Annual Report 2013-2014

National Council for Law Reporting
Annual Report 2013-2014
National Council for Law Reporting Annual Report 2013 - 2014
NATIONAL COUNCIL FOR LAW REPORTING

(KENYA LAW)
Annual Report For The Financial Year
July 2013 June 2014
Content
1. Organizational Profile
Flagship brand name 1

Address of Principal Office and Contacts:
1
Mandate and Functions 1
Source of Mandate:
1
Mandate 1
Vision 2
Mission 2
Core values 2
Slogan 2
2. Chairmans Statement 3
3. Letter From The Chief Executive Officer
4. The Council 5
5. Kenya Law Management Team 8
6. Statement of Directors Responsibilities 10
7. Corporate Governance Statement 11
8. Performance Review/ Operational Highlights July 2013 - June 2014
12
Law Reporting 12
Preparation and printing of the Kenya Law Reports and other specialized
products 12
Trainings of members of the department and knowledge exchange with
other stakeholders. 12
ICT Development 13
Complete migration of e-Mail services to Google Apps
13
Re-branded Kenya Law website 13
Kenya Law Android Application 13
Asset tagging exercise 13
Marketing and Communication 13
Rebranding to Kenya Law 14
The Unveiling of a new Brand Identity - Kenya Law and Launch of
The Kenya Gazette Online Database and a update website (www.kenyalaw.org) 14
Sales Report from July 2013 to June 2014
15
Research and Development 16

Launch of the Kenya Gazettes Online Portal
16
Study tour to the National Archives of the United Kingdom
16
Law Society of Kenya Continuing Legal Education (CLE)
17
Strategic Partnerships 17
Goodwill book distribution initiative for the benefit of prisoners
17
Strategy Quality Assurance and Performance Evaluation (SQAPE)
18
The Judicial Performance Improvement Project (JPIP)
18
The corporate governance training for the Kenya Law Council and
Senior Management 19
Revision of the 2013 - 2017 Strategic Plan
20
Laws of Kenya (LOK) 20
Annual Supplement:
21
County Legislation:
21
East Africa Community Legislation:
21
Human Resource and Administration Department
21
Finance Department 22
New reporting guidelines 22
The approved budget 22
The report of the Auditor General for FY 2014/2015
23
The statement of financial performance
23
The statement of financial position
23
9. Kenya Law Audited Financial Statements For The year ended 30th June 2014
25
Statement of Council Members Responsibilities
25
Report of the Auditor-General on National Council For Law Reporting for
The year ended 30th June 2014 27
29
Statement of financial performance for the year ended 30th June 2014
th
Statement of financial position as at 30 June 2014 30
32
Statement of changes in net assets for the year ended 30th June 2014
th
Statement of cash flows for the year ended 30 June 2014 32
Statement of comparison of budget and actual amounts
34
Notes to the financial statements
42
Progress on follow up of auditor recommendations
52
ii
10. Challenges and Risks in the Financial Year 2013 - 2014
53
11. Organizational Outlook for the Financial Year 2014 - 2015

Law Reporting Departmental projections for the FY 2014 - 2015
ICT Departmental Projections for the FY 2014 - 2015
Research & Developments Departmental projections for the FY 2014 - 2015
Laws of Kenya (LOK) Departmental Projections for the FY 2014 - 2015
SQAPE Projections for the FY 2014 - 2015
Human Resources and Administration Projections for the FY 2014 - 2015
Marketing and Communication projections for the FY 2014 - 2015
54
54
54
54
55
56
56
57
12. Selected conferences and trainings undertaken in the Financial Year 2014 - 2015
58
13. Corporate Social Responsibility 60

14. NCLR staff 2013 - 20 14 64
iii
01
Organizational Profile
Organization:
The National Council for Law Reporting (Kenya Law)
Organization type:
Semi-autonomous State Agency (SAGA), State Corporation
Parent Act:
The National Council for Law Reporting Act, Act No. 11 of 1994.
Parent Ministry:
The Judiciary of Kenya
Ranking and Classification: Service State Corporation, PC3C

Organizational Structure:
Council of Directors with a Secretariat headed by the Editor/Chief Executive Officer
Flagship brand name

Kenya Law
Address of Principal Office and Contacts:

ACK Garden Annex, 1st Ngong Avenue, Off Ngong Road
P.O. Box 10443-00100, Tel (+254 020) 2712 767, Fax (+254 020) 2712 694
NAIROBI KENYA
Email: [email protected]. Facebook Group: Kenya Law
Youtube: www.youtube.com/kenyalaw
Twitter: @mykenyalaw
Website: www.kenyalaw.org
Mandate and Functions

Source of Mandate:

National Council for Law Reporting Act, Section 3
Legal Notice No. 29 of 2009
Mandate
1. To Publish the Kenya Law Reports and related publications;
2. To revise, consolidate and publish the Laws of Kenya;
3. To perform such other functions as may be conferred by statute.
Vision
Accessible public legal information towards an enlightened society
Mission
To provide universal access to public legal information by monitoring and reporting on the development of
jurisprudence for the promotion of the rule of law
Core values
The guiding principles in the operations of the Council are:
1. Integrity
2. Accountability
3. Reliability
4. Professionalism
5. Innovation
6. Citizen/Customer Focus
Slogan
Where legal information is public knowledge
02
Chairmans Statement
his is the third year of implementation of the Judiciary Transformation Programme

and we are now beginning to see the results of activities under this programme.
Kenya Law plays a very instrumental role in the justice and legal sector, as it is the
channel through which the jurisprudence developed by the Judiciary, and by extension
that of Kenya, is sifted, sorted and disseminated. This is especially critical in view of the
Constitutional requirements on the right to information.
The past year has been one of consolidation of all the gains that we have been able to
achieve from the year 2001 when this institution was
formally established. All the investments in ICT systems
and human capital are beginning to come full circle and
we are now seeing a mature institution that is not only
able to manage and deliver its mandate but that is also a
shining beacon of what a small group, properly focused,
can achieve with the right ICT tools.
The case law database has in the last year been revamped
and reengineered to ensure that it is responsive to the
needs of its users by being extensively searchable and
the results downloadable in various formats. In addition
to this we have also ensured that we minimize the time
lag between the close of the year and the printing and
publication of the law reports. This is an ongoing activity
on which we continue to improve on.
We have expanded the ambit of the database of the Laws of
Kenya to include the County Assemblies, which constitute
the other level of Government and, I must add, one which
in the near future is bound to generate a large amount of
legislation that is most relevant to the people of Kenya.
There is no doubt that Kenya Law has made tremendous strides in ensuring that public legal
information is freely and easily accessible. We are also alive to the fact that change is really
the only constant in this field which is so reliant on communications and technology. We
shall therefore continue to lay emphasis on innovation and customer focus so as to ensure
that Kenya Law is able to meet its mandate of enlightening society through provision of
public legal information.
Dr. Willy Mutunga

D. Jur, SC, E.G.H, Chief Justice, President of the Supreme Court of Kenya, Chairman, National
Council for Law Reporting
03
Letter From The Chief

Executive Officer
he past year has seen Kenya Law continue on the path of strengthening and developing
its systems so as to ensure that the growth it has experienced over the past few
years, in personnel and equipment, may be properly harnessed to achieve its vision
and mission.
In addition to officially launching our new brand name (Kenya Law), we were also able to
move to new premises that are more spacious and ergonomic thus creating a conducive
environment for staff to work from.
In further recognition of the importance of our staff in the
activities that we undertake, Kenya Law facilitated various
trainings for staff members to enhance their capabilities
and competencies. These included trainings on human
resource, law reporting and archiving amongst others.
The new system of governance that commenced with
the elections of 2013 also heralded an increase in the
number of cases from the Judiciary. Kenya Law was able
to comprehensively track and report on these using our
improved system of archival and retrieval of cases. We also
entered into collaboration with Transparency International
(K) to enhance the development of jurisprudence around
the area of ethics, anti-corruption and good governance.
In terms of financial allocation, and in comparison with
the previous year, Kenya Law received an enhanced
budget from the exchequer, which therefore enabled it to
discharge its core mandate. There was also supplemental
financial support from the World Bank under the Judiciary
Performance Improvement Project.
Though there is still need for increased funding to ensure
that the organization can remain as dynamic as expected by Kenyans, we have been able to
prioritize our activities so as to ensure that the most critical activities are fully discharged.
This report therefore sets out how Kenya Law has been able to manage its budgetary
allocation to meet the expectations of the people of Kenya. Overall, Kenya Law continues
to capitalize on ICT to enhance the provision of public legal information, an aspect that is
particularly important during this time of Constitutional implementation.
Longet Terer
Ag. Chief Executive Officer/Editor.
04
The Council
1.
Hon. Dr. Willy M. Mutunga

Chief Justice, President of the Supreme Court of Kenya, Chairman of the National
Council for Law reporting.

