Annual Report and Financial Statements For The Financial Year Ended June 30, 2021
Annual Report and Financial Statements For The Financial Year Ended June 30, 2021
Annual Report and Financial Statements For The Financial Year Ended June 30, 2021
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National Council for Law Reporting “
Annual Report and Financial Statements for the year ended 30* June 202 1
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30“’ June 202 1
T ABL E O F CO NTENT S
1. K E Y ENT I T Y IN FORM A T I ON A N D M A N A G EM E N T iv
2. TH E CO UN CIL M EM BERS X
3. K EY M A NA GEM ENT XV
4. C H A I R P E R S O N ’ S ST A T E M E N T x ix
5. R E PO R T O F T H E C H I E F EX E C U T I V E O FFI C E R XX
6. ST A T E M E N T O F N A T I O N A L C O U N C I L F O R L A W R E P O R T I N G ’ S P E R F O R M A N C E F Y
2020/20 2 1 xxii
7. C O R P O R A T E G O V E R N A N C E ST A T E M E N T x x v iii
8. M A N A G E M E N T D I SC U SSI O N A N D A N A L Y SI S xxxi
9. E N V I R O N M E N T A L A N D SU ST A I N A B I L I T Y R E P O R T I N G x l iv
10 . R E P O R T O F C O U N C I L M E M B E R S x lv ii
I I . ST A T E M E N T O F D I R E C T O R S’ R E SP O N SI B I L I T I E S x lv iii
12 . R E P O R T O F T H E I N D E P E N D E N T A U D I T O R S O N T H E N A T I O N A L C O U N C I L F O R L A W
RE PO R T IN G xlix
13 . S T A T E M E N T O F F I N A N C I A L P E R F O R M A N C E F O R T H E Y E A R E N D E D 3 0™ J U N E 2 02 1 1
14 . ST A T E M E N T O F F I N A N C I A L P O SI T I O N A S A T 30™ J U N E 2 0 2 1 2
17 . ST A T E M E N T O F C O M P A R I SO N O F B U D G E T A N D A C T U A L A M O U N T S F O R T H E Y E A R
E N D E D 3 0™ J U N E 202 1 5
18 . N O T E S T O T H E F I N A N C I A L ST A T E M E N T S 7
A PPEND ICES 34
A P P E N D I X I : P R O G R E SS O N F O L L O W U P O F A U D I T O R R E C O M M E N D A T I O N S 34
A P P E N D I X H : I N T E R - E N T I T Y T R A N SF E R S 35
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National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
1. K E Y EN T I T Y IN F O R M A T IO N A N D M A N A G E M EN T
The National Council for Law Reporting (NCLR) is a state corporation in the Office of the Attorney
General and Department of Justice. The brand name of the National Council for Law Reporting is Kenya
Law. Kenya Law was established under the National Council for Law Reporting Act (A ct No. 11 of
1994). It is domiciled in Kenya and is based in Nairobi with no other branches in the Country. K enya
Law is governed by a Council; the body that is responsible for the general policy and strategic direction
of the institution. The Council has 12 statutory and 2 Co-opted members. It is chaired by the Chief
Justice of the Republic of K enya,
Kenya Law’s core values are Integrity, Professionalism, Transparency and A ccountability, hmovation and
creativity. Reliability and Citizen/Customer Focus.
K enya Law is focusing on three strategic themes / core obj ectives as indicated below:
i) A ccess to public legal information
ii) Organizational sustainabilitys
iii) Corporate identity and visibility
( iv
)
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
(c) K ey M anagement
Kenya Law’s day-to-day management is executed by the following key organs;
i) Council Members
ii) Editor / CEO/ A ccounting offi cer
iii) M anagement
The key management persoimel who held offi ce during the fi nancial year ended 30* June 2021 and who
had direct fi duciary responsibility were:
N a m e o f t h e O f f i c er Responsibility
I “ )
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
The oversight responsibility of the Council is performed through vari ous Committees. The Council has four
(4) comm i ttees thr ough w hich v ari ous ov ersight rol es ar e ex e c u t ed a s sh o w n b el o w :
M embership of the Audit & Risk M anagement Committee of the Council includes:
N am e of t h e M em b er s
C o m m i t t ee
M embership of the F inance & General Purp oses Committee of the Council includes:
N am e of t h e M em b er s
C o m m i tt ee
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National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* Jime 202 1
i) To guide in the development, approval and evaluation of the level of implementation of Kenya Law’s
Strategic plan,
ii) To guide in the development and approval of policies and procedures of workfl ows for the technical /
core departments,
iii) To monitor the quality and timeliness of Kenya Law’s publications and the provision of Public legal
information to the public,
iv) To monitor the level of accessibility to public legal information by the public and advice on continuous
improvement.
M embership of the Technical Committee of the Council i n c l u d es :
N am e o f th e C o m m i t tee M em b er s
iv) To guide in the development and approval of policies and procedures for K enya Law staff
development and motivation programmes,
v) To guide in the development and approval of policies and procedures for Kenya Law staff welfare
p r o g r am m e s ,
vi) To guide in the development and approval of policies and procedures for Kenya Law staff relations,
discipline and dispute resolution.
N a m e o f t h e C o m m i t t ee M em b er s
( v ii
)
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
In addition to internal oversight structures executed by the Council, the National A ssembly also
Exercises oversight of M inistries Departments and A gencies (M DA s) as follows;
i) Parliamentary committees investigate specifi c matters of national policy, government
administration, budget execution, government performance of all M inistries Departments and
A gencies (M DA s).
ii) The Parliamentary Committees execute assigmnents that parliament would not be able to undertake
in the large, formal environment of house sittings, such as fi nding out the facts of a case or issue,
gathering evidence from expert groups or individuals, sift ing through evidence and drawing up
r eason ed co n cl u si on s,
iii) The Budget and Appropriations Committee provides oversight in the M edixim-Term Expenditure
Framework (MTEF) budget process especially in tbe appropriation of budgets to M inistries
Departments and A gencies (MDA s). The Council being a government agency therefore is subj ect to
this budget process and oversight,
iv) The Public A ccounts and the Public Investment Committees specifi cally provide oversight
(watchdogs) in the use of public funds by scrutinizing audited fi nancial statements and specifi cally
audit queries f lagged by the Offi ce Auditor General . The Council , being a State Corporation, is
therefore subj ect to these oversight arrangements.
K enya Law receives conditional grants fr om various development partners to fund specifi c activities fr om
time to time. The utilization of these funds is always subj ect to specifi c conditions fr om the partners. In such cases,
development partners provide the following oversight activities;
i) To M onitor and review progress of proj ects in relation to the pre-set performance agreements,
contractsor expected outputs,
ii) To provide recommendations regarding strategic directions, new opportunities for
investment/collaborations and effi ciency in perf ormance,
iii) To approve the budget proposals for development proj ects and interrogate the periodic
performancereports for the same,
iv) To provide proj ects monitoring and evaluation arrangements, both operational and fi nancial .
( v iii
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National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
P* Ngong A venue,
P.O . B ox 1044 3 - 00 100,
Nairobi, Kenya.
N airobi , K eny a.
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National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
2. T H E CO UNC IL M EM BERS
H o n . C h i ef J u st i ce M a r t h a K a r a m b u K o o m e
The Chief Justice & President of the Supreme Court of Kenya.
Chairperson, National Council for Law Reporting
D at e o f A p p oi n tm ent - M ay 20 2 1
H on . Justice M artha K . K oome i s the Chief Justi ce, President of the Supreme Court of
K enya and the Chairperson of the National Council for Law Reporting. She is also
the Chairperson of the National Council on the A dministration of Justice (NCAJ).
Prior to her appointment as Chief Justice, Hon. Justice Koome was a Judge of the Court
of Appeal for over nine years. Chief Justice M artha K o om e h as al so w or k ed i n v ar i ou s
divisions of the High Court of K enya for over eight years; She has headed the
Environment and Land Division, was the Resident Judge at Kitale Law Courts, a Judge
at the M ilimani Commercial Court, a Resident Judge at Nakuru L aw Courts and a Judge
at the Family Division.
Chief Justice M artha Koome has been the chairperson of ; the N ational Council on the
A dministration of Justice (NCA J) Special Taskforce on Children M atters, the K enya
M agistrate and Judges Association (KM JA), Federation of Women Lawyers (FIDA )
and is a foxmding member of the league of women voters. Before j oining the Judiciary,
Justice K oome was a legal practitioner for fi ft een ( 15) years in the areas of Family Law
and public interest litigation.
Chi ef Justice M artha K oome holds a M aster of L aw s (L L M ) Degree f rom the
University of London; a Bachelor of Laws (LLB) Degree fr om the University of
Nairobi and a Diploma in Legal Practice from the K enya Sch o o l o f L aw .
Sh e i s a m em b er o f th e L aw S o c i e tv o f K en v a .
H on . J usti ce (R t d) K i h ar a K ar i uk i , C B S
The A ttorney General of the Republic of Kenya
Date of Appointment - February 2018
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Justice (Rtd) Kihara Kariuki was admitted to the Bar in 1978 after completing his
post-graduate diploma in law at the Kenya School of Law, Nairobi . He practiced
law with several legal establishments including Ndung’u Nj oroge and Kwach
A d v o c ates an d H am i l to n H arr i so n an d M ath ew s A dv o c at es i n N ai r ob i .
In 2003, he was appointed Judge of the High Court where h e ser v e d i n b o th th e
civil and commercial divisions of the Court for several years. Justice (Rtd) Kihara
K ariuki served as the fi rst Director at the Judiciary T raining Institute. In 20 13,
H e w as appointed the Presi dent of the Court of A ppeal . Justi ce (Rtd) K ihar a
K ariuki was appointed Attorney General of the Republic of K enya in February
2 0 18 .
M s. L i n d a M u si l i v i M ur i l a
m A 1 A
Representing H on. Justice (Rtd) Kihara K ariuki - Attorney G en er al
Date of Appointment - November 2016
( « )
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
P r o f . K i a r i e M w au r a
Dean, School of Law, University of Nairobi
Date of A ppointment - June 2017, Exited in June 2021
H o n . J u st i c e F a t u m a S i c h a l c
H o n J u st i c e J a m e s R i k a
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National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* Jxme 202 1
P r o f . W i n i f r ed K a m a u
M s. J en n i f e r G i ti r i
s. Y A I A V M s. Jennifer Gitiri is an Advocate of the High Court of K enya and a Senior Stat
Counsel at the Office of the Attorney General and Department of Justice. Previousl)
she was the Global Networking Officer at N orwegi an C h u r ch A i d .
She holds two M aster of Laws (LL .M ) degrees fr om the University of Nairobi
and the Central European University, a Bachelor of Laws (LLB) degree fr om the
University of Nairobi and a Post Graduate Diploma in Law fr om the K enya
School of Law. She’s a member of the Law Society of K enya.
M r . M w en d a Nj ok a
G o v er n m en t P r i n t er
Printer. He j oined the Council of the National Council for Law Reporting in June
2019. Mr. Nj oka also serves on the Board of the Competition Authority of K enya
as an alternate Director to the Principal Secretary, State Department for Interior,
M inistry of Interior and Coordination of National Government. Previ ously , he w as
t h e C o m m u n i c a t i o n s D i r ec t o r an d A d v i so r to t h e C ab i n et Secretary in the
M inistry of Interior and Co-ordination of National G o v er n m en t .
( - )
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30"’ June 202 1
M s. J a n et K i m eu
M r . M i ch a el M u ch em i
( )
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
M r . J on ah W al a
Co-opted member
Director (A g), A ccounting Services, National Treasury
Date of Appointment - January 2015
Mr. Wala is the Acting Director Accounting Services at the National Treasuiy^
and represents the Cabinet Secretary in Institute of C er t i fi ed Pub l i c
A ccountants of Kenya (ICPAK ) Council . He holds a M asters degree in
Banking and Finance. He is a PhD candidate in M anagement at t h e C ase
Western Reserve University, USA .
CPA FA Jona Wala also sits in the Boards of Kenya Daiw Board, Registration
of Certifi ed Public Secretaries of Kenya where he is the Registrar, Kenya Law
Reports, a co-opted member of the Public Sector Accounting an d ch ai r s th e
T echn i cal C om m i tt ee o f th e E ast an d So u th er n A f r i ca A sso c i at i on of
A c c o u n t an t G en er a l s .
M r . Sam w el Nj or oge
Representing M r. M ichael Sialai, Cler k of the National
A ssem bly
Date of Appointment - August 2017
M r . L ong’et Ter er
A I A W
E d i t or / C E O
- PWV A I A Date of Appointment- August 2015, Exited on 3"*August 2 0 2 1
s
! M r. Long’et Terer is the Editor/CEO of the National C o u n c i l f o r L aw i '-
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National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
3. K EY M A NA G EM ENT
V y
a M ember of the Law Society of K enya.
r M s. J an et M . M u nyw ok i,
Sen i or A ssi stan t E d i tor/ D .C E O
Date of Appointment - August 20 18, Appointed acting CEO on 4 A ugust 202 1.
