent this will reduce cases of adjournment.

d) The introduction of case management conferences.

Among the key amendments agreed on was the need to give a single judge powers to handle interlocutory applications as a way of improving access to justice by reduction of backlog in the Court of Appeal.

The Committee also participated in Environment and Land Court Bar-Bench Committee meeting held on the 7th March, 2014 at Utalii College Hotel and gave proposals on amendments to the Land Act and Land Registration Act. The Vice President Lillian Renee Omondi, Committee members and Deputy Secretary Collins Odhiambo attended the meeting.

The Committee led by the President, Vice-President and Council member Jennifer Shamalla met the Chief Registrar of the Judiciary on the 21 July 2014 to discuss challenges facing legal practice in Kenya The following issues were discussed;

a) The establishment of a rapid response team composed of the Bar and the Bench.

b) Uniform practice direction.

c) Holding of joint seminars between the Bar and the Bench.

d) Payment of Court fees through the Bank and M-pesa and its challenges.

e) Late issuance of practicing certificate.

A joint Committee composed of members of the Litigation and Court Users Committee and the Judiciary was constituted which Committee has been meeting to deliberate on available alternatives so as to mitigate the challenges facing advocates and members of Justice by use of the said forms of payments. Part of the recommendations forwarded to the Judiciary includes;

i) Adopt new initiatives to reduce payment process and eliminate photocopying and the need to get assessment of filling fees where the amount is automatically know by advocates.

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ii) High Court to consider accepting small payments by cash as it is practiced by the Magistrates Courts.

iii) To adopt modern cash collection methods e.g., the use of prepaid card for high volumes.

iv) Elimination of small routine fees e.g., perusal fees and affidavit of service and in turn increases the filling fees for the plaint or petition.

The Council found considered it necessary to have constant interactions with the Judicial Service Commission (JSC) so as to enable Judiciary address the underlying challenges affecting administration of justice and practice generally throughout the Country. The JSC Sub-committee on administration of justice held a meeting on the 21st October, 2014 where LSK presented a report undertaken by the Committee with recommendations on how to handle back log and unclog the dairies so as to ensure that there is expeditious disposal of matters.

The Council and members of the Committee met the Principal Judge of the High Court and heads of all High Court divisions on 17th July, 2014 where various matters touching on practice throughout the country were discussed including the issue of training of Judges and the need to have it well organized so as not to affect the court sittings and establishment of Inns of Courts in all the High Court stations.

The Criminal Division of the High Court has been left behind in reform processes. The Committee succeeded in having a Criminal Division Bar- Bench Committee established this committee will act as a vehicle through which the public as well as the Bar will be able to interact with the Bench and deal with issues affecting practice in the Court.

The Committee paid a courtesy call on Principal Judge of the Industrial Court, Hon Justice Nduma on the 10th October, 2014 for the purposes of forging closer working relationship with the Bar through the Industrial Court Users Committee.

The Nairobi Milimani Court Users Committee held an open day on the 26th September, 2014. The forum was organized with a view to have the Committee demonstrate its processes and steps in ensuring an effective, expeditious and collaborative approach in the administration of Justice and to show case the work of the Committee, the inter-linkages between the various court users, promote feedback from public and offer legal aid the public with a view to promoting access to justice.

Other work undertaken by the Committee includes:

l Development in conjunction with the Judiciary of the Commercial & Admiralty division practice direction on case management, Case management check list and case management request. The same was adopted by the Court and currently in use.

l Development (in collaboration with the Judiciary) the Environment and Land Court practice direction which were gazette by the Chief Justice on the 28th July, 2014. The practice directions are available on the LSK website (www.lsk.or.ke) for ease of access,

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6.12 Devolution & County Legislation CommitteeThe Council of the Law Society of Kenya established a Devolution & County Legislation Committee convened by Mr. David Mereka. The mandate of the Committee is to monitor, analyse, advise and recommend current and proposed legislation in all the County Assemblies in Kenya, to ensure consistency of the laws amongst all the Counties and confirm that they are not in conflict with the national laws and Constitution of Kenya, research and develop, where necessary, any County legislation relating to unique or additional requirements of County Governments and to prepare recommendations to the Speakers of County Governments.

For effective execution of its mandate the Committee constituted a 15 Member Panel divided into 3 Panels of 5 Members each from each of the 47 Counties except for Lamu, Marsabit, Samburu, Tana River and Wajir where no members expressed interest. The said Panels are responsible for County Assembly Bills and other legal issues originating from their respective Counties.

The Committee has participated in several meetings organised in consultations with stakeholders including on 24th-29th November, 2014 -legislative drafting Seminar at Silver springs-Nairobi, 3rd December, 2014-Validation Devolution Policy Document Kenya School of Government-Nairobi, the first and second Steering Committee Meetings- Development of a Legislative Guide/Drafting Manuals for County Governments at Imperial Hotel Kisumu on 17th and 18th December, 2014 and 2nd February, 2015 at Pangoni Hotel Mombasa.

In October 2014, a National Conference on Doing Business in the Counties was convened by the Commission of Revenue Allocation(CRA) together with Kenya Association of Manufacturers (KAM) in response to observations of county actions, press reports and complaints received from business organisations notably KAM on the effect of county finance regulations on conduct of business in the counties. CRA was also desirous of establishing the extent to which the Counties had domesticated the model county revenue laws. The conference agreed on thirteen measures on county revenue legislation which include:

(a) The National Forum organized by CRA would be held annually.

(b) Clusters would meet at least twice a year and review the impact of County Revenue Laws on Businesses and Investment.

(c) It was recommended that there was need to apprise CEC members of trade on regional and cross-county trade.

(d) Consultants, under the mentorship of CRA, would work with County Governments to improve current revenue legislation in place; and develop new ones where there are legislative gaps, in the next 6 months.

(e) Revenue laws would be drafted in a manner consistent with the Constitution.

(f) The business community and other stakeholders would be consulted during the drafting process.

(g) That the counties would consolidate business licenses and issue one Single Business Permit.

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As a result of the conference, a pool of Consultants is working with the Counties in offering technical assistance in drafting of County Revenue Legislation. The Counties are grouped into 8 clusters which have been holding meetings from 17th November, 2014 and will continue till 5th December, 2015 to facilitate collection of information from the County Governments and the Business community to inform the content of the bills.

The members of the Committee engaged and participated in Legislative Process Guide Stakeholder Workshops from 2nd to 6th March, 2015 in six clusters all over the country.

6.13 The Medico Legal CommitteeThe Medico-Legal Committee is convened by Prof. Peter Kiama and has fifteen active members. The Committee was formed in July, 2011 with the mandate of protecting the public’s right to quality healthcare by ensuring accountability in the provision of healthcare. The Committee undertook the following activities in year 2013:

The committee undertook the following activities in year 2014:

l Following the launch of The National Patients’ Rights Charter on 4th October, 2013, the Committee has been lobbying for the reconstitution of the Kenya Medical Practitioners and Dentist Board into an independent tribunal to deal with disciplinary issues arising in medical field. This met resistance from the medical practitioners. The Committee is working on a constitutional petition seeking declaratory orders to compel the Cabinet Secretary for Health to constitute an Independent Tribunal to ensure that disputes between patients and practitioners are handled independently.

l The Committee formed sub-committees on:

§ Independent Medico-Legal Tribunal

§ Reproductive Healthcare Bill

§ Insurance Industry Issues

§ Hospital and Medical Bills

§ Human Biomedical Research

l The Committee made its contribution towards The Reproductive Health Care Bill 2014 during a breakfast meeting held on 30th July, 2014 at The Sarova Stanley Hotel, Nairobi.

l The Convener Prof. Kiama Wangai was an observer on behalf of the Society at the Medical Practitioners and Dentists Board Elections held on 27th October, 2014.

Medico-Legal Committee Convener Prof. Peter Kiama delivering a paper during a CPD Seminar on Health Law

at The Hilton Hotel, Nairobi

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l The Committee also engaged in the 43rd Kenya Medical Association Annual conference held at Watamu Resort, Mombasa. The theme of the Conference was “Medical Practice amidst the emerging Malpractice Litigation”

l The Convener Prof. Kiama Wangai, presented a paper on medical negligence during a CPD seminar on 3rd October 2014 in Mombasa and on 28th November, 2014 in Nairobi respectively.

l The Committee is also engaged in the review of the Kenya Medical Practitioners and Dentist Board rules and regulations.

The Committee lost a very active member Ms. Mildred Munyasa on 12th May, 2014 whose invaluable contribution to the Patients’ Rights Charter will always be cherished.

6.14 The Welfare CommitteeThe Committee is convened by Mr. James Aggrey Mwamu assisted by Ms. Winnie N. Ngugi. The Committee’s mandate includes the following:-

a) Looking into the general welfare of the members;

b) Improving members’ welfare to ensure that the physical, social and financial conditions under which members work in are satisfactory ;

c) Negotiate better terms for health insurance, pension and other related matters for members;

d) Unite members for the purpose of addressing their concerns and issues within the society and the profession; and

e) Promote membership involvement in the Society’s activities.

The Committee undertook the following Activities in Y2014.

(i) Young Lawyers Mentorship Programme: The Committee constituted a sub-committee to be tasked with coming up the Mentorship Manual to cover training the volunteer mentors and the implementation of the manual in conjunction with the Young Lawyers Committee and the CLE Committee on

Life Skills Mentoring Career mentoring;

(ii) Accessibility of Court Services by Persons with Disabilities: Pursuant to Legal Notice No. 182 of 2009 of the Persons with Disabilities Act, the Committee engaged the Judiciary in implementing it. The committee came up with a concept note that was forwarded to the Chief Registrar of the Judiciary on the state of courts across the country on the facilities of provided for persons with disabilities.

(iii) Group Medical Cover: The Committee is working with five (5) insurance companies Two (2) micro health insurance providers and the National Hospital Insurance Fund (NHIF) to provide medical insurance packages to Law Society of Kenya Members. The Scheme roll out shall be conducted in Y2015.

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6.15 The Environment, Natural Resources and Conveyancing CommitteeThe Committee was reconstituted and is convened by Mr. Peter Mwangi. The committee reviewed LSK conditions of Sale which will guide practitioners under the new land regime. It is in the process of developing Conveyancing rules that will give guidance to the practitioners in Conveyancing.

The Convener also participated in the Taskforce on Land Regulations that developed the drafts of the proposed amendments to the Land Registration Act and the Land Act. The Taskforce came up with the Land Registration Act Regulations which were to be signed off by the senior ministry of Land officials for onward transmission to the Commission of Implementation of the Constitution (CIC) before being presented to Parliament.

The Committee has proposed a review and amendments of the Advocate Practice Rules, in particular the rule against touting to curb the emerging practice of developers drawing up legal documents and insisting on the purchaser paying their legal fees.

The Committee also addressed the concern with the matter of spousal consent for land transactions, and recommended an amendment to introduce a column on the land register that would reflect such consent. This way, transactions would be guided by the register and not mere assurances.

6.16 Energy and Extractive Industry Committee The Council formed this Committee following request by members of the need to advice the Council and build capacity in the emerging practice area following the discovery of Oil, Gas and Coal in Kenya. 205 members had expressed interest to serve in the Committee.

LSK President Mr. Eric Mutua (left) and National Land Commission Chairman Dr. Mohammad Swazuri addressing the media after paying a courtesy call at the Commission’s offices at Ardhi House, Nairobi

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The Committee is co-convened by Ms. Caroline Waiyaki and Ms. Jennifer Shamalla with their first task being the review of the proposed Mining and Mineral Bills to ensure that the National and County Governments do not enter into a skewed contracts with the mining companies with respect to revenue and benefit sharing,

6.17 The Committee On Maritime Law The Maritime & Admiralty Committee is a standing Committee of the Mombasa Law Society jointly convened by Ms. Grace Okumu assisted by Mr. Maru Dhanvantrai Nishit and Ms. Jacqualine Waihenya and holds its meetings in Mombasa. The Committee continues to engage on the review of the Marine Pollution Bill, Admiralty Jurisdiction Bill, Maritime Security Bill.

In collaboration with Kenya Maritime Authority, Kenya Ports Authority, Kenya Ferry Services and Kenya Maritime Law Association founded by Justice E. Ogolla gave input to various legislations concerning maritime law including safety issues.

The Committee is currently considering the various conventions i.e (2006) Maritime Labour Convention, the Manila Amendments (2011) to the International Convention on Standards of Training, Certification and Watch keeping for Seafarers (STCW) and The Bunkers Convention (2011) with a view to sensitizing the stakeholders. The Committee has identified the creation of coast guard as priority and is engaging the relevant stakeholders in this regard. The Committee is represented in the Judiciary Committee (led by Justice Harvelock) which is in the process of setting up the Maritime Division of the High Court in Mombasa.

6.18 Committee on Review of The Electoral Process (CREP) The Council constituted a Committee to Review and Audit Report of the March 4, 2013 General Elections composed of Mr. Ken Nyaundi, Ms. Judith Gusewa, Prof. Ben Sihanya, Mr. George Kegoro, Mr. Stephen Kiptinnes, Ms. Rose Mbanya and Ms. Caroline Khasoa. The Committee completed its draft report in September, 2014 and it is now undergoing quality assurance before adoptions and publication.

The Committee has made key findings and recommendations relating to electoral preparation by Independent Electoral and Boundaries Commission (IEBC) and in particular:6.18.1 Party nominations6.18.2 Party lists6.18.3 Voter registration6.18.4 Procurement6.18.5 Mock elections6.18.6 Voter education6.18.7 Voting process and procedure6.18.8 Voter assistance

6.18.9 Use of technology in the electoral process 6.18.10 Electoral dispute resolution6.18.11 Conduct of the media6.18.12 Security 6.18.13 Conduct of political parties6.18.14 Supreme Court decisions on election petitions

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Reports of The Representatives of Law Society of Kenya to Committees and Various Institutions

7.1 The Disciplinary TribunalThe 2014 Disciplinary Tribunal was chaired by Mr. Ezekiel Wanjama on behalf of the Attorney General and Tribunal members Mr. Mathew Kithinji Itonga, Ms. Anna Ngibuini Mwaure, Mr. George Ochich, Mr. Ocharo Kebira, and Ms. Gladys Wamaitha Karanja.

The Tribunal continued to adjudicate over complaints of professional misconduct against advocates to ensure that the image of the legal profession is preserved and protected.

The year 2014 witnessed a reduction in the number of new cases. The cases filed reduced to 157 cases as compared to 223 and 186 cases filed in the years 2013 and 2012 respectively. The reduction of new cases can be attributed to majority of the advocates taking advantage of the in-house dispute resolution mechanisms offered by the Law Society of Kenya and the Advocates Complaints Commission respectively. The Committee finalized a total of 148 cases in the year 2014 (Including matters filed in previous years).Matters outstanding stand at 497 as at December, 2014.

Status of Disciplinary Causes for The Last 10 Years

YEAR CAUSES OPENED CAUSES CONCLUDED OUTSTANDING

2005 67 53 14

2006 164 160 4

2007 358 358 0

2008 190 172 18

2009 211 185 26

2010 209 183 26

2011 207 162 45

2012 186 102 84

2013 232 103 129

2014 158 7 151

TOTALS 1,982 1,486 497

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7.2 The Kenya School of LawThe LSK is represented by Mr. James Aggrey Mwamu.

Kenya School of Law operations center on provision of legal training in form of programmes, courses and activities. Presently the academic programs consist of the Advocates Training Program and Paralegal Studies (ATP & PS); the Continuing Professional Development, Projects and Research department. The two departments are serviced and supported by the Academic Services, Library ICT, Finance and Administration Departments

The fee payable per student for the Advocates Training Programme is Ksh 190,000. A total of Applications 1,707 were received out of which 1,346 were admitted. 1,118 admissions were from local universities. Students admitted from the EAC were as follows:

w Makerere University = 9

w Nkumba University = 8

w Uganda Christian University = 76

w Islamic university = 12

w Zanzibar university = 2

83 applicants were deferred while 38 admission from Uganda Pentecostal were revoked vide directive from Council of Legal Education.

The reasons for not admitting/registering students/ mainly were:

l Applicant did not meet the admission criteria: (except for Kenyan Universities who only had to satisfy on LLB degree with 16 Core subjects and other qualifications met during University criteria)

n Foreign University, the requirement of:

a) LLB and 16 Core subjects

b) In Part II of the Legal Education Act;

(i) Pass B (Plain) in English or Kiswahili with an aggregate of C (Plus)

(ii) Have C (Plus) in English and an aggregate C (Plain) with higher qualifications

c) Pre-Bar for only in transition before the new law came in force.

Other reasons include rejection of unsuccessful Appeal, lack of payment of school fees, bridging courses undertaken in other institutions instead of Riara University that was Accredited by Council of Legal Education or revocation by the Regulator, Council of Legal Education, on account that the institution where the applicant undertook studies was not accredited at the time.

For the needy students without fees, the school allows payment in two installments, accommodate students as they wait for CDF/Bursary Funds and defer or take payment proposals by law firms

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7.3 The Council of Legal EducationThe representatives in the Council are Mr. Eric Mutua and Ms. Gertrude Angote.

The Council of Legal Education (CLE) is a statutory body established by the Legal Education Act No. 27 of 2012 and charged with the mandate of regulating, supervising and licensing legal education programs and providers in Kenya. CLE was formally re-established in January 2014 after officially separating from the Kenya School of Law following the enactment of the Legal Education Act, 2012.

The Council for Legal Education moved to its new premises, situate at Karen Office Park in Karen. Professor Kulundu Bitonye, previously of the Kenya School of Law equally moved and assumed office as Secretary to the Council for Legal Education as guided by Gazette Notice No. 3167 as well as an affirmation from the Inspector General of State Corporation.

To entrench the operations of the Council in its regulatory and supervisory roles, the Council has commenced the difficult task of formulating regulations policy framework and benchmarks to be followed by all legal education providers in the training of various cadres of legal professionals. Further, the Council is re-positioning itself to review the strategic issues and objectives involved in giving direction to legal training in Kenya and the wider East African region.

For these two exercises to come to full fruition, it is necessary that the Council commences a dialogue with all stakeholders involved in the legal profession, in particular the Government of Kenya, the Attorney-General’s Office, the Judiciary, Directorate of Public Prosecution, the Council of the Law Society of Kenya, training fraternity of the legal profession in particular the schools of law at universities and professional training institutions such as the Kenya School of Law and the Judiciary Training Institute to name but a few. Dialogue with these stakeholders should give the necessary impetus and direction to Legal Education Policy and the Strategic Objectives and issues that the Council of Legal Education should isolate for implementation both in the short-term and long-term.