2.
DOB: 1947
Doctorate of Law York University
LLM - University of Dar-Es Salaam
LLB - UON
Diploma of Law - KSL
Lecturer University of Nairobi
Representative of the Ford Foundation
Hon. Prof. Githu Muigai

Attorney General , State Law Office & Department of Justice
DOB: 1960
PHD - UON
LLM - Colombia University
LLB - UON
Lecturer - UON
Partner, Mohammed Muigai & Co. Advocates
3.
Hon. Lady Justice Roselyne Nambuye

Judge of the Court of Appeal

4.
DOB: 1952
LLM - UON
LLB - UON
Chairperson Kenyan Women Judges Association
Hon. Lady Justice Lydia Achode

Judge of the High Court

DOB: 1962
LLB - UON
Registrar of High Court of Kenya
Chief Court Administrator
Member of Judges and Magistrates Association
5.
Mrs. Florence Mwangangi

Advocate, Law society of Kenya

6.
DOB: 1963
LLM - UON
LLB- UON
Member of JSC
Partner- Mwangangi & Co. Advocates
Mr. Evans Monari

Advocate, Law society of Kenya

7.
DOB: 1963
LLB - UON
Partner, Coulson Harney, Advocates
Ms. Christine Agimba

Deputy Solicitor General, State Law Office

8.
LLM - University of Warwick, England

LLB - UON
Project Manager - FLSTAP (World Bank funded project through Ministry of
Finance)
Prof. Annie Patricia G. Kameri - Mbote
Dean, School of Law, University of Nairobi

DOB: 1964
Ph.D. Stanford University
LLM: University of Warwick, Stanford University
LLB: University of Nairobi
Dean, School of Law - UON
Associate Professor - UON
9.
Mr. Paul Sang

Alternate/Representative to the Government Printer, Mr. Sylvester Migwi
Senior Superintendent Printer & Head of Proof Reading, Government Printer.
DOB: 1977
Undergraduate: BCom. (Operations Management), UON
HDIP: Printing Technology, Technical University of Kenya
Diploma: Printing Technology, Technical University of Kenya
10. Mr. Longet Terer

Ag. Chief Executive/Editor, National Council for Law Reporting.
DOB: 1978
LLM: Durham University, United Kingdom
LLB Bangalore University, India
Snr. State Counsel Office of the AG and DOP
05
NCLR Management Team
Ms. Linda Awuor Ochieng Ms. Emily Nakhungu
Ms. Wambui Kamau
Mr. Longet Terer
Ms. Janette watila
Team Leader - Research and

Development
Team Leader - Laws of Kenya
Ag. CEO/Editor
Team Leader - Human Resources

and Administration.
Team Leader - Marketing and

Communications
Ms. Edna Kuria Muthaura
Mr. Pascal Othieno
Mr. Martin Andago
Mr. Cornelius Lupao
Team Leader - SQUAPE
Team Leader - Finance
Team Leader - ICT
Team Leader Law Reporting
06
Statement of Directors
Responsibilities
he National Council for Law Reporting Act; the Public Finance Management (PFM) Act 2012 Section
89, and The State Corporations Act Cap 446 of laws of Kenya, require the Council to prepare financial
statements in respect of that institution, which give a true and fair view of the state of affairs of the
Council at the end of the financial year/period and the operating results of the Council for that year/period.
The Council Members are also required to ensure that the Council keeps proper accounting records, which
disclose with reasonable accuracy the financial position of the Council. The Council Members are also
responsible for safeguarding the assets of the Council.
The Council Members are responsible for the preparation and presentation of the Councils financial statements,
which give a true and fair view of the state of affairs of the Council for and as at the end of the financial year
(period) ended on June 30, 2013.
This responsibility includes:

i) Maintaining adequate financial management arrangements and ensuring that these continue
to be effective throughout the reporting period;
ii) Maintaining proper accounting records, which disclose with reasonable accuracy at any time
the financial position of the Council;
iii) Designing, implementing and maintaining internal controls relevant to the preparation and
fair presentation of the financial statements, and ensuring that they are free from material
misstatements, whether due to error or fraud;
iv) Safeguarding the assets of the Council
v) Selecting and applying appropriate accounting policies; and
vi) Making accounting estimates that are reasonable in the circumstances
The Council Members accept responsibility for the Councils financial statements, which have been prepared
using appropriate accounting policies supported by reasonable and prudent judgements and estimates, in
conformity with International Public Sector Accounting Standards (IPSAS), and in the manner required by the
National Council for Law Reporting Act, PFM Act and the State Corporations Act.
The Council Members are of the opinion that the Councils financial statements give a true and fair view of the
state of Councils affairs during the financial year ended June 30, 2013, and of the Councils financial position
as at that date. The Council Members further confirm the completeness of the accounting records maintained
for the Council, which have been relied upon in the preparation of the Councils financial statements as well as
the adequacy of the systems of internal financial control.
Nothing has come to the attention of the Council Members to indicate that the Council will not remain a going
concern for at least the next twelve months from the date of this statement.
10
07
Corporate Governance
statement
he National Council for Law Reporting aims to ensure that the maximum possible value is created for
its stakeholders over time. Good corporate governance shall ensure an appropriate distribution of roles
between the owners, the Board of Directors and the executive management team, and also contribute
to reducing risk and ensuring sustainable value creation.
This section of our report sets out how we manage Kenya Law to ensure as far as possible that the values
you would expect us to operate by are in place and adhered to; that commercial and operational risks are
identified and controlled; that we have strategies and plans in place to optimise value over an appropriate time
period and that a proper system of checks and balances is in place without inhibiting the efficient running of
the Organisation.
Our approach to governance remains unchanged. It begins with the recognition that governance is not simply
a set of rules but the framework supporting core values, which define what is and what is not acceptable. It is
an expression of the way we want to conduct ourselves which informs actions and decisions whether or not
there is a specific rule for the situation, and which supports the culture and behaviours that we wish to foster.
Good corporate governance shall ensure that appropriate goals and strategies are adopted, that the adopted
strategies are implemented in practice, and that the results achieved are subject to measurement and
follow-up. The principles shall also contribute to ensuring that the activities of the Council are appropriately
controlled. An appropriate distribution of roles and adequate controls shall contribute to the largest possible
value creation over time, for the benefit of the owners and other stakeholders.
The governance framework, the corporate culture and human relationships that underpin all governance
frameworks, are operating as expected. We are in the process of putting in place various corporate governance
committees and drawing up the corporate governance charter. In a years time, we will have an enhanced
corporate governance structure working within the framework that was recently developed.
It is the responsibility of the Council Members to ensure that the organization implements sound corporate
governance. The Council Members evaluate the Corporate Governance statement on an annual basis. The
Boards Audit Committee also evaluate the Corporate Governance statement and will evaluate other policies
and procedures that benefit the organization and its stakeholders.
Some of the issues relate to:

Basic corporate values and ethical guideline
Health, Safety, Security and Environment Policy
Talent Management Policy
11
08
Performance Review/
Operational Highlights 2013 2014
Law Reporting
1.
The Law Reporting department undertook the following activities in the period under review:
1.1
Preparation and Printing of the Kenya Law Reports and other specialized products
During the period-2013/2014 financial year, the department prepared and printed the following Kenya
Law Reports:

Kenya Law Reports: 2010 Volume 1 and 2,
Kenya Law Reports: 2011 Volume 1
Kenya Law Reports, Election Petitions Volume 4
Presidential Election Petition mwananchi series Volume 2
The 1/3 gender rule - Mwananchi series Volume 1
Constitutional Law Booklet Volume 1
Supreme Court Case digest Volume 1
A Hand Book on the Practice of an Auctioneer
The Bench Bulletin (Issues 22 - 25)
The Ethics, Anti-Corruption, Leadership and Integrity Case Digest.
The department successfully developed a new case law database, which has aided in streamlining and easing
the coordination of workflow processes within the department. The department also undertook the translation
of case summaries into Swahili in line with the editorial policy of the mwananchi factor.
1.2
Trainings of Members of the Department and Knowledge Exchange with other stakeholders.
Team members represented the department in various training opportunities as well as workshops to build
their capacity, benchmark with other leading Law Reporting entities and to learn the best practices in the law
reporting fields. The team members took part in:
12
In-house training in law reporting and cause list inventorying.
Knowledge exchange and training of the technical proofreading, layout and inventory units to
build their capacity. These units are closely intertwined in terms of workflow processes hence;
there was need for the knowledge exchange and training within these sub-departments.
A benchmarking tour of the Incorporated Council for Law Reporting to learn on the best
practices and emerging trends in Law Reporting.
Training of the Namibian Law Reporting Delegation on Law Reporting and workflow processes
Knowledge exchange with judges from South Sudan
Training of Judges of Court of Appeal as well as Judges of the Environment and Land Courts
on Law Reporting
Training of Judges Legal Researchers on Law Reporting
2. ICT Development
The ICT department undertook the following activities in the reporting period:
2.1
Complete Migration of E-Mail Services to Google Apps
Google Apps is a completely cloud-based solution for managing e-mail, sharing contacts, working on
documents, building Web pages, and keeping a calendar. Kenya Law successfully completed its migration to
the Google Apps platform effectively doing away with the need for in-house e-mail management. This has in
turn resulted in reduced downtime.
2.2
Re-branded Kenya Law Website
The department revamped and optimized the website in order to ensure ease of access and navigability of
the website while at the same time ensuring an informative experience for its users. This together with the
move towards the use of simple language means that the information that is contained in the website is both
accessible and understandable. The website is universally accessible and makes legal information accessible
to all, especially to persons with disabilities.
In keeping with the Constitution of Kenya 2010, under Article 7, Article 35, Articles 54, and The Persons
with Disability Act section 21, Kenya Law is committed to ensuring that its online platform and information
are as accessible to all persons with disabilities and to the public. Our website, www.kenyalaw.org, meets
the checkpoints of the Web Content Accessibility Guidelines (WCAG) 2.0 as issued by the World Wide Web
consortium (W3C).
2.3
Kenya Law Android Application
To ensure that public legal information is available via mobile phones, the department decided to leverage on
available technology and develop a Kenya Law Android application.
To this end, Kenya Law partnered with Samsung Electronics East Africa and Strathmores iLab Africa to
develop the mobile application. The Kenya Law mobile application version 1.0 has four modules namely;
Laws of Kenya, Case Search, Kenya Gazette and the Cause List. Currently, Laws of Kenya module has the
Constitution of Kenya, 2010 and Key Legislation available in PDF format. The application was launched and
has been received well by the public. The department is currently working on version 2.0 of the application.
2.4
Asset Tagging Exercise
Fixed asset management is an importance practice in any organization for purposes of financial accounting,
preventive maintenance and prevention of theft. All computers, laptops and related peripheral devices were
tagged with bar codes enabling ease of identification and location of each device.
3. Marketing and Communication

The Marketing and Communication Department is mandated to promote Kenya Laws brand visibility and
ensure optimum sales and customer satisfaction.
The vision for the Marketing and Communications Department is to ensure that Kenya Law becomes the
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leading brand in Africa and beyond in Law Reporting, and in providing excellent customer care services. The
departments mission is to continually foster public knowledge and information about Kenya Law products
and to establish the Kenya Law brand as a market leader in disseminating legal information.
3.1
Rebranding To Kenya Law
Kenya Law embarked on a strategic rebranding exercise in a bid to spur institutional transformation. The new
brand highlights the councils commitment to maintain world-class law reporting standards, continuously
improve on creativity and innovation, adopt information communication technology solutions and enhance
customer service delivery.
The exercise kicked off during the strategic plan review exercise with a series of changes in the organisations
vision, mission and corporate slogan and with internal communication to prepare staff to adopt a new
customer centred service delivery attitude.
The flagship brand Kenya Law Reports will now be known as Kenya Law. The new corporate identity will
be anchored on a new logo and slogan Where legal information is public knowledge. Broadly, the re-branding
included the following activities: business and brand immersion, (awareness), brand strategy development,
brand manual development and development and production of collaterals. The internal launch was held on
held on 19th July 2013.
The new brand identity Kenya Law represents not just renewal of the institution but the expanded mandate
with emphasis on accessible legal information as public knowledge.
3.2
The Unveiling of a new Brand Identity - Kenya Law, The Kenya Gazette Online Database and
a new Website (www.kenyalaw.org)
Kenya Law unveiled its new brand name and logo, the Kenya Gazette Database and a its revamped website,
(www.kenyalaw.org) on April 30, 2014. The event was hosted by the Hon. Chief Justice Dr. Willy Mutunga, D.
Jur., SC. E.G.H., President of the Supreme Court of Kenya, who is also the Chairman of the National Council
for Law Reporting.
The unveiling of the new brand name KENYA LAW was a culmination of a deeper transformation that the
institution has gone through inspired by the new requirements of public service delivery under the new
Constitution of Kenya 2010; the increased awareness and demand for legal information by the citizen.
The event also saw the launch of the Kenya Gazette online database. It was the first time that Kenya was
launching an online official version of the Kenya Gazette, a weekly government publication that contains
public and private notices on matters that are required to be notified to the public as a matter of law or policy,
such as new legislation, government appointments, revocation of titles to land, registration and dissolution of
companies and societies, succession and inheritance notices, etc.
Kenya Law also launched a new website. The development of the new website (www.kenyalaw.org) was
informed by the hopes and aspirations of the people of Kenya, the letter and spirit of the Constitution of Kenya,
2010; the strategic direction of the Kenya Vision 2030, the Judiciary Transformation Framework, 2012-2016
and the promise and commitment of Kenya Law Staff.
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3.3
Sales Report
The following are the Kenya Law sales figures for the financial year 2013/2014.
MONTH
TOTAL IN KSH
JULY 2013
897,900.00
AUGUST 2013
409,000.00
SEPTEMBER 2013
478,300.00
OCTOBER 2013
116,100.00
NOVEMBER 2013
204,400.00
DECEMBER 2013
201,500.00
JANUARY 2014
579,000.00
FEBRUARY 2014
45,000.00
MARCH 2014
120,800.00
APRIL 2014
170,900.00
MAY 2014
165,205.00
JUNE 2014
256,740.00
TOTAL SALES
3,644,845
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4. Research and Development

4.1
Launch of the Kenya Gazettes Online Portal
Kenya Law signed a contract with Digital Divide Data (DDD), a Business Process Outsourcing (BPO) service
provider, under an initiative that aims to improve the welfare of socio-economically disadvantaged and
vulnerable persons by having them employed in the BPO industry an employment model known as Impact
Sourcing.
DDD empowers young women and men in emerging economies to lift themselves and their families out of
poverty. Through a work-study program, DDD builds the skill sets of its staff, which helps them establish
promising professional careers in the global economy. By 2013, it DDD had employed over 1000 staff and had
assisted over 500 young people in South East Asia and in Africa to graduate from universities, permanently
increasing their incomes and enhancing their career opportunities.
Under the contract, DDD was to convert current and past editions of the Kenya Gazette into a format that
makes them easily publishable and accessible on Kenya Laws website. The work is part of an initiative
in Kenya Law titled Improving Public Access to Information through Impact Sourcing IMPACT-IS that is
supported by a grant from The Rockefeller Foundations Poverty Reduction Through Information and Digital
Employment (PRIDE) initiative. This was done successfully and the new database was launched during Kenya
Laws external launch on April 30, 2014 at the Chief Justices Gardens.
Kenya Law in partnership with Virginia Tech University will seek to host the archival records of the Kenya Gazette
in their Discovery Commons repository. The repository site, which was launched recently, represents a reliable
online resource for the material and is searchable for topics listed in the table of contents for each document.
The site is free access, linked to the Kenya Law website, and all documents can be freely downloaded. Users
can search for a particular Gazette, or select from a list of topics, which will pull up all related bills, laws, and
amendments. When complete, users can quickly locate the entire history of a law, from its publication as a bill,
its passage into law, amendments, and repeal.
4.2
Study Tour to the National Archives of the United Kingdom
The Research and Development (R&D) department visited The National Archives (TNA) and the Stationery
Office (TSO) both in London in the United Kingdom. TNA and TSO have long history of creating, storing, reusing and managing of government information applying the highest standards and technology. The study
tour was funded under the Judiciary Performance Improvement Project (JPIP) and was attended by various
departments of Kenya Law i.e. the Law Reporting Department, the Laws of Kenya Department, the ICT
Department and the Marketing and Communications Department.
Having been established in 1988, TNA provided a rich ground for the R&D department to learn from for the
purpose of taking the R&D department to a higher level. The National Archives is the official archive and
publisher for the UK government, and for England and Wales.
The National Archives is an executive agency of the Ministry of Justice in the UK and a government department
in its own right. The National Archives collection of over 11 million historical government and public records is
16
one of the largest in the world.