M s. Munywoki is the Senior A ssistant Editor and deputy CEO. M s. M unywoki has
leadership responsibilities for the technical functions of Law Reporting, L aws of
Kenya and Research and Development. She coordinates timely publication of
K enya Law’s legal publications. She also assists the CEO in the implementation of
Council ’s strategic plan and the day to day administrative duties of K enya Law.
M s. M unywoki holds a Master’s Degree in International St ud i es an d a B ac hel or ’ s
Degree in Law (LLB) and a Postgraduate Diploma fr om the K enya School of Law.
M s. M unywoki is also a Certified Public Secretary, C er t i fi ed Pr o f essi on al M ed i ator
and M em ber of the L aw Soci ety of K eny a.
M s . J a n et W a t i l a
( « )
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
P a sc a l O t h i e n o O l u o c h
' 1- 1
» T eam-leader , Finance
Date of Appointment - January 2012
Mr. Othieno is responsible for the fi nance and accounting functions at K enya Law.
Mr. Othieno manages the resource mobilization activities at K enya Law, he is also
responsible for implementation of expenditure programs, budget control ,
investment activities, financial accounting and financial reporting f unctions. Mr.
Othieno holds a M aster’s Degree in Strategic M anagement an d a B ach el o r ’ s
Degree in Business M anagement (A ccounting). He is a m em b er o f th e I n st i tu te o f
Certifi ed Public A ccountants of Kenya (ICPAK ).
P I
m m um
M s. E d n a K M u t h a u r a
M r . A n d r ew H alonyer e
Team-leader, Research and Development
K EN D ate of A ppointm ent —July 2020
M r . H alonyere m anages the research and developm ent of any other legal
publications that are related to the Kenya Law Reports and al so m anages the
Knowledge M anagement unit that deals with the preservation an d d i ssem i n ati on o f
i,
other public legal resources. Mr. Halonyere holds a Bachelor’s Degree in Law
(LLB) and is M ember of the Law Society of Kenya.
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National Council for Law Reporting
Aimual Report and Financial Statements for the year ended 30"’ June 202 1
J J
M s. W a m b u i K a m a u
a s
w T eam -leader. L aw of K enya.
W
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‘ •-• a * ' .' I M s. K amau is responsible for the technical department th at deal s w it h th e L aw s o f
Kenya at Kenya Law. Ms. Kamau manages the consolidation, updating and
revision of the online content of the Laws of Kenya and publication of the print
volumes of the Laws of Kenya. She holds a Bachelor’s Degree in L aw (L LB)
and i s a M ember of the L aw Society of K eny a.
M s. Nj er i Githanga
Team-leader, Law Reporting
Date of Appointment - July 2020
M r . M ar t in A n d ago
Team-leader, Information, Communication and Technology
Date of Appointment - October 2015
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National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
M s. E m ily N ak h un gu
' K l N VA t / Team-leader, Sales, Marketing and Customer Care.
Date of Appointment - July 2013
M r . B o r n f a c e O t i e n o O d er o
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National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30"’ June 202 1
4. C H A I R P E R SO N ’ S ST A T E M E N T
We are now well into the implementation of the K enya Law Strategic Plan
2018 - 2022 and are in the fi nal year of its implementation. The plan
identifi ed three strategic themes which K enya Law focused i n th i s fi n an c i al
The report captures the activities undertaken by Kenya Law in these thematic areas and highlights the
achievements, progress and challenges during the period. With this the management team had a fi rm basis for
reviewing and adj usting operations to improve effi ciency as the fi nancial year progressed.
In light of the recent global covid- 19 pandemic which has radically altered the way in which we are working. I t
has become more and more evident that working with technology is the new normal . Kenya Law has shown great
leadership in how it has embraced this. This is ref lected i n th e f l ex i b l e an d i nn o v at i v e m an n er i n w h i ch th e
organization has continued to execute its mandate and achieve impressive productivity in this trying times. K eny a
Law remains committed to achieving our mandate, our promise to provide universal access to public legal
inform ati on by m onitoring and reporting on the devel opm ent of j uri sprudence for the prom otion of the rul e of
l aw .
Ch a i r p er so n , N a ti o n a l Co u n ci l f o r L a w R ep o r ti n g..
( x ix
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National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
5. R E PO R T O F T H E C H I E F E X EC UT I V E O F FI C E R
.4
11
^ A l AW *
I n the year under review great strides were made to actualize the targets set
^ b AI AW out in the Annual Work plan 2020/2021. In this fi nancial year ended 30* June
j AW
2021, 1 am glad to note that we are at the tail-end in the implementation of the
K enya Law Strategic Plan 2018 - 2022 and as such we plan to undertake a
|r Kl N>AI AVN i Ai N* terminal evaluation of the strategic plan in the coming fi nancial year.
In this fi nancial year K enya Law received from the exchequer a total of K shs.
336, 540, 366, representing a 100% f unding. The allocation was complimented
by A -in-A raised through the sale of legal publications amounting to K shs.
6,744,399 out of a budgeted K shs. 10,000,000 for the period ending 30* June
2020. K enya Law made a surplus of K shs. 25,725,403 and the average budget absorption for the fi nancial y e ar
2 0 2 0/ 20 2 1 w as 82 % .
Our maj or highlight of the year was that K enya Law was able to signifi cantly reduce the backlog in terms o f access
to legal publications. Kenya Law prepared, compiled and published eight (8) law reports. These were KLR 2 0 13
edition); Devolution Law Report vol . 1; Election Petition vol . 6; the Supreme Court Digest and the A lternative
Dispute Resolution Digest. These have all been printed and are readily available to the public. Further, we w e re
Other maj or achievements include the collection and online publication of 17,923 decisions a maj ority of th ese
f rom the superior courts, the preparation and printing of fi ve (5) Laws of Kenya publications and the compilation,
the preparation and di ssem ination of f orty-fi ve (45) w eek ly online new sletters, and publ icati on of 4 quarterly
publications of the Bench Bulletin. K enya Law was also able to update the Laws of Kenya online database to 93%
through consi stent collection of legi slation fi -om the Government Printer and County Governments and uploading
in the database. 100% of all pieces of legislation collected were uploaded.
The Kenyan Legislation Database (KL D) system was 60% complete as at 30* June 2021. A total of 207
substantive A cts and 384 Legal Notices were migrated into the KL D system. A total of 147 Acts and 818 legal
notices were audited for quality upon migration into the KLD system.
The Case Law Database (CLD) system was completed to a 60% development status. The system will increase
efficiencies within the organization and provide a much better user experience and allow better analysis i n th e
The third and fourth quarters of the fi nancial year witnessed K enya Law along with the rest of the country an d
indeed the world, grapple with the ravages of the COV ID - 19 pandemic. The management team considered the
various ways of mitigating our risks while ensuring the continued smooth operations of our organization. A s Kenya
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National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30''' June 202 1
Law, we remained determined to keep our staff members as safe and healthy as possible, and minimized exposure
to COV ID - 19. In this regard we will continue to explore and implement innovative approaches to provide services
to the public in this critical time.
I would like to thank all staff members for maintaining a positive attitude during this period. Our resilience an d
commitment has ensured that the Kenya Law team is minimally affected even as our operations have adapted to
accommodate our new reality. These are challenging ti m es f or al l o f u s an d o u r r eso l v e i s th at w e sh al l com e o u t o f
We also acknowledge the various actors in the chain of production of legal information, most especially th e o fi ce
of the A ttorney General , Judiciary and the Government Printer, and would like to thank all of you for your
continued support in our pursuit to fulfi l our mandate.
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National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
6. ST A T E M E N T O F N A T I O N A L C O U N C I L F O R L A W R E P O R T I N G ’ S P E R F O R M A N C E F Y 2 0 2 0 / 2 0 2 1
ection 81 Subsection 2 (f) of the Public Finance M anagement A ct, 2012 requires the accounting offi cer to
include in the fin anci al statem ent, a statem ent of the national government entity ’s perf ormance against
predetermined obj ectives.
National Council for Law Reporting has three (3) strategic pillars and obj ectives within its Strategi c
Plan for the FY 2018/2019-2022/2023. These strategic pillars are as follows:
Kenya Law develops its annual work plans based on the above three pillars. A ssessment of the management’s
performance against its annual work plan is done on an annual basis. K enya Law achieved its performance t ar gets
set for the FY 2020/2021 period for its three strategic pillars, as indicated in the diagram below:
O bj ect i ve K ey A c t i v i t i es A ch i ev em en t s
St r ategic P er f o r m a n ce
P il l ar I n d i cat o r s
Pillar 1: | Publishing Number of Kenya Law To Publish (1,000 Copies Printed 8 K enya Law Reports
A ccess to Kenya Law Reports published each) of 4 Kenya Law Reports and Specialized Law Reports;
Public Reports, the v o l um es 1998, 20 16 V ol l , 20 16 V ol 2,
L egal Laws of 2017 V ol 2, Employment and
Informatio K enya and L abour Relations Court V ol 1,
n o th er R el at ed E n v i r o nm en t an d L an d C ou r t
P u b l i c at i o n s V ol 2, Family V ol 2 &
to ai d th e C om m er ci al V o l 1.
effi cient and a) Number of Bench To Print 6 publications: ; a) Published and printed 4
timely 4 issues of Bench issues of 1,500 copies each of i
pulletinspublished, a)
delivery of
b) Number of special Bulletins (issues 49, 50, 51 the Bench Bulletins i .e. i ssu es
Ju st i ce & 52) of the Bench Bulletins 49, 50, 51 & 52.
digests published.
c) Publish 2 Vols. published b) Specialized D igests
(@500) Kenya Law b) Publish 4,000 copies of completed and sent for print;
Revi ew Journal printed. specialized digests including
i) Digest on Big 4 A genda
Case digest on Big 4 A genda
Action plan. Commercial Laws Action plan
Digest, Digest on Police ii) Commercial Laws Digest
A ccountability iii)Digest o n Po l i c e
and Anti- Corruption Case
A ccountability
Digest.
iv)Anti- Corruption Case
c) 2 K enya L a w
R e v i e w Jou r n al s V o l 6 o f Digest was at fi nal review
2018 & Vol 7 of June 2019 Published 1 Vol. of the
were published and printed, Kenya Law Review Journal .
d) Publish the K enya Law
R ev i ew Jou r n al .
No. of Laws of K enya To Print 3,500 copies of the Printed 1,000 cop ies
^ xxii j
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
i ssuesprinted printed.
A n n u al supplement c) To Print the annual Prepared 383 statutes forming
@10printed supplement @10 Nos. the 24th Annual Supplement
and submitted to the A ttorney
G en er al .
Enhancing Percentage of Revi sion T o Col lect, upload. 472 laws out of 504 were|
the provi sion and updating of the consolidate and update / revise updated (93.5%). j
of on l i n e Laws of Kenya 95% of all the Laws of Kenya Uploaded to the Kenya Law
legal content collected on the laws of Kenya w eb si t e 10 0 % o f al l o f th e
through the dat ab ase supplements received within
K enya law 48 hours of receipt.
w eb si t e t o ai d
National Legislation 22 A cts,
the ef fi ci en t
99 Legal Notices & 74 Bills
and timely (National A ssembly 39, Senate
delivery of 35), County legislation (69
Ju st i c e
A cts, 93 Bills & 7 Regulations.
Percentage of case law To Collect decisions of the The uploading of the j udicial
updated to K enya Law superior courts of record and a opinions was done within 48
website. select subordinate courts and ^hours of receipt.
Online newsletters onsure 100% upload of the A total of 17,0 18 and 9 15
prepared andpublished. collected decisions within 48 j udicial decisions from the
h ou r s, su p en o r cou rts an d
10 0 % o f th e c au se l i st s
su b or d i n at e courts
r ec ei v ed uploaded To Prepare and publish fi ft y
on l i n e (50) online newsletters. respectively were collected
To upload 100% of the cause and uploaded.
l i st s r ecei v ed on l i n e. Prepared and published fi ft y
(45) online newsletters, and
Uploaded all 8,655 cause lists
r ecei v ed on l i n e.
Development of system To develop ICT systems for The K eny an L egi sl ati on
for publishing judicial publishing judicial decisions D at ab ase (K L D ) sy stem w as
decisions developed. and update the Laws of Kenya ^0% complete as at 30* June
202 1. A t o t al o f 2 0 7 sub st an ti v e
at 60% level of completion.
Acts and 384 Legal Notices
were migrated into the K L D
system. A total of 147 A cts and
818 legal notices were audited
for quality upon migration into
the KLD system.