In January 2015, the Council therefore held a three day workshop at Lake Naivasha Simba Lodge, bringing together all actors in the legal profession from the East African Region to discuss pertinent issues pertaining to legal education and training and the role and place of the Council of Legal Education as the regulator and supervisor of Legal Education in Kenya.

The theme of the forum was: “Supporting Legal Education and Training in Developing a Dynamic East African Society and Beyond”

The forum was an opportunity for legal education providers and stakeholders to share ideas and experiences that will assist improve the legal profession in Kenya and East Africa. It was also an opportunity to provide feedback on the regulation of legal education and training with a view of improving this process.

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7.4 Rules and Expeditious Disposal of Cases Committee The representatives of LSK to the Committee are Mr. Kevin Dermot McCourt, (Nairobi) and Mr. Simon Njoroge (Mombasa). The Committee is composed of other members as follows:

l Justice Alnashir Visram-Chairman (Court of Appeal)

l Justice Wanjiru Karanja (Court of Appeal)

l Justice George Odunga (High Court)

l Justice David Majanja (High Court)

l Ms. Muthoni Kimani (Senior Deputy Solicitor General)

l Hon. Abdul Omar (Secretary

The Committee experienced budgetary constraint that hampered its work. However it managed to achieve the following:

a) Compendium of the Rules required to be published by the Chief Justice under various statutes. Out of these 48 were identified as require immediate attention. The following have been prioritised:

i) Children, Marriage and Adoptions Rules

ii) Court Martial Rules which currently allow the judge/advocate to analyise evidence before handing over the same to the military authorities to take a decision. This has led to miscarriage of justice leading to life imprisonment of several military personnel.

b) Court of Appeal Rules

c) Kadhi Court Rules

d) Witness Protection Rules

e) HIV/AIDS Rules

The Committee is also considering amendments to Criminal Procedure Code, Evidence Act and Civil Procedure Code to introduce digital audio recording of evidence and proceedings.

In the year 2015, the Committee intends to focus on working towards establishment of a permanent secretariat, entrenchment of ADR into the system of administration of justice and remedying the gaps in the Civil Procedure Act.

7.5 The Judicial Service Commission The Judicial Service Commission (JSC) is established under Article 17 1 of the Constitution of Kenya. Under Article 172 its mandate is to promote and facilitate the independence and accountability of the Judiciary and the efficient, effective and transparent administration of Justice.

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Membership

The Membership of the JSC is outlined in Article 171(1) of the Constitution. The members during the period under review were:

Hon. Justice Dr. Willy M. Mutunga, Chief Justice / President of the Supreme Court of Kenya

Hon. Dr. Justice Smokin Wanjala, Commissioner/ Judge of the Supreme Court of Kenya

Hon. Justice Mohamed Warsame, Commissioner/ Judge Court of Appeal

Hon. Justice Aggrey Muchelule, Commissioner/Judge of the High Court of Kenya

Hon. Prof. Githu Muigai, Commissioner/ Attorney General

Prof Tom Ojienda, Commissioner/Senior Counsel

Ms. Florence Muoti Mwangangi, Advocate

Hon. Emily Ominde, Commissioner/ Chief Magistrate

Prof. Margaret Kobia, PhD, Representative of Public Service Commission

Rev. (Dr.) Samuel Kobia, Public Representative

There is a vacancy left after the end of the term of Prof. Christine K.A. Mango which has not been filled by the President of the Republic of Kenya.

Sub-committees

In order to deliver on its mandate, the Commission and pursuant to Section 14 of Part III of the Judicial Service Act which provides for delegation of functions of the Commission to sub-committees, the Commission created five Committees for its day to day running as follows:

l Administration of Justice Committee chaired by Hon. Justice Aggrey Muchelule,

l Audit, Governance and Risk Management chaired by Commissioner Prof. Margret Kobia,

l Finance and Planning chaired by Commissioner Emily Ominde,

l Human Resource chaired by Justice Dr. Smokin Wanjala and

l Learning and Development Committee chaired by Commissioner Prof. Tom Ojienda.

The purpose for establishment of Committees is to create structures for articulating goals and strategic plans, define one particular function in detail, and pool specialized expertise and knowledge in a given subject. The formation of committees has divided the workload of the Commission and provided a mechanism for utilizing the talent and expertise of the Commissioners. In addition it promotes broader participation by all Commissioners; expedite the work of the Commission by removing routine tasks from scheduled Commission meetings.

Five year strategic plan for the JSC

To enable the Commission attain its strategic goals, the Commission is in the final process of unveiling its five year strategic plan. This is expected to assist the Commission in defining its

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purpose and policy direction, establish realistic goals and objectives, and offer a framework for implementation of activities as well as monitoring of progress. This is the first Strategic Plan since independence and therefore represents significant achievement and a new culture of planning in the Commission. Consequently, the plan lays a solid foundation for the realization of the Commission’s constitutional mandate. The Strategic plan will define the vision, mission and core values for the Commission.

Judicial Training Institute

Also in the final stages of its development is the Judicial Training Institute strategic plan. The training institute was established in 2008. It was outfitted to offer education and training to staff involved in the Administration of Justice. It offers training both to judicial staff and officers as well as to stakeholders in the justice sector.

The Institute draws from the Constitution of Kenya 2010 which mandates the Commission to ensure continuing education and training of judicial officers and other personnel. The Institute also seeks to enable the Judiciary to strengthen the growth of jurisprudence and judicial practice as the key player of the Judicial Transformation Framework. The Commission thus oversees the activities of the Institution.

The institute symbolizes the Commissions commitment to new and improved methods of service delivery and excellence in the application of law through research and more effective remedies. The Institute also determines the levels of instruction and certification as well as the faculty suitable for the courses. It has authority to hire the services of experts in various fields and to consult them.

Through the Learning and Development Committee, the Commission has been offering guidance to the institute. It is envisioned that the strategic plan shall cater for the challenges faced by the institute.

Appointment of judicial officers and staff

To ensure improved access to justice, the Commission has since its reconstitution in 2011 recruited and recommended for appointment a total of 119 judges, out of these, 105 have been appointed while 14 judges are awaiting appointment by the President as required by law. In addition, 149 resident magistrates were also appointed. To facilitate the work of the judicial officers, a further 137 legal researchers have been hired.

The JSC has also promoted 19 judicial officers from senior principal magistrates to Chief Magistrates; while 17 were upgraded from Principal Magistrates to Senior Principal Magistrates. Twenty senior resident magistrates have also been promoted to principal magistrates, while 59 moved up from resident magistrates to senior resident magistrates in December. Promotion interviews for the positions were held between July and December last year.

Also in the process is the appointment of 60 senior resident magistrates and six chief magistrates.

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The Commission in December 2014 also advertised positions of Director Human Resource and Administration, Director ICT, Director Supply Chain Management, director finance and the Deputy Chief Registrar.

The Commission has gone further to employ 17 7 judicial staff, appointed 22 tribunal members, appointed seven registrars and appointed 23 Kadhis. 268 judicial officers and 250 judicial staff from different courts stations in the county have also been promoted between the years 2011 and June 2014.

Court establishments and decentralization

A mechanism has been put in place that resulted to the establishment of the Supreme Court, decentralization of Court of Appeal to Kisumu, Nyeri and Malindi and established Industrial Court. The Commission is also in the final process of establishing International Organized Crimes Division (IOCD) a division of the High Court. Already the Commission has approved devolution programs of 13 new High Courts stations and reviewed terms and conditions of service for all staff cadres.

The Commission recently inaugurated a High Court in Garissa. Before the establishment of the High Court in Garissa, anyone who needed to file matters such as criminal appeals had to travel 328 kilometers to the nearest High Court in Embu. It was worse for those who had to travel from Wajir and Mandera due to inaccessible roads covering about 400 and 900 kilometers respectively to access a High Court judge.

Training and Staff development

The Judicial Training Institute has trained 130 judges, 450 Magistrates and Kadhis and 845 judiciary staff during the year 2013/2014. This is meant to ensure staff is equipped with the right knowledge and skills to assist in the administration of justice.

Several judiciary policies have also been approved by the Commission for implementation. They include the human resource manual, transport policy, policy on retirement of judges, Court of Appeal circuits, JSC Charter, Court of Appeal Transfer and the High Court and Magistrates Transfer.

To strengthen the legal framework, 30 Acts of Parliaments have been identified for amendments to enhance dispensation of justice. A further three areas of interest requiring drafting of bills have been identified to help clear backlog of cases. The bills identified are speedy trials Act, Mediation Act and Small Claims Court.

Stakeholder engagement

The Commission successfully undertook a retreat with the Parliamentary Departmental Committee on Justice and Legal Affairs. Areas of synergies identified and discussed during the retreat include budget implementation, operationalization of the Judiciary Fund and identification of areas of collaboration.

The Commission is planning a consultative stakeholder meeting to towards the Review of the Bench Book expected to be launched by April, 2015.

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Secretariat

The Commission has set up a fully functional Secretariat the following units: budget and planning, procurement, accounts, internal audit, administration, human resource management, education and training, legal Affairs, monitoring and evaluation, inspectorate and public affairs and communication.

7.6 The Auctioneers Licensing BoardThe Law Society of Kenya is represented in the Board by Mr. Henry Ongicho and Ms. Lilian Renee Omondi. The two representatives are mandated to provide legal advice and guidance to the Board as well as act as the Chairperson and Secretary whenever the need arises. The Board sits every other month for 5 days continuously when disciplinary cases are heard and determinations made. The Board is presently dealing with 2014/ 2015 complaints after finalisation of the backlog of disciplinary cases

The Board has ensured that the data pertaining to Auctioneers is up to date by compiling and publishing in the print media particulars of the persons who have been licensed to carry on the practice of Auctioneering. The Board engaged National Council for Law Reporting to assist in creating the Board’s website and develop content. A domain name has already been registered to enable the Board publicise its activities and information on the status of all the duly registered auctioneers.

The Board published Auctioneers handbook in collaboration with the National Council for Law Reporting.

Disciplinary and licensing matters handled in 2014

MONTH PERIOD NO. OF DAYS

JANUARY 20TH – 24TH 5 DAYS

MARCH 17TH – 21ST 5 DAYS

MAY 19TH – 23RD 5 DAYS

JULY 21ST – 25TH 5 DAYS

SEPTEMBER 15TH – 19TH 5 DAYS

NOVEMBER 17TH – 21ST 5 DAYS

In addition to the public forum held at Mombasa Law courts on 19th June, 2014, the Board conducted Training Workshops as follows:

i) 28th February, 2014 in Kakamega Golf Club Hotel.

ii) 25th April, 2014 in Nakuru Bontana Hotel.

iii) 20th June, 2014 in Mombasa Best Western Plus Creekside Hotel.

iv) 17th October, 2014 in Embu Izaak Walton Inn Hotel.

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8 Branch Reports

The Council undertook Branch and Sub-branch visits as follows:

l Coast: 13th June, 2014 Malindi and Mombasa

l North Rift: 4th July, 2014 Bungoma and Eldoret

l Rift Valley and West Kenya: 4th and 5th September, 2014-Nakuru, Kericho, Kisii, Kisumu, Kakamega

The Council intends to complete the visits to Mt. Kenya (Embu, Nyeri, Meru) and Machakos in the first quarter of the year 2015.

8.1 The North Rift Law Society The Branch Officials are:-

(i) David Rioba Omboto - Chairman

(ii) Charles Keter - Vice Chairman

(iii) Jonah Korir - Secretary

(iv) Martin Mulalu Wanyonyi - Ass. Secretary

(v) Loise Chemngeno Kamau - Treasurer

The branch Executive Committee of North Rift Chapter focused on the interest of the members and enhanced participation in terms of activities, attendances at all functions including the Bar-Bench meetings, Court Users Committee and Task Force forums.

In the year 2014 the Branch encouraged and enhanced Bar-Bench relationship that was made possible through a vibrant Bar-Bench Committee. The New Resident Judge Justice G. Kimondo is very passionate with the frequent Bar-Bench Committee meetings as the same fosters good working relationship between the Bar and the Bench among other judicial officers. All the Bar-Bench meetings have been attended positively and important issues are discussed like the backlog of cases, lack of enough personnel or judicial officials in our courts, the management of court diaries and professional misconduct amongst our members. In essence, the year 2014 has experienced tremendous improvement in the relationship between the Bar and the Bench. The issue of laziness, ineptness, corruption and high-handedness at certain quarters of the Bench has indeed improved.

8.1.1 Engagement with the County Government

The Branch executive committee has engaged itself in consultative meeting with the Uasin Gishu County Government e.g., Land Use Framework 2014 – 2017 as a basis to guide physical development and other relevant County and National legislations.

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The branch officials had other consultative meeting with the County Government on the devolution matters and the implementations within the County Government.

8.1.2 Public Interest Litigation

The Chairman of the North Rift actively participated in a petition filed in Eldoret High Court vide Petition Number 15 of 2014 challenging the Arbitrary, unfair and unlawful suspension of the sub-division and change of user of all the land in Uasin Gishu County. The petition was successful which led to the lifting of the suspension on all land subdivision.

The Chairman also participated in a criminal Petition filed in Eldoret High Court challenging the discrimination on consensual sexual act or relationship between a 16 year old girl and 16 year old boy where the minor boy is incriminated and charged for a sexual offence and the active girl is left scot-free.

8.1.3 Task Force Meetings

The Branch Executive and its members also participated in several task forces meetings forums rotating in the County gathering views on various areas under reforms and/or implementation e.g.

- Task force on Bond/Bail applications

- Task force on the formulation of legislation investigations and adjudication on complainants arising out of Historical Land injustices.

- Task force on sentencing and the principles on sentencing.

8.1.4 Legal Awareness Week

The members of the Branch fully observed and participated in the 2014 legal Aid Week from 27th to 31st October, 2014 whose theme was “Justice through Sustainable Legal Aid”. The public benefited on various aspects of the law and civic education.

8.1.5 Court User’s Committee

The Eldoret Court users Committee is a pivotal platform for all actions in the justice sector that seeks to improve the operations of the courts by streamlining the Administration of justice within the court’s jurisdiction.

The Committee is composed of the Judges, Magistrates, LSK – North Rift Branch executive officials, the prison department, probation department, County Government Department, Children Department, Peace and Women Link Department, Anti-corruption department, police / security department among others.

The Committee and the participation of our members has promoted dialogue and strengthened linkages among the stakeholders for effective delivery of justice.

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8.1.6 LSK International Arbitration Centre and Its Funding

The Branch executive has engaged the members towards the contribution and construction of the Centre however there has been negative and positive reactions from members. The chairman advised the members that he will arrange with the council to invite the project manager Mwanzoni Limited to visit the branch and highlight the breakdown on the project expenditure.

8.1.7 Pauper Briefs

The chairman has been encouraging members to take up pauper briefs and/or pro-bono matters and shall push for unpaid remuneration for the concluded matters.

8.2 The Mombasa Law Society The MLS has continually witnessed enhanced participation both in terms of financial support for activities and attendances at functions of the Society by its membership. MLS has functional Sub-committees for efficient service delivery to the membership and enhanced coordination of the Society’s activities. The MLS has membership at the Coast Region in excess of 600 paying an annual subscription fee of Kshs. 1,000/=.

The MLS undertook the activities and participated in functions as follows:-

8.2.1 The Mombasa Fraternity Initiative

The initiative was facilitated by the Young Lawyers Welfare Committee and the initiative targets both the young lawyers and the University of Nairobi, Mombasa Campus law students in a mentorship programme. Many a Senior Members have fully supported the initiative through regular attendance of sessions and funding.

8.2.2 Alternative Dispute Resolution

In collaboration with the Chartered Institute of Arbitrators, Kenyan Branch in the year 2014, MLS organized several tutorials for members in arbitration at various levels.

The MLS in collaboration with Mediation Training Institute facilitated mediation training for the members leading to the award of certificate of professional mediators from 3rd to 7th November, 2014 at the Nyali Beach Hotel.

The Council has aggressively lobbied for the setting up of a Chapter of the Chartered Institute of Arbitrators, London at Mombasa and is awaiting the decision of the Board of Trustees on the approval for the Chapter. An Interim Committee has been appointed by the Kenyan Branch of the Chartered Institute of Arbitrators led by Mr. Eric Nyongesa Wafula and comprises of various professionals including engineers and architects at the Coast Region. It is expected that the set-up of the Chapter shall provide the economically emerging Coast Region as a business hub with

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opportunities for quick and amicable determination of commercial disputes. The Chapter now has a membership exceeding 25 members.

8.2.3 Trial Advocacy Training

The Council in collaboration with the Justice Advocacy Africa (JAA) and the University of Nairobi, Mombasa Campus held a very successful trial advocacy training for faculty members on the 11th and 12th February, 2014. The faculty comprising of the locally trained teachers has steadily grown and this is within a clearly calculated plan to build capacity locally to manage future trial advocacy trainings with extremely restricted foreign experts with a view of cutting down on costs for running the programme. Trial advocacy training is scheduled for August, 2015.

8.2.4 The Mombasa Inn of Court

The Family Division of the High Court of Kenya at Mombasa has continued to spearhead the formation of the Inn of Court at Mombasa. There were several meetings of the Inn of Court held at Mombasa Club bringing together judicial officers, legal practitioners and law students from the University of Nairobi, Mombasa Campus. Deliberations have been on various topical legal issues under the guidance of Justice Mureithi and Hon. Ekhubi for the Judiciary on the one hand and Mr. Dalmas Omondi and Mrs. Mercy Ndeche on behalf of the Council on the other. The Chief Justice of the Republic of Kenya, Dr. Willy Mutunga who is the Patron of the Kenyan Inns of Court is expected to grace the official launch of the Mombasa Inn of Court in the year 2015.

8.2.5 The Court of Appeal

In pursuant to the resolution of the general membership of the MLS during the General Meeting held on the 5th day of February, 2013 at the Law Court Building, Mombasa the Council is pushing for the re-location of the seat of the Court of Appeal for the Coast Region from Malindi to Mombasa.