The study tour was aimed at identifying skills needed in the Research and Development (R&D) department
for managing and preserving digital information past, present and future and for making it accessible to its
users within the legal framework.
4.3
The digitization process which is currently undertaken in Kenya Law, particularly in the R&D department,
has faced several challenges in the legal front regarding copyright of information in use. The TNA
having started the process in the early 1990s, and experienced similar problems, was able to provide
the department with the processes and procedure required to overcome the challenges experienced in
Kenya Law.Law Society of Kenya Continuing Legal Education (CLE)
Kenya Law being the legally mandated institution in Kenya in monitoring and reporting on the development
of jurisprudence partnered with the Law Society of Kenya (LSK) to undertake a special CLE titled: Landmark
Moments in Kenyas Jurisprudence in 2013. The event was held on the 28th of March, 2014 at the Laico
Regency Hotel in Nairobi. Kenya Law provided the resource persons, case law analysis, legislation analysis,
legal research and the reference materials for the course.
The following were the topics and the resource persons:

Devolution: Laws Of The Counties And Law Reform by Professor Ben Sihanya- University of
Nairobi Law School
Developments in Kenyan Jurisprudence: Constitutionality of Death Sentencing In Capital

Offences. A comparative analysis between Kenya and the UK by Teddy Musiga Law Reporter,
Kenya Law and Hon. Mr. Justice Jeremy Cooke - High Court Judge, Queens Bench Division
Developments In Kenyan Jurisprudence: Landmark Electoral Case Law In 2013 By Elisha

Ongoya, Advocate Partner Ongoya and Wambola Advocates
The event was well attended by members of the legal profession in Kenya Law and Kenya Law and the Law
Society of Kenya delivered the programme successfully.
4.4
Strategic Partnerships
Kenya Law participated in the National Conference on Human Rights and Extractives that was organised by
one of its strategic partners, Katiba Institute.
The Institute invited Kenya Law, given its niche in monitoring and reporting on the development of Kenyas
jurisprudence. Kenya Law made a presentation during a round table discussion with various stakeholders in
the industry on the adverse human rights impacts of extractive operations on local communities. The Research
and Development Department made a presentation titled Extractives Industry: The African Situation Case
Law and Legislation detailing the legal/jurisprudential perspective of decisions on mining and extractives
around the African continent.
4.5
Goodwill Book Distribution Initiative For The Benefit Of Prisoners
The Goodwill Book Distribution was an initiative under the Deputy Chief Justices office to distribute legal
reference materials to prisons throughout the country. The initiative arose from the prison visits that the Office
17
of the Deputy Chief Justice (DCJ) had conducted to various parts of the country (Kamiti Maximum Prison,
Eldoret G.K. Prison, Langata Womens Prison, Kapsabet Prison and Bungoma Prison). These visits collectively
yielded a realization that there is a significant knowledge gap by a majority of prisoners in Kenya who neither
know nor understand their rights under the new Constitution, not to mention the court procedures on what
they are expected to do to respond to allegations against them.
Kenya Law was part of the institutions that partnered with the Deputy Chief Justices Office in the distribution
of legal reference materials to prisons. The department organised and accompanied the DCJ to Nakuru
prison with copies of Constitution Laws of Kenya (Grey Books) law reports and the Bench Bulletins for use by
the inmates.
5. Strategy Quality Assurance and Performance Evaluation (SQAPE)

During the period under review; July 2013 to June 2014, the SQAPE department was involved in the following
activities:
5.1
The Judicial Performance Improvement Project (JPIP)
With funding from the World Bank under the Judiciary Performance Improvement Project (JPIP), Kenya Law
undertook the study tour to the UK activity for a total of 10 members of staff. From the study tour, Kenya Law
has been cascading lessons learnt to other staff members.
JPIP also funded soft skills training programmes aimed at equipping eight Kenya Law officers with essential
skills for effective organizational and human resource management.
The trainings, which were conducted by Eastern and Southern African Management Institute (ESAMI), saw
one officer undergo training on Modernizing Human Resource Management and Development in Mombasa.
The programme was designed to assist participants acquire the latest thinking, knowledge and skills for
practically modernizing human resource management. It equipped the participants on how to integrate the
most current models, tools, HRM&D values, beliefs and practices based on best approach and best fit case
studies for strategic client focus, enhanced employee quality of work life and better service delivery.
Three Team Leaders were trained on Leadership and Change Management at a course facilitated by ESAMI
in Pretoria, South Africa. The team leaders were drawn from the Human Resources, Strategy and Finance
departments.
The course was aimed at sharpening the grasp on leadership and to impart a high degree of performance
competence to participants in their leadership role, placing particular emphasis on planning and implementing
positive qualitative change in their organisations.
Another two officers were sponsored through JPIP to undertake a short course on Results Based Management.
The training was held in Mombasa where the participants were introduced to the basics of project management,
the importance of project risk management and communication planning. The participants learnt how to
monitor and evaluate projects as well as sustain them after their life cycle has ended.
Two senior officers were sponsored through JPIP for training aimed at enhancing leadership and direction
18
at senior and top management levels. The Senior Management Development Programme held at the ESAMI
Campus in Arusha, Tanzania, assisted participants to increase their knowledge of key management issues
and develop critical techniques for effective corporate management.
5.2
The Corporate Governance Training for the Kenya Law Board and Senior Management
The department spearheaded corporate governance training for the Council of Kenya Law and the senior
management staff. The training was held at the Simba Hotel, Naivasha, on 25th April, 2014 and was facilitated
by the Kenya Institute of Management (KIM).
The training was designed to critically review, contextualize, understand and assist Kenya Law respond to its
corporate governance challenges and concerns, contextualized to current and emerging corporate governance
developments, the 2010 Constitution leadership requirements, National Leadership Guidelines and the Report
of the Presidential Taskforce on Parastatal Reforms. The training specifically set out to achieve the following
objectives:

To identify current public sector corporate governance best practices and discuss potential
applicability to Kenya Law
To explore how corporate governance best practices can drive positive management and
Council culture at Kenya Law
To Improve participant understanding of the responsibilities of Council membership
To develop the strategic insight needed to become a more effective director/manager
To gain an understanding of the interests of multiple stakeholders and learn governance

frameworks that can move the Council beyond compliance to the creation of opportunities for
long-term value.
To develop new governance and leadership skills and learn to differentiate the roles and
responsibilities of independent directors and executives
To define a desired future organisation governance and move toward that future with confidence
A total of 13 Kenya Law Council and Senior Management (5 from the Council and 8 from management)
participated in the two-day training. The training tackled:

Introduction to the overarching concepts and principles of corporate governance. The source
of the principles, how they can be changed/delegated to management or committees. How
the principles of corporate governance guide the behaviour of organisation Council of directors
operating in todays dynamic business environment and how, if at all, they impact on the
responsibilities of the directors as determined by applicable law?
The role and functions of the Council and of key officers of the Council in determining the
organisations strategic objectives and policies; monitoring progress towards achieving those
strategic objectives and policies; accounting for and reporting the organisations activities to
relevant stakeholders.
19
5.3
The Council and strategy; how Council members can be diligent with corporate strategy review
and obtain unbiased perspective on the organizations leadership business strategies; objective
assessment of leaderships plans to execute new strategy; critical talent to implement strategy
and ensure competitive advantages is won not lost.
How the Council can understand financial management reports and ensuring that the
organisation is fully accountable to stakeholders and are approaching financial strategy
implementation in a manner that will assure improvement of the organizations chance for
success.
Understanding financial statement malfeasance and nonfeasance and how the Council can
strive to improve the effectiveness and efficiency of their financial management systems and
processes.
Risk management and internal controls; how the current complexity of business transactions,
technology advances, globalization, speed of operational cycles, and the overall change of pace
have increased the volume and complexities of internal controls and risks facing organizations.
ICT and Knowledge Management oversight; how the Council can ensure that ICT policies are
aligned with the organisation strategy, how critical knowledge is captured, distributed, and
effectively used.
Revision of the 2013-2017 Strategic Plan
The Kenya Law strategic plan was revised in consultation with the Council members. In its revision, the
strategic plan captured four key thematic areas namely:

Provision of Public Legal information
Branding, Visibility and Corporate Image.
Institutional Development
Policy and legal framework
The thematic areas will guide all organizational activities during the strategic plan implementation period.
6. Laws of Kenya (LOK)