[The Case L aw Database
i(CLD) system has been
( xx iii
)
National Council for Law Reporting
Annual Report and Financial Statements for the year ended SO* June 202 1
designed to a 60%
development status. The
sy st em w ill in cre a se
ef fi ci en c i es w i th i n th e
brganization and provide a
^ uch better user experience on
management of Judicial
dec i si on s.
p r o g r am m e s
^ xxiv j
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
I Pillar 2: Culture change !Number of officers To train at least 50% 'A total of (50%) 36 of fi cers were tr ai n ed i n
Organizatio and skills I trained on of Kenya Law staff a total of 69 different trainings as per the
n al development to leadership, on leadership. Training plan
Su st ai n ab i l i enh an ce staff management and National V alues, :
ty capacity and skill skill development management an d
( )
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
^ xxvi j
National Council for Law Reporting
Annual Report and Financial Statements for the year ended SO* June 202 1
I
E st ab l i sh 1. N o . of C ou n ci l T o tr ai n 1 1 C ou n ci l 1 1 C ou n ci l m em b er s tr ai n ed
tr an sp ar en cy , m em b er s an d st af f m em b er s o n
so ci al m ed i a
p r esen c e .
( xxv ii
)
National Council for Law Reporting
Aiuiual Report and Financial Statements for the year ended 30* June 202 1
7. C O R PO R A T E G O V E R N A N C E ST A T E M E N T
K
enya L aw recognizes the importance of corporate governance to the success of the organization. We
view governance not simply as a set of rules but the fr amework supporting core values which defi ne the
acceptable practices in the management of public institutions. It is an expression of the way we want to
conduct our selv es, w hi ch inf orm s our acti ons and decisions, defi nes and supports our culture as an
i n sti tu t i on .
The operations of K enya Law are conducted in accordance with the best practices anchored in principles of
accountability and transparency as espoused in the Constitution and in compliance with relevant laws and
regulations as espoused in the M wongozo code. The Council has also embraced the international principles and
best practices in corporate governance. The institution discharges its mandate based on strong corporate
governance principles and consistently applies high eth i c al stan d ar d s.
C o u n c i l C h ar t er
The Council has a Charter that guides its operations and facilitates effi cient decision making in dischargi ng i t s
duties and responsibilities. The Charter offers guidance on matters including but not limited to the following; T h e
separation of the roles, f unctions, responsibilities and powers of the Council and its individual members; P o w er s
delegated to the Council committees; M atters reserved for fi nal decision-making and approval by the full Council;
Policies and practices of the Council on matters of corporate governance, directors’ declarations and confl ict o f
interest, conduct of full Council and Council comm ittee meetings; and Nomination, appointment, induction, on
going training and performance evaluation of the f ull C oun ci l an d i t s com m i tt ees.
The governance framework, the corporate culture and human relationships that underpin all governance
frameworks, are operating as expected. The roles and fu nc ti o n s o f th e C h ai r m an an d th e E d i t or / C E O ar e d i sti n c t
and their respective responsibilities clearly defi ned w i th i n th e i n sti tu t i on .
The Council comprises of ten ( 10) Council members, nine (9) of whom are non-executive members of the
Council including the Chairman. The Council also co-opts members with diverse expertise in areas of Financial
M anagement, Human Resource management and audit to complement its capacity.
In the period ended 30* June 2021, the terms of three board members came to an end and their appointing
authori tiesw ere duly notifi ed to tak e the necessary ac t i o n .
C o u n c i l C o m m i t t ee s
The Council has set up the f ollowing Committees, which meet at least quarterly under well-defi ned terms of
r ef er en ce :
i) T echnical Committee
^ xxviii j
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
The Council held seven (7) Council meetings and eighteen ( 18) committee meetings in the Financial Y ear
2 0 2 0/ 2 0 2 1 w i th o v er 9 5% at t en d an ce r ate.
F i n an c e i
&
Ful l T ech n i cal ^ H u m an A udi t
G en er al
B o ar d M em b er Po si ti o n B o ar d C om m itt ee R eso u rc C om m ii
Purposes
e s tee
Chairperson P
Eon . Ju sti ce M ar th a K o om e 0
1 0 0
Co-opted M ember,
H o n . A i m e A m ad i Chief Registrar 2 0 0 [) P
ember. Representing
Pr o f K i ar i e M w au r a .e University of Nairobi 7 0 0 3 4
L aw Sch o o l
M ember,
iM s. Jennif er Gitiri Representing the Public 7 0 0 3 4
[Member,
M s. Janet K im eu Representing the Law Society of 7 4 5 3 3
k enya
Member,
M r . M i ch ael M u ch em i RepresentingtheLawSociety of7 0 0 3 4
K enya
|Mr. Mwenda Njoka / Altemate,Member,
Ms. Eva Kimeiywo Representing the Govemment7 4 4 3 3
p ri nter
T reasury
Mr . L ong ’et T erer Secretar y/ CEO 7 4 4 3 2
( x x ix
)
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
C o n f l i c t o f I n t er e st
A conf lict of interest may arise where a Council member, employee or close family member such as a spouse, child,
parent or sibling has private interests that could improperly influence the performance of the Council m em b er or
employee’ s of ficial duties and responsibilities.
Conf lict may also ari se where a Council member or employee uses their of fi ce for personal gain.
A real confl ict of interest exists at the present time. An apparent conf lict of interest could be perceived by a
r easonable observ er to ex ist, w hether or not it is the case, and a potential conflict of interest could reasonably be
f or eseen t o ex i st i n th e f utu r e.
To prevent of Confl ict of Interest, Council members and Kenya Law employees are expected to maintain public
confi dence in the obj ectivity of their service by preventing and avoiding situations that could give the appearance o f a
confl i ct of interest or result in a potential or actual c o n fl i c t o f i n t er e st .
K enya Law Council members and employees are required to observe the M wongozo code of conduct and any specific
conduct requirements contained in the statutes governing ethical behaviour in their profession, where applicable.
It is not possible to foresee every situation that could give ri se to real , apparent or potential confl ict of interest,
how ev er , w here confl ict ari ses, the Council members or Kenya Law employees are required to excuse themselves, o r
anyone who works for them, fr om any decision-making that may create a conf lict of interest with their private
interests and record the same in the Kenya Law Confl ict of interest register. They are also required to observe secti on
3.1 of the M wongozo code in the disclosure and management of co n f l i ct o f in t er est .
^ XXX j
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
8. M A N A G E M E N T D I SC U S SI O N A N D A N A L Y SI S
Sect i o n A
O PE RA T I O N A L A N D F I N A N C I A L PE R F O RM A N C E
OP E R A TI ON A L P E R F ORM A N CE
Kenya Law ’s operational performance in the year ended June 2021 was exemplary; we continued to collect,
compile and disseminate public legal information through our web site (www.kenyalaw.org) in a timely manner.
Kenya L aw achieved very good results in the area of online reporting, collection and uploading and
dissemination of public legal information as well as printing of specialized publications.
Below is a brief narrative expounding on K enya Law’ s performance in the year ending 30* June 2021:
1) Printed 8 K enya Law Reports and Specialized Law Reports; 1998, 2016 V ol 1, 2016 Vol 2, 2017 V ol 2,
Employment and Labour Relations Court Vol 1, Environment and Land Court V ol 2, Family V ol 2 &
C om m er ci al V o l 1.
ii) Three Kenya Law Reports; 2015 Vol 2, 2018 V ol 1 & 2019 V ol 1 were at fi nal review while K enya Law Report
2017 Vol 1 had been completed and was ready for print.
iii) Publishing and printing of Kenya Law Reports; the use of lightweight coated paper on print publications has
increased the number of pages in a Kenya Law Report from 800 to 1,300 allowing for more cases to be featured
for any given year,
iv) Published and printed 3,500 copies of the Laws of Kenya volumes; ( 1,000 Devolution Laws 2020, 500 each o f
Family Laws, Employment and Labour Laws & Commercial Laws V 1, II& III).
v) Published and printed 1,500 copies of service issues (amendments). 500 copies each of the service issues f o r
Commercial L aws V olume, Land laws V olume and the Grey B o ok V o l um e,
vi) Published and printed 1,000 copies of the Arbitration digest,
vii) Published and printed 50 copies of the Uasin Gishu Devolution Laws Volume for the Uasin Gishu County
G o v er n m en t ,
ix) Published and printed 4 issues of 1,500 copies each of the B ench B ul letins i .e. i ssues 49, 50, 5 1 & 5 2 .
x) Prepared and submitted for print to International Development Law Organization (IDLO) the Specialized Digest
on the Big 4 A ction Plan,
xi) Prepared and submitted for print to International Development Law Organization (IDLO) the Specialized Digest
on C o m m er ci al L aw s,
xii) Prepared and submitted for print to Offi ce of the Director of Public Prosecutions (ODPP) and International
Justice M ission (IJM ) the Specialized Digest on Police A ccountability,
xiii) Preparation of the A nti- Corruption Case Digest was on-going at fi nal review,
xiv) Prepared and transmitted 4 reports identifying seventeen ( 17) Law Reform issues from Case-L aw to the O f fi c e
of the A ttorney General & Department of Justice and the K enya Law Reform Commission.
XV) Identifi ed and reported to the Offi ce of the A ttorney General and Department of Justice a total of twenty-four
(24) statutes in need of legislative reform,
xvi) Prepared and sent out to 26,421 Kenya Law’s online subscribers, twenty (20) legislative updates on legi slation
that has been gazetted.
xvii) Prepared and transmitted 4 reports to the Judiciary on divergence in j udicial reasoning. One ( 1) case of
divergence in j udicial reasoning was identifi ed and reported in the year .
xviii) Prepared and transmitted 4 reports identifying 13 statutes with sections declared unconstitutional by
various j udicial decisions to the Offi ce of the Attorney General & Department of Justice and K enya Law Reform
C om m i ssi on o n th e l aw s th at h ad b een d ecl ar ed un con st i tu t i on al .
^ xxxi j
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30"' June 202 1
xix) Tracked and reported 26 cases of international j urisprudence on emerging areas for purposes of comparative
analysis and research,
xx) Reviewed 17,526 cases during case selection meetings of which a total of 191 cases were selected for reporting,
xxi) Compiled and disseminated 45 weekly newsletters on Case law updates to our 26,42 1 online subscribers.
xxii) Collected, processed and disseminated on the Kenya law website (case law database) 100% of the
collected i .e. 17,018 j udicial decisions as compared to 20,963 decisions in the FY 2019/20, fr om the superior
courts of record (Supreme Court 69, Court of Appeal 1,196, High Court 10,156, Environment and Land Court
3,781, Employment and Labour Relations Court 1,816) and 915 j udicial decisions fr om the Tribunals in the y e ar
en d ed Ju n e 20 2 1.
xxiii) A total of 3,842 (84%) decisions were sent out to j udicial offi cers as part of the Case-back service.
xxiv) A total of 8,655 cause lists received fr om superior and subordinate court stations were uploaded online
in time during the reporting period.
xxv) Uploaded 22 Acts, 99 legal notices, 74 bills (National A ssembly 39, Senate35) and 169 pieces of county
legi slation.
xxvi) Collected, digitized and uploaded on the Kenya Law website 100% (2,287 documents) of all other
public legal information received i .e. Kenya Gazette Volumes, K enya gazette supplements. County legislation.
Copies of Parliamentary Hansard, Sessional Papers, Government policies and Commission reports etc.
xxvii) Updated online information portal on COV ID - 19 MOH regulations and emerging information,
published the Supreme Court of India decision on COV ID- 19, online cause lists, enhanced the K enya Law
M edical cover to cover COV ID 19 related compl ications, provided airtime /data for remote working, sanitizers
an d m ask s t o al l st af f i n th e o f fi ce.
xxviii) UNCTA D and K enya Law collaborated on the Non-Tarrif M easures transparency initiative. This
of Kenya identifi ed as containing 93 Non-Tarif f M easures.
r esu l ted i n th e i d en ti fi c at i on o f 4 7 ou t o f 5 04 L aw s
Kenya Law hosted a V alidation Workshop to disseminate these fi ndings to 21 stakeholders fr om 12 institutions.
On system development, the following milestones have been achi eved to date;
^ xxxii j
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
b. Development of a minimum viable product that has enough f eatu r es th at al l o w s u ser s to t est th e
system and validate the product development cycle.
c . Ability to produce the same document in different formats, (for web and print-pdf)
d. Different products can be produced within the system e.g. Newsletter, lists and digests, etc.
e. A llows for a M edium Neutral Citation (MNC). This is in line with international reporting standards
that ensure that all cases are uniquely identifi able.
f. High quality and consistent formatting e.g. automated paragraph numbering.
g- Allows for retrieval of information and analysis by use of Semantic tagging, e.g. emphasis, non-
English terms, dissenting opinions etc.
h. Hyperlinking of cases and statutes cited to aid in r esear ch an d r et ri ev al o f i n f or m ati on .
b. Collapses some workf low processes collection, uploading and inventory which will improve
effi ciency, improve turnaround time.
c . One platform for both case law and cause list including a c au se l i st ar ch i v e.
xxxi) Collected, processed and uploaded on the Kenya Law website (Laws of the Kenya database) 100% of all
Acts, Bills, L egal notices. Amendment A cts and regulations r ecei v ed .
xxxii) A total of four hundred and seventy-two (472) statutes out of fi ve hundred and four (504) were revised
and updated, making a 93.5% revision status. Thirty-two (32) statutes were still in the process of revision.
xxxiii) A ll the three hundred and eighty-three (383) statutes forming part of the 24th Annual Supplement were
approved by the Offi ce of the A ttorney General & Department of Justice. Kenya Law is currently preparing fi nal
manuscripts of the approved Statutes with Chapter numbers f or fi n al su b m i ssi o n .
xxxiv) Uploaded to the Kenya Law website 100% of all of the supplements received within 48 hours of receipt;
National Legislation 22 Acts, 99 Legal Notices & 74 Bills (Nati onal A ssembly 39, Senate 35), County
legislation (A cts 69, Bills 93 & Regulations 7).
xxxv) K enya Law’s website had a 94% daily uptime and was secured by the most up to date security hardware
and software. See (Annex I & II below).
xxxvi) The Kenya Law online platform recorded increased access for public legal information as follows:
a . Case law database had 1,186,180 users who viewed a total of 10,366,277-pages in the year ended June
2021. The average length of a session was 6 minutes 13 sec on d s.
b . Top fi ve countries fi 'om where the Case law database was accessed were; K enya 955,881 users
(80.19%), USA 73,775 users (6.19%), UK 22,751 users ( 1.91%), Uganda 17,725 users ( 1.49%) and
Tanzania 15,082 users ( 1.27%).
c . Laws of K enya database had 410,340 users who viewed a total of 2,357,020-pages in the year ended
June 2021. The average length of a session was 2 minutes 4 9 sec on d s.