The Judicial Service Commission towards the end of 2013 approved the allocation of a sum of Kshs. 200,000/= towards the renovations of the old court of Appeal Building that is to host the Court of Appeal and the substantive Admiralty Division of the High Court of Kenya to be naturally relocated to Mombasa. The renovations of the old Court of Appeal building have since commenced following the award of tender and subsequent handover of the site to the contractors in November, 2014. The construction and/or renovations are expected to be completed sometimes in the month of May, 2015.

The matters emanating from the Mombasa Registry of the Court of Appeal have largely been heard and determined in Mombasa during the one week circuit each calendar month from November, 2013.

8.2.6 Engagement with the Land Registry

The MLS through the Conveyancing Committee has been regularly engaging the Mombasa Land Registry to address the various concerns of the members. A standing Liaison Committee

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set up on the 31st January, 2014 comprising of 3 Land Registrars, 2 Valuers and 5 Members of the Conveyancing Committee meets once a month to deliberate on the matters of concern and on improvement of service delivery at the land registry.

On the 19th November, 2014 the Conveyancing Committee had a very successful Legal Clinic at Mombasa Club to deliberate on the legal regulations relating to the implementation of Capital Gains Tax.

8.2.7 The Bar-Bench Engagements

The Branch has a vibrant Bar-Bench Committee with the Branch Chairman and the Mombasa Resident Judge as Co-convenors. The Committee meets at least once in every given term of the High Court of Kenya at Mombasa. All the Divisions of the High Court and the Sub-ordinate courts are represented with the MLS having six (6) members on the Committee. Mediation has been successfully employed severally to address any emerging personal conflicts between judicial officers and specific legal practitioners.

8.2.8 Visit by the Deputy Chief Justice

On the 24th day of March, 2014 the Deputy President of the Supreme Court and Deputy Chief Justice, Justice Kaplana Rawal held a meeting at the Mombasa High Court with Council Members, members of the Bar-Bench Committee, the presiding Judge of the Court of Appeal, Justice Hannah Okwengu and Resident Judge Maureen Odero to deliberate on matters affecting the delivery and administration of justice at the Mombasa Law Courts. A Memorandum was presented to the Deputy Chief Justice at the conclusion of the meeting.

8.2.9 Practice Matters

The Judiciary held a public lecture and discussion with the legal practitioners on the 12th June, 2014 at the Mombasa Law Courts. Justice Mary Kasango made presentations on the practical application of Order 11 of the Civil Procedure Rules while Justice Onesmus Makau presented on the Industrial Court Rules and Practice. The Resident Judge Justice Maureen Odero and Justice Stephen Radido of the then Industrial Court graced the occasion.

8.2.10 Luncheon for Judicial Officers

The MLS Council and the Civil Litigation Committee had a luncheon on the 5th day of August, 2014 with judicial officers serving in the civil division to deliberate on the various practice issues and challenges in the civil litigation in the Subordinate courts. A sub-committee was set up at the meeting comprising of 3 judicial officers and 3 legal practitioners to address the concerns raised with a view on improving service delivery in the civil division.

8.2.11 Awards to Judicial Officers

The MLS Council, in appreciation of the distinguished and exemplary performance of some of the judicial officers serving at the Mombasa Law Courts presented two (2) awards to the judicial officers on the 5th day of December, 2014 during the Grand Annual Cocktail at Mvita

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Tennis Club. It has become a tradition celebrate and honour judicial officers at the Coast who answer to the calling of service and perform with great distinction and exceptional dedication.

(i) Justice Mary Kasango was honoured and feted for distinguishing herself with exceptional and remarkable case management system and in efficient and expeditious dispensation of justice.

(ii) Honourable Everlyne Onzere, Resident Magistrate distinguished herself with efficient management of her court and expeditious dispensation of justice which has earned her the respect and admiration from the bar and senior members of the bench.

The outgoing and longest serving Resident Judge at Mombasa Justice Maureen Odero and Law Society of Kenya Council Member, Allen Gichuhi, graced the occasion.

Retreats with the Judiciary

On the 26th July, 2014 the Judiciary at Mombasa organized a stakeholders retreat on national security and human rights at Ngulia Lodge in Tsavo West Park. The Council of the Mombasa Law Society was invited and Mr. Wamuti Ndegwa, Advocate presented a paper during the retreat on the challenges and Constitutional issues relating to grant of bond in highly sensitive criminal cases touching on perceived threat to national security.

The current Council elected into office on the 24th day of October, 2014 are:

Eric Nyongesa Wafula – Chairman

Dalmas Omondi Ohungo – Vice Chairman

Benjamin Njoroge – Hon. Secretary General

Patricia Langat – Deputy Secretary

Charles Opulu – Treasurer

Christine Kipsang – Deputy Treasurer

Joseph K. Tarus – Member

Matthew Nyabena – Member

Jaqueline Waihenya Maina – Member

Lynette A. Oketch – Member

Heeral Kanabar – Member

Ex-Officio members of the Council: Grace Okumu – Coast Representative

Njoroge Simon – Rules Committee

The Trustees: Sammy O. Anyanzwa

Elizabeth W. Munyari

Jayant Shah

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8.2.12 The Annual General Meeting

The MLS held its Annual General Meeting on the 5th day of December, 2014 at Mvita Tennis Club and during the occasion the financial audit report for the year 2014 was presented to the membership for the necessary deliberations and approval.

8.3 The Rift Valley Law Society

8.3.1 Annual General meeting

On the 12th April 2014 the Rift Valley Law Society (RVLS) had its Annual General Meeting and the following members were elected:

David Mongeri – Chairperson

Anne Karimi – Vice Chairperson

Mary Wanjiru – Hon. Secretary

Henry Okeke – Hon. Treasurer

Moffat Ondande – Council Member

Leina Morintat – Council Member

Catherine Kitili – Council Member

Charles Kairu – Council Member

Said Ilham – Council Member

Rahab Mureithi – Council Member

At its first meeting held on 16th April, 2014, the council laid out the following as the issues to be tackled in the course of the year: Practice matters, including court starting time, issuance of appropriate notices when judicial officers are to be absent, signing of summons, court orders and decrees, allocation of deputy registrars and handling of matters filed under certificates of urgency; the justice for children project: trustees and long term sustainability ; acquiring a secretariat for the society; Bar-Bench meetings; the Rift Valley Law Society Welfare Association and committees of the council.

8.3.2 Practice Matters

The council had made it clear on the day of its election that it would give practice issues top priority. In this regard, the council facilitated and fully participated in the prosecution of a Mr. Koech, who was an unqualified person practicing as an advocate in Nakuru. Although the said gentleman had initially pleaded not guilty to the charges, he subsequently changed his plea during mention of the case and was fined for the offence. He paid the fine and immediately left Nakuru, and he has not been seen attempting to practice before the courts again. The council constantly monitors the situation and no obvious cases of quack advocates have since come to light.

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The council also held a number of Bar-Bench meetings to deal with pertinent issues. The first of such meetings was with all Nakuru based magistrates on 22nd May, 2014. The issues discussed included the chief Magistrate’s civil registry; deputy registrars; signing of orders and decrees; court 3; issuance of notices when court not sitting; bailing and bond terms, as well as quacks and advocates without practicing certificates.

The council next held a meeting with prosecutors and state counsel on 25th June, 2014. The meeting generally dealt with the challenges facing prosecutors such as inadequate numbers, quarrelsome courts as well as bond approvals in their absence. Also discussed was the common problem of prosecutors being unable to proceed with cases due to failure of the police to deliver the relevant files to them.

The next Bar-Bench meeting took place on 30th July, 2014. In attendance were Justices Anyara Emukule, Roselyn Wendoh and Hellen Omondi, together with six (6) members of the society’s practice committee. The issues discussed include the gazette rules for the Environment and Land Court; complaints by the society’s members on the conduct of High Court 4 (Lady Justice A. Mshila) and subordinate court 9 (Madam Rita Amwayi, RM) as well as the procedures to be observed in succession matters. The Land Court judge was however absent since she was sitting in Kericho.

The council had an impromptu meeting with the Honourable Mr. Justice Sila Munyao on 18th November, 2014. This was basically an introductory meeting for the benefit of the Judge who had just been transferred to the station. The twin issues discussed were the Judge’s modus operandi and case management. The learned Judge informed the council that he would be away on annual leave during the month of December, 2014. He further informed the council that he conducts court hearing between Mondays and Thursday but leaves Fridays free for writing his rulings and judgments. After robust discussions and negotiation, it was agreed that the judge would have listed per day six (6) mentions, four(4) applications and two(2) hearings to assist in case management.

The final Bar-Bench meeting for the year was held on 1st December, 2014, and it was dedicated to welcoming all the Judges who had been recently posted to the station i.e. Lady Justice Maureen Odero, the new Resident Judge; Mr. Justice Stephen Radido of the Industrial Court as well as Lady Justice Janet Mulwa. Mr. Justice Sila Munyao had already proceeded on annual leave. The outgoing Resident Judge, the Hon. Mr. Justice M.J. Anyara Emukule, presided over the function. Virtually all members of the society, together with representatives of various government departments, were in attendance.

8.3.3 Meeting with the Chief Justice

The Branch officials met with the Hon. Chief Justice and the President of the Supreme Court of Kenya, His Lordship Dr. Justice Willy M. Mutunga, on 5th and 12th September, 2014, respectively, in his boardroom at the Supreme Court Building in Nairobi. Besides general practice issues, the meetings dealt with grievances that members of the Society had raised concerning the honourable Lady Justice A. Mshila. The dispute was ultimately resolved internally and amicably after more subsequent meetings in Nakuru.

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8.3.4 New Secretariat for the Society

At the time the Branch officials came into office, the society had no offices, and the council held several of its initial meetings at a local hotel. Acquiring a new secretariat was thus a top priority for the council. By July, 2014, the council had secured new premises in Samoei estate, next to Crater SDA Church, Nyeri road, Nakuru, and signed a long term lease therefore. The entire council of the Law Society of Kenya was in attendance when the premises were officially opened by the Law Society of Kenya President, Mr. Eric K. Mutua, on 4th September, 2014.

8.3.5 Justice for children Project

In spite of strenuous efforts, the council was not able to secure sponsorship for the project to replace Newcastle Law Society who were unable to continue providing funding. The council found it quite challenging running both the project and the new secretariat from its meager resources.

The foregoing challenges notwithstanding, the council was able to organize a medico-legal camp for the benefit of the children at the grounds of the project’s offices in Bondeni, Nakuru. The event, organized in conjunction with the local Medical Doctors Association and the Nakuru County Government, was held on 22nd November, 2014. More than 200 children benefited from free medical and legal services.

8.3.6 LSK Annual Legal Awareness Week

The Branch officials, in conjunction with the Law Society of Kenya and NALEAP, organized and fully participated in the 2014 Law Society of Kenya Legal Awareness Week that was observed between 27th and 31st October, 2014 within the precincts of the Nakuru Law Courts. One (1) CPD point was available for members who participated fully. The exercise was highly successful.

8.3.7 Social Activities

All work and no play would make all of us highly irascible. To forestall such an unfortunate eventuality, the branch officials arranged for members’ fun day on 17th May, 2014 at the Nakuru Athletics Club, where CFC Life and Barclays Bank supported, end of year carol service at the society’s secretariat on 5th December, 2014, as well as end of tea party at the same venue on 11th December, 2014. Availability of resources permitting, the branch intends to hold even more of such activities in the year 2015.

8.4 The Mount Kenya Law Society

8.4.1 The Branch officials

Until 25th October, 2014 the Branch Officials were:

Gatari Ringera - Chairman

Joe Kathungu - Vice Chairman

Rosemary Nderitu - Secretary

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Gilbert Ombachi - Vice Secretary

Kaberia Arimba - Treasurer

Muthui Kimani-Committee member - Nyeri

Linda Kiome “ - Meru

Amos Chweya “ - Nanyuki

Rose Muthike “ - Kerugoya

John Gacheru “ - Murang’a

Njeru Ithiga “ - Embu

8.4.2 Court establishment

The Branch officials have been instrumental in fighting for adequate staffing of the court stations in the region and we are proud to note that staffing levels for magistrate’s courts in Embu, Kerugoya, Muranga, Chuka, Nanyuki, Nyeri, Nkubu, Maua, Isiolo, Tigania and other outlying stations are adequate. However there are challenges in stations such as Meru and the council is attending to the same.

Environment and Land Judge was posted to Embu station thereby saving members and litigants the time and resources of filing and prosecuting or defending land matters in Kerugoya law courts.

Tenders for construction of a new court building at the Embu law courts have been floated and the building will be put up soon. The Judiciary is making arrangements for the construction and establishment of a High Court station in Nanyuki after setting aside land for the purpose.

A number of High Court stations were affected by recent reshuffle of Judges in all sections. Members in Nyeri are encountering challenges in civil and succession cases before the High Court. Backlog of cases before the Meru Land Court is also being addressed.

8.4.3 Continuing Professional Development

The branch has participated in the organization of CPD sessions within our region to enable members earn enough points without having to move unnecessarily out of the region. However, members are also encouraged to interact with members in other regions, to learn from each on practice matters

8.4.4 Justice Cup Tournament

The Mt. Kenya LSK Football Club was ably led by the Mr. Gilbert Ombachi as the Team Manager and Mr. David Njoroge as the Team Captain. The players were drawn from across Mt. Kenya Region hence giving the team the face of Mt. Kenya. The team managed to proceed to the knock out stage.

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8.4.5 Practicing Certificates

Cases of members practicing without valid certificates are rampant. Members have been reminded of their obligation to obtain practicing certificates within the period spelt out in the Advocates Act in order to eradicate the menace.

8.4.6 Disciplinary Matters

The Branch is encouraging the policy of solving disputes between members and clients at the local level. In the past year we received several complaints and attempts to settle the same were made. However, in a number of instances members were un-co-operative leaving no option other than directing the complaints to the appropriate forum.

8.4.6 Legal Awareness

The branch organised its legal awareness week in the respective Bar stations for the year, with a good participants turn out, both from the advocates and the public as well.

8.4.7 Additional Courts and Court Stations

The region is in need of additional Judges especially in Meru, Nyeri, Embu and Kerugoya Stations.

There is also dire need for establishment for courts in Chogoria, Timau, Doldol & Naromoru as cases arising from these stations are being filed either in Nyeri, Embu or other main stations.

There is only one industrial court in the region sitting in Nyeri and continue to urge the Judiciary to establish similar courts in, Meru, Embu and Kerugoya, stations.

8.4.8 Annual General Meeting

The Society held its Annual General Meeting on 25/10/14. Accounts were read to the members during the meeting and were endorsed.

Elections were conducted and the following members were elected to office.

(i) Chairman (Nanyuki) - Gilbert Ombachi

(ii) Vice-Chairman (Embu) - Joe Kathungu

(iii) Secretary (Embu) - Njeru Ithiga

(iv) Vice-Secretary (Meru) - Lindah Kiome

(v) Treasurer (Nyeri) - George M. Gori

Council Members:Meru - Stephen K. Akwalu

Nanyuki - Amos Chweya

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Nyeri - J. Kabira Kioni

Kerugoya - Rose Muthike

Embu - David N. Njoroge

Muranga - John M. Gacheru

Thika - Ishmael Nguring’a

8.5 The West Kenya Law Society 1. The Branch officials West Kenya Law Society (WKLS) are:

2. Richard Bush Obwocha Onsongo – Chairman

3. Annette Malasi -Vice Chair

4. Zablon Atulo –Secretary

5. Francis Rayola Olel, -Treasurer

6. Caroline Njalale-Deputy Secretary

8.5.1 Visit on Sub-Branches and Disbursing Allocations

The Branch officials made visits to the respective sub-branches and met the members and disbursed Kshs.100,000 to each sub-branch out of the grant received by the branch.

8.5.2 Workshop on Juvenile Justice System

The WKLS was invited and participated in the workshop from 21st -23rd May, 2014 which culminated in the signing of a partnership agreement with the representatives of the Oslo Centre and MOU with other Stakeholders. There were two other follow up meetings.

8.5.3 Sit-In on Account of Environment and Land Court

Kakamega sub-branch held a protest and boycotted court prompting the Chief Justice to visit the station and avail a Judge in the Environment and Land Court which is now running.

8.5.4 Legal Awareness Week

Each of the sub-branches held the Legal Awareness Week in their respective headquarters for total of three (3) days where free legal aid/advice was given.

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9 Conference and Events

9.1 Law Society of Kenya Annual Conference held on 14th to 16th

August, 2013 at Leisure Lodge Beach & Golf Resort, MombasaThe Law Society of Kenya Conference was held under the theme “The Spirit of the Law: Constitutional Tension between the Three Arms of the Government” with the following streams:

l Stream ‘A’ -Constitutional Tension between the three Arms of the Government, Justice and Security

l Stream ‘B’- Extractive Sector Analysis and Policy engagement In Kenya

The Conference was attended by over 600 lawyers who were treated to a Welcome Reception on 15th August, 2012. The Conference was officially opened by Leader of Majority in the National Assembly Hon. Aden Duale and was addressed by Hon. Justice Dr. Willy Mutunga, SC, Hon. Sen. Amos Wako,SC, H.E. Salim Mvurya, Governor of Kwale County and Hon. Martha Karua.

Leader of Majority in the National Assembly Hon. Aden Duale during the opening of the Annual Conference at the Leisure Lodge Beach Resort, Kwale

County

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Below is a list of presentations and speakers during the conference:

i. Making and Breaking the Law: Justice in the wake of disobedience and judicial Orders-Dr. Gibson Kamau Kuria, SC,

ii. Judicial Innovation or Schizophrenia? A Survey of Emerging Kenyan Jurisprudence -Prof. PLO Lumumba,

iii. Legal and Policy Dilemma in the Fight against Terrorism: The Bail Question in Terrorism Cases in Kenya-Elisha Ongoya,

iv. Making and Breaking the Law: Justice in the wake of Disobedience and Judicial Cowardice -Hon. Justice Prof. James Otieno Aggrey Odek,

v. Resolving Intergovernmental Disputes through Sectoral Forums for Intergovernmental Relations-Peter Wanyama

vi Separation of Powers and its Application in Governing the Extractive Sector in Kenya-Benson Owuor Ochieng

vii Status of extractive industry in Kenya-The Role of the Civil Society -Mary Kimotho Mukindia

viii. Comparative Analysis of Benefit Sharing Arrangements in Extractive Sector: Lessons for Kenya-Dr. Collins Odote

ix. The Legal Regimes Governing Oil, Gas, and Minerals Investments in Developing Countries: A Closer Look at the Mining Development Agreements (MDAs) and Petroleum Production Sharing Agreements (PSAs)-Dr. Rugemeleza Nshala

x. Emerging Oil and Gas Trends: Investment Outlook for Kenya- Sumayya Hassan – Athmani

9.2 19th East Africa Law Society Annual Conference and General Meeting held on 14th & 15th November, 2014 at the Kigali Serena Hotel, RwandaThe EALS Annual Conference and AGM were held on 14th & 15th November, 2014 at the Kigali Serena Hotel, Rwanda under the theme “Advancing the Legal Profession in East Africa: Trends and Patterns.” The Law Society of Kenya assisted in making accommodation and travel arrangements for members who attended the event.