Through Legal Notice Number 29 of 2009, the Attorney General delegated to Kenya Law the power of law
revision conferred on his office by the Revision of the Laws Act, Cap.1.
The vision of the Laws of Kenya Department is to establish Kenya Law as a centre of excellence in the revision,
updating and consolidation of national legislation. Its mission is to ensure the continuous revision and updating
of all the laws of Kenya and to provide their affordable, efficient and timely access.
20
During the period under review, the Laws of Kenya department undertook the following activities:
6.1
Annual Supplement:
Section 7 of the Revision of Laws Act, Cap. 1, provides for the publication of an Annual Supplement containing
a revised edition of every Act which has been enacted or has come into force during the previous year as
well as such subsidiary legislation made thereunder. The department fulfilled this requirement of the law and
published three sets of the 24th Annual Supplement 2012. Each set has thirteen volumes of the revised Laws
of Kenya. This Annual Supplement is to be adopted by the Attorney General before release to members of the
public.
The annual supplement was a result of an extensive exercise of law revision that culminated in the first revised,
consolidated and updated Laws of Kenya in 20 years. The launch of the online database of these laws was held
on the 30th April, 2014. Laws of Kenya, revised edition 2012 are the full texts of acts of parliament (statutes)
and regulations (subsidiary legislation) made under those laws as they existed on the 31st of August, 2012.
The print edition is comprised of twenty-two volumes in which the acts have been placed in alphabetical order.
Each act commences on a new page and the running heads at the top of the page indicate the title heading of
the act, the chapter number as well as year of revision of the Laws.
The online edition of the Laws of Kenya is a highly versatile resource; its sophisticated technology, the scope
of content and ease of navigation places it above any other legal resource tool. The database has the unique
Point-In-Time functionality that enables a user to view the law as it was at a particular point in time during the
legislative life cycle of the law in question. This edition is available free of charge on www.kenyalaw.org.
6.2
County Legislation:
The Constitution of Kenya, 2010 established a devolved system of government with central government at the
national level and 47 county governments at county level. The legislative authority of county governments is
vested in individual county assemblies, which have, to date, passed several pieces of legislation.
In an endeavour to fulfil the departmental vision and mission, the department established strategic partnerships
with the various county governments to collect and publish county legislation on www.kenyalaw.org. To date,
over one hundred (150) pieces of legislation have been collected and uploaded on the county legislation tab
of the website.
6.3
East Africa Community Legislation:
The department established a strategic partnership with the State Department on East African Affairs under the
Ministry of East African Affairs, Commerce and Tourism to publish East African Community (EAC) legislation
on its behalf. This is an ongoing exercise with 23 EAC Bills and 18 EAC statutes published online so far.
7. Human Resource and Administration Department

The main objective of the Human Resources and Administration Department is to support Kenya Law to
achieve its mission, by ensuring that appropriate conditions are created and maintained for efficient operation
and that members of staff are engaged and motivated. The department has aligned and integrated its
21
processes with the Kenya Laws mission and this has been achieved by putting in place strategies that will
ensure that Kenya Law achieves its mandate.
The Human Resource and Administration department targeted its operational initiatives and activities to align
with the Council Strategic plan and the following are the achievements:
1. Carried out an appropriate job placement for three members of staff in ICT, SQUAPE and
Human Resource and Administration Departments
2. Facilitated the successful relocation of Kenya Law from the Milimani commercial court
building to it new premises at ACK garden Annex. Facilitated the successful handing over of
the premises after the defects liability period from the contractors to Kenya Law.
3. Facilitated the official function of the opening of the new office premises by the Deputy Chief
Justice.
4. Facilitated the performance and recognition scheme for outstanding employees/ departments
during the staff annual conference
5. Facilitated the staff involvement and engagement strategy through regular meetings, staff and
departmental retreats and team building exercises
6. Undertook the setting up of a fully functioning OSHA Committee and conducting training and
safety audits
7. Facilitation of trainings and development programs for staff members.
8. Effective resolution of work conflicts and handling of grievances.
9. Efficient management of the medical health benefits as well as the welfare benefit schemes
10. Enhanced employee welfare benefits and work life balance strategies by facilitating welfare
contributory scheme to cater for weddings births and deaths.
Moving forward, Human Resource department has targeted operational initiatives to align itself with the overall
strategic plan. The department will use its resources to become a more active partner to the organization.
8. Finance Department
The Financial Performance of the Council for the Financial Year ended 30th June 2014 is as follows:
8.1
New Reporting Guidelines
In the FY 2013/14, The National Treasury in consultation with the Public Sector Accounting Standards Board
came up with new standards and guidelines for financial reporting, specifically, the International Public Sector
Accounting Standards (IPSAS) Accrual. This was in line with the powers conferred under section 194(1)(f) of
the Public Finance Management Act, 2012.
Accordingly, the Councils Financial Statements have been prepared in compliance with the International
Public Sector Accounting Standards (IPSAS) Accrual
22
The Approved Budget
8.2
The National Council for Law Reporting is a non-commercial service state corporation funded by the
Government of Kenya. In the FY 2013 /14, The Council was allocated Kshs. 260M from the GOK, grants in
kind of Kshs. 20.7M from the Judicial Performance Improvement Project (JPIP). Sale of Kenya Law Reports
and other legal publications grossed Kshs. 3.644M.
The Report of the Auditor General for FY 2014/2015
8.3
The Office of the Auditor General (AG) audited the financial statements prepared by Kenya Law for the financial
year 2013/2014. In his report, the AG stated that the financial statements present fairly in all material respects,
the financial position of the National Council for Law Reporting (Kenya Law) as at 30th June 2014 and of its
financial performance and its cash flows for the year then ended, in accordance with International Public
Sector Accounting Standards (Accrual Basis) and comply with the National Council for Law Reporting Act.
The Statement of Financial Performance
8.4
a. Revenues
Revenues increased 8.8% to 282.2 M from 259.2M. There was a 5.2% increase in the receipts
from GOK from 247M to 260M. There was also a 7.2% increase in JPIP funded activities from
12M to 20.7M specifically for trainings and payment of rent expenses for the Secretariat offices.
The sale of the Laws of Kenya volumes which are worth Ksh 101 million was delayed to await the
publication of the Annual Supplement in the Kenya Gazette by the Attorney General.
b. Expenses
Expenses increased 2.1% to 277M from 271M. This was mainly due to the 11% increase in employee
costs occasioned by the recruitment of 4 officers in the year. Depreciation increased 7.5% while
repairs and maintenance increased 8.8%.
Contracted Services increased 181% to 58.8M from 21.7M mainly attributed to our rebranding
campaign and an ICT consultancy for the conversion of Kenya Gazettes into a universally
acceptable format through the Impact sourcing model funded by The Rockefeller Foundation.
General expenses reduced by 3% from 116.2M to 81M. The ratio of personnel costs to recurrent
costs was 42% while that of personnel costs to recurrent revenue was 41%.
c. Net Surplus
Net Surplus increased 6.8% to 9.4M from 8.8M in the last financial year.
8.5
The Statement of Financial Position

Current assets increased by 86% from 92.9M to 172.9M attributable to the inventory of LOK publications
in our stock donated under the Financial and Legal Sector Technical Assistance Project (FLSTAP)
grant. Noncurrent assets increased by 74% from 46M to 80.3M attributable to the partitioning and
other civil works at the new Kenya Law offices.
23
Total liabilities increased by 32% from 19.6 to 26M. This was attributable to the outstanding amounts
payable for partitioning and other civil works.
Net assets increased 90% to 227M from 119M due to Laws of Kenya (LOK) book donations procured
under the FLSTAP programme.
The current ratio for Kenya Law is 6.8:1 meaning that Kenya Law has Kshs. 6.8 of current assets
available to pay Kshs. 1 of current liabilities. This indicates that Kenya Law has sufficient assets to
pay off its liabilities.
The debt to asset ratio for Kenya Law is 0.12:1 meaning that Kenya Law has Kshs. 0.12 of liabilities
for Kshs. 1 of its total assets or rather 12% of Kenya Law assets is acquired by debt, a low level of
indebtedness.
The total asset turnover for Kenya Law is 0.03:1 meaning that on average, Kshs 1 of Kenya Law assets
generates sales of Kshs. 0.03.
The return on assets for Kenya Law is 0.07:1 meaning that on average, Kshs 1 of Kenya Law assets
generates a surplus of Kshs. 0.07.
24
09
Kenya Law Audited Financial

Statements For The Year
Ended 30th June 2014
Statement of Council Members Responsibilities

Section 89 of the Public Finance Management Act, 2012 and The State Corporations Act Cap 446 of laws of
Kenya, require the Council to prepare financial statements in respect of National Council for Law Reporting,
which give a true and fair view of the state of affairs of the Council at the end of the financial year and the
operating results of the Council for that year.
The Council Members are also required to ensure that the Council keeps proper accounting records which disclose
with reasonable accuracy the financial position of the Council. The Council members are also responsible for
safeguarding the assets of the Council.
Further, the Council Members are responsible for the preparation and presentation of the Councils financial
statements, which give a true and fair view of the state of affairs of the Council for and as at the end of the
financial year ended on June 30, 2014.
This responsibility includes:

1. Maintaining adequate financial management arrangements and ensuring that these continue
to be effective throughout the reporting period;
2. Maintaining proper accounting records, which disclose with reasonable accuracy at any time
the financial position of the Council;
3. Designing, implementing and maintaining internal controls relevant to the preparation and
fair presentation of the financial statements, and ensuring that they are free from material
misstatements, whether due to error or fraud;
4. Safeguarding the assets of the Council;
5. Selecting and applying appropriate accounting policies; and
6. Making accounting estimates that are reasonable in the circumstances.
The Council members accept responsibility for the Councils financial statements, which have been prepared using
appropriate accounting policies supported by reasonable and prudent judgements and estimates, in conformity
with International Public Sector Accounting Standards (IPSAS), and in the manner required by the PFM Act and
the State Corporations Act.
The Council members are of the opinion that the Councils financial statements give a true and fair view of the
state of Councils transactions during the financial year ended June 30, 2014, and of the Councils financial
position as at that date. The members further confirm the completeness of the accounting records maintained
for the Council, which have been relied upon in the preparation of the Councils financial statements as well as the
adequacy of the systems of internal financial control.
Nothing has come to the attention of the Council members to indicate that the Council will not remain a going
concern for at least the next twelve months from the date of this statement.
25
Approval of the financial statements