^ xxxiii j
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
d. Top fi ve countries from where the Laws of Kenya database was accessed were; Kenya 385,246 users
(93.11%), USA 5,288 usem (1.28%), UK 2,853 users (0.69%), South A fn ca 1,637 user s (0.40%) and
Tanzani a 1,237 users (0.30%).
Kenya Law blog had 129,836 users who viewed a total of 226,471-pages in the year ended June 2021. The
average length of a session was 1 minute 13 seconds.
e . Top fi ve countries from where the K enya L aw blog was accessed were; K enya 106,983 users (81.98%),
France 5,027 users (3.85%), T anzani a 3,735 users (2.86%), India 2,675 users (2.05%) and USA 2,079
users ( 1.59%) .
f. The rest of the K enya Law website had 229,878 users who viewed a total of 1,396,873-pages in the year
ended June 2021. The average length of a session was 1 m i nu t e 2 0 sec on d s.
g- Top fi ve countries fr om where the rest of the K enya Law website was accessed were; K enya 199,529
users (85.66%), USA 5,922 users (2.54%), UK 2,770 users ( 1.19%), China 2,239 users (0.96%) and
India 1,726 users (0.74%).
a) Petition 15 & 16 of 2015 (Consolidated) - Francis Karioko Muruatetu & another v Republic [20 17]
eK LR- Constitutionality of the M andatory Nature of the Death Sentence provided under section 204 of
th e Pen al C o d e,
b) Succession Causes 417 of 2005 & 1345 of 2014 - In re Estate of Julius M imano (Deceased) [2019]
eK L R .
c) Civil Case 221 of 2018 - Robert Mugo Wa K aranj a v Ecobank (Kenya) Limited & another [2019]
eK L R .
d) Civil Case 571 of 2015 - M amta Peeush M ahaj an [Suing on b eh al f o f th e estat e o f t h e l at e Peeu sh
Premlal M ahaj an] v Y ashwant Kumari M ahaj an [Sued personally an d as E x ecu tr i x o f th e est ate an d
benefi ciary of the estate of the late Krishan L ai Mahaj an] [20 17] eK L R .
e) Criminal Appeal 102 of 2016 - Eliud Waweru Wambui v Republic [2019] eK LR.
1. M o st v i ew ed d at a o n th e c ase l aw d atab ase w er e i n or d er of prominence;
^ xxxiv j
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
F I N A N CI A L P E R F ORM A N CE
K enya Law ’s financial performance was good in the year ending 30* June 2021.Kenya Law made a surplus
and continued to maintain a healthy balance sheet position at the close of the year. The details of
K enya Law ’s financial performance are indicated below;
i) Total of Revenues earned by K enya Law reduced by 5.18% to K shs. 348.74 M illion in the period
ending 30* June, 2021 as compared to the Kshs. 367.87 Million earned in the period ending 30* June,
2020. This was a better performance in revenue earnings as compared to K shs. 339.27 M illion in the
period ending 30* June 2019 but a lower amount to the K shs. 369.88 M Ulion earned in the period
ending 30* June 2018
ii) The percentage of expenditure in Personnel Emoluments as compared to Total Revenues earned
was 39%. Thi s means that 39% of all Kenya Law revenues were utilized in paying salaries,
wages and pension expenses as compared to 36% for the year ended to June 2020, and still
above the recommended 35%. The amount was equal to the 39% in the financial year 2018/2019
and higher than the 35% in the 2017/2018 fi nancial year. This does not imply that Kenya Law
Employee costs increased in the FY 2020/2021. The higher PE to Rev enues percentage w as
caused by the 5.18% decrease in grants received from G O K .
^ XXXV j
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
% P E t o T o t a l r ev en u e
4 0 .0 0
3 9 .0 0 3 9 .0 0
3 9 .0 0
3 8 .0 0
37 .0 0
3 6 .0 0
36 .0 0
3 5 .0 0
3 5 .0 0
34 .0 0
3 3 .0 0
2 0 17/ 2 0 18 2 0 18/ 2 0 19 2 0 19/ 2 0 2 0 20 2 0 / 2 0 2 1
% PE to Tot al Expenditur e
4 5 .0 4 2 .0 4 2 .2 3
4 0 .0
4 0 .0
3 5 .0
3 5 .0
30 .0
2 5 .0
2 0 .0
15 .0
10 .0
5 .0
0 .0
2 0 17/ 2 0 18 2 0 18/ 2 0 19 2 0 19/ 2 0 2 0 2 0 2 0/ 2 0 2 1
iv) K enya Law had a healthy Balance sheet in the year ending 30* June, 2021. Total A ssets
increased by 0.65% in the period ending 30* June, 2021 as compared to a reduction of 11.2% in
the year ending 30* June 2020. This was however a lower growth r at e in comparison to the
6 .3 % r ecor d ed i n t h e F Y 2 0 18/ 2 0 19 an d 19 % in th e FY 2 0 17/ 2 0 18 .
^ xxxvi j
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
A sset G r ow t h R at e
2 0 .0
16 .0
I
15 .0
10 .0
6 .0
5 .0
0 .6 5
0 .0
2 0 17/ 2 0 18 2 0 18/ 2 0 19 2 0 2 0/ 2 02 1
- 5 .0
- 10 .0
- 1 1.2 0
- 15 .0
V) Total Liabilities reduced by 11.95% in the period ending 30* June, 2021 as compared to a 27%
growth recorded in the FY ending June 30, 2020. This was an indication of reduction in K enya
Law’s commitments and obligations to third parties. This was however still higher than the
growth rates of 1% in the years 2018/2019 and 2017/2018 respectively. Liabilities in the FY
2019/2020 had increased due to the higher number of r o l l ed ov er acti v i t i es i n I C T i n t er v en t i ons
and printing that were completed and paid off in the FY 2 0 2 0/ 2 02 1.
% R a t e o f L i a b i l i t i es
3 0 .0 0 2 7 .0 0
I
2 5 .0 0
2 0 .0 0
15 .0 0
10 .0 0
5 .0 0 1.0 0 1.0 0
0 .0 0
2 0 17/ 2 0 18 2 0 18/ 2 0 19 2 0 19/ 2 0 2 0 20 21
- 5 .0 0
- 10 .0 0
- 15 .0 0 - 1 1.9 5
vi) The liquidity of Kenya Law was also healthy. The Current ratio as at 30* June, 2021 increased to 6.3:1 a s
compared to 5:1 as at 30* June 2020. This indicates that K enya Law had Kshs. 6.30 worth of A ssets available t o
pay Kshs. 1 worth of Liabilities as at 30* June, 2021. This was higher however lower as compared to 17:1 in th e
F Y 2 0 18/ 2 0 19 an d 24 : 1 i n th e FY 2 0 17/ 2 0 18 . T h e i n cr em en t i n F Y 2 0 2 0/ 2 02 1 r ati o w as du e t o ad di ti o n al
Current A ssets i .e. legal publications of acquired in the Financial year.
^ xxxvii j
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
T h e C u r r en t R a t i o
3 0 .0
2 5 .0
2 0 .0
15 .0
10 .0
6 .30
5 .0
0 .0
2 0 17/ 2 0 18 2 0 18/ 2 0 19 2 0 19/ 2 0 2 0 20 2 0/ 202 1
vii) The Quick (Acid Test) ratio as at 30* June, 2021 reduced to 1.8:1 as compared to 2.0:1 as at 30* June
2020. This indieates that Kenya Law had K shs. 1.8 worth of Quick A ssets available to pay Kshs. 1 worth
of Liabilities as at 30* June, 2021 as compared to K sh s. 8 : 1 i n th e FY 2 0 18/ 2 0 19 an d K sh 10 : 1 i n th e F Y
determinant on the quick and readily convertible assets. Even though there was an increase in stocks, this
did not have an impact on the Quick ratio hence it reduced in the year 2020/2021.
T he Q ui ck (A ci d Test ) r at i o
12 .0 0
10 .0 0 LOO
8 .0 0 8 .0 0
6 .0 0
4 .0 0
2 .0 0 1.80
0 .0 0
2 0 17/ 2 0 18 2 0 18/ 2 0 19 2 0 19/ 2 0 2 0 2 0 2 0/ 20 2 1
^ xxxviii j
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
vi ii) Compar ison of the Sour ces of Revenues for the F Y 2 0 2 0/ 2 0 2 1 a n d F Y 2 0 19/ 2 0 2 0
K enya Law received 96% of its revenues fr om the Government grants on both years. This shows that
K enya Law is still highly dependent on Government of K enya support in fi nancing of its operations.
K enya Law received Kshs.354.3 M illion and Kshs.336.54 M i l l i on i n t h e F Y s 20 19/ 2 0 2 0 an d 2 02 0/ 2 0 2 1
respectively from the GOK .
i x) Compar ison of Expenditur e items for the FY 2020/2021 a n d F Y 2 0 19/ 2 0 20
J xxxix j
National Counci l for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
There use of goods and services was higher in FY 2019/2020 because of a one-off expenditure of K shs. 40
Million in ICT interventions on supplementary budget I estimates. K enya Law also spent more on printing o f 8
volumes of backlog Kenya Law Reports and 3,500 copies of the Laws of K enya print volumes in FY 2019/2020.
Employee costs increased marginally due to the annual growth in salaries. Remuneration to Council members a l so
grew due to the introduction of Council evaluation retreats. Depreciation remained more or less unchanged.
a) K enya L aw Database.
This is an ICT system that allows for a higher ef ficiency in real time publication of the laws on the online portal .
The Kenyan L egislation Database will have thef ollowing web site en abled fu nct i on al iti es;
i) Ability to enrich the online platform and still preserves the legi slative tradition of Print publications.
ii) A utomatic comparison between amended versions to highlight d i f f er en ces.
m) Hyperlinking functionality.
iv) Ability to have associated documents attached to the particular instrument of law
v) Scalability of the system to enable partnership across sectors (e.g.) Non-Tarif f Measures Proj ect.
vi) Ability to scale up to a premium service.
vii) Clarity in communication of legislative history, i.e. addresses the ‘ legalese’ challenge in terms of
language used in presentation of the law online. A vailability of tools to help in understanding and navigation.
viii) Supports the generation of charts to aid research and convey information quickly.
b) C ase L aw D at ab ase (C L D )
The Case Law Database (CLD) will increase efficienci es within the organization and enable the capturing, structuring,
researching, analyzing and publishing of case law and its deriv ative products.
The Case L aw Database will have thef ollowing functionalities;
i) Ability to aggregate Case Law/Law Reports according t o th em ati c ar eas
ii) Standardization of online and print content- online content (fr ont end) will look and feel similar
to the print publications.
iii) Draft volumes can be produced at any time in the course of the year.
iv) Ability to relate cases based on the data captured. (Rulings, orders, j udgments, appeals).
V) Improved effi ciency signifi cantly reduces the time needed to m anage case law and produce
publications. Reduction in the time taken to review publications. (No back and forth with
publishing).
vi ) Automated generation of Law Reform Issues.
vi i) Improved Workflow Process M anagement that has enabled the tracking of life cycle of case law
workf low; availing of escalation notes based on Key Perf ormance Indicators; and tracking of
changes.
II) L a w R ev i si o n
Revision of County Legislation in line with Offi ce of the County A ttorneys A ct No. 14 of 2020 is an
area of collaboration with the County Governments.
Il l ) N ew H u m a n R e so u r c e I n st r u m en t s
Kenya Law has developed new Human Resource Instruments that have now been approved by the State
Corporations A dvisory Committee. The new instruments provide for a robust Human Resource
est ab l i shm ent o f 2 7 5 o f fi cer s th at w i l l b e m or e i n tune with the new institutional requirements and be
cr i t i cal to d el i v er on o u r m an d at e.