The Conference aim was to enhance the knowledge and capacity of lawyers in analyzing the prevailing economic and legal developments within the East African region, and how the legal profession can leverage and positively influence them for the greater public good. The Conference was followed by the Annual General Meeting. One hundred and sixty one members (161) from LSK alone attended.

Prof. Sam Rugege-Chief Justice & President of Rwanda’s Supreme Court officially opened the Conference and general meeting on the behalf of H.E President Paul Kagame.

The Judge President of the East African Court of Justice, Hon. Dr. Emmanuel Ugirashebuja delivered the keynote address. He called for legal practitioners to position themselves to take

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advantage of the emerging trends and patterns in legal practice, citing the advent of novel practice areas like oil and gas among others and the growth of the importance of technology in legal practice while Dr. Ugirashebuja challenged the regional lawyers’ body to be at the forefront of empowering lawyers within the region through innovative measures of delivering legal education. He noted that the reduction in time available for legal research as well as the ever increasing number of law graduates made it imperative for lawyers to raise their level of competitiveness if they are to survive.

The conference that drew over 600 lawyers from across the region and beyond also featured highly interactive discussions on issues such as cross border legal practice, the place of alternative dispute litigation in the practice of law; what law societies should be doing for their members as well as a session focussed on sharing experiences on how to run successful law practices. Members were also treated to a sumptuous gala dinner at the end of the conference which provided an opportunity for delegates to unwind.

The AGM itself which ushered in a new EALS Executive Council as follows:

Mr. Nassor Khamis Mohamed - President (Zanzibar)

Mr. Dieudonne Bashirahishize - Vice President - Regional Integration (Burundi)

Mr. Francis Stolla-Vice President - Strategic Litigation (Tanganyika)

Ms. Goretti K. Gahongerwa - Treasurer (Rwanda)

Mr. Godfrey Kitiwa - Secretary General (Kenya)

Ms. Aisha Naiga Kiwola - Deputy SG (Uganda)

Mr. Aloys Bahebe - Deputy SG (Burundi)

Mr. Charles Onyango - Deputy Treasurer (Kenya)

Mr. Isaac Bakayana - Deputy Treasurer (Uganda)

PRESIDENTSMr. Charles Rwechungura - Tanganyika Law Society

Mr. Gabriel Sinarinzi - Burundi Bar Association

Mr. Athanase Rutabingwa - Kigali Bar Association

Mrs. Ruth Sebatindira - Uganda Law Society

Mr. Eric Mutua - Law Society of Kenya

Mr. Awadh Ali Said - Zanzibar Law Society

Mr. Albert Msando - Resident Council Member

COUNCILMs. Harriet Grace Magala - (Uganda)

Mr. Moise Nkundabarashi - (Rwanda)

Ms. Harriet Igonanga Chiggai - (Kenya)

Mr. Omar Said Shaban - (Zanzibar)

Ms. Fatima Jumaine - (Burundi)

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9.3 The Law Society of Kenya Justice Cup TournamentThe 16th Law Society of Kenya Justice Cup Tournament was held on Saturday, 26th July, 2014 at the Parklands Sports Club, Nairobi. The theme for the tournament was “Security, Rights and Justice.” The event was part-sponsored by Chase Bank, Bank of Africa, AAR and Helinas Safaris. The occasion was graced the Chief Registrar of the Judiciary Ms. Ann Amandi who was the Chief Guest, Senator Ms. Judith Sijeny, Mr. Otiende Amolo, Ombudsman and Mr. Duncan Okello Chief of Staff of the Judiciary.

The following 40 teams participated:

1. Amolo Gacoka & Co. Advocates2. Anjarwall & Khanna Advocate3. Chase Bank4. Commission on Administrative Justice5. Coulson Harney Advocates6. Daly & Figgis Advocate7. Director Public Prosecution8. Hamilton Harrison & Mathews9. Igeria & Ngugi Advocates10. Iseme Kamau & Maema Advocates11. Kaplan & Stratton Advocates12. Kenya Industrial Property Institute13. Kenya School of Law14. Kituo Cha Sheria15. KTK Advocates16. LSK- Kisumu Branch17. LSK- Mt Kenya18. LSK-North Rift19. LSK Sacco Ltd - Team A20. LSK Sacco Ltd - Team B

21. Mohamed Madhani & Co Advocates22. Muriu Mungai & Company Advocates23. Musyimi & Company Advocates24. Muthaura Mugambi Ayugi & Njonjo Advocate25. Mwadumbo Amol Ngome Advocates26. Njoroge Regeru & Co27. Omwancha Mukiri & Onyango Adv28. Rachier Amollo Advocates29. Sichangi & Co Advocates30. Simba & Simba Advocates31. The Senate Justice Cup32. Tom Ojienda & Associates33. Wamae & Allen Adv.34. Waweru Gatonye & Advocates35. Young Lawyers Association36. Mombasa Law Society37. International Commission of Jurists38. Kenya Law39. Chase Bank (B)40. Law Society of Kenya

The winners in various categories were as shown in the table below:

CATEGORY TEAM/PLAYERWinner – MAIN CUP Igeria & Ngugi Advocates

1st Runners – UP Mwadumbo Amol & Ngome Co. Advocates

2nd Runners – UP Muthaura Mugambi Ayugi & Njonjo AdvocatesLSK Justice Plate Kenya LawLSK Justice Bowl Sichangi AdvocatesReferees 6 refereesBest Male player Mr. Collins Daniel-Mwadumbo, Amol and Ngome AdvocatesBest Female player Vivian Akinyi-Kenya Law

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9.4 The Legal Aid Awareness Week The Legal Aid Awareness Week took place from 27th – 31st October, 2014 at the Law Society of Kenya New Milimani Law Courts Parking Yard. The event was held under the theme: “Justice through Sustainable Legal Aid”. It was officially launched on Monday, 27th October, 2014 by the Honourable Justice Dr. Willy M. Mutunga, Chief Justice / President of the Supreme Court of Kenya.

The objective of the Legal Awareness Week was to promote the mandate of the Law Society of Kenya by extending legal aid and awareness to members of the public. The public was advised on various aspects of the law and actions required on individual cases. The Law Society of Kenya Branches also observed the week by coordinating various activities at branch level. Several organizations involved in legal work were given a chance to show-case their services with a view to promoting a better understanding, by the public, of the role of lawyers in the administration of justice. Several members participated giving legal aid.

9.5 The Law Society of Kenya Annual Cocktail The Annual Cocktail was held at the Intercontinental Hotel on Wednesday 11th December, 2014. The Chief Guest was Hon. Justice Richard Mwongo, Principal Judge of the High Court of Kenya. The occasion was also attended by His Excellency the USA Ambassador Robert F. Godec amongst others. The President of the Law Society of Kenya gave highlights of key events and achievements by the legal profession in the year 2014 and thanked members for their support during the year.

USA Envoy H.E. Robert Godec and LSK Secretary/CEO Mr. Apollo Mboya, HSC during the Annual Cocktail at the Intercontinental Hotel, Nairobi

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10 Engagement with Partners

10.1 Departmental Committees of Parliament The Law Society of Kenya actively engaged with various departmental Committees of parliament on various legislations and delivered memoranda on the following:

a) The Law Society of Kenya Billb) The Security Law (Amendment) Bill c) The Insurance Motor Vehicle (Third Party Risks)Amendment Act d) The East Africa Cross Border Legal Practice Bill, 2014e) Statute Law Miscellaneous (Amendments) Bill, 2014

The Law Society jointly with the Senate Committee on Legal Affairs and Human Rights started off a consultative process of identifying and reviewing all pieces of legislations that may be in conflict with the Constitution.

In addition the Law Society of Kenya participated in other meetings on various legislations as follows:

l Workshop organised by The Ministry of Labour, Social Security and Services to Build Consensus on Draft Labour Institutions Bill, 2014 and Labour Relations Bill, 2014, Machakos University College on 7th -10th April, 2014

l Validation workshop on Labour Institutions Bill and Labour Relations Bill, 2014, Kenya School of Monetary Studies, 17th June, 2014

l The Kenya Law Reform Commission Committee on the Companies Bill and the Insolvency Bill, 2014

10.2 Planned ParenthoodThe Law Society held a breakfast meeting on 30th July, 2014 at Sarova Stanley Hotel, Nairobi with different stakeholders in the sexual and reproductive health sector including legislators, doctors and lawyers with an aim to input the Draft Reproductive Health Care Bill, 2014. The meeting sought to forge a strategic way to improve the Bill and ultimately have the law on reproductive health enacted in Kenya and thus reduce maternal motility through unsafe abortions in Kenya.

Over 200 advocates were trained in the various LSK Branches of Kisumu, Eldoret, Nakuru, Mombasa and in Nairobi on how to litigate Social Economic Rights under Article 43(1) (a) of the Constitution of Kenya and awareness on the Reproductive Health and Rights. The aim was to encourage lawyers to litigate for the actualization of the Right to the highest attainable standard of reproductive healthcare as envisaged in the Constitution.

The Gender Committee also held training for its members to sensitize them on the Reproductive Health Care Bill, 2014 and encourage them to take the lead in advocating for the reproductive health care and the setting up of proper structures and policies.

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A mentorship forum for young advocates was held to encourage them in steering their career at an early stage. They were made aware of the existence of the Reproductive Health Rights Alliance (RHRA) and encouraged to specialize in preferred areas of law such as in the medico-legal field.

10.3 Amnesty International Kenya Chapter In an effort to mainstream best practices in legal representation and celebrating pro bono services by lawyers, Amnesty International Kenya Chapter in conjunction with the Law Society of Kenya for the second year facilitated an Award for pro bono lawyers for their contribution in Socio-Economic and Cultural Rights cases. Ms. Irene Ndegwa was awarded the Economic, Social and Cultural (ECOSOC) Rights pro bono Lawyer of the year 2014. The award ceremony was held at the Hilton Hotel on 10th December, 2014 to coincide with the International Human Rights Day.

Mr. Colbert Ojiambo, Advocate and Hon. Byram Ongaya, Resident Magistrate were acknowledged for their contribution towards the advancement of (ECOSOC) Rights.

10.4 Commission on Implementation of the Constitution The Law Society of Kenya engaged the Commission on Implementation of the Constitution as follows:

l Stakeholders forum on the Division of Revenue and County Allocation of Revenue Bills, 2014, Stanley Hotel,18th February, 2014

l Consultative Meeting on the Draft Small Claims Courts Bill, 2014, Commission’s Boardroom, 7th March, 2014

l Stakeholders’ forum on the Prevention and Control of Marine Pollution Bill, 2014, Utali Hotel, Nairobi, 25th November, 2014.

l Stakeholders forum on the Employment (Amendment) Bill, 2015

10.5 The Canadian Bar Association The Law Society of Kenya continued its partnership with the Canadian Bar Association through the Strengthening Access to Justice for children and youth in East Africa (SAJCEA) Program. The program brings together Uganda Law Society, Tanganyika Law Society, Law Society of Kenya, Zanzibar Law Society and East Africa Law Society to share and exchange information relating to children rights in East Africa.

Law Society is also currently hosting the Regional Office which plays a pivotal role in overseeing the programs run in the three countries. The Bar Associations and Justice Sector stakeholders from East Africa held the second annual SAJCEA Regional Conference in Tanzania from Monday November 3rd, 2014 to Friday November 7th, 2014. The Conference provided an opportunity to share experiences and build understanding of the needs and challenges in executing the project.

Through the program the Law Society in collaboration with stakeholders is offering legal aid at the Nairobi Children’s Court and offering mediation services to facilitate expeditious disposal of children’s cases.

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11 Publications of The Law Society

11.1 Newsletters The weekly newsletters were circulated to members with various information including council decisions, landmark court rulings, seminars, applications for notary and commissioners of oath, trainings, vacancies, notices by advocates, legislations and job advertisements.

11.2 Advocate’s MagazineThe Council made a resolution to revamp The Advocate’s magazine to a more appealing publication with commentaries, opinions, analysis, news and feature articles complete with glossy and colourful pictures. The magazine provides an opportunity for members with a flair for writing and also an alternative to the LSK Journal. Two editions of magazine were published in August and November last year (2014). The pages of the magazine increased from the initial 32 to 54 following an increase in the number of articles submitted for publications by members. In the year 2015, the intention is to publish the magazine quarterly and increase circulation to members. The Advocate’s Magazine mainly relies on advertisers to fund its publication. The advertising rates for law firms are subsidized.

11.3 The Law Society of Kenya Journal The Law Society of Kenya produced one (1) Volume of the journal instead of the envisaged two as in the year 2013. This was occasioned by very few members forwarding articles meeting the standards as set out in the Editorial Policy for publications in the journals. Volume 10(1) (2014) edition comprised of the following articles:

a) The Democracy of Taxation and Public Finance Management in Kenya: A Surgical Assessment of Chapter Twelve of the Constitution, 2010 – Joseph Lutta Shiundu

b) Human Rights and Forced Evictions in Kenya: Balancing Competing Interests – Dr. Winifred Kamau

c) Devolution and Education Law and Policy in Kenya – Prof. Ben Sihanya

d) Legal Treatment of Consent in Sexual Offences in Kenya – Godfrey Nathan Kitiwa

e) Constitutional Burden vis-à-vis Perceived bias In The Supreme Court of Kenya; The Rai decision and the future of Judicial Recusal – Collins Odongo

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List of Deceased Advocates

12.1 Departed MembersThe following members departed since the last Annual General Meeting:

NO ADVOCATE’S NAME DATE OF DEATH CITY/TOWN

1 Irene Wangari Gatitu 18th April,2014 Nyeri

2 Mildred Eseri Munyasa 12th May,2014 Nairobi

3 Francis Kariunga Kirubua 21st May, 2014 Meru

4 Stephen Ndichu Karago 24th May,2014 Thika

5 Kenzi Munyao 17th June, 2014 Mombasa

6 James Masai Wafula 26th June, 2014 Bungoma

7 Nelly Adhiambo Ojoo 1st July,2014 New York

8 Samuel Ochieng Atonga 11th July,2014 Kisumu

9 Henry Githinji Karuri 18th July,2014 Embu

10 Jennifer Thuita 21st July, 2014 Muranga

11 Washington Odongo Nyakongo 30th July,2014 Kisii

12 Daniel Mulowa Ochieng 2nd August,2014 Nairobi

13 James Kibicho Kareu 5th August, 2014 Nairobi

14 Caroline Kerage Nyanchoka 7th August, 2014 Meru

15 Collins Ogola Okoth 9th August,2014 Nairobi

16 James Opiata Odindo 15th August,2014 Nairobi

17 Nancy Wangari Patricia Mulehi 2nd September,2014 Nairobi

18 Dishon Mwiti Murungi 24th September, 2014 Nairobi

19 Cyrus Onserio Minda 8th October,2014 Kisii

20 Dennis Muyembe Ajevi 9th October, 2014 Meru

21 Eric Oluoch Ogwang 11th October, 2014 Nairobi

22 Bernard Kamau Muthee 14th October, 2014 Nairobi

23 Jeremiah Mboya Mboya 31st October, 2014 Mombasa

24 Geoffrey Harun M. Kamonde 16th November, 2014 Nairobi

12

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NO ADVOCATE’S NAME DATE OF DEATH CITY/TOWN

25 Gerald Otieno Kajwang 18th November, 2014 Nairobi

26 Paul Magu Muhiu 25th November, 2014 Nairobi

27 Charles Muthusi Kioko 27th November, 2014 Nairobi

28 Joyce Khaminwa 1st December, 2014 Nairobi

29 Japeth Shamalla 2nd December, 2014 Nairobi

30 Linda Wanjiku Irungu 12th December, 2014 Nairobi

31 Ambrose Mwangi Kimani 21st December, 2014 Nairobi

32 Erastus Oruru Ouma 16th January, 2015 Nairobi

33 Edween Chemweno Kimutai 16th January, 2015 Nairobi

34 Peter Mugo Mimano 28th January, 2015 Nairobi

35 Daniel Mbugua Ndung’u 31st January,2015 Nairobi

36 Charles Muriiithi 2nd February, 2015 Nairobi

37 Job Kiplagat Kurgat 4th February, 2015 Nakuru

The Law Society of KenyaANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2014

CONTENTS PAGE

Society information 66 Report of the Council Members 67 Statement of Council members’ responsibilities 68 Report of the independent auditor 69 Financial statements: Statement of income and expenditure and other comprehensive income 70 Statementoffinancialposition 71 Statement of changes in members’ funds 72 Statementofcashflows 73 Notes 74 - 88 Thefollowingpagesdonotformanintegralpartofthesefinancialstatements

Expenditure 89-91

Appendix1 92-93

Appendix 2 94

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The Law Societ y of KenyaANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2014

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Society Information

COUNCIL MEMBERS : Mr. Eric Mutua - president

: Ms. Lilian Renee Omondi - Vice president

: Ms. Grace Akinyi Okumu - Coast Representative

: Mr.GodfreyNathanKitiwa-Up-countryRepresentative

: Ms. Caroline Khasoa Wanyonyi - Up-Country Representative

: Ms. Gertrude Nyausi Angote

: Mr. Eric Njeru Theuri

: Mr. Ben Dennis Mosota

: Mr.JamesAggreyMwamu

: Ms. Jennifer Mary Shamalla

: Mr. Alan Kibet Kosgey

: Mr. Allen Waiyaki Gichuhi

SOCIETY SECRETARY AND CHIEF OFFICER : Apollo Mboya

REGISTEREDOFFICE : LawSocietyofKenyaOffice : Lavington opp. Valley Arcade : Off Gitanga Road : NAIROBI