The financial statements for National Council for Law Reporting were approved by the Council on 08/12/2014 and
signed on its behalf by:
__________________
_______________
Chairman
Member
26
______________
Secretary
Kenya Law Audited Financial Statements For The Year Ended 30th
Who we are
June 2014
REPUBLIC OF KENYA
Telephone: +254-20-342330
P.O. Box 30084-00100
Fax: +254-20-311482
NAIROBI
E-Mail: [email protected]
Website: www.kenao.go.ke
KENYA NATIONAL AUDIT OFFICE
Report of the Auditor-General on National Council For

Law Reporting for The Year Ended 30 June 2014
Report Of The Financial Statements

I have audited the accompanying financial statements of National Council for Law Reporting (NCLR), which
comprises the statement of cash flows for the year 2014, and he statement of financial performance, statement
of cash flows for the year then ended, and summary of significant accounting policies and other explanatory
information in accordance with the provisions of Article 229 of the Constitution of Kenya and Section 14 of the
Public Audit Act, 2003. I have obtained all the information and explanations, which to the best of my knowledge and
believe were necessary for the purpose of the audit.
Board of Directors responsibility for the financial statements
The Board of Directors of the National Council for Law Reporting is responsible for the preparation and fair
presentation of these financial statements in accordance with International Public Sector Accounting Standards
(Accrual Basis) and for such internal control as Board determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
The Board is also responsible for he submission of the financial statements o the Auditor-General in accordance
with the provisions of Sections 13 of the Public Audit Act, 2003 and Section 17 of the National Council for Law
Reporting Act, 2012 revised 1994.
Auditor-Generals Responsibility
My responsibility is to express an opinion on these financial statements based on the audit and repot in accordance
27
with the provisions of Section 15 of the Public Audit, 2003 and submit the audit report in compliance with Article
229(7) of the Constitution of Kenya. The audit was conducted in accordance with International Standards on Auditing.
Those standards require compliance with ethical requirements and that the audit be planned and performed to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors judgment, including he assessment of the risks of
material misstatement of he financial statements whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the Councils preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Councils internal
control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Management, as well as evaluating the overall presentation of the statement.
I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.
Opinion
In my opinion, the financial statements present fairly, in all material respects, the financial position of the National
Council for Law Reporting as at 30 June 2014, and of its financial performance and its cash flows for the year then
ended, in accordance with International Public Sector Accounting Standards (Accrual Basis) and comply with the
National Council for Law Reporting Act, 1994.
Edward R. O. Ouko, CBS

AUDITOR-GENERAL
Nairobi
12 January 2015
28
Statement of Financial Performance for The Year Ended 30 June

2014

Note

2013-2014
Kshs
2012-2013
Kshs
Revenue from non-exchange transactions

Grant from Transparency International
Grants in Kind from the Judiciary Performance Improvement Programme

(JPIP)
Grants from GOK
897,750
20,751,376
12,044,103
260,620,479
247,200,000
282,269,605
259,244,103
Sale of Kenya Law reports and other related publications
3,644,845
21,033,208
Other income
1,248,196
471,673
4,893,041
21,504,881
Total revenue
287,162,646
280,748,984
Expenses
Cost of Sales
2,606,640
8,541,513
Employee costs
118,406,771
106,351,299
Remuneration of Council Members
1,572,000
8,072,600
Depreciation and amortization expense
8,449,454
7,855,790
Repairs and maintenance
5,459,600
2,898,238
Contracted services
58,852,840
21,759,363
Grants, Donations and subsidies
10
1,130,986
54,000
General expenses
11
81,061,075
116,207,747
Finance costs
12
176,988
148,530
Total expenses
277,716,354
271,889,080
Surplus before tax
9,446,292
8,859,904
Surplus for the period
9,446,292
8,859,904
Revenue from exchange transactions
*The Financial Statements set out on pages 1 to 5 were signed on behalf of the Council by:
Ag. Editor /Chief Executive Officer

Chairman of the Council
Date: 08/12/2014

Date: 08/12/2014
*The notes set out on pages 6 to 21 form an integral part of the Financial Statements.
29
Statement of Financial Position as at 30 June 2014

Note

2012-2013
2013-2014
ASSETS
Current Assets
Cash and cash equivalents
13
1,997,556
22,232,409
Receivables from exchange transactions
14
13,005,740
25,447,998
Receivables from non-exchange transactions

Inventories
685,596
15
157,232,305
45,261,104
172,921,197
92,941,511
Non - Current Assets

Property, Plant and Equipment
16
68,292,956
38,051,010
Intangible Assets
17
8,241,423
7,978,913
Long term receivables from exchange transactions
18
3,780,255
TOTAL ASSETS
30
80,314,634
46,029,923
253,235,831
138,971,434
LIABILITIES
Current Liabilities
Trade and other payables from exchange transactions
19
18,298,183
15,248,996
Bank Overdraft
1,837,117
Provisions for Audit Fees
3,020,000
2,160,000
23,155,300
17,406,996
2,879,201
2,211,366
26,034,501
19,620,362
23,565,276
23,565,276
165,992,168
67,588,203
37,643,886
28,197,593
227,201,330
119,351,072
253,235,831
138,971,434
Non-Current liabilities
Non-current employee benefit obligation
Total Liabilities
20
NET ASSETS
Capital Fund
Other Reserves (Capital Donations in Kind)
Retained Earnings
TOTAL NET ASSETS AND LIABILITIES
31
Statement of Changes in Net Assets for the Year Ended 30 June 2014
Attributable to National Council for Law Reporting
Balance as at 30 June 2012

Surplus/(deficit) for the period
Capital
Reserve
Retained
Earnings
Kshs
Kshs
Kshs
Kshs
23,565,276
19,337,689
78,620,412
121,523,377
8,859,904
8,859,904
(11,032,209)
(11,032,209)
Depreciation- Donated Computers & LTA

Balance as at 30 Juneb 2013
Other Reserves
Total
(Capital Donations in
Kind)
23,565,276
28,197,593
67,588,203
119,351,072
Surplus / Additions for the period
9,446,292
106,724,475
116,160,768
Depreciation - Donated Computers & LTA
(8,320,510)
(8,320,510)
23,565,276
37,643,885
165,992,168
227,201,330
Balance as at 30 June 2014
I.
Statement of Cash Flows for the Year Ended 30Th June 2014
2013/2014
2012/2013
Kshs
Kshs
9,446,292
8,859,904
Depreciation expense
6,389,098
5,861,062
Amortization expense
2,060,356
1,994,728
17,895,746
16,715,694
4,373,700
(10,669,787)
84,219
3,518,488
(10,248,701)
(445,090)
Cashflows from operating activities

Net Surplus /(Deficit) from operations
Add Back : Non cash payments
Net cash generated from/(used) in operations

Cashflows from changes in working capital
Increase/decrease in Receivables from exchange transactions
Increase/decrease in Receivables from non exchange transactions
Increase/decrease in Long term receivables from exchange transactions
Increase/decrease in inventories
32
Increase/decrease in payables from exchange transactions
3,049,187
(26,811,165)
Increase/decrease in payables for Audit Fees
860,000
Increase/decrease in payables from employee benefit obligation
667,835
2,304,728
(37,926,042)
(39,949,560)
(10,531,090)
(2,322,865)
(9,973,641)
Net cash generated from investing activities
(42,272,425)
(20,504,731)
Net increase in cash and cash equivalents
(22,071,951)
(41,715,079)
Cash and cash equivalents B/F
22,232,409
63,947,488
Cash and cash equivalents C/F
160,439
22,232,409
Total Cash and cash equivalents C/F
160,439
22,232,409
Net Cash generated from changes in working capital

Cash flows from investing activities
Purchase of fixed assets
Purchase of Softwares
33
II. Statement of Comparison of Budget and Actual Amounts

Original Budget
Adjustments
Revenue
Final Budget
2013-2014
ksh
Government grants and subsidies
260,620,479
260,620,479
Income from sales of publications
24,274,200
18,774,200
5,500,000
Other Income
35,064,521
12,010,800
23,053,721
Total Income
319,959,200
30,785,000
289,174,200
Compensation of employees
119,690,000
119,690,000
Payment for Goods and services
148,385,000
30,785,000
117,600,000
154,000
154,000
Rent paid
15,788,000
15,788,000
Other payments
35,732,200
35,732,200
210,000
210,000
319,959,200
30,785,000
289,174,200
Expenses
Finance costs
Grants, Donations and subsidies paid