( xl
)
National Counci l for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
Kenya Law is in the process of reviewing its founding law (National Council for L aw Reporting A ct, A ct No. 11 of
1994) with the obj ective of providing an enhanced legal framework for the operations of the organization
Ch all eng es
i) I nsuff icient budget ary alloeations have limited Kenya Law’s ability to deliver on its mandate as per the
strategic plan. The current funding consi sts of only 70% of its most realistic annual budgetary requirements
and this necessitated the organization to cut back on its programmes and activities to fi t into the available
f unding.
( x li
)
National Counci l for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
dissemination of legal information. It currently holds 55 TB worth of public legal information. The inability
to upgrade and improve hardware and software systems has a negative impact on its core mandate - the
provision of and access to public legal information in terms of enhancing data integrity and safety to th e
most optimum levels. The challenges included;
■ Highly specialized systems that require specialized training which could not be carri ed out due to the
i n su f f i c i en t f un d s.
■ Obsolescence of computer hardware and technology. H ar dw ar e r el at ed i ssu es h av e l ed to b r eak d ow n o f
machines. Soft ware challenges e.g. few A dobe Pro applications on M achines and limited space on
Google -email has caused work delays.
■ Dynamic nature of ICT systems which require constant upgrades at a cost. The ever increasing volumes
of data require constant planning for additional database space and data security.
■ Insuffi cient Bandwidth to support access to the Cause lists, K enya Gazettes and the LOK database.
■ Intermittent internet leading to the need to increase Internet bandwidth requirements, with limited
fi nancing.
■ Judicial decisions and other public legal information published on the K enya law website contain
personal information not exempt fr om the data protection A ct therefore exposes the organization to the
ri sk of litigation.
iv) Low numbers (3,945 reduced count) of decisions fr om the Courts were occasioned by COV ID- 19. Other
challenges included receipt of j udicial decisions in incompatible formats; unavailability of hard copies o f
legi slative supplements and collection of other public legal information fr om government printer and other
state agencies.
i) A total of 636 (16%) decisions were not case backed due to missing case history statements within j udicial
d e c i si o n s .
ii) K enya Law works with various players in the j ustice and legal sector to collect process and di sseminate
public legal information and as such some of these processes are outside the control of the organization e .g .
sending of the rulings and j udgments, cause lists, approval of the Annual Supplement and the reluctance by
certain actors to release public information that is regarded as classifi ed. Any del ay by any one of the
actor s involved in the production of public legal information will negatively affect its ability to meet its
mandate of providing access to public legal information.
( x lii
)
National Counci l for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
F i n a n c i a l r i sk
Kenya Law requires additional funds to ensure that it can f ully discharge its mandate. The organizational approved
budget is half of the ideal budget.
Further, K enya Law’s Human Resource expenditure constituted 42.23% (compared to the recommended level of
35%) of the total budget. This has deprived K enya Law o f ad d i ti on al fu n d s t o d el i v er o n i t s co r e m an d at e an d o t h er
cr i t i cal ac ti v i ti es. T h e l i m i t ed fi n an c i al r esou r ces have meant that K enya Law has not fully discharged al l i t s
activities as envisaged in the Strategic Plan 2018-2022 due to constant reorganization of activities to fi t w i th i n th e
available resource ceilings.
K enya Law collects revenue through the sale of its publications. The collection of debts from debtors o f th e
organization has posed a challenge especially in relation to public sector agencies that may not prioritize payment o f
their obligations to Kenya Law for products already sold to them. There is a ri sk that the debts from public
institutions, which are more than 3 years old, may not be paid thus negatively af fecting the operations o f th e
organization.
Kenya Law had no material arrears in statutory/ fi nancial obligations. There was a total of Kshs. 9,250,339 due a s
payroll deductions for PAY E, HELB, NSSF, NHIF, Sacco deductions. Insurances deductions, mortgage, staf f
pension, welfare obligations and withholding VA T payments f or the m onth ended 30* June 202 1.
The Council is responsible for the policy framework in relation to the institution’s risk management and i n t er n al
controls. The Finance and General Purposes Committee of the Council is responsible for the policy framework t o
ensure proper fi nancial planning and execution of the fi nancial management function while the Audit & Risk
M anagement Committee of the Council regularly reviews the ef fectiveness of the internal controls and provi des
assurance on the implementation of fi nancial plans by regular reporting to the full Council .
The Internal A udit and Risk Department implements Kenya Law ’s risk management fr amework in all business
processes and reports regularly to the Editor and the Audit & Ri sk M anagement Committee.
In addition, the Of fi ce of the A uditor General perf orms systems audits to independently review the ef fectiveness o f
the institutional risk management fr amework. It also does fi nancial audits at the end of the fi nancial period to provide
assurance on the credibility of the annual fi nancial s t a t e m e n t s .
There were no serious governance issues in the Council , any Council member, the top management in relation to
conf lict of interest, fi nancial impropriety or Council composition in the execution of its f unctions.
( x liii
)
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
9. E N V I R O N M E N T A L A N D SU ST A I N A B I L I T Y R E PO R T I N G
Kenya Law has had many positive developments in this financial year. We operate in a dynamic, resource scarce
environment inf luenced by a host of socio-economic, legal and political factors that impinge on our operations an d
impact the realization of our obj ectives. The achievement of our obj ectives largely depends on how well we have
leveraged internal strengths to exploit external opportunities as well as how well we have managed internal
weaknesses to avoid crystallization of external threats.
We have aligned our programmes and activities to the overall national development agenda espoused in the so ci o
economic development blueprints, we have enhanced the synergy amongst members of staf f and between departments
f or th e ov er al l su c cess o f th e i n st i tu ti on . W e h av e enhanced teamwork, learning, innovation and creativity t o f aci l i t ate
effective inter and intradepartmental co-ordination, exposure to industry trends, as well as acceptance an d ef f ec ti v e
management of positive change.
A ll activities within the organization incorporate international best practices in an ef fort to protect the ecosystem in
which K enya Law exists, providing us with opportunities to achieve a competitive advantage and market
differentiation in our products and services. Further Kenya Law has a new Quality M anagement System based o n I S O
9001:2015 and is I SO certified. Kenya Law continually strives to achieve the highest standards of quality an d to
continually improve its eff ectiveness in order to ensure sustainability. Our established quality obj ectives and policies
ar e al so r ev i ew ed o n an an n u al b asi s.
Kenya Law does not have an environmental policy but rather borrows largely from the Government of Kenya policy
on protecting the environment and increasing the forest cover by 10% in the medium term. To supplement
Government ef forts in this area, Kenya Law encourages its employees to print back to back. K enya Law has al so
changed its strategy from printing of hard copy publications to soft copy online publications in order to reduce o n
paper printing. Kenya Law also participates in tree planting exercises. Kenya Law has signed an M OU with the Kenya
Forest Service (KFS) to support in the efforts to reclaim forest cover to the tune of Kshs 266,552. K enya Law al so
participated in a tree planting exercise organized by the offi ce of the Attorney General in Ngong Forest as i t s
contribution to the larger Government of Kenya strategy towards increasing Kenya’s forest cover to 10% by 2022.
K enya Law has put in place policies and procedures guiding the appointment of employees within the organization.
There is an elaborate guideline on the recruitment process of employees from the initial stages of placing
advertisement to fi lling in the vacant positions. Kenya Law is an equal opportimity employer; it takes a consistent an d
standard approach in the recruitment and selection of employees. Therefore, the recruitment process is v o i d o f
discrimination on the basis of gender, HIV status, race, ethnicity marital status and/or physical disability. T h i s i s
provided in the Kenya Law Human Resources Policies and Procedures M anual , 20 16.
Employee skills and competences are enhanced in the workplace through Training and development initiatives w h i ch
are competency based geared towards capacity building and meeting the needs of the organization. Training an d
Development programs are aimed at helping each employee prepare for changes as they align themselves with the
changing needs. Training assessments are carried out to identify the competency gaps existing with the organization
with an aim of addressing the skills gap through training and development programs.
( x l iv
)
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
Kenya Law has put in performance management measurement mechanisms through the use of a comprehensive
Perf ormance Management Appraisal System that guides the evaluation and monitoring of employee performance. T h e
process helps in identifying performance problems and solving them. The process involves setting performance
targets and reviewing them over a period of time. The outcomes of performance management inform staf f training an d
development, career progression, succession management, promotions, performance incentives and performance
improvement strategies.
K enya Law recognizes that the safety of employees, stakeholders and property at work is critical . A ll employees must
take responsibility for ensuring that safe working procedures are adhered to. It is a legal requirement for organizations
to have in place a health and Safety committee. The organizational safety and health committee members ar e
champions for a healthy and safe workplace. Information on health and Safety to prevent possible health and safety
ri sks is provided to employees through sensitization initiatives to ensure a safe work environment. Appropriate
insurances are also put in place to cushion against health and safety risks.
In pursuit of its mandate K enya Law always considers various policy documents including the Constitution o f
Kenya, the M ontreal Declaration on Free A ccess to Law, the Big Four Agenda, the Kenya V ision 2030, the
Sustaining Judiciary Transformation Framework of 2017-2021 and the Of fice of the A ttorney General and
Department of Justice Strategi c Plan. These documents act as a beacon for the organization in the day to day
execution of its mandate and the officers discharging th e r el ev an t d u t i es i n v ar i ou s ar eas.
Outside of the fact that Kenya Law is the institution mandated by law to publish law reports and update the l aw s of
K enya, the organization strives to ensure responsible competition practices whenever it issues tenders in i t s b i d to
enhance access to j ustice. The institution has implemented corruption prevention strategies and a risk mitigation plan
to address risks and loopholes in its legal and policy environment. Regulations, processes, and procedures guiding
the core mandate of the organization are in place and all identified risks have a mitigation plan.
Kenya Law has also ensured in its supply chain to follow the laid down procurement laws when issuing tenders an d
dealing with suppliers. All owed and documented invoices raised by suppliers are paid on time and all contracts
honored in full . A schedule of all running contracts is kept and updated monthly and where one is about to lapse, the
same is communicated in advance to the relevant personnel to effect a seamless transition where necessary. A ll
transactions are documented in the necessary manner and availed for inspection by the relevant authority as an d
when requested.
K enya Law has endeavored to maintain ethical marketing practices in all its engagements with the media. The
organization not only markets its goods and services by focusing on how our products benefi t customers, b u t al so h ow
they benefi t the Republi c of K eny a as a w hol e. Our aim i s to buil d strong relati onships w i th our consum ers thr ough a
set of shared values. These are outlined in our Strategic Plan 2018-2020 as integrity, professionalism, transparency
and accountability, innovation, reliability and citizen f o cu s.
( x lv
)
National Council for Law Reporting *
Annual Report and Financial Statements for the year ended 30* June 202 1
Towards this end, Kenya Law has also endeavored to safeguard consumer rights and interests in all products an d ser v i ces
issued. A ll online publications are universally accessible to all consumers and can be consmned in any way needed, b oth
online and in hard copy. Print products are sold at a base price aimed at offsetting the cost of production only. In addition,
K enya law subscribes to the “ Free A ccess to Law” movement and therefore does not make profit from the sale of i t s
publications.
%■
[ x iv i
)
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
10 R E PO R T O F C O U N C I L M E M B ER S
The Council M embers submit their report together with the audited financial statements for the year ended Ju n e
30, 202 1 w hich show the state of af fairs of the N ational Council for L aw Reporting.
Pr incipal activities
The principal activities of the National Council for Law Reporting are:
i) To publish the official reports of the j udicial opinions of the superior courts of Kenya. Kenya Law i s th e
designated publisher of the Kenya L aw Reports, which are the off icial law reports of the Republic of K enya,
ii) To revise, consolidate and publish the Laws of K enya, through Legal Notice No. 29 of 2009, through
which the Attorney General has delegated to the Council the powers of law revision conferred by Sections 7
an d S o f th e R ev i si on of L aw s A ct .
On Kenya Law’s website - www.kenyalaw.org- you will fi nd Case Law, the Laws of Kenya, the Parliamentary
Hansards, the K enya Gazette, and the Daily Cause List from various courts. Legal Notices and other
publications.
R e su l t s
The results of the National Council for Law reporting for the year ended June 30, 2021 are set out on pages 1 to
6.
C o u n c i l M e m b er s
The members of the Council who served during the reporting period are shown on pages v i i i - x i i above
in accordance with the NCLR A ct No. 11 of 1994. During the year, the Council Chairperson, Hon. Justice
David M araga retired in the month of January 2021 and Hon. Justice M artha K oome appointed with effect
from the month of M ay 2021.