INDEPENDENT AUDITOR : PKF Kenya : CertifiedPublicAccountants : P.O.Box14077,00800 : NAIROBI

PRINCIPAL BANKERS : Standard Chartered Bank Kenya Limited : Harambee Avenue : P.O.Box20063,00200 : NAIROBI

: Barclays Bank of Kenya Limited : QueenswayHouse : P.O.Box30011,00100 : NAIROBI


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The Law Societ y of KenyaANNUAL REPORT AND FINANCIAL STATEMENTS


Report of The Council Members Thecouncilmemberssubmittheirreportandtheauditedfinancialstatementsfortheyearended31December2014,whichdisclosethestateofaffairsofthesociety. PrinciPal activities

TheLawSocietyofKenya is registeredunder theLawSocietyAct,Chapter18,LawsofKenya. Itsobjectives are:

a) to maintain and improve the standards of conduct and learning of the legal profession in Kenya;

b) tofacilitatetheacquisitionoflegalknowledgebymembersofthelegalprofessionandothers;

c) to assist the government and the courts in all matters affecting legislation administration and practiceoflawinKenya;

d) torepresent,protectandassistmembersofthelegalprofessioninKenyainrespectofconditionsofpracticeoflawinKenya;

e) toprotectandassistthepublicinKenyainallmatterstouching,auxiliaryorincidentaltothelaw. results

2014 2013 Shs Shs

Surplus for the year 22,948,521 19,742,009 council MeMbers

Thecouncilmemberswhoheldofficeduringtheyearareshownonpage1. Paragraph 13 of the LawSociety of KenyaAct provides that all councilmembers shall be electedbienniallybythemembersofthesocietyandtakeofficeimmediatelyaftertheordinarygeneralmeeting.Accordingly,allcouncilmembersretireatthesecondordinarygeneralmeetingandareeligibleforre-election save for the president. indePendent auditor

Thesociety’sauditor,PKFKenya,hasindicatedwillingnesstocontinueinoffice. BY ORDER OF THE COUNCIL

SECRETARY NAIROBI

2015 16th February,


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Statement of The Council Members’ ResponsibilitiesTheLawSocietyofKenyaActrequiresthecouncilmemberstopreparefinancialstatementswhichgiveatrueandfairviewofthestateofaffairsofthesocietyasattheendofthefinancialyearandoftheresults for that year. It also requires the council members to ensure that the society maintains proper accountingrecordswhichdisclosewithreasonableaccuracy,thefinancialpositionofthesociety.Thecouncil members are also responsible for safeguarding the assets of the society. Thecouncilmembersacceptresponsibilityforthepreparationandfairpresentationoffinancialstatementsthatarefreefrommaterialmisstatementwhetherduetofraudorerror.Theyalsoacceptresponsibility for:

i) designing, implementing andmaintaining internal control relevant to the preparation and fairpresentationofthefinancialstatements;

ii) selecting and applying appropriate accounting policies; and

iii) making accounting estimates and judgements that are reasonable in the circumstances.

Thecouncilmembersareoftheopinionthatthefinancialstatementsgiveatrueandfairviewofthestateofthefinancialaffairsofthesocietyasat31December2014andofitsfinancialperformanceandcashflowsfortheyearthenendedinaccordancewiththeInternationalFinancialReportingStandardandtherequirementsofTheLawSocietyofKenyaAct.

Nothinghascometotheattentionofthecouncilmemberstoindicatethatthesocietywillnotremainagoingconcernforatleastthenexttwelvemonthsfromthedateofthisstatement. Approved by the council members on 2015andsignedonitsbehalfby:

PRESIDENT SECRETARY

16th February,


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Report of The Independent Auditor To the Members of The Law Society of Kenya Report on the financial statements WehaveauditedtheaccompanyingfinancialstatementsofTheLawSocietyofKenya,setoutonpages5to21whichcomprisethestatementoffinancialpositionasat31December2014,thestatementofprofitorlossandothercomprehensiveincome,thestatementofchangesinmembers’funds,andstatementofcashflowsfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

Director’s responsibility for the financial statements ThecouncilmembersareresponsibleforthepreparationoffinancialstatementsthatgiveatrueandfairviewinaccordancewiththeInternationalFinancialReportingStandardsandtheLawSocietyAct,andforsuchinternalcontrolasmanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s responsibility Ourresponsibilityistoexpressanindependentopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithInternationalStandardsonAuditing.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financialstatements.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftheriskofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthe purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates madebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Opinion Inouropinion,theaccompanyingfinancialstatementsgiveatrueandfairviewofthefinancialpositionofTheLawSocietyofKenyaasat31December2014andofitsfinancialperformanceandcashflowsfortheyearthenended inaccordancewith the InternationalFinancialReportingStandardsand the requirementsofTheLawSociety of Kenya Act.

Certified Public Accountants NAIROBI

2015

4th March,


70


Statement of Income and Expenditure and Other Comprehensive Income 2014 2013 Notes Shs ShsIncome

Membershipfees 41,020,000 37,754,970

Practicingcertificatefees 28,444,770 25,956,605

CPD(CLE)incomefortheyear 62,352,357 55,607,281

Projectfunds 23,942,622 22,905,677

Annualconferenceincome 37,750,747 37,461,123

Otherincome 2 21,560,654 20,767,806

Buildinglevy 5,314,340 4,587,600

Justicecup 2,470,000 2,230,000

Libraryfundcontribution 397,360 358,480

223,252,850 207,629,542 Expenditure

CPD(CLE)expense 44,747,040 43,793,490

Projectexpenses 22,520,650 23,129,756

Administrationexpenses 82,485,147 76,783,976

Otheroperatingexpenses 6,401,141 5,749,963

Programmeexpenses 11,483,458 4,377,202

Annualconferenceexpenses 34,445,336 34,884,704

Justicecup 2,427,483 2,571,230

204,510,255 191,290,321

Operatingsurplusfortheyear 3 18,742,595 16,339,221

Financeincome 4 4,205,926 3,402,788

Totalsurplusfortheyear 22,948,521 19,742,009

Other comprehensive income:

Gainsonpropertyrevaluation - 195,281,858

Total comprehensive income for the year 22,948,521 215,023,867

The notes on pages 74 to 88formanintegralpartofthesefinancialstatements.

Report of the independent auditor - page 69.


71




Statement of Financial Position As at 31 December

Notes 2014 2013 2012 Shs Shs Shs caPital and reserves (Restated)* (Restated)*

Accumulatedsurplus 81,445,975 63,572,060 48,988,496

Buildingfund 45,591,460 40,277,120 35,689,520

Otherfunds 4,066,126 3,668,766 3,310,286

Revaluationreserve 312,156,757 312,793,851 117,299,628

Members funds 443,260,318 420,311,797 205,287,930

rePresented bY Non-current assets Property,plantandequipment 6 371,733,504 353,843,706 155,470,675

Intangibleasset 7 419,028 900,361 767,250

372,152,532 354,744,067 156,237,925

Current assets Shorttermdeposits 8 42,311,885 35,471,577 28,684,093

Tradeandotherreceivables 9 2,529,482 1,989,506 2,452,272

Treasurybills 10 13,000,000 13,000,000 13,000,000

Cashandcashequivalents 11 55,530,817 47,001,274 31,746,564

113,372,184 97,462,357 75,882,929

Current liabilities Tradeandotherpayables 12 41,650,080 31,237,272 26,448,309

Otheraccruedliabilities 13 412,200 444,615 368,615

DuetoAdvocates’BenevolentAssociation 202,118 212,740 16,000

42,264,398 31,894,627 26,832,924

Net current assets 71,107,786 65,567,730 49,050,005

443,260,318 420,311,797 205,287,930

0.00 0.00 0.00

Thefinancialstatementsonpages70to88wereauthorisedforissuebythecouncilmembers

on 2015andweresignedonitsbehalfby:

PRESIDENT SECRETARY The notes on pages 74 to 88formanintegralpartofthesefinancialstatements. Report of the independent auditor - page 69.

*Refertonote6tothefinancialstatements

1 6 th February,


72


Statement of Changes in Members’ Funds Capital Accumulated Building Other Revaluation account surplus fund funds reserve Total Shs Shs Shs Shs Shs Shs

Year ended 31 December 2013

Atstartofyear 382,000 48,606,496 35,689,520 3,310,286 117,299,628 205,287,930

Total comprehensive incomefortheyear - 19,742,009 - - 195,281,858 215,023,867

Excess depreciation on revaluation - 212,365 - - (212,365) -

Transfer to accumulated surplus (382,000) 382,000 - - - -

Transfers

-Buildingfundlevy - (4,587,600) 4,587,600 - - -

-Libraryfund - (358,480) - 358,480 - - At end of year - 63,996,789 40,277,120 3,668,766 312,369,122 420,311,797 Year ended 31 December 2014

At start of year - 63,996,789 40,277,120 3,668,766 312,369,122 420,311,797

Totalsurplusfortheyear - 22,948,521 - - - 22,948,521

Excess depreciation on revaluation - 212,365 - - (212,365) -

Transfers -Buildingfundlevy - (5,314,340) 5,314,340 - - -

-Libraryfund - (397,360) - 397,360 - - At end of year - 81,445,975 45,591,460 4,066,126 312,156,757 443,260,318

The notes on pages 74to88formanintegralpartofthesefinancialstatements. Report of the independent auditor - page 69.


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Statement of Cash Flows 2014 2013 Notes Shs Shs

Operating activities

Net cash from operating activities 14 32,167,560 25,838,211

Investing activities

Purchaseofequipment 6 (1,078,373) (2,274,199)

Paymentstowardsworkinprogress 6 (19,925,262) (4,310,162)

Purchaseofintangibleasset 7 - (614,444)

Interestreceivedonfixeddeposit 3,375,203 2,560,710

Interestreceivedontreasurybills 830,723 842,078 Netcashusedininvestingactivities (16,797,709) (3,796,017)

Increaseincashandcashequivalents 15,369,851 22,042,194 Movement in cash and cash equivalents Atstartofyear 95,472,851 73,430,657Increase 15,369,851 22,042,194 At end of year 11 110,842,702 95,472,851

110,842,702 95,472,851

The notes on pages 74 to 88formanintegralpartofthesefinancialstatements.

Report of the independent auditor - page 69.


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Notes 1. Significant accounting policies

Theprincipalaccountingpoliciesadopted in thepreparationof thesefinancialstatementsaresetoutbelow.Thesepolicieshavebeenconsistentlyappliedtoalltheyearspresented,unlessotherwisestated.

a) Basis of preparation

The financial statements have been prepared under the historical cost convention, except as indicatedotherwisebelowandareinaccordancewithInternationalFinancialReportingStandards(IFRS).

Going concern

Thefinancialperformanceofthesociety issetout inthecouncilmember’sreportand inthestatementofincomeandexpenditureandtheothercomprehensiveincome.Thefinancialpositionofthesocietyissetoutinthestatementoffinancialposition.

Basedonthefinancialperformanceandpositionofthesocietyanditsriskmanagementpolicies,thecouncilmembersareoftheopinionthatthesocietyiswellplacedtocontinueinbusinessfortheforeseeablefutureandasaresultthefinancialstatementsarepreparedonagoingconcernbasis.

(i)Newandamendedstandardsadoptedbytheorganisation- AmendmentstoIAS32-OffsettingFinancialAssetsandFinancialLiabilitiesclarifyingthemeaningof

current legal enforceable right of set off and simultaneous realisation and settlement.

(ii)Newstandards,amendmentsandinterpretationsissuedbutnoteffective

- IFRS9inrespectofFinancialInstrumentswhichwillbeeffectivefortheaccountingperiodsbeginningonorafter1January2018.

- AmendmentstoIAS16andIAS38inrespectofClarificationofAcceptableMethodsofDepreciationandAmortisationwhichwillbeeffectiveforaccountingperiodsbeginningonorafter1January2016.

- AnnualimprovementstoIFRS’swhichwillbeeffectiveforaccountingperiodsbeginningonorafter1July2014asfollows:

- IAS16andIAS38-Proportionaterestatementofdepreciation/amortisationaccumulatedonrevaluation

- IAS 24 - Management fee paid to a management entity

b) Significantjudgementsmadeinapplyingthesociety’saccountingpolicies

Directorshavemadethefollowingjudgementsthatareconsideredtohavethemostsignificanteffectontheamountsrecognisedinthefinancialstatements:

- The society has selected debtors aged past 90 days as the basis for providing for doubtful debts based on past experience.

- Asdiscussedinaccountingpolicy(i),noprovisionfortaxhasbeenmadeinthefinancialstatementsasthecouncilmembersareoftheopinionthatanexemptionwillbeforthcomingfromtheKenyaRevenueAuthority.


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NOTES (CONTINUED)

c) Keysourcesofestimationuncertainty

TheCouncilMembershavemadenoassumptionsandthereare,intheiropinion,nosourcesofestimationuncertainty thathaveasignificant riskofcausingamaterialadjustment to thefinancial statements in thetwelvemonthsfromthestatementoffinancialpositiondate.

d) Revenuerecognition

Annualsubscriptionsareaccountedforwhenmembershipisconfirmedbyreceiptofsuchsubscriptions.Allotherincomeisrecognisedwhenthesociety’srighttoreceivetheincomeisestablished.

e) Propertyandequipment

All property and equipment is initially recorded at cost. Historical cost comprises expenditure initially incurred to bring the asset to its location and condition ready for its intended use.

Freeholdandleaseholdland,buildingsaresubsequentlyshownatmarketvalue,basedonperiodic,valuationsbyexternalindependentvaluers,lesssubsequentdepreciation.Anyaccumulateddepreciationatthedateofrevaluationiseliminatedagainstthegrosscarryingamountoftheasset,andthenetamountisrestatedtothe revalued amount of the asset.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, asappropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtothecompany and the cost can be reliably measured. The carrying amount of the replaced part is derecognised. Allother repairsandmaintenancearecharged toprofitor lossduring thefinancialyear inwhich theyareincurred.

Increases in the carrying amount arising on revaluation are credited to other comprehensive income. Decreases that offset previous increases of the same asset are charged to other comprehensive income; all otherdecreasesarechargedtotheprofitorloss.Eachyearthedifferencebetweendepreciationbasedonthe revalued carrying amount of the asset (the depreciation charged to income statement) and depreciation based on the asset’s original cost is transferred from the retained earnings to revaluation reserve.

Freehold land is not depreciated.

Depreciationonallotherassetsiscalculatedonthereducingbalancebasistowritedownthecostofeachasset,ortherevaluedamount,toitsresidualvalueoveritsestimatedusefullifeusingthefollowingannualrates:

Rate %

Buildings 2

Furniture,fittingsandequipment 12.5

Computerequipment 30

Library 12.5

Motorvehicles 25


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NOTES (CONTINUED)

Theassets’ residualvaluesanduseful livesare reviewed,andadjusted ifappropriate,at theendofeachreporting period.

Anasset’s carrying amount iswrittendown immediately to its recoverable amount if the asset’s carryingamount is greater than its estimated recoverable amount.

Gainsandlossesondisposalofpropertyandequipmentaredeterminedbycomparingtheproceedswiththecarryingamountandaretakenintoaccountindeterminingoperatingsurplus.Ondisposalofrevaluedassets,amounts in the revaluation reserve relating to that asset are transferred to retained earnings in the statement of changes in members’ funds.

f) Impairmentofnon-financialassets Assets that have an indefinite useful life are not subject to amortisation and are tested for impairmentannually.Assetsthataresubjecttoamortisationarereviewedforimpairmentwhenevereventsorchangesincircumstances indicate that the carrying amount may not be recoverable.

Animpairmentlossisrecognisedfortheamountbywhichtheasset’scarryingamountexceedsitsrecoverableamount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For thepurposesofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparatelyidentifiablecashflows(cash-generatingunits).

Non-financialassetsthatsufferedanimpairmentarereviewedforpossiblereversaloftheimpairmentateachstatementoffinancialpositiondate.

g) Financialinstruments

Financialassetsandfinancialliabilitiesarerecognisedwhenthesocietybecomesapartytothecontractual

provisionsoftheinstrument.Managementdeterminesallclassificationoffinancialassetsatinitialrecognition.- Financial assets

Financialassetsare initially recognisedat fair valueplus transactioncosts forall financialassetsnotcarriedatfairvaluethroughprofitorloss.Financialassetscarriedatfairvaluethroughprofitorlossareinitiallyrecognisedatfairvalueandtransactioncostsareexpensedinprofitorloss.

Thesociety’sfinancialassetsfallintothefollowingcategories:

- Held-to-maturity: financial assets with fixed or determinable payments and fixed maturitywhere themanagementhave thepositive intentandability tohold tomaturity.Subsequent toinitialrecognition,suchassetsarecarriedatamortisedcostusingtheeffectiveinterestmethod.Changesinthecarryingamountarerecognisedinprofitorloss.

- Loans and receivables: financialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Suchassetsareclassifiedascurrentassetswherematuritiesarewithin12months of the date of this report. All assetswithmaturities greater than 12months after thedateofthisreportareclassifiedasnon-currentassets.Subsequenttoinitialrecognition,theyarecarried at amortised cost using the effective interest method. Changes in the carrying amount are recognisedinprofitorloss.


77




NOTES (CONTINUED)

- Financial liabilities

The society’s financial liabilitieswhich include income in advance, funds received by the society onbehalfof theEastAfricaLawSociety, tradeandotherpayables,otheraccrued liabilitiesanddue toAdvocates’BenevolentAssociationfallintothefollowingcategory:

Financial liabilities measured at amortised cost:: These are initially measured at fair value and subsequently measuredatamortisedcost,usingtheeffectiveinterestratemethod.

Allfinancialliabilitiesareclassifiedascurrentliabilitiesunlessthesocietyhasanunconditionalrighttodefersettlementoftheliabilityforatleast12monthsafterthestatementoffinancialpositiondate.

g) Financialinstruments(continued)

- Financial liabilities (continued)

Financialliabilitiesarederecognisedwhen,andonlywhen,thecompany’sobligationsaredischarged,

cancelled or expired.

h) Accountingforleases The company as a lessee

Leasesofproperty,plantandequipment,wherethesocietyassumessubstantiallyalltherisksandrewardsofownership,areclassifiedasfinanceleases.Financeleasesarecapitalisedatcost.Eachleasepaymentisallocatedbetweentheliabilityandfinancecharges.Theinterestelementischargedtotheprofitorlossovertheleaseperiodandisincludedunderfinancecosts.Suchproperty,plantandequipmentisdepreciatedoverits useful life.