Total Expenditure
Surplus for the period
There was 20.3% under collection of Income from sales of publications occasioned by the
inability by our main institutional customers including the Judiciary and the State Law Office
to commit on orders due to insufficient budgetary allocations for their Library votes.
The Council commenced occupation of the new office premises in the second quarter instead
of the first quarter as initially anticipated hence the under expenditure of 19.9%.
The 68.7% increase in Grants, donations and Subsidies was attributed to increased donations
of the pocket sized constitutions to various stakeholders.
34
Actuals on Comparable basis
Performance Difference
% Variance Performance Difference
260,620,479
3,644,845
(1,855,155)
(20.29)
22,897,322
(156,399)
(0.34)
287,162,646
-2,011,554
118,406,771
1,283,229
0.54
109,645,611
7,954,389
3.50
176,988
(22,988)
(6.95)
10,555,464
5,232,536
19.86
37,800,533
(2,068,333)
(2.81)
1,130,986
(920,986)
(68.68)
277,716,353
11,457,847
9,446,292
9,446,293
2013-2014
Ksh
35
Notes to the Financial Statements

1. Statement of compliance and basis of preparation
The Public Finance Management (PFM) Act 2012 Section 192 provided the setting up of the Public Sector
Accounting Standards Board (PSASB). The Cabinet Secretary National Treasury, gazetted members of the
Board through Gazette Notice No. 1199 of 28 February, 2014. Following the Boards approval on the adoption
of the International Financial Reporting Standards ( IFRS) for state organs operating as Commercial
Business Entities and the International Public Sector Accounting Standards (IPSAS) for non-commercial
entities, National Council for Law Reporting has adopted the pronouncements made by the IPSAS Board in
the preparation of its current year financial statements.
The financial statements are presented in Kenya shillings, which is the functional and reporting currency of
the Council and all values are rounded to the nearest thousand (Ksh 000). The accounting policies have been
consistently applied to all the years presented.
The financial statements have been prepared on the basis of historical cost, unless stated otherwise. The
cash flow statement is prepared using the indirect method. The financial statements are prepared on accrual
basis.
2. Summary of significant accounting policies
a) Revenue recognition
i)
Revenue from non-exchange transactions IPSAS 23

Transfers from other government entities
Revenues from non-exchange transactions with other government entities are measured at fair value and
recognized on obtaining control of the asset (cash, goods, services and property) if the transfer is free
from conditions and it is probable that the economic benefits or service potential related to the asset will
flow to the Council and can be measured reliably.
ii)
Revenue from exchange transactions

Sale of goods
Revenue from the sale of goods is recognized when the significant 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 benefits or service potential associated with the
transaction will flow to the Council.
b) Budget information IPSAS 24

The annual budget is prepared on the accrual basis, that is, all planned costs and income are presented
in a single statement to determine the needs of NCLR. As a result of the adoption of the accrual basis
for budgeting purposes, there are no basis, timing or Council operational differences that would require
reconciliation between the actual comparable amounts and the amounts presented as a separate additional
36
financial statement in the statement of comparison of budget and actual amounts.

c) Taxes
The National Council for Law reporting is a non-commercial oriented / not for profit service State Corporation.
For this purposes it is exempted from paying Corporation tax.
d) Property, plant and equipment IPSAS 17
All property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the items. When significant parts
of property, plant and equipment are required to be replaced at intervals, NCLR recognizes such parts
as individual assets with specific useful lives and depreciates them accordingly. Likewise, when a major
inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a
replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized
in surplus or deficit as incurred. Where an asset is acquired in a non-exchange transaction for nil or nominal
consideration the asset is initially measured at its fair value.
The annual depreciation rates in use are as follows:
Motor Vehicles - 20%
Computer, Networks and other IT equipment 33 1/3%
Office Furniture and fixtures 10%
Office equipment 15%
e) Intangible assets IPSAS 31
Intangible assets acquired separately are initially recognized at cost. The cost of intangible assets acquired
in a non-exchange transaction is their fair value at the date of the exchange. Following initial recognition,
intangible assets are carried at cost less any accumulated amortization and accumulated impairment
losses. Internally generated intangible assets, excluding capitalized development costs, are not capitalized
and expenditure is reflected in surplus or deficit in the period in which the expenditure is incurred.
The useful life of the intangible assets is assessed as either finite or indefinite.
The depreciation rate as follows:
Intangible assets 20%.
f) Inventories IPSAS 12
Inventory is measured at cost upon initial recognition.
Costs incurred in bringing each product to its present location and condition is accounted for, as follows:
Raw materials: purchase cost using the weighted average cost method.
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.
37
After initial recognition, inventory is measured at the lower of cost and net realizable value. 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 distribution.
Inventories are recognized as an expense when deployed for utilization or consumption in the ordinary course
of operations at the Council.
g) Nature and purpose of reserves
The National Council for Law Reporting creates and maintains reserves in terms of specific requirements.
Reserves include:
Capital Fund which is the sum of total assets that were transferred to NCLR on its delinking from the
Judiciary in July 2006.This is treated as the start up Capital of the institution.
Retained earnings which are the sum of all accumulated surpluses and deficits as at the reporting date. The
institutional policy is to credit any subsequent surpluses to and/or to charge any subsequent losses to
this reserve as appropriate.
Other reserve (Capital Donations in kind) which is the sum of all assets accumulated to date on account of
donations in kind from development partners. The institutional policy is to credit any additional Assets
and expenses / benefits received in kind to this reserve and to charge any subsequent losses in value or
benefit including depreciation of the donated Non-current Assets to this reserve as appropriate. Other
reserves in the books is the sum of Computers and other ICT Equipment and Inventory donated by the
Financial & Legal Sector Technical Assistance Programme (FLSTAP). The treatment for these items is
shown here-below:
For Non - Assets donated:

DR Asset Account
CR Other Reserves (Capital Donations in kind)
(To recognise the donation of the Asset)
DR Other Reserves (Capital Donations in kind)

CR Asset Account
(To recognise the depreciation charge of the Asset for the year)
For Inventory donated:

38
DR Asset (Inventory / Stock in trade) Account
CR Other Reserves (Capital Donations in kind)
(To recognise the donation of the Inventory at cost)
DR Other Reserves (Capital Donations in kind)

CR Asset (Inventory / Stock in trade) Account
(To recognise the cost of sales of donated stocks)
h) Changes in accounting policies and estimates

The National Council for Law Reporting recognizes the effects of changes in accounting policy retrospectively.
The effects of changes in accounting policy are however applied prospectively if retrospective application is
impractical.
i) Employee benefits:
Retirement benefit plans
The Council provides retirement benefits for its employees. Defined contribution plans are post-employment
benefit plans under which NCLR pays fixed contributions of 20% into a fund managed by ICEA Lion Insurance
(Kenya) Limited, and will have no legal or constructive obligation to pay further contributions if the fund does
not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior
periods. The contributions to fund obligations for the payment of retirement benefits are charged against
income in the year in which they become payable.
A Gratuity is payable to the Editor on completion of a periodic contract. This is budgeted for in the year it
falls due for payment.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, cash held in M-Pesa Account, cash at bank, short-term
deposits on call and highly liquid investments with an original maturity of three months or less, which are
readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Bank
account balances include amounts held at various commercial banks at the end of the financial year. For
the purposes of these financial statements, cash and cash equivalents also include short term cash imprest
and advances to authorised public officers and/or institutions which were not surrendered or accounted for
at the end of the financial year.
j) Comparative figures
Where necessary comparative figures for the previous financial year have been amended or reconfigured to
conform to the required changes in presentation according to the IPSAS accrual method.
k) Financial Instruments: Recognition and Measurement
The Council has ensured recognition and measurement of financial assets, financial liabilities and contracts
39
to buy or sell non-financial items have been captured in line with IPSAS 29.
l) Related parties
The Council regards a related party as a person or an entity with the ability to exert control individually or
jointly, or to exercise significant influence over the Entity, or vice versa. Members of key management are
regarded as related parties and comprise the CEO, Deputy CEO and senior managers. The policy of the
Council is that all related parties should declare their interest at all times in any institutional process that
might occasion a conflict of interest if they participated in the same without declaring their interest. This will
then allow management to decide on the best way to execute the process in a manner that transparency
and accountability is seen to have been adhered to.
m) Significant judgments and sources of estimation uncertainty IPSAS 1
The preparation of NCLRs financial statements in conformity with IPSAS requires management to make
judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities, and the disclosure 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 adjustment to the
carrying amount of the asset or liability affected in future periods.
Estimates and Assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year was continued going concern anchored on; i) Continued government
funding, and ii) Continued donor funding. NCLR based its assumptions and estimates on parameters
available when the financial statements were prepared. However, existing circumstances and assumptions
about future developments may change due to market changes or circumstances arising beyond our
control. Such changes are reflected in the assumptions when they occur.
Useful lives and residual values
The useful lives and residual values of assets are assessed using the following indicators to inform potential
future use and value from disposal:

The condition of the asset based on the assessment of experts employed by the Council
The nature of the asset, its susceptibility and adaptability to changes in technology and processes
The nature of the processes in which the asset is deployed
Availability of funding to replace the asset
Changes in the market in relation to the asset
Contingent Assets and Contingent Liabilities

As a matter of policy, the National Council for Law Reporting makes provisions for contingent liabilities
when there is a reasonable estimation that an event has occurred or will occur that has a potential of
creating a measurable liability or loss to the institution. However, when an event has occurred or will occur
that has a potential of creating a measurable benefit or Asset to the institution i.e. a Contingent assets,
the institution only discloses the same in the notes to the financial statements. There were no contingent
assets or liabilities reported in the year ended June 30, 2014.
40
Provisions
Provisions are measured at the managements best estimate of the expenditure required to settle the
obligation at the reporting date, and are discounted to present value where the effect is material. The
provision for Audit fees has been subjected to this treatment.
Subsequent events
There have been no events subsequent to the financial year end with a significant impact on the financial
statements for the year ended June 30, 2014.
41
Notes To The Financial Statements

1. Transfers from Government of Kenya
2014
2013
Shs
Shs
260,620,479
247,200,000
20,751,376
12,044,103
897,750
282,269,605
259,244,103
2014
2013
Shs
Shs
Sale of KLRS and other Legal Publications
3,644,845
21,033,208
Total revenue from the sale of KLR and other legal publications
3,644,845
21,033,208
2014
2013
Shs
Shs
Other income
1,248,196*
471,673
Total other income
1,248,196*
471,673
Conditional grants and donations

Grants from GOK
Grants in Kind from JPIP
Grant from Transparency International
Total government grants, Donations and subsidies
2.Sales of Kenya Law Reports and Other related publications
3. Other Incomes
*This value is a refund of deposit payments made to Airtel Kenya in the year 2012 for roaming services.
4.Cost of Sales
2014
2013
Shs
Shs
Cost of Sales
2,606,640
8,541,513
Total Cost of Sales
2,606,640
8,541,513
2014
2013
Shs
Shs
1,597,000
834,500
42,483,486
33,817,095
5. Employee related costs Salaries, Allowances and Benefits
Airtime Allowance
Basic Salary
42
Domestic Servant Allowance
140,400
364,590
Employee reward and motivation costs
300,000
2,935,853
Entertainment Allowance
3,245,000
895,000
Extraneous Allowance
3,415,000
1,145,000
Gratuity - NCLR
1,567,416
16,565,844
House Allowance
28,140,000
21,742,857
Leave Allowance
911,335
985,000
3,490,000
2,513,929
172,400
149,800
Pension Expense
7,173,176
5,572,982
Responsibility Allowance
1,490,000
885,000
Security Allowance
1,660,000
885,000
90,000
181,640
982,806
790,980
Training Expenses
3,102,828
2,562,343
Transport Allowance
8,338,000
6,725,286
416,125
233,600
9,691,799
6,500,000
118,406,771
106,351,299
2014
2013
Shs
Shs
1,572,000
1,408,000
Non practising Allowance

NSSF Expense
Shift Allowance
Special duty Allowance
Life Insurance
Medical Insurance
Total Employee Costs
6.Remuneration of Council Members
Council Members Sitting Allowances and Chairmans Honorarium

Editor / CEO Salary
Total Council Members remuneration
6,664,600
1,572,000
8,072,600
2014
2013
Shs
Shs
Depreciation of Assets
6,389,098
5,861,062
Amortization Expense
2,060,356
1,994,728
Total depreciation and Amortization expense
8,449,454
7,855,790
7.Depreciation and Amortization expense
43
8.Repairs and maintenance expenses
Maintenance of Communication Equipment
2014
2013
Shs
Shs
866,244
751,776
Maintenance of Computers
3,032,961
1,136,980
Maintenance of Furniture
338,380
40,000
Maintenance of Plant, MC and Equipment
978,015
618,562
Motor Vehicle Repairs and maintenance
244,000
350,920
Total repairs and maintenance expenses
5,459,600
2,898,238
2014
2013
Shs
Shs
Contracted Professional services
37,331,709
12,378,359
Contracted Technical Services
15,353,129
9,381,004
6,168,002
Total contracted services expenses
58,852,840
21,759,363
10.Grants, Donations and subsidies
2014
2013
Shs
Shs
Corporate donations
1,130,986
50,000
Total Grants and Subsidies
1,130,986
50,000
2014
2013
Shs
Shs
1,965,719
2,160,100
10,400
Parking expenses
250,560
Motor Vehicle Insurance
273,021
201,491
Motor fuel & lubricants
376,421
536,920
1,372,213
3,774,375
9.Contracted services expenses
Courier and Postal services
11.General Expenses
The following are included in general expenses:
Accessories to Computers and Printers
Cleaning of Motor Vehicles
Domestic Sundry
44
Foreign Sundry
205,146
81,610
Foreign travel
1,757,101
2,051,610
Telephone Expenses
1,769,434
Domestic Travel
4,406,266
3,071,195
Domestic Accommodation
4,445,486
Foreign subsistence
5,365,109
6,214,956
Domestic Subsistence
8,009,732
5,645,701
Rent Expense
10,555,464
228,340
Casual Labour
3,753,000
373,400
Catering Services
3,837,566
4,180,030
Conferences, workshops and Seminar costs for Committees
4,538,678
7,958,051
Communication, Education and Library Supplies
1,851,701
9,646,720
Foreign Exchange Loss
50,312
Provision for Audit Fees
860,000
850,000
General Office Supplies
998,511
1,785,421
1,677,891
159,259
180,640
17,850,655
59,495,445
470,048
867,855
Temporary Committee costs
3,354,948
5,196,749
Trade Shows and Exhibitions
896,434
596,376
938,832
Legal fees, dues and arbitration costs

Membership fees, dues and subscriptions to prof. bodies
Publishing and Advertising Printing Expenses
Sanitation services
Refurbishment of office buildings

Wiba
165,550
Hire of Equipment
Total General Expenses
12.Finance Costs
6,380
81,061,075
116,207,747
2014
2013
Shs
Shs
Bank Charges
176,988
148,530
Total Finance Costs
176,988
148,530
45
13 a) Cash and Cash Equivalents
2014
2013
Shs
Shs
160,439
22,232,409
2014
2013
Shs
Shs
KCB OM Account
1,837,117
Total Overdraft
1,837,117
2014
2013
Shs
Shs
2,207,605
399,415
12,771,797
1,482,861
7,164,566
115,280
88,441
1,997,556
2,232,409
2014
2013
Shs
Shs
13,005,740
7,379,440
685,596
13,691,336
7,379,440
2014
2013
Shs
Shs
154,128,702
Grand total of Cash and Cash Equivalents for the year
13 b) Bank Overdraft
13 c) Other Cash and Cash Equivalents
KCB OM Account
KCB Donations and Grants Account
Barclays Bank Account (Revenue)
Cash in Hand (Petty Cash & M-Pesa)
Total Cash and Cash Equivalents
14.Current Assets
Receivables from Exchange Transactions

Receivables from Non exchange Transactions
15 .Inventories
Stock of Kenya Law Reports
Stock of Library Books
2,860,450
41,975,594
2,860,450
Stock of Stores supplies
243,153
425,060
157,232,305
45,261,104
Total inventories at the lower of cost and net realizable value
46
16.Property,Plant and Equipment

ITEM
Motor
vehicles
Furniture &
fixtures
Office Equipment
Computer
Equipment
Totals
3,669,000
2,055,523
3,125,000
17,823,534
26,673,057
769,445
2,554,249
2,925,712
31,801,605
38,051,010
Additions by the Council
30,510,460
6,794,016
7,647,077
44,951,553
Donations by FLSTAP
Disposals
769,445
33,064,709
9,719,728
39,448,682
83,002,563
Balance b/f 1/7/2011
(2,466,742)
(745,736)
(1,181,201)
(11,426,259)
(15,819,938)
Balance C/f 1/7/2013
(2,899,555)
(1,257,001)
(2,032,871)
(47,078,975)
(53,268,403)
(153,889)
(1,765,483)
(962,808)
(3,506,919)
(6,389,098)
(8,320,510)
(8,320,510)
(3,053,444)
(3,022,484)
(2,995,679)
(58,906,403)
(67,978,011)
Balance c/f 30/6/2014
615,556
31,299,226
8,756,920
27,621,254
68,292,956
NBV 30/6/2013
769,445
2,554,249
2,925,712
31,801,605
38,051,010
Historical Cost 1/7/2011

NBV 30/6/2013
Totals
Depreciation
Charge for the year to SFP

Charge for the year to donor fund