A u d itor s
The Auditor General is responsible for the statutory audit of the National Council for Law Reporting in a c c o r d an c e
w i th th e Pub l i c A u d i t A ct 20 15 .
s. E d n a M u t h a u r a D a t e . . . 3 1 . 1 2 .2 0 2 1
C o u n ci l Sec r et ar y
( x lv ii
)
National Council for Law Reporting *
Annual Report and Financial Statements for the year ended 30* June 202 1
1 1. S T A T E M E N T O F D I R E C T O R S ’ R E S P O N S I B I L I T I E S
Section 81 of the Public Finance M anagement A ct, 2012 and National Council for Law Reporting A ct No.l 1 of
1994 require the Directors to prepare fi nancial statements in respect of the Council , which give a true and fan-
v i ew o f th e st at e o f af f ai r s o f th e C o u n c i l at th e end of the fi nancial year/period and the operating r esu l t s o f th e
Council for that year/period. The Directors are also required to ensure that the National Council for L aw
Reporting keeps proper accounting records which disclose with reasonable accuracy the fi nancial position of t h e
Council . The Directors are also responsible for safeguarding th e asset s o f th e N ati on al C oi m ci l f or L aw
Reporting.
C h ai r p er son M em b er Secr et ar y
( x lv ii i
)
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
( x l ix
)
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
13 . ST A T E M E N T O F F I N A N C I A L P E R F O R M A N C E F O R T H E Y E A R EN D E D 30^” J UN E 2021
N o t es 20 20- 202 1 2 0 19 - 2 0 2 0
K sh s K sh s
Expenses
Use of goods and services 9 164,034,628 224 ,608,54 1
Tax ati on
The notes set out on pages 7-33 form an integral part o f th ese F i n an c i al St at em ent s.
The Financi al Statem ents set out on pages 1-6 w ere signed on behalf of the Council M embers by:
I C P A K M . N o :73 2 6
D a t e . . . 3 1 . 1 2 .2 0 2 1 D a t e.. .. 3 1 . 1 2 .2 0 2 1
{ ^ )
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
N o t es 2020- 202 1 2 0 19 - 2 0 2 0
K sh s K sh s
A sset s
C u r r en t A sset s
C u r r en t L i a b i l i t i e s
L
T ot a l L i a b il i t i es 209,054,112 237,439,484
N et a sset s
The Financial Statements set out on pages 7-33 were signed on behalf of the Council M embers by:
I C P A K M . N o :73 2 6
g avfffi «
D at e . 3 1 . 1 2 .2 0 2 1 D at e . . .3 1 .1 2 .2 0 2 1 D at e .. .. 3 1 . 1 2 .2 0 2 1
( ^ )
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30'*’ June 202 1
N o t es
O r d i nar y F ai r v alu e Proposed Capit al/
sh ar e R ev al u at i adj ust m e R et ai ned d ivi dend D evelopm ent
D et ai l s
cap it al on r eser ve n t r eser ve ea r n i n g s s G r a n t s/ F u n d T otal
As at July 1®*,
142,525,622 23,565,276 166,090,898
20 2 0
I ssu ed n ew
papital
A s at June 30*" ,
142,525,622 23,565,276 166,090,898
2020
A s at July 1®* ,
142,525,622 23,565,276 166,090,898
2 020
Surplus/ defi cit
^or theyear 25,725,403 25,725,403
A s at June 30*" ,
168,251,025 23,565,276 191,816,301
202 1
( ®)
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
16. ST A T E M E N T O F C A SH F L O W S F O R T H E Y E A R E N D E D 30™ J U N E 2 0 2 1
2 0 20 - 20 2 1 2 0 19 - 2 0 2 0
N o t es K sh s K sh s
Cash fl ows fr om oper ating activit ies N ot e Cur r ent year P r i o r Y ear
( 15,748,223) (35,000)
Net cash fl ows used in investing activi ties
Cash fl ows fr om wor ki ng Capital changes
(Decrease)/increase in Receivables fr om exchange
9,557,9 14 36 1,028
tr an sact i o n s 16
(Decrease)/increase in Receivables fr om non-exchange
t r an sact i on s 17
(7,273,500) (9,057,879)
Cash and cash equivalents at end of the quar ter 62,919,4 17 88,653,475
The Financial Statements set out on pages 7-33 are signed on behalf of the Board of Directors by:
I C PA K M . N o:.7326
I
D at e . . .3 1 . 1 2 .2 0 2 1 D at e . .. 3 1 . 1 2 .2 0 2 1
( ^ )
National Council for Law Reporting
A nnual Report and Financial Statements for the year ended 30"' June 202 1
17 . ST A T E M E N T O F C O M P A R I SO N O F B U D G E T A N D A C T U A L A M O U N T S FO R T H E Y EA R EN D E D 30^” J U N E 2021
% of
Actual on comparablePcrformancc u t i l i sa t i
K sh s K sh s K sh s K sh s K sh s
R ev e n u e
Ex pen ses
Use of goods and services 168,4 16,648 25,000,000 193,4 16,648 164,034,628 29,370,420 0 .8 5
Notes to the statement of comparison of budgeted and actual amounts for the fi nancial year 2020/2021;
a) T h e 4 6 % un der co l l ect i o n o f rev enu e fr o m t h e sal e o f legal publication was due to hard economic times and increased reliance on the online platform to
access our services attributed to increased working fr o m h o m e .
b) The 15% under expenditure in Goods and services is attributed to low absorption especially in ICT expenditures that had been budgeted for in the
Supplementary II budget . There was also low absorption in publishing and printing expenses, sanitary and cleaning services and purchase of newspapers
due to the COVID- 19 pandemic.
( = )
National Council for Law Reporting
A nnual Report and Financial Statements for the yeeu- ended 30* June 202 1
c) The 19% under expenditure in Remuneration of directors was attributed to delays in convening a board retreat due to the COV ID- 19 pandemic.
d) The 7% under expenditure in repairs and maintenance w as att r i b ut ed t o l ow m ai nt en an ce c o st s o f m ot or v eh i cl es emanating from decreased use due to the
COVID-19 pandemic.
e) The 9% under expenditure in grants and subsidies was attributed to failure to attend some sports events and tree planting act ivities due to the COV ID- 19
pandemic.
f) The changes in original and fi nal budget were due to additional allocations of K shs. 15,000,000 in the Supplementary 11 budget and authority to utilize
K shs.l O, 000,000 f rom A -l n-A collect ions.
( ^ )
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30'*’ June 202 1
18 . N O T E S T O T H E F I N A N C I A L ST A T E M E N T S
1. G EN E RA L IN FO RM A T I O N
National Council for Law Reporting is established by an act of parliament A ct No.l 1 of 1994 fr om
where it derives its authority and mandate. The entity is wholly owned by the Government of Kenya,
is domiciled in K enya and has a brand name; Kenya Law. The entity ’s principal activity is Publishing
and Printing j udicial opinions of the superior courts in K enya which are the offi cial Law Reports of
the Republic of K enya, the L aws of Kenya and such other related publications.
2. ST A T E M E N T O F C O M P L I A N C E A N D B A SI S O F P R E P A R A T I O N
The Public Finance M anagement (PFM ) A ct 2012 Section 192 provided the setting up of the Public
Sector A ccounting Standards Board (PSA SB). The Cabinet Secretary National Treasury,
gazetted members of the Board through Gazette Notice No. 1199 of 28 February, 2014. T h e
boar d appr oved the adoption of the International Financial Reporting Standards (IFRS) for
state organs operating as commercial business entities an d th e In t ern ati on al Pub l i c Sector
A ccounting Standards (IPSA S) for non- commercial entities. T h e N at i o n al C ou n c i l f or L aw
Reporting has since prepared its financial statements i n ac cor d an c e w i th th e I n t er n ati on al Pu b l i c
The financial statements are presented in Kenya shillings, which is the functional and reporting
currency of Kenya Law and all values are rounded to the nearest Kenya shilling. The accounting
policies have been consistently applied to all the years presented,
b) Application of new and revised International Public Sector A ccounting Standards (IPSA S)
i) Relevant new standards and amendments to published standards ef fective the year ended 30*
June 2021. Several new and revised standards and interpretations were ef fective during the year .
The management of Kenya Law has evaluated the impact of th e n ew st an d ar d s an d their
interpretations and noted that none of them had an impact on the Kenya L aw’s financial
st a t em en t s ,
ii) Expected impact of issued relevant new and amended standards and interpretations in issue but
not yet effective in the year ended 30* June 2021.
The management of Kenya Law has evaluated the impact of the new standards not y et
effective for the year ended 30* June 2021 and noted that none of them had an impact on
Kenya Law’s financial statements,
iii) Early adoption of standards
Kenya Law did not adopt any new or amended standards early during the fi nancial year 2020-
2 02 1.
The fi nancial statements have been prepared on the basi s of hi stori cal cost, unless stated otherw ise.
The cash f low statement is prepared using the indirect method. The fi nancial statements are prepared on
an ac cr u al b asi s.
( ^ )
National Council for Law Reporting
Annual Report and Financial Statements for the year ended 30* June 202 1
3. A D O P T I O N O F N E W A N D R E V I SE D ST A N D A R D S
L N ew and am ended stan dards an d interp retati ons in issue eff ective in theyear ended 30"' June 2021.
Stan d ar d Impact
improvements to A pplicable: 1’* January 2021:
IP SA S a) Amendments to IPSA S 13, to include the appropriate r ef er en c es to
IPSA S on impairment, in place of the current references to o th er
international and/or national accounting fr ameworks,
b) IPSA S 13, Leases and IPSA S 17, Property, Plant, and Equipment.
Amendments to remove transitional provisions which sh o u l d h av e
been deleted when IPSA S 33, First Time A doption of A c cr u al
Basis International Public Sector Accounting Standards
(IPSA Ss) was approved,
c) IPSA S 21, Impairment of Non-Cash-Generating A ssets an d I P SA S
26, Impairment of Cash Generating A ssets.
Amendments to ensure consistency of impairment guidance t o
account for revalued assets in the scope of IPSA S 17,
Property, Plant, and Equipment and IPSA S 31, Intangible
A s set s ,
( 8
)
National Council for Law Reporting
Aiuiual Report and Financial Statements for the year ended SO* June 202 1
th
ii) New and amended standards and interpretations in issue but not yet eff ective in the year ended 30
J u n e 2 02 1.
I P SA S 4 1, b) Amendments to IPSA S 30, regarding illustrative examples on hedging and credit risk
F i n an ci al which were inadvertently omitted when IPSA S 4 1 was i ssu ed ,
I n str um en t s c) Amendments to IPSA S 30, to update the guidance for accounting for fi nancial guarantee
contracts which were inadvertently omitted when IPSA S 4 1 w as i ssu ed .
Amendments to IPSA S 33, to update the guidance on classifying fi n an c i al i n str um en t s on i n i t i al
adoption of accrual basis IPSA S which were inadvertently om i tt ed w h en I P SA S 4 1 w as i ssu ed .
The above improvements to IPSA S did not have an impact i n th e C o u n c i l ’ s F i n an c i al st at em ent s
in the Financial year ended 30* June 2021.
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Annual Report and Financial Statements for the year ended 30* June 202 1
4. SU M M A R Y O F SI G N I F I CA N T A C C O UN T I N G PO L I C I E S
a) Revenue r ecogniti on
• Sale of goods
Revenue fr om the sale of goods is recognized when the signifi cant risks and rewards of ownership
have been transferred to the buyer, usually on delivery of the goods and when the amount of revenue
can be measured reliably and it is probable that the economic benefi t has been transferred to the buyer.
• I n t e r e st i n c o m e
Interest income is accrued using the effective yield method. The effective yield discounts estimated
future cash receipts through the expected life of the fi nancial asset to that asset ’s net carrying amount.
The method applies this yield to the principal outstanding to determine interest income each period.
Dividends or similar distributions must be recognized when the shareholder’s or the entity ’s right to
receive payments is established.
• R en t a l i n co m e
Rental income ari sing fr om operating leases on investment properties is accounted for on a straight-
l i n e b asi s o v er th e l ease term s an d i n cl u ded i n r ev enu e.
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Annual Report and Financial Statements for the year ended 30* June 202 1
approvals from the appropriate authorities. The additional appropriations are added to the original budget
by the entity upon receiving the respective approvals in order to conclude the final budget. Accordingly,
the entity recorded additional appropriations of 15,000,000 on the 2020-2021 budget following the
governing body’s approval.
Kenya Law’s budget is prepared on a dif ferent basis to the actual income and expenditure disclosed in the
fi nancial statements. The f inancial statements are prepared on accrual basis using a classification based o n
the nature of expenses in the statement of fi nancial performance, whereas the budget is prepared on a cash
b asi s. T h e am o un ts i n th e fi n an c i al stat em en t s w er e r ecast fr om th e ac cr u al b asi s t o th e cash b asi s an d
reclassifi ed by presentation to be on the same basis as the approved budget. A comparison of budget and
actual amounts, prepared on a comparable basis to the approved budget, is then presented in the statement
of comparison of budget and actual amounts.
In addition to the basis difference, adj ustments to am ou n t s i n th e fi n an c i al statem en t s ar e al so m ad e f or
d i f f er en ces i n th e f orm at s an d c l assi fi cat i o n sch em es adopted for the presentation of the fi nancial
statements and the approved budget.