Leasesofassetsunderwhichasignificantportionofrisksandrewardsofownershipareeffectivelyretainedbythelessorareclassifiedasoperatingleases.Paymentsmadeunderoperatingleasesarechargedtothestatement of comprehensive income on a straight line basis over the period of the lease.

i) Cashandcashequivalents For thepurposesof thestatementofcashflows,cashandcashequivalentscomprisecash inhandand

depositsheldatcallwithbanksandfinancialassetswithmaturitiesoflessthan3months.

j) Taxation The society is in the process of seeking exemption from Kenya Revenue Authority from taxation on its income. Itistheopinionofthecouncilmembersthatsuchanexemptionwillbeforthcomingandthereforenoprovisionforcurrentanddeferredtaxismadeinthefinancialstatements.Councilmembersexpectsuchanexemptiontoapplytointerestincomeinadditiontoothermemberfees,assuchinterestarisesoutofmembercontributedfunds.

k) Retirementbenefitobligations ThesocietyemployeescontributetotheNationalSocialSecurityFunds(NSSF)astatutorydefinedcontributionschemeregisteredunderNSSFAct.Thesociety’scontributionstothedefinedcontributionschemearechargedtostatementofcomprehensiveincomeintheyeartowhichtheyrelate.


78


NOTES (CONTINUED)

l) Employeeentitlements The estimated monetary liability for employees’ accrued annual leave entitlement at the reporting date is recognised as an expense accrual.

m) Provisions Provisions for restructuring costs and legal claims are recognisedwhen the society has a present legal orconstructiveobligationasaresultofpastevents,itisprobablethatanoutflowofresourcesembodyingeconomicbenefitswill be required to settle theobligation and the amount hasbeen reliably estimated.Restructuringprovisions comprise lease termination penalties and employee termination payments. Provisions for future operating losses are not recognised.

m) Provisions(continued) Wherethereareanumberofsimilarobligations,thelikelihoodthatanoutflowwillberequiredinsettlementisdeterminedbyconsideringtheclassofobligationsasawhole.Aprovisionisrecognisedevenifthelikelihoodofan

outflowwithrespecttoanyoneitemincludedinthesameclassofobligationmaybesmall.

n) Intangibleassets Acquiredcomputersoftwaresarecapitalisedonthebasisofthecostsincurredtoacquireandbringtousethespecificsoftware.Thesecostsareamortisedoveranestimatedusefullifeofthreeyears.

Costsassociatedwithdevelopingormaintainingcomputersoftwareprogrammesarerecognisedasanexpenseasincurred.Coststhataredirectlyassociatedwiththeproductionofidentifiableanduniquesoftwareproductscontrolledbythecompany,andthatwillprobablygenerateeconomicbenefitsexceedingoneyear,arerecognisedasintangibleassets.Directcostsincludethesoftwaredevelopmentemployeescostsandanappropriateportionof relevant overheads.

Computer software development costs recognised as assets are amortised on straight line basis over theirestimated useful lives (not exceeding three years).

Softwarelicencecostsarestatedatcostlessaccumulatedamortisationandanyaccumulatedimpairmentlosses.The costs are amortised over their expected useful lives on a straight line basis.

o) Membersfunds i) Accumulated surplus Accumulatedsurplusisnetsurplus/(deficit)afterdeductingappropriations.

ii) Building fund

Building fund comprises of amount appropriated from accumulated surplus relating to contributions made on thebuildinglevy.BuildinglevyisapropertydevelopmentlevyofShs.5,000paidbyallmembersuponjoiningthe society.

iv) Other funds

The other funds largely comprises of amount appropriated from accumulated surplus relating to contributions made on the library levy. Library levy is a annual library development levy of Shs. 60 per annum paid by all

membersofTheLawSocietyofKenya.


79




NOTES (CONTINUED)

p) Comparatives Wherenecessary,comparativefigureshavebeenadjustedtoconformwithchangesinpresentationinthecurrent year.

2014 2013

2. Other income Shs Shs

BackFees 4,369,130 4,178,830

Levy-LSKjournal 3,308,000 2,983,510

CLCconferenceincome - 2,488,360

Carstickers 2,747,010 2,125,581

DT(DCC)-Incomefromcostsandfines 2,514,095 1,838,760

AGMSponsorship 700,000 1,400,000

EastAfricaLawSocietyconference - 1,002,531

Identificationcards 1,952,440 863,790

Otherconferences 4,096,553 607,720

Noticefees 788,500 592,000

Exchangegain - 489,994

Annualmembersretreat - 481,500

Annualdinnerdance 253,210 473,500

Legalawarenessweek 360,000 340,000

LSKtenders 30,000 330,000

LSKpromotionalmaterial 28,500 163,500

Competitionlawconference - 154,000

Finesfordishonouredcheques 144,000 128,000

Donations-CSRfund 269,216 126,230

21,560,654 20,767,806

3. Operating surplus

Thefollowingitemshavebeenchargedinarrivingatoperatingsurplus

Depreciationonproperty,plantandequipment(Note6) 3,113,838 3,363,870

Amortisationofintangibleassets(Note7) 481,333 481,333

Auditors’ remuneration -currentyear 570,480 570,480

Tradereceivables-impairment(Note9) 59,000 194,353

Staffcosts(Note5) 39,989,634 34,520,473


80


NOTES (CONTINUED)

2014 2013

4. Finance income Shs Shs

Interest received:

-onfixeddeposits 3,375,203 2,560,710

-ontreasurybills 830,723 842,078

4,205,926 3,402,788

5. Staff costs

Administrativesalariesandwages 33,443,309 30,977,623

CPD(CLE)salariesandwages 2,922,707 3,778,025

Medicalexpenses 2,275,991 2,185,626

Otheremploymentcosts 40,680 102,320

Pension costs:

-Definedcontributionscheme 1,247,347 1,193,904

- National Social Security Fund 59,600 61,000

39,989,634 38,298,498


81



FOR THE YEAR ENDED 31 DECEMBER 2014N

OTE

S (C

ON

TIN

UE

D)

6.

P

rop

erty

, pla

nt a

nd e

qui

pm

ent,Yearended31Decem

ber2

014

Pr

epai

d

Fu

rnitu

re,

W

ork i

n Fr

eeho

ld

oper

atin

g M

otor

Ge

nera

tor

fittin

gs an

d Co

mpu

ter

Build

ings

pr

ogre

ss

land

le

ase r

enta

ls ve

hicle

s La

wnm

ower

eq

uipm

ent

equi

pmen

t Li

brar

y To

tal

Sh

s Sh

s Sh

s Sh

s Sh

s Sh

s Sh

s Sh

s Sh

s Sh

s

Cos

t

Atstartofyear

15,000,000

8,010,162220,000,020

100,000,000

7,286,466

1,432,212

3,278,777

5,306,157

86,000360,399,794

Additions

-19,925,262

--

--

351,135

600,079127,159

21,003,635

Atendofyear

15,000,000

27,935,424

220,000,020

100,000,000

7,286,466

1,432,212

3,629,912

5,906,236213,159381,403,429

C

ompr

isin

g

Cost

8,600,000

27,935,424

31,500,020

100,000,000

8,952,959

1,745,925

6,373,19810,518,963

245,108195,871,597

Valuation

,400,000

-188,500,000

-(1,666,493)

(313,713)

(2,743,286)

(4,612,727)

(31,949)185,531,832

15,000,000

27,935,424

220,000,020

100,000,000

7,286,466

1,432,212

3,629,912

5,906,236213,159381,403,429

A

ccum

ulat

ed

depr

ecia

tion

Atstartofyear

--

--

2,332,359

357,104

887,022

2,949,415

30,187

6,556,087

Chargefortheyear

300,000

--

-1,238,527

322,532

342,861

887,046

22,872

3,113,838

Atendofyear

300,000

--

-3,570,886

679,636

1,229,883

3,836,461

53,059

9,669,925

N

et B

ook

Valu

e 1

4,70

0,00

0

27,9

35,4

24

220

,000

,020

10

0,00

0,00

0

3,71

5,58

0

752,

576

2,

400,

029

2,

069,

775

16

0,10

1

371,

733,

504

Freeholdland,buildingsandplantandmachinerywereprofessionallyvaluedon17February2014byT.NjehiaB.A(LandEconom

ics)M.I.S.Konthebasisofopenmarketvalue

forfreeholdlandandbuildingsandonreplacem

entcostforotheritem

soffixedasset.Thecouncilm

embersareoftheopinionthattherehavebeennosignificantchangeinthe

marketvaluesoftheseassetsbetweenthedateofthesefinancialstatementsandthatofthevaluationreport.

Therevaluationsurplusonrevaluedassetsam

ountingtoShs.195,281,858wasrecognisedinthestatem

entofchangesinmem

bers’funds.

Workinprogressrelatestopaymentsmadetowardstheconstru

ctionofarbitrationcentreattheLSK

Sou

th C

plo

t.

*Prio

r yea

r adj

ustm

ent

Com

parativeam

ountsrelatingtothefinancialyearended31Decem

ber2013and2012havebeenrestated.Theprim

arychangerelatedtoprepaidoperatingleaserentalsthat

wereinitia

llyshownseparatelyinthestatem

entoffinancialpositio

nbuthasbeentransferredtoproperty,plantandequipmentattherevaluedamount.


82


NO

TES

(CO

NTI

NU

ED

)

6.

Pro

per

ty, p

lant

and

eq

uip

men

t

Year

end

ed 3

1 D

ecem

ber

201

3

P

repa

id

Furn

iture

,

Workin

Freehold

operating

Motor

Generator

fittingsand

Com

puter

Library

Total

Bui

ldin

gs

pro

gres

s la

nd

leas

e re

ntal

s ve

hicl

es

law

nmow

er

equi

pmen

t eq

uipm

ent

Shs

S

hs

S

hs

Shs

S

hs

Shs

S

hs

Shs

S

hs

Shs

Cos

t

Atstartofyear

8,600,000

3,700,000

31,500,020100,000,000

7,286,466

265,000

3,134,5774,598,623

86,000

159,170,666

Additions

-4,310,162

--

-1,422,465

144,200

707,534

-6,584,361

Disposal

--

-

--

(255,253)

--

(255,253)

Surplusonrevaluation

6,400,000

-188,500,000

--

--

--

194,900,000

Atendofyear

15,000,000

8,010,162220,000,020100,000,000

7,286,466

1,432,212

3,278,7775,306,157

86,000

360,399,774

C

ompr

isin

g

Cost

8,600,000

8,010,162

31,500,020100,000,000

8,952,959

1,745,9256,022,0639,918,884

117,949

174,867,962

Valuation

6,400,000

-188,500,000

-(1,666,493)

(313,713)

(2,743,286)

(4,612,727)

(31,949)

185,531,832

15,000,000

8,010,162220,000,020100,000,000

7,286,466

1,432,212

3,278,7775,306,157

86,000

360,399,794

Acc

umul

ated

de

prec

iatio

n

Atstartofyear

381,858

--

-680,990

130,223

545,3431,939,383

22,214

3,700,011

Chargefortheyear

--

--

1,651,369

352,816

341,6791,010,032

7,973

3,363,870

Disposal

--

--

-(125,935)

--

-(125,935)

Reversalonrevaluation

(381,858)

--

--

--

--

(381,858)

Atendofyear

--

--

2,332,359

357,104

887,0222,949,415

30,187

6,556,088

Net

Boo

k Va

lue

15,

000,

000

8,

010,

162

2

20,0

00,0

20

100,

000,

000

4,

954,

107

1,

075,

108

2,

391,

755

2,

356,

742

55

,813

35

3,84

3,70

6


83




NOTES (CONTINUED)

6. Property, plant and equipment (continued)

IftheLeaseholdlandandbuildingswerestatedonthehistoricalcostbasis,theamountswouldbeasfollows: Building Land Total Shs Shs Shs

Year ended 31 December 2014

Cost 4,381,773 18,720,000 23,101,773 Accumulateddepreciation (807,015) - (807,015)

Netbookvalue 3,574,758 18,720,000 22,294,758 Year ended 31 December 2013

Cost 4,381,773 18,720,000 23,101,773

Accumulateddepreciation (725,771) - (725,771)

Net book value 3,656,002 18,720,000 22,376,002

7. Intangible assets 2014 2013 Shs Shs Cost

Atstartofyear 1,604,444 990,000

Additions - 614,444 Atendofyear 1,604,444 1,604,444 Amortisation

Atstartofyear 704,083 222,750

Chargefortheyear 481,333 481,333

Atendofyear 1,185,416 704,083

Netbookvalue 419,028 900,361

8. Short term deposits

Chasebank 20,605,000 18,366,567

Africanbankcorporation 14,233,813 13,060,602

Madisonassets 3,162,791 -

CFCinvestments 4,310,281 4,044,408

42,311,885 35,471,577


84


NOTES (CONTINUED)

9. Trade and other receivables

Chequesreturnedunpaid 83,003 261,393

Less:provisionfordoubtfuldebts (59,000) (261,393)

Netchequesreturnedunpaid 24,003 -

Prepaidinsurance 1,605,947 1,613,736

Interestreceivable 818,532 234,770

Staffloans 81,000 141,000

2,529,482 1,989,506

Movement in impairment provisions Atstartofyear (261,393) (326,900)

Additions (59,000) (194,353)

Reversal 261,393

Doubtfuldebtswrittenback - 259,860

At end of year (59,000) (261,393)

Intheopinionofthecouncilmembers,thecarryingamountsoftradeandotherreceivablesapproximatetotheirfairvalue.Thereisnosignificantconcentrationofrisk.

Thecouncilmembershavemadeaprovisionfortheportionofthereceivablewhoserecoveryisindoubt.

The carrying amounts of the society’s trade and other receivables are denominated in Kenya Shillings.

Trade receivables that are agedpast 90days are consideredpast due and are fully provided for as at 31December2014.

10. Treasury bills - Held to maturity 2014 2013 Held-to-maturityinvestmentscanbeanalysedasfollows: Shs Shs

Maturingwithin91days 13,000,000 13,000,000

Theweightedaverageeffective interestrateontreasurybills investmentsatyear-endwas8.02%(2013:7.88%).

Intheopinionofthedirectors,thecarryingamountsoftreasurybillsapproximatetotheirfairvalue.


85




NOTES (CONTINUED)

11. Cash and cash equivalents

2014 2013 Shs Shs

Cashatbankandinhand 55,530,817 47,001,274

Forthepurposeofthestatementofcashflow,theyear- endcashandcashequivalentscomprisethefollowing:

Cashandbankbalances 55,530,817 47,001,274

Treasurybills(Note10)13,000,000 13,000,000

Shorttermdeposit(Note8) 42,311,885 35,471,577

110,842,702 95,472,851

Theweightedaverageeffectiveinterestrateonshort-termbankdepositsatyear-endwas11%(2013:10.75%).

12. Trade and other payables

Prepaid income:

-Annualsubscriptionandcarpark 9,001,990 7,974,950

-Arbitrationcentre 11,277,080 -

Disciplinarycommitteeclientmonies 14,382,461 16,064,991

Tradepayables 1,931,097 1,986,389

EastAfricaLawSociety 1,316,940 1,449,478

Provisionsforliabilitiesandcharges(Note15) 3,095,528 3,095,528

Otherpayablesandaccruals 644,984 665,936

41,650,080 31,237,272

Intheopinionofthecouncil,thecarryingamountsoftradeandotherpayablesapproximatetotheirfairvalue.

Alltradeandotherpayablesareduebetween3to12months.

13. Other accrued liabilities 2014 2013 Shs Shs Provision for leave days


Paidduringtheyear (32,415) - Increaseduringtheyear - 76,000

At end of year 412,200 444,615

Intheopinionofthecouncil,thecarryingamountsofaccruedleaveapproximatetotheirfairvalue.


86


NOTES (CONTINUED)

14. Cash from operations 2014 2013 Shs Shs

Surplusfortheyear 22,948,521 19,742,009

Adjustments for:

Depreciationonpropertyandequipment(Others) 2,075,891 2,351,533

DepreciationonpropertyandequipmentCPD(CLE) 1,037,946 1,012,337

Amortisationofintangibleasset 481,333 481,333

Interestontreasurybills (830,723) (842,078)

Interestonfixeddeposit (3,375,203) (2,560,710)

Lossonfixedassetswrittenoff - 129,318

Changes in working capital:

-tradeandotherreceivables (539,976) 462,766

-tradeandotherpayables 10,369,771 5,061,703

Cashfromoperations 32,167,560 25,838,211

15. Provisions for liabilities and charges

2014 2013 Shs Shs

Provision for terminal dues 3,095,528 3,095,528

Provision for award on defamation - -

3,095,528 3,095,528

The provisions for terminal dues relate to the amount payable to a former employee for unfair dismissal. In theopinionofthecouncilmembers,itisnotpossibletoestimatethetimingwhenpaymentswillbemade.

16. Members funds

Membersfundscompriseofthefollowing:

i) Accumulated surplus

Accumulatedsurplusisnetsurplus/(deficit)afterdeductingappropriations.In2012,thecouncilapprovedthetransferoftheCPD(CLE)reserves,theIBRDreservesandthejusticecupreservestothegeneralreservesaccountinordertosimplifyfinancialreporting.

ii) Building fund

Building fund comprises of amount appropriated from accumulated surplus relating to contributions madeonthebuildinglevy.BuildinglevyisapropertydevelopmentlevyofSh5,000paidbyallmembersupon joining the society.


87




NOTES (CONTINUED)

iii) Capital account

Capitalaccountcomprisetheinitialcontributionsbymembers.In2014,thecouncilapprovedthetransferofthecapitalaccountreservestothegeneralreservesaccountinordertosimplifyfinancialreporting.

iv) Other funds

The other fund largely comprises of amount appropriated from accumulated surplus relating to contributions made on the library levy. Library levy is a annual library development levy of Shs 60 per annum paid by all members of LSK.

17. Key management personnel compensation

2014 2013 Shs Shs

Shorttermemployeebenefits 15,466,200 20,110,200

Postemploymentbenefits 773,310 1,021,910 Totalkeymanagementcompensation 16,239,510 21,132,110

18. Risk management objectives and policies

Credit risk

Credit riskarises fromcashandcashequivalentsaswellascreditexposures frommembers, includingoutstanding receivables.