A statement to reconcile the actual amounts on a comparable b asi s i n cl u d ed i n th e stat em en t o f
comparison of budget and actual amounts and the actuals as per the statement of fi nancial perf ormance
has been presented on page 5 of these fi nancial statements.
c) T ax es
C u r r en t i n c o m e t a x
Current income tax assets and liabilities for the current period are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted, at the reporting date in the area where the Entity
operates and generates taxable income. Current income tax relating to items recognized directly in net
assets is recognized in net assets and not in the statement of fi nancial performance. M anagement
periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subj ect to interpretation and establishes provisions where appropriate.
D ef er r ed t a x
Deferred tax is provided using the liability method on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for fi nancial reporting purposes at the reporting date.
Deferred tax liabilities are recognized for all taxable temporary diff erences, except in respect of taxable
temporary differences associated with investments in controlled entities, associates and interests in j oint
ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable
that the temporary differences will not reverse in th e f o r eseeab l e f u tu r e .
Deferred tax assets are recognized for all deductible temporary dif ferences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable
that taxable profi t will be available against which the deductible temporary dif ferences, and the carry
f or w ar d o f u nu sed t ax cr ed i ts an d u n u sed tax l o sses can be utilized, except in respect of deductible
temporary differences associated with investments in controlled entities, associates and interests in j oint
ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary
d i f f er en ces w i l l r ev er se i n th e f or eseeab l e f u tu r e and taxable profi t will be available against which th e
temporary dif ferences can be utilized.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that suffi cient taxable profi t will be available to allow all or part of the
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Annual Report and Financial Statements for the year ended 30* June 202 1
deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date
and are recognized to the extent that it has become probable that future taxable profits will allow the
d ef er r ed tax asset t o b e r ecov er ed .
D ef er r ed t ax asset s an d l i ab i l i ti es ar e m easu red at the tax rates that are expected to apply in the year w h en
the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted o r
substantively enacted at the reporting date.
Deferred tax relating to items recognized outside surplus or defi cit is recognized outside surplus or defi cit.
Deferred tax items are recognized in correlation to the underlying transaction in net assets. Deferred t a x
asset s an d d ef err ed t ax l i ab i l i ti es ar e o f f set i f a legally enforceable right exists to set off current t a x a s s e t s
against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.
S a l es tax
Expenses and assets are recognized net of the amount of sales tax, except:
i) When the sales tax incurred on a purchase of assets or ser v i c es i s n o t r ec ov er ab l e fr om th e
taxation authority, in which case, the sales tax i s recognized as part of the cost of acqui sition of the a sset
or as part of the expense item, as applicable
ii) When receivables and payables are stated with the amount o f sal es t ax i n cl u d ed
The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the statement of financial position.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profi t will be available to allow all or part of the
deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date
and are recognized to the extent that it has become probable that future taxable profi ts will allow the
d ef err ed t ax asset t o b e r eco v er ed .
D ef er r ed t ax asset s an d l i ab i l i ti es ar e m easur ed at the tax rates that are expected to apply in the year w h en
the asset i s realized or the liability is settled, based on tax rates (and tax laws) that have been enacted o r
substantively enacted at the reporting date.
Deferred tax relating to items recognized outside surplus or defi cit is recognized outside surplus or defi cit.
Deferred tax items are recognized in correlation to the underlying transaction in net assets. Deferred t a x
asset s an d d ef er r ed t ax l i ab i l i ti es ar e o f f set i f a legally enforceable right exists to set off current t a x a s s e t s
against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.
d) I nv est m en t p r oper ty
Investment properties are measured initially at cost, including transaction costs. The carrying amount
includes the replacement cost of components of an existing investment property at the time that cost is
incurred if the recognition criteria are met and excludes the costs of day-to-day maintenance of an
inv estm ent property .
Investment property acquired through a non-exchange tr an sact i o n i s m easu r ed at i t s f ai r v al u e at th e d at e
of acquisition. Subsequent to initial recognition, investment properties are measured using the cost model
and are depreciated over a 30-year period.
Investment properties are derecognized either when they have been disposed of or when the investment
property is permanently withdrawn from use and no future economic benefi t or service potential is
expected from its disposal . The difference between the net disposal proceeds and the carrying amount of
the asset is recognized in the surplus or defi cit in the period of de-recognition.
Transfers are made to or fr om investment property only when there is a change in use.
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M o t or v eh i cl es - 2 0 %
Computers and ICT Equipment - 33.33%
Furniture and fi ttings - 10%
Plant and Equipment - 15%
The depreciated value of A ssets donated by development partners is recognised as a deferred income to
d er i v e th e u sed v al u e o r ec o n om i c b en efi t r eal i sed fr om th e u se o f su ch A sset s.
The cost of sales of legal publications that have been printed by development partners fi mding for sale is
recognised as a deferred income to derive the income or eco n om i c b en efi t r eal i sed fr om th e sal e o f su ch
publications.
F ur n itu r e P l an t an d
D escr i pti on M o t o r v eh i cl es and fi t t in gs C om p ut er s E q ui pm ent T ot al
At P‘ July 2020
beginning of the year 52,373,542 52,5 15,246 49,937,2 17 58,49 1,296 52 1,3 7 3 ,54 2
’
Depr eciation an d
i m p ai r m ent
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t) L e a se s
Finance leases are leases that transfer substantially all the ri sks and benefits incidental to ownership o f th e
leased item to the Entity. A ssets held under a fi nance lease are capitalized at the commencement of the
lease at the fair value of the leased property or, if lower, at the present value of the f uture minimum l ease
payments. The Entity also recognizes the associated lease liability at the inception of the lease. The
liability recognized is measured as the present value of the future minimum lease payments at
initial recognition.
Subsequent to initial recognition, lease payments are apportioned bet ween fi nance charges and reduction
of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability.
Finance charges are recognized as fi nance costs in surplus or defi cit. An asset held under a fi nance lease
is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Entity
will obtain ownership of the asset by the end of the lease term, the asset i s depreciated over the shorter o f
th e est i m ated u sefu l l i f e o f th e asset an d th e l ease t er m .
Following initial recognition of an asset, the asset is carried at cost less any accumulated
amortization and accumulated impairment losses. A mortization of the asset begins when
development is complete and the asset is available for use. It is amortized over the period of
expected future benefi t. D uring the period of developm ent, the asset i s tested f or impairm ent
annually with any impairment losses recognized immediately in surplus or defi cit.
g) F i n a n c i a l i n st r u m en t s
i) F i n a n c i a l a sset s
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Annual Report and Financial Statements for the year ended 30* June 202 1
not quoted in an active market. After initial measurement, such financi al assets are subsequently
measured at amortized cost using the ef fective interest method, less impairment. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the effective interest rate. Losses arising from impairment are recognized in the surplus
or d efi c i t .
H eld-to-matur ity
Non-derivative fi nancial assets with fi xed or determinable payments and fi xed maturities are classifi ed
as held to maturity when the Entity has the positive intention and ability to hold it to maturity. After
initial measurement, held-to-maturity investments are measured at amortized cost using the effective
interest method, less impairment. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the effective interest rate. The losses
arising fr om impairment are recognized in surplus or d efi ci t .
I mpair ment of financial assets
Kenya Law assesses at each reporting date whether there is obj ective evidence that a fi nancial asset or
an entity of fi nancial assets is impaired. A fi nancial asset or an entity of fi nancial assets is deemed to b e
impaired if , and only if , there is obj ective evidence of impairment as a result of one or more events that
has occurred af ter the initial recognition of the asset (an incurred ‘loss event’) and that loss event has a n
impact on the estimated future cash f lows of the fi nancial asset or the entity of fi nancial assets that can
be reliably estimated. Evidence of impairment may include the following indicators:
a) The debtors or an entity of debtors are experiencing significant fi nancial difficulty.
b) Default or delinquency in interest or principal payments.
c) The probability that debtors will enter bankruptcy or other fi nancial reorganization.
d) O b ser v ab l e d at a i n d i c ates a m easu r ab l e d ecr ease i n estimated future cash f lows (e.g., changes in
arr ear s o r eco n om i c co n d i ti o n s th at cor r el at e w i th def aul ts)
L oans an d bor r ow i ng
A fter initial recognition, interest bearing loans and borrowings are subsequently measured at amortized
cost using the effective interest method. Gains and losses are recognized in surplus or defi cit when the
liabilities are derecognized as well as through the effective interest method amortization process.
Amortized cost is calculated by taking into account any di scount or premium on acqui sition and fees or
costs that are an integral part of the effective interest r a t e .
Inventory is measured at cost upon initial recognition. To the extent that inventory was received
through non-exchange transactions (for no cost or for a nominal cost), the cost of the inventory is its
fair value at the date of acquisition. Costs incurred in bringing each product to its present location and
conditions are accounted for , as f oll ow s:
• Raw materials: purchase cost using the weighted average c o st m eth o d .
• Finished goods and work in progress: cost of direct materials and labour and a proportion
of manufacturing overheads based on the normal operating capacity but excluding
borrowing costs.
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)
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•
Raw materials: purchase cost using the wei ghted average c o st m eth o d .
•
Finished goods and work in progress: cost of direct materials and labour and a proportion
of manufacturing overheads based on the normal operating capacity but excluding
borrowing costs.
A fter initial recognition, inventory is measured at th e l o w er o f c o st an d n et r eal i z ab l e v al u e.
However, to the extent that a class of inventory is distributed or deployed at no charge or for a
nominal charge, that class of inventory is measured at the lower of cost and current replacement cost.
Net realizable value is the estimated selling price in the ordinary course of operations, less the
estimated costs of completion and the estimated costs necessary to make the sale, exchange, or
d i str i b u ti o n .
Inventories are recognized as an expense when deployed for utilization or consumption in the ordinary
course of operations of the Entity.
h) P r o v i si o n s
Provisi ons are recognized when K enya Law has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outfl ow of resources embodying economic benefi ts or service potential
will be required to settle the obligation and a reliable esti m at e can b e m ad e o f th e am o u nt o f th e
obligation. Where the Entity expects some or all of a provision to be reimbursed, for example, under an
insurance contract, the reimbursement is recognized as a separate asset only when the reimbursement is
virtually certain. The expense relating to any provi sion is presented in the statement of fi nancial
performance net of any reimbiusement.
• Contingent liabilities
K enya L aw does not recognize a contingent liability but discloses details of any contingencies in the notes
to the fi nancial statements, unless the possibility of an outfl ow of resources embodying economic benefi ts
or service potential is remote.
• Contingent asset s
K enya Law does not recognize a contingent asset but discloses details of a possible asset whose existence
is contingent on the oecurrence or non-oecurrence of one or more uncertain future events not wholly
within the control of the Entity in the notes to the fi n an c i al st atem en t s.
Contingent assets are assessed continually to ensure that developments are appropriately refl ected in the
fi nancial statements. If it has become virtually certain th at an i n fl ow o f ec on om i c b en efi t s or ser v i c e
potential will arise and the asset’s value can be measured reliably, the asset and the related revenue are
recognized in the fi nancial statements of the period in which the change oceurs.
i) R e se r v e s
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Defi ned benefi t plans are post-employment benefi t plans other than defi ned-contribution plans. The
defi ned benefi t funds are actuarially valued tri -annually on the proj ected unit credit method basis. Defi cits
identifi ed are recovered through lump sum payments or increased future contributions on proportional
basis to all participating employers. The contributions and lump sum payments reduce the post
employment benefi t obligation.
K enya L aw has a defi ned contribution arrangement of retirement benefi ts. The fund was created in July
2012 and has a membership of 72 active and 8 deferred m em b er s .
1) B or r ow i n g cost s
Borrowing costs are capitalized against qualifying assets as part of property, plant and equipment.
Such borrowing costs are capitalized over the period during which the asset is being acquired or
constructed and borrowings have been incurred. Capitalization ceases w h en con str u ct i o n of th e asset i s
complete. Further borrowing costs are charged to the statement of fi nancial performance.
m) Related parties
K enya L aw regards a related party as a person or an entity with the ability to exert control individually o r
j ointly, or to exercise significant inf luence over the Entity, or vice versa. M embers of key management
are regarded as related parties and compri se the directors, the CEO and senior managers.
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P) C om p ar at ive fi gur es
Where necessary comparative fi gures for the previous fi nancial year have been amended or reconfi gured
to conform to the required changes in presentation.
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Annual Report and Financial Statements for the year ended 30* June 202 1
5. SI G N I F I C A N T J U D G M E N T S A N D SO U R C E S O F E ST I M A T I O N U N C E R T A I N T Y
The preparation of the Entity's fi nancial statements in conformity with IPSA S requires management to
make j udgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets
and liabilities, and the di sclosure of contingent liabilities, at the end of the reporting period. However,
uncertainty about these assumptions and estimates could result in outcomes that require a material
adj ustment to the carrying amount of the asset or liability af fected in future periods. State all j udgments,
estimates and assumptions made: e.g. The key assumptions concerning the future and other key sources of
estimation uncertainty at the reporting date, that have a signifi cant risk of causing a material adj ustment t o
the carrying amounts of assets and liabilities within the next fi nancial year, are described below. The Entity
based its assumptions and estimates on parameters available w h en th e c on so l i d at ed fi n an ci al st at em en t s
were prepared. However, existing circumstances and assumptions about f uture developments may change
due to market changes or circumstances arising beyond the control of the Entity. Such changes are ref lected
in the assumptions when they occur. IPSA S 1.140
Estimates and assumptions
U s ef u l l i v e s a n d r e si d u a l v a l u e s
T h e u sef ul l i v es an d r esi du al v al u es o f asset s ar e assessed using the following indicators to inform potential
f uture use and value from disposal :
a. T h e co n di ti on o f th e asset b ased on th e assessm en t of experts employed by the Entity,
b. The nature of the asset, its susceptibility and adaptability to changes in technology and processes,
c. The nature of the processes in which the asset is deployed,
d. Availability of funding to replace the asset,
e. Changes in the market in relation to the asset
P r o v i si o n s
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6. T R A N SF E R S F R O M G O V E R N M E N T O F K E N Y A
2 0 2 0 -2 0 2 1 2 0 19 - 2 0 2 0
Description K sh s K sh s
U ncondi ti on al gr an ts
A m ount A m ou n t
r ecognized t o d e f e r r ed
St a t em en t o f u n d er
F in a n ci a l d e f e r r ed A m ount
Name of the Entity sendingper for mance in c o m e r ecogni sed i n T ot al t r an sfer sPr i or y ear
the grant K Sh s K Sh s capital fund. 2020/21 2 0 19 / 2 0 2 0
The O f fi ce of th e
A ttorney General &
Department of Justice 336,540,366 336,540,366 354,300,000
T o t al T r a n sf er s f r om
M inistr ies, Depart ments
an d A gen cies 336,540,366 336,540,366 354,300,000
7 . R E N D E R I N G O F SE R V I C E S
2 0 2 0 -2 0 2 1 2 0 19 - 2 0 2 0
Description K sh s K sh s
S e r v i c e F ee s
Incom e fr om servi ce fees is in regard to the renderi ng of publi shing services f or vari ous speci al ized
publications and other publication servi ces for public legal information offered by Kenya Law in the year
ending 30* June 2021.
20
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Annual Report and Financial Statements for the year ended SO* June 202 1
8 . SA L E O F G O O D S
Description 2020-202 1 2 0 19 - 2 0 2 0
K sh s K sh s
Sal e of good s
Sale of Kenya L aw reports and other related
legalpubli cations 5,444 ,899 6,004 ,400
Total r evenue fr om the sale of goods 5,444,899 6,004,400
This is revenue earned fr om the sale of K enya Law Reports and other Legal publications that were
published and sold in the year ending 30* June 2021.
9 . U SE O F G O O D S A N D SE R V I C E S
2020-202 1 2 0 19 - 2 0 2 0
Description K sh s K sh s
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11. C O U N C I L M E M B E R S E X P E N SE S
D escription 20 2 0 -2 0 2 1 2 0 19 - 2 0 2 0
K sh s K sh s
12 . D E P R E C I A T I O N A N D A M O R T I Z A T I O N E X P E N SE S
Description 2 0 2 0 -2 0 2 1 2 0 19 - 2 0 2 0
K sh s K sh s
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Annual Report and Financial Statements for the year ended 30* June 202 1
13 . R E PA I R S A N D M A I N T E N A N C E
Description 2 0 20 -2 0 2 1 2 0 19 - 2 0 2 0
K sh s K sh s
14 . G R A N T S A N D SU B SI D I E S
Description 20 20-20 2 1 2 0 19 - 2 0 2 0
K sh s K sh s
Description 2 0 2 0 -2 0 2 1 2 0 19 - 2 02 0
K sh s K sh s
C u r r en t a c c o u n t s 6 1, 102,638 87, 159,064
Others (Mpesa, Cash In hand) 1,8 16,779 1,494,4 11
T ot al cash an d cash eq ui valen t s 62,919,4 17 88,653,475
N u m b er K sh s K sh s
a) C u r r en t accou nt
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16 . R E C E I V A B L E S F R O M E X C H A N G E T R A N SA C T I O N S
2 0 2 0 -2 0 2 1 2 0 19 - 2 0 2 0
Description K sh s K sh s
17 . R E C E I V A B L E S F R O M N O N - E X C H A N G E T R A N SA C T I O N S
20 20 -20 2 1 2 0 19 - 2 0 2 0
Description K sh s K sh s
C u r r en t r eceiv a b l es
2 0 2 0 -2 0 2 1 2 0 19 -2 0 2 0
Description K sh s K sh s
L ong-ter m Receivables
Other exchange debtors (Rent deposits) 3,780,255 3,780,255
L ess: impairment allowance
T ot al 3,780,255 3,780,255
Current portion transferred to current
r e c e i v ab l es
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2 0 20 -2 0 2 1 2 0 19 - 2 0 2 0
Description K sh s K sh s
C o n su m ab l e st o r e s 4 ,8 17,77 1 920,976
L ibrary Books Inventory 7,349,484 7,307,724
Other goods held for resale (Kenya Law
P^eports and LOK publications) 230,4 88,070 2 13,884,755
L ess: A llowance for impairment
T o t a l i n v e n t o r i e s a t t h e l o w e r o f c o st a n d n e t
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20. I N T A N G I B L E A SSE T S- SO F T W A R E
Description 2020-202 1 2 0 19 - 2 0 2 0
K sh s K sh s
C o st
A t beginning of the year as at July 2019 8,24 1,423 8,24 1,423
A d d i ti on s
2 1. T R A D E A N D O T H E R PA Y A B L E S
Description 2 0 20 -2 0 2 1 2 0 19 - 2 0 2 0
K sh s K sh s
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)
■»
22 . C U R R E N T P R O V I SI O N S
Description
L e av e B onus Gratuity O th er
K sh a K sh s K sh s K sh s K sh s
23 . T R A N SF E R S F R O M D O N O R S- D E F E R R E D I N C O M E R E A L I Z E D
National government
I n t er n at i o n a l D o n o r s 5,456,08 1 5,007,996;
Pu b l i c co ntr i b u t i on s an d d on ati on s
T o t a l d ef er r ed i n co m e 5,456,081 5,007,996
T r a n sf er s f r o m D o n o r s - D ef er r ed i n co m e r eal iz ed m ov em en t i s a s f ol l ow s:
Pub l i c
N at i o n al I n t er n at i o n al
c on tr i b ut i o n s T o t al
g ov ern m en t f u n d er s
Description an d d o n ati o n s
24. E M PL O Y E E B EN EF I T O B L I G A T I O N
Description
Defined benefit Post-employment O th er
plan medical benefits B en ef it s 2 0 2 0 - 20 2 12 0 19 - 20 20
K sh s K sh s K Sh s K sh sK sh s
C u r r en t b en ef i t
obligation 1,436,536 1,436,536
N o n -cu r r en t b enefi t
obligation -1
T otal employee benefits
obligation 1,436,536 1,436,536
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2020 -202 1 2 0 19 - 2 0 2 0
Description K sh s K sh s
K enya L aw also contributes to the statutory National Social Security Fund (NSSF). This i s a defined
contribution scheme registered under the National Social Security Act. K enya Law’s obligation under
the scheme is limited to specific contributions legislated fr om time to time and is currently at
Kshs.400 per employee per month.
i) C r ed i t r i sk
K enya Law is exposed to credit risk; the risk that a counterparty will be unable to pay amounts in full w h en
they fall due. Credit risk ari se from cash and cash equivalents, and deposits with banks, trade and other
Management assesses the credit quality of each
r ec ei v ab l es an d av ai l ab l e-f or - sal e fi n an ci al i n v estm en t s.
customer, taking into account its fi nancial position, past experience and other relevant factors. Individual
ri sk l im its are set based on internal or external assessm ent in accordance with limits set by the Council . The
amounts presented in the statement of fi nancial position have not considered any allowances for doubtf ul
receivables. Estimates by the Council ’s management based on prior experience and their assessment of the
current economic environment did not determine any necessity for such provisions.
The carrying amount of fi nancial assets recorded in the fi nancial statements representing the Council ’ s
maximum exposure to credit ri sk without taking account of the value of any collateral obtained is made up
as f o l l o w s:
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)
nr
A s at SO'" J un e 202 1
Receivables fr om exchange
tr an sacti o n s 14 ,984,69 1 14,929,69 1
R ecei v ab l es fr om non
exchange transactions 16,973,304 16,973,304
T ot al 94,877,412 94,822,412
A s at 30* J un e 2020
Receivables fr om exchange
t r an sact i o n s 24,542,605 10,750,434
R ecei v ab l es fr om n on
exchange transactions 9,699,704 9,699,704
T o t al 122,895,784 109,103,613
The customers under the f ully performing category are paying their debts as they continue trading. The
cr ed i t r i sk asso ci at ed w i th th ese rec ei v ab l es i s m i n i m al an d th e al l ow an ce f or un c o l l ec ti b l e am o u n t s th at th e
entity has recognized in the fi nancial statements is considered adequate to cover any potentially
i rr ec ov er ab l e am ou n t s.
The entity has signifi cant concentration of credit risk on amounts due fr om the Judiciary of Kshs.
11,076, 100.
The Council and management sets the credit policies and obj ectives and lays down parameters within
which the various aspects of credit risk management are operated.
ii) L iqu i dity r i sk m an agem ent
Ultimate responsibility for liquidity risk management rests with the entity’s directors, who have built an
appropriate l iquidity risk m anagement framew ork for the m anagem ent of the ent ity ’s short, m edium and
long-term f unding and liquidity management requirements. K enya Law manages liquidity risk through
continuous m onitoring of forecasts and actual cash f low s.
The table below represents cash f lows payable by the entity under non-derivative fi nancial liabilities by
their remaining contractual maturities at the reporting d at e. T h e am o i m t s d i sc l o sed i n th e t ab l e ar e th e
con tr actu al u n d i scou nt ed cash f l ow s. T h e b al an c es du e within 12 months equal their carrying balances, as
the impact of discounting is not signifi cant.
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)
-1
L e ss T h an B et w e e
Description O v er 5 T o t al
1 M on th n 1- 3
m onth s K sh s
K sh s m o n th s
K sh s K sh s
A s at 30* J un e 2021
i ii) M a r k et r i sk
K enya Law has put in place an internal audit f unction to assist in assessing the risk faced by the entity o n
an ongoing basis, evaluate and test the design and effectiveness of its internal accounting and operational
co n tr o l s.
M arket risk is the risk ari sing from changes in market prices, such as interest rate, equity prices and foreign
exchange rates which will affect the entity ’s income or the value of its holding of fi nancial instruments.
The obj ective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimizing the return. Overall responsibility for managing market risk rests with the
A udit and Risk M anagement Committee.
K enya Law’s Audit Department is responsible for coordinating the development of detailed risk
management policies (subj ect to review and approval by Audit and Risk M anagement Committee) and for
the day-to-day implementation of those policies. There has been no change to the entity ’s exposure to
market ri sks or the manner in which it manages and m easu r es th e r i sk .
( 30
)
r
2020-202 1 2 0 19 - 2 0 2 0
Description K sh s K sh s
R ev a l u at i o n r e ser v e
Total borrowings
L ess: Cash and bank bal ances (62,919,417)’ (88,653,475)
Net debt/(excess cash and cash equivalents) 128,896,884 77,528,422
Gear ing 6 7 . 19 % 4 6 .6 5 %
Capital f und is constituted of Non-Current A ssets that Kenya Law inherited fr om the Judiciary upon
delinking while retained earnings is an accumulation of operational surpluses and deficits over the years.
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)
1
26. R E L A T E D P A R T Y D I SC L O SU R E S
The transactions are at arm’s length and are recognized in accordance to K enya Law’s existing operational
policies.
Description 2 0 2 0 -2 0 2 1 2 0 19 - 2 0 2 0
K sh s K sh s
( 32
)
T
27 . E V E N T S A F T E R T H E RE PO R T I N G PER I O D
There were no material adj usting and non- adj usting events after the reporting period.
28. UL T I M A T E A N D H O L D IN G EN T I T Y
29. CURRENCY
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)
r- X
A PPE N D I C ES
A P P E N D I X I : P R O G R E SS O N F O L L O W U P O F A U D I T O R R E C O M M E N D A T I O N S
The auditor raised the issue of shortage of staff as a key audit matter in the financial year 2019/2020
au d i t . T h i s m att er h as n ot b een r eso l v ed an d w as sti l l outstanding as at 30* June 2021. Internally, we
acknowledge that this is an urgent matter that needs to be addressed. Kenya L aw has developed new
Human resource instruments that have been approved by the State Corporations A dvisory Committee
(SCA C) and is planning to engage the National Treasury for additional f unding to recruit additi onal
staff , acquire additional of fice space, f urniture and com puters.
D at e. 3 1. 1 1 D at e . . .3 1.12 .2 02 1
( 34
)
i -r r
A P P E N D I X n : I N T E R - E N T I T Y T R A N SF E R S
T h e ab ov e am ou n t s h av e b een com m u n i c at ed t o an d r eco nci l ed with the Offi ce of the A ttorney General &
Department of Justice.
N am e of the
M D A /D on or
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)
r « ^ •