Managementassessesthecreditqualityofthemembers,takingintoaccounttheirposition,pastexperienceand other factors.

Exposuretothisriskhasbeenquantifiedineachfinancialassetnoteinthefinancialstatementsalongwithany concentration of risk.

- Interest rate risk

Thesociety’sexposuretointerestrateriskarisesfromfinancialassets.

At31December2014,ifinterestratesatthatdatehadbeen1percentagepointhigherwithallothervariablesheldconstant,surplusfortheyearwouldhavebeenShs.42,059(2013:Shs.34,028)higher,arisingmainlyasa result of high interest income. There are no material interest bearing financial liabilities that mature over one year and therefore noundiscounted liquidity risk analysis presented.

19. Capital management

Thesociety’sobjectiveswhenmanagingcapitalare:

- toprovideanadequatereturntomembersbypricingservicescommensuratewiththelevelofrisk;


88


NOTES (CONTINUED)

-tosafeguardtheentity’sabilitytocontinueasagoingconcern,sothatitcancontinuetoprovidereturnsformembersandbenefitsforotherstakeholders.

The society sets the amount of capital funds in proportion to risk. The society manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

20. IncorporationTheLawSocietyofKenyaisincorporatedinKenyaundertheLawSocietyofKenyaActandisdomiciledinKenya.

21. Presentation currency

ThefinancialstatementsarepresentedinKenyaShillings(Shs).


89




EXPENDITURE 1. CONTINUOUSPRACTICEDEVELOPMENT(CONTINUESLEGALEDUCATIONEXPENSES) 2014 2013 Shs Shs

Meals 24,714,401 21,048,590

Travel 4,595,389 5,025,729

Salariesandwages 2,922,707 3,778,025

OtherCPD(CLE)(Appendix1) 1,970,959 2,279,576

Training 402,000 -

Honoraria 2,967,430 3,300,000

Accommodation 1,303,176 2,644,607

CPD(CLE)Committee 1,976,216 2,125,180

Stationery 1,176,460 882,983

ConferenceHalls 414,923 222,180

Depreciationonpropertyandequipment 1,037,946 1,012,337

Amortisationofdatabase 481,333 481,333

Postage 100,550 229,360

Telephone 333,150 333,100

Publicaddresssystem 49,900 132,490

Staffallowance 300,500 228,000

Software - 70,000

Total continuous legal education costs 44,747,040 43,793,490

2. ProJect eXPenses Kti/PactAct/Gizproject - 4,434,970

Parentalhoodproject 4,923,661 -

SAJEA 17,596,989 17,095,366

Total Project costs 22,520,650 23,129,756

3. adMinistrative eXPenses

Employment: Salariesandwages 34,750,256 32,232,527

Staffmedical 2,275,991 2,185,626

Generalstaffandtraining 40,680 102,320

Total employment costs 37,066,927 34,520,473


90


EXPENDITURE (CONTINUED)

2014 2013 Other administrative expenses: Shs Shs

Council expenses

-Othercouncil 2,024,214 1,654,454

-Councilretreat 1,571,730 -

-Counciltravel 1,547,508 1,507,690

Conferences

-Commonwealthlawconference - 5,223,145

-Otherconference 2,956,282 4,900,946

Annualcocktail 3,034,002 2,786,316

Annualdinnerdance 2,369,976 2,437,919

Branchvisits 4,564,248 1,584,452

Branchgrants 4,050,000 4,550,000

Voting 2,619,979 101,010

Printingandstationery 2,315,142 2,018,877

DT(DCC) 4,889,238 2,431,027

Societyjournal 2,422,780 4,001,100

Provisionforawardondefamation - (1,000,000)

Committee 896,970 1,060,150

LSKlounge 275,644 253,804

LSKlibrary - 383,010

Advertising 364,114 330,507

Websitemaintenanceandinternet 1,026,837 461,149

Postagesandtelephones 832,438 1,039,132

Legalandprofessionalfees 2,037,140 487,800

Officetravel 522,820 503,612

Generaloffice 598,424 660,063

Audit fees

-Currentyear 570,480 570,480

-Otherauditcosts 50,090 44,125

Legalawarenessweek 648,820 655,826

Bankchargesandcommissions 350,156 279,778


91




EXPENDITURE (CONTINUED)

Vehiclerunning 562,989 459,378

Advocatescarpark-stickers 630,000 371,000

Provisionforbaddebts 59,000 194,353

Consultancy 1,627,200 2,312,400

Total other administrative expenses 45,418,220 42,263,503

Total administrative expenses 82,485,147 76,783,976

4. OTHER OPERATING EXPENSES

Establishment: Depreciationonpropertyandequipment 2,075,891 2,351,533

Repairsandmaintenance 1,744,166 1,187,719

Security 1,101,952 848,652

Insurance 612,073 436,934

Electricityandwater 734,800 583,301

Landrentandrates 132,260 341,824

Total other operating expenses 6,401,141 5,749,963

5. PROGRAMME EXPENSES

AGM 3,984,282 1,649,627

EALSconference 6,771,176 1,728,105

Subscriptionstointernationalassociations 453,000 440,350

Strategicplan 275,000 559,120

Total programme costs 11,483,458 4,377,202

Other continuous legal education expenses

AGM 1,059,113 706,983 Officesecurity 156,668 246,558 Generalmaintenance-Rentokil 142,576 259,651 Staffwelfare 103,194 153,219 Utilities 170,337 434,285 Motorvehicleusage 149,655 196,876 Generator 25,374 118,086 Insuranceforassets 21,602 129,915 Telephone 134,059 22,424 Lawnmower 8,380 11,579

1,970,959 2,279,576


92


Appendix 1 2014 2013 Shs Shs

Council travel

Travel-local 1,544,208 1,494,690

Travelsubsistence 3,300 13,000

1,547,508 1,507,690

Council other expenses

Meetingadmin.exp 646,900 630,000

Telephoneandpostage 420,000 420,000

Meals 118,702 116,549

Accommodation;local 566,932 240,298

Generalexpenses 33,000 85,337

Hospitality 85,680 106,770

Pressreleases 3,000 -

Benevolentexpenses 150,000 55,500

2,024,214 1,654,454

Council retreat

Mealsandaccommodation 405,000 -

Subsistence 15,000 -

Travel 763,900 -

Communication 315,830 -

Stationery 7,000 -

ConferenceHall 65,000

1,571,730 -

Total council expenses 5,143,452 3,162,144 Other conference expenses

Travel 745,623 1,602,602

Subsistenceexpenses 540,775 542,710

Registration 600,880 611,043

Accommodation 790,734 708,581

Meals 278,270 1,436,010

2,956,282 4,900,946


93




2014 2013 Shs Shs

Commonwealth law conference expenses

Travel - 1,832,790

Accommodation - 1,759,605

Subsistenceexpenses - 293,700

Registration - 1,337,050

- 5,223,145


94


Ap

pen

dix

2

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Act

iviti

es

Year

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201

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Projects

Annual

Justicecup

Levy-LSK

DT(DCC)

Annualm

embers

Legalawareness

Annualdinner

Shs

Shs.

conference

Shs.

journal

Shs.

retre

at

week

dance

S

hs.

S

hs.

Shs

. S

hs.

Income

62,352,357

23,942,622

37,750,747

2,470,000

3,308,000

2,514,095

-360,000

253,210

Expenditure

44,747,040

22,520,650

34,445,336

2,427,483

2,422,780

4,889,238

-648,820

2,369,976

Surplus/(deficit)

17,605,317

1,421,972

3,305,411

42,517

885,220(2,375,143)

-(288,820)

(2,116,766)

Year

end

ed 3

1 D

ecem

ber 2

012

Income

55,607,281

22,905,677

37,461,123

2,230,000

2,983,510

1,838,760

481,500

340,000

473,500

Expenditure

43,793,490

23,129,756

34,884,704

2,571,230

4,001,100

2,431,027

-655,826

2,437,919

Surplus/(deficit)

11,813,791

(224,079)

2,576,419

(341,230)

(1,017,590)

(592,267)

481,500

(315,826)

(1,964,419)

Oth

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onsu

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n fe

es

2014

2013

S

hs.

S

hs.

Financialadvisoryservices1,067,200

1,327,200

Electricalandmechanicalconsultancy

-

208,800

Feasibilitystudy

-

626,400

ADR

pet

ition

char

ges

250,000

-

Othercosultancyfees

310,000

150,000

1,

627,

200

2,31

2,40

0

95


The Advocates’ Benevolent AssociationReport of The Board of Management From 1st October, 2013 To 30th September, 2014

1. CONSTITUTION OF THE BOARDNjeri Kariuki (Ms.) Chairperson

Steven R. Adere Board Member

Virginia W.N-Shaw (Ms.) Board Member

Esther Nyamongo (Mrs.) Board Member

Ex-Officios

Eric Mutua President, LSK (ex-officio)

Lilian Renee Omondi Vice-President, LSK (ex- officio)

Apollo Mboya Secretary, LSK (ex-officio)

2. MEMBERSHIP OF THE ASSOCIATIONAs at 30th September, 2013, there were 1,418 Active Life Members and 5,358 Active Non-Life Members.

3. APPLICATIONS FOR ASSISTANCE

The Board gave assistance to the families of Eighty – three (83) deceased Advocates. The total number of children who benefitted from the School Fees Gratuity were One Hundred and Seventy-three (169) broken-down as follows:

Nursery 9 Children Primary 61 Children Secondary 70 Children Tertiary 29 Children

The amount of assistance as shown in the Accounts up to 30th September, 2014, provided for scrutiny, amounted to Shs. 8,351,470. For purposes of comparison, the figures reflected in previous Accounts over the last three (3) years are:

Njeri KariukiChairperson

Steven R. AdereBoard Member

Virginia W. ShawBoard Member

Esther NyamongoBoard Member

96


2013 Shs. 8,445,642

2012 Shs. 6,645,663

2011 Shs. 6,782,054

The graph below shows the amounts requested and the support provided by the Association to dependants of deceased Advocates:

Support Payments Graph

Scope of Assistance

The Board assists in payment of school fees for children of deceased members, currently within the following parameters:

Nursery Kshs. 30, 000

Primary Kshs. 40, 000

Secondary Kshs. 60, 000

Tertiary Kshs. 60,000

4. INVESTMENTThe Board continued to invest its surplus cash accrued during the financial year in Bank Deposits and Treasury Bonds. The Board continues to apply Trustee Rules in making the Association’s investments and therefore only invests in safe and secure investments.

97


5. AN OVERVIEW OF THE ACTIVITIES OF THE ASSOCIATIONThe Advocates’ Benevolent Association is an association of advocates whose sole objective is to help poor or distressed persons who are, in terms of priority, members of the Association and widows/widowers, children and dependants of deceased persons. However, traditionally, the Association has limited its scope to the payment of school fees for children of deceased members of the Association.

MembershipThe membership consists of every Advocate who is a member of the Law Society of Kenya (LSK) by virtue of Section 23 of the Advocates’ Act. A member ceases to be one upon being struck-off the Roll of Advocates or being adjudged bankrupt.

SubscriptionsThe annual subscription for membership of the Association is currently Kshs.2,000. However, a member may at any time constitute his/herself as a life member on payment of Kshs. 60,000 in lieu of subscriptions for any current year. (This is a one-off payment.)

Annual subscriptions are payable in January each year upon payment of the annual practicing certificate. Any member who shall be in arrears and who neglects to pay such arrears shall cease to be a member. However, the Board has power to reinstate such member upon payment of the arrears or on such other terms as the Board may deem fit.

Management of The ABAThe Association is managed by a Board of Management, the members of which are elected during the Annual General Meeting. The Board consists of the Chairperson and (3) three other members who assist in the discharge of the Association’s mandate. The President, Vice President and Secretary of the LSK are ex-officio members of the Board.

The Board directs investment of income and distributes the funds of the Association. It also deliberates on all applications for relief as well as the eligibility of applicants, the levels of such relief, the mode of affording relief and generally, to conduct the business & operations of the Association. It also has powers to make rules and regulations for the management of the Association. The offices of the Board are based at the Secretariat of the Law Society of Kenya.

MeetingsThe full Board met on 17th September, 28th February and 13th February, 2014.

6. ADMINISTRATIVE MATTERS

The Board LSK Branch Visits: The Board Members of the Association together with the Law Society of Kenya Council Members conducted branch visits in the Y2014. The following Branches were visited:

l Friday 13th - Saturday 14th June, 2014, Mombasa Branch Visit: Malindi & Mombasa Branches were visited. Mr. Adere represented the Board.

98


l Friday 4th July - Saturday 5th July, 2014, North Rift Branch Visit Eldoret & Bungoma branches were visited. Ms. V. Shaw represented the Board.

l Thursday 4th September - Saturday 6th September, 2014, Rift Valley Branch Visit.

l Nakuru, Kericho, Kisii, Kisumu & Kakamega Branches were visited. Mr. S.R. Adere represented the Board.

The role of the Association, the benefits of being a member and the Association’s future plans was expounded upon by the Board Member with gratifying feedback from members received in exchange.

Amongst other matters, Members were exhorted to:

l nominate their Next of Kin using the forms provided and to ensure that such information was forward to the Association

l inform their Next of Kin of the existence of ABA

l nominate colleagues to step into their shoes at their law firms, particularly in the case of sole practitioners, in the event they were unable to practise for any reason whatsoever

Fliers and Nomination of Next of Kin Forms were left with the Branches to enable members complete and return the same to the Secretariat.

Samples of Feedback received from Members:

1) Members were grateful to host the Board and to receive information on the benefits of being a member of the ABA.

2) The work of the Association was greatly appreciated as widows no longer burdened them with requests to assist with school fees.

3) ABA should emulate the Teachers Service Commission, which provides transportation and coffins for deceased members in the event of their death.

4) The question was posed as to what happens to a member’s contributions once such member moves from private practice to the public sector.

5) The polygamous gentlemen were curious to know if there is a limit to the number of children per member the Association was willing to support.

6) Members wished to be informed how the Association’s investments were being utilised.

Actuarial Review of the Association Finances and Projected Growth: The Board engaged Consultants from Actuarial Services (East Africa) Limited to carry out an Actuarial Review of the Association under the following Terms of Reference:

i. Project the Association’s Income and Expenditure in order to assess the adequacy of the current annual contributions;

ii. Assess the scope of providing a lump sum Last Expenses Benefit to Members;

99


iii. Assess the scope for increasing the Scholarship provided to the Kenya School of Law;

iv. Suggest a suitable investment policy for the Association; and

v. Suggest a suitable ratio for the Reserve Fund to Annual Expenditure.

After completion of the Review and presentation of their findings to the Board, the Actuaries recommended that:

1) Optimal Subscription Fees are Shs 110,000 for Life Members and Shs 5,150 for Annual Members.

2) Increments to Subscription Fees to be a bi-annual minimum of 7.5%.

3) With the proposed increment in subscriptions the Board will be placed in the position to award five (5) full scholarships to needy students intending to undertake the Advocates’ Training Program at the Kenya School of Law.

4) The Board may consider providing a Last Expense Cover once the proposed increase of optimal subscription fees is in place.

5) Cash flow projections demonstrate that under the current subscription structure, the Association’s Funds are likely to run out within 18 years whereas with proposed increase of Subscription Fees, the Association’s Fund will remain solvent and by the 25th year, have a zero deficit.

6) The proposal to restructure the Board’s investment policy remains under consideration by the Board and shall be presented to the Members in the Next Annual General Meeting.

The Kenya School of Law Scholarship: The Board awarded one (1) full and Nine (9) partial Scholarships amounting to Shs. 1,065,000 to ten (10) needy students who wished to register with the Kenya School of down from a total of Forty Two (42) applicants, namely:

l Jemimah Moragwa Kshs. 190,000

l Trixyie Adala Kshs. 142,000

l Mercy Gituma Kshs. 142,000

l Bernard Obonyo Kshs. 112,000

l Evans Soita China Kshs. 92,000

l Ibarahim Odour Kshs. 92,000

l Ronald Museve Kshs. 92,000

l Mary Mbote Kshs. 92,000

l Kevin Katisya Kshs. 64,000;and

l Victor Awour Kshs. 42,000 Ms. Olivia Mjomba, past ABA scholarship recipient

gives her contribution to the KSL Scholarship

100


The Board appreciates and acknowledges the following Firms who also assisted additional needy students raise the requisite fees to enable them enrol for the ATP at the Kenya School of Law:

l Wamae & Allen Advocates who sponsored two (2) students.

l Hamilton Harris & Mathews (HHM) Advocates who sponsored two (2) students.

l Kaplan & Stratton who sponsored Two (2) students; and

l B.Musau & Company who sponsored four (4) students.

Performance and progress of Children supported by the Association: The Board of Management is pleased to note that a few of the students within its purview performed quite well in National Examinations. The tables below show how some of the students being supported by the Association performed:

NAME KCPE MARKS ADMITTED TO

Michael Ochola 433 Marks Alliance High School

Brenda Wambua 392 Marks Precious Blood Secondary School- Kilungu

Janet Bodo 398 Marks Nyakach High School

Brenda Metto 390 Marks Riara Girls’ School

Bradley Wanyama 386 Marks St. Joseph’s Boys’ High School

Elizabeth Kariuki 378 Marks Mary Leakey Girls’ High School

Philomena A. Mbaye 394 Marks St. Georges’ Girls H. School

Brenda Sang 347 Marks Kapropita Girls’ High School

Trevor Ochieng 333 Marks St. Peter’s Mumias Boys High School

Ian Wambua 331 Marks Highway Secondary School

NJERI KARIUKI APOLLO MBOYA, HSCCHAIRPERSON SECRETARY/ CEO

DATE: 20th February, 2015

101


The Advocates’ Benevolent AssociationAnnual Report and Financial StatementsFor The Year Ended 30 September 2014

Contents

Financial statements:

Statementofincomeandexpenditureandretainedearnings 106 Statementoffinancialposition 107 Statementofcashflows 108 Notes 109-113 The following page does not form an integral part of these financial statements

Scheduleofexpenditure 114

102


The Advocates’ Benevolent Association Annual Report and Financial StatementsFoR ThE YEAR EndEd 30 SEpTEmBER 2014

ASSOCIATION INFORMATION

BOARD MANAGEMENT : Njeri Kariuki - Chairperson

: Steven. R. Adere - Member

: VirginiaW.NdegwaShaw-Member

: Esther B. Nyamongo - Member

SECRETARY AND CHIEF OFFICER : Apollo Mboya

REGISTERED OFFICE : Advocates’ Benevolent Association

: Off Gitanga Road

: P.O.Box72219

: NAIROBI

INDEPENDENT AUDITOR : PKF Kenya

: CertifiedPublicAccountants

: P.O.Box14077,00800

: NAIROBI

PRINCIPAL BANKERS : Commercial Bank of Africa Limited

: CBA Building

: Standard and Wabera Streets

: NAIROBI

: NIC Bank

: NIC House

: Masaba Road

: Upperhill

: NAIROBI

103


The Advocates’ Benevolent Association Annual Report and Financial StatementsFoR The YeAR ended 30 SepTemBeR 2014

REPORT OF THE BOARD MEMBERS Theboardmemberssubmittheirreportandtheauditedfinancialstatementsfortheyearended30September2014,whichdisclosethestateofaffairsoftheassociation.

PRINCIPAL ACTIVITY

ThemembershipoftheassociationconsistsofeveryadvocatewhoisamemberofTheLawSocietyofKenyabyvirtueoftheSection23oftheAdvocatesActsubjecttopaymentofannualsubscriptionsinaccordancewiththe Advocates’ Benevolent Association rules.

Thesoleobjectiveoftheassociationistohelppoorordistressedpersonswhoaremembersoftheassociationandthewidows,childrenandotherdependantsofthedeceasedadvocates.

Inspecialcircumstances,advocateswhoarenotmembersoftheassociationandpersonswhoforanyreasonhave ceased to be advocates may also get help.

RESULTS 2014 2013 Shs ShsSurplus for the year 5,822,081 7,331,298 MEMBERSHIP Thefollowingisthemovementinthenumberofmembersintheassociation: 2014 2013 Members Members

Lifemembers 1,418 1,303

Ordinarymembers 5,358 4,734

Total members 6,776 6,037

BOARD MEMBERS

Theboardmemberswhoheldofficeduringtheperiodarelistedonpage102.

Clause15(3)ofTheAdvocates’BenevolentAssociationRulesprovidethatallboardmembersshallbeelectedannuallyateachannualgeneralmeetingoftheassociation.Accordingly,allboardmembersretireatthenextordinary general meeting and are eligible for re-election.

INDEPENDENT AUDITOR

Theassociation’sauditor,PKFKenya,hasindicatedwillingnesstocontinueinoffice. BY ORDER OF THE BOARD

CHAIRPERSON NAIROBI

2015 20th February,

104



Statement of The Board Members’ Responsibilities Theboardmembersarerequiredtopreparefinancialstatementsforeachfinancialyearthatgiveatrueandfairviewofthestateofaffairsoftheassociationasattheendofthefinancialyearandofitssurplusordeficitforthatyear.Theboardisalsorequiredtoensurethattheassociationmaintainsproperaccountingrecordswhichdisclosewithreasonableaccuracythefinancialpositionoftheassociation.Itisalsoresponsibleforsafeguardingthe assets of the association.

Theboardmembersacceptresponsibilityforthepreparationandfairpresentationoffinancialstatementsthatarefreefrommaterialmisstatementwhetherduetofraudorerror.Theyalsoacceptresponsibilityfor:

i) designing,implementingandmaintaininginternalcontrolrelevanttothepreparationandfairpresentationofthefinancialstatements;

ii) selecting and applying appropriate accounting policies; and

iii) making accounting estimates and judgements that are reasonable in the circumstances.

Theboardmembersareof theopinion that thefinancialstatementsgivea trueand fairviewof thestateofthefinancialaffairsof theassociationasat30September2014andof itssurplus for theyear thenended.Theboardmembersfurtherconfirmtheaccuracyandcompletenessoftheaccountingrecordsmaintainedbytheassociationwhichhavebeenrelieduponinthepreparationofthefinancialstatements,aswellasontheadequacyofthesystemsofinternalfinancialcontrols. Nothinghascometotheattentionoftheboardmemberstoindicatethattheassociationwillnotremainagoingconcernforatleastthenexttwelvemonthsfromthedateofthisstatement.

Approved by the board members on 2015andsignedonitsbehalfby:

CHAIRPERSON SECRETARY

20th February,

105



Report of Independent Auditor TO THE MEMBERS OF THE ADVOCATES’ BENEVOLENT ASSOCIATION

Wehaveaudited theaccompanyingfinancial statementsof theAdvocates’BenevolentAssociationsetoutonpages5 to12whichcomprise thestatementof financialpositionasat30September2014, thestatementofincomeandexpenditureandretainedearnings,andthestatementofcashflowsfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation. Board members’ responsibility for the financial statements

Theboardmembersareresponsible for thepreparationoffinancialstatementsthatgiveatrueandfairview inaccordancewiththeInternationalFinancialReportingStandardforSmallandMedium-sizedEntities,andforsuchinternalcontrolasmanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror. Auditor’s responsibility

Our responsibility is toexpressan independentopinionon these financial statementsbasedonouraudit.Weconductedouraudit inaccordancewith InternationalStandardsonAuditing.Thosestandards require thatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financialstatements.Theproceduresselecteddependontheauditor’s judgement, includingtheassessmentoftheriskofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancial statements inorder todesignauditprocedures thatareappropriate in thecircumstances,butnot forthe purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made bymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Opinion

Inouropinion,theaccompanyingfinancialstatementsgiveatrueandfairviewofthestateoffinancialpositionof TheAdvocates’ Benevolent Association as at 30September 2014 and of its financial performance and itscashflowsfortheyearthenendedinaccordancewithInternationalFinancialReportingStandardforSmallandMedium-sizedEntities.

Certified Public Accountants

NAIROBI

2015

04 March,

106



Statement of Income and Expenditure and Retained Earnings

2014 2013 Notes Shs Shs

Income

Subscriptions 12,087,760 11,388,890

Backfees 953,010 1,066,340

Otherincome 32,000 26,000

13,072,770 12,481,230

Expenditure

Assistanceprovided (8,351,470) (8,445,642)

Administrationexpenses (2,578,456) (2,032,798)

Establishmentexpenses (262,524) (270,228) (11,192,450) (10,748,668) Operatingsurplusfortheyear 1,880,320 1,732,562 Financeincome 2 3,941,761 5,598,736 Totalsurplusfortheyear 5,822,081 7,331,298 Retained earnings at the start of the year 48,336,688 41,005,390 Retained earnings at the end of the year 54,158,769 48,336,688

Thenotesonpages109to113formanintegralpartofthesefinancialstatements. Reportofindependentauditor-page105.

107



Statement of Financial Position As at 30 September


CAPITAL EMPLOYED Accumulated surplus 54,158,769 48,336,688 REPRESENTED BY Non-current assets Furnitureandfittings 3 62,000 82,124

Intangibleassets 4 156,134 398,534

Treasurybonds 6 30,000,000 30,000,000

30,218,134 30,480,658Current assets

Tradeandotherreceivables 5 1,552,534 2,011,335

TreasuryBills 7 4,800,000 13,000,000

Shorttermdeposits 8 15,500,000 1,350,000

CashandcashEquivalents 9 2,208,173 1,494,695

24,060,707 17,856,030Current liabilities Duetorelatedparty 10 120,072 -

Netcurrentasset 23,940,635 17,856,030 54,158,769 48,336,688

Thefinancialstatementsonpages106to113wereauthorisedforissuebytheBoardMemberson2015andweresignedonitsbehalfby:

CHAIRPERSON SECRETARY Thenotesonpages109to113formanintegralpartofthesefinancialstatements. Reportofindependentauditor-page105.

20th February,

108



Statement of Cash Flows


Operating activities Surplus for the year 5,822,081 7,331,298 Adjustments for:

Depreciationofequipment 3 20,124 27,828

Amortisationofsoftware 4 242,400 242,400

Interestontreasurybonds 2 (2,668,567) (4,220,623)

Interestonfixeddeposit 2 (1,273,194) (1,378,113)

2,142,844 2,002,790

Changes in operating assets and liabilities

Decrease/(increase)intradeandotherreceivables 458,801 (1,933,801)

Increaseinpayables 120,072 -

578,873 (1,933,801)

Net cash from operating activities 2,721,717 68,989

Investing activities Interestreceivedonfixeddeposit 1,273,194 1,378,113

Interestreceivedontreasurybonds 2,668,567 4,220,623

Purchaseofequipment - (17,400)

Moneyinvestedintreasurybonds - (10,000,000)

Netcashfrom/(usedin)investingactivities 3,941,761 (4,418,664)

Movement in cash and cash equivalents

At start of year 15,844,695 20,194,370 Increase/(decrease)fortheyear 6,663,478 -4,349,675

At end of year 9 22,508,173 15,844,695 Thenotesonpages109to113formanintegralpartofthesefinancialstatements. Reportofindependentauditor-page105.

109



NOTES 1. General Information and Significant Accounting policies

a) GeneralInformation TheAdvocates’BenevolentAssociation is incorporated inKenyaunder theKenyanCompaniesAct, and isdomiciledinKenya.TheaddressofitsregisteredofficeandprincipalplaceofbusinessisoffGitangaRoad.TheprincipalactivityoftheassociationistohelppoorordistressedpersonswhoaremembersoftheAssociationandthewidows,childrenandotherdependantsofthedeceasedadvocates.Inspecialcircumstances,advocateswhoarenotmembersoftheassociationandpersonswhoforanyreasonhaveceasedtobeadvocatesmayalso get help.

b) Significantaccountingpolicies Theprincipleaccountingpoliciesadoptedinthepreparationofthesefinancialstatementsaresetoutbelow.Thesepolicieshavebeenconsistentlyappliedtoalltheyearspresented,unlessotherwisestated.

Basis of preparation ThesefinancialstatementshavebeenpreparedonthehistoricalcostbasisinaccordancewiththeInternationalFinancial Reporting Standard for Small and Medium-sized Entities issued by the International AccountingStandards Board. They are presented in Kenya Shillings (Shs).

ThepreparationoffinancialstatementsinconformitywithInternationalFinancialReportingStandardforSmallandMedium-sizedEntities,requiretheuseofcertaincriticalaccountingestimates.Italsorequiresmanagementto exercise its judgement in the process of applying the organisation’s accounting policies. Areas involving a higherdegreeof judgementorcomplexity,orareaswhereassumptionsandestimatesaresignificant to thefinancialstatements,aredisclosedbelow.

Going concern

Thefinancialperformanceoftheassociationissetoutinthereportoftheboardmembersandthestatementof incomeandexpenditureand retainedearnings.Thefinancialpositionof theassociation is setout in thestatementoffinancialposition.

Basedonthefinancialperformanceandpositionoftheassociationanditsriskmanagementpolicies,theboardmembersareoftheopinionthattheassociationiswellplacedtocontinueinbusinessfortheforeseeablefutureandasaresultthefinancialstatementsarepreparedonagoingconcernbasis.

c) Keysourcesofestimationuncertainty The boardmembers havemade no assumptions and there are, in their opinion, no sources of estimationuncertaintythathaveasignificantriskofcausingamaterialadjustmenttothefinancialstatementsinthetwelvemonthsfromthestatementoffinancialpositiondate.

d) Revenuerecognition

Annualsubscriptionsareaccountedforwhenmembership isconfirmedbyreceiptofsuchsubscriptions.Allotherincomeisrecognisedwhentheassociation’srighttoreceivetheincomeisestablished.

e) Equipment Equipment is initially recorded at cost and thereafter stated at historical cost less depreciation.

110



NOTES (CONTINUED)

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, asappropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtothecompany and the cost can be reliably measured. The carrying amount of the replaced part is derecognised. Allotherrepairsandmaintenancearechargedtotheprofitorlossduringthefinancialyearinwhichtheyareincurred.

Depreciationiscalculatedonthereducingbalancebasistowritedownthecostofeachasset,toitsresidualvalueoveritsestimatedusefullifeusingthefollowingannualrates:

Rate %

Furniture,fittingsandequipment 12.5

Computerequipment 30.0

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of eachreporting period.

Anasset’scarryingamountiswrittendownimmediatelytoitsrecoverableamountiftheasset’scarryingamountis greater than its estimated recoverable amount.

Gains and losses on disposal of equipment are determined by comparing the proceeds with the carryingamount and are taken into account in determining operating surplus.

f) Impairmentofnon-financialassets Assetsthataresubjecttoamortisationarereviewedforimpairmentwhenevereventsorchangesincircumstancesindicate that the carrying amount may not be recoverable.

Animpairmentlossisrecognisedfortheamountbywhichtheasset’scarryingamountexceedsitsrecoverableamount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

Non-financialassetsthatsufferedanimpairmentarereviewedforpossiblereversaloftheimpairmentattheendof each reporting period.

g) Financialassets

Financialassetsareinitiallyrecognisedatfairvalueplustransactioncostsforallfinancialassetsnotcarriedatfairvaluethroughprofitorloss.

h) Tradereceivables

Trade receivables are initially recognised at the transaction price. Where credit is extended beyond normal credit terms, receivablesaremeasuredatamortisedcostusing theeffective interestmethod.At theendofeachreportingperiod,thecarryingamountsoftradeandotherreceivablesarereviewedtodeterminewhetherthereisanyobjectiveevidencethattheamountsarenotrecoverable.Ifso,animpairmentlossisrecognisedimmediatelyintheprofitandloss.

i) Taxation

The association is exempt from tax on its income. The tax recoverable balance in the balance sheet arose from the tax at source from the associations interest income in the past.

111



NOTES (CONTINUED)

j) Cashandcashequivalents

For thepurposesof thestatementofcashflows,cashandcashequivalentscomprisecash inhandanddepositsheldatcallwithbanksnetofbankoverdrafts.Inthestatementoffinancialposition,bankoverdraftsareincludedinborrowingswithincurrentliabilities.

k) Intangibleassets Computersoftware

Computersoftwarelicencesarecapitalisedonthebasisofthecostsincurredtoacquireandbringtousethespecificsoftware.Thesecostsareamortisedovertheirestimatedusefulliveswhichareestimatedtobefiveyears.

l) Retirementbenefitobligations

The association employees contribute to the National Social Security Funds (NSSF), a statutory definedcontributionschemeregisteredunderNSSFAct.TheAssociation’scontributions to thedefinedcontributionschemearechargedtotheincomestatementintheyeartowhichtheyrelate.

m) Comparatives

Where necessary, comparative figures have been adjusted to conformwith changes in presentation in thecurrent year.

2014 2013

2. Finance Income Shs Shs

Interestontreasurybonds 2,668,567 4,220,623

Interestonfixeddeposit 1,273,194 1,378,113

3,941,761 5,598,736

3. Equipment

Yearended30September2014 Furniture, fittingsand Computer equipment equipment Total Shs Shs Shs

Cost

Atstartandendofyear 36,202 168,100 204,302

Depreciation

Atstartofyear 10,415 111,763 122,178

Chargefortheyear 3,223 16,901 20,124

Atendofyear 13,638 128,664 142,302

Netbookvalue2014 22,564 39,436 62,000

Netbookvalue2013 25,787 56,337 82,124

Intheopinionoftheboardmembers,thereisnoimpairmentofequipment.

112



NOTES (CONTINUED)

4. Intangible assets - software 2014 2013 Shs Shs Cost

Atstartandendofyear 1,212,000 1,212,000

Depreciation


Chargefortheyear 242,400 242,400

Atendofyear 1,055,866 813,466

Netbookvalue 156,134 398,534

5. Trade and other receivables

Chequesreturnedunpaid 18,000 2,000

ReceivablefromTheLawSociety ofKenya - 479,832

Prepaidexpenses 86,842 92,703

Financeincomereceivable 1,447,692 1,436,800

1,552,534 2,011,335

2014 2013

6. Treasury bonds Shs Shs

Non-current

Treasurybondmaturingon5.4.2019 10,000,000 10,000,000

Treasurybondmaturingon5.04.2022 20,000,000 20,000,000 Totaltreasurybonds 30,000,000 30,000,000

7. Treasury bills - Held to maturity

Held-to-maturityinvestmentscanbeanalysedasfollows:



Totaltreasurybills(Note9) 4,800,000 13,000,000

113



NOTES (CONTINUED)

8. Short term deposits

Fixed deposit at NIC (Note 9) 15,500,000 1,350,000

9. Cash and cash equivalents

Cashatbankandinhand 2,208,173 1,494,695

Forthepurposeofthestatementofcashflows,theyear-end cashandcashequivalentscomprisedthefollowing:

2014 2013

Shs Shs

Cashandbankbalances 2,208,173 1,494,695

Treasurybills(note7) 4,800,000 13,000,000

Shorttermdeposits(note8) 15,500,000 1,350,000

22,508,173 15,844,695

10. Due to related party

PayabletoTheLawSocietyofKenya 120,072 -

114



Schedule of Expenditure 2014 20131. assistance Provided Shs Shs

Secondaryschool 3,758,307 3,859,692

Primaryschool 2,364,450 2,606,950

Tertiaryeducation 2,120,113 1,816,350

Kindergarten 108,600 162,650

8,351,470 8,445,642 2. adMinistrative eXPenses

Employment:

Salariesandwages 1,180,400 1,266,867

Staffmedicalexpenses 121,653 108,041

Totalemploymentcosts 1,302,053 1,374,908

Other administrative expenses: Commissionsandtaxoninvestment 13,056 41,272

Bankchargesandcommissions 195,045 150,521

Printingandstationery 168,511 119,087

LSKannualconference 60,000 111,050

AGMexpenses 513,976 104,500

Auditfee 100,000 100,000

ABAtravel 7,350 4,400

Justicecupexpenses 15,000 15,000

Branchvisits 200,965 -

Legalawarenessweek - 5,000

Meeting 2,500 6,570

Postages and telephones - 490

Totalotheradministrativeexpenses 1,276,403 657,890

Total administrative expenses 2,578,456 2,032,798

3. OTHER OPERATING EXPENSES

Establishment:

Amortisationofsoftware 242,400 242,400

Depreciationonequipment 20,124 27,828

Total other operating expenses 262,524 270,228


Lavington opp. Valley Arcade

Off Gitanga Road

P.O. Box 72219 – 00200

Nairobi – Kenya

Telephone: 020-8155295

Cellphone: 0720 90 4983

Website: www.lsk.or.ke

Annual Report 2014 - Welcome to LSK LSK ABA-Annua… · President Mr. James Aggrey Mwamu addressing...

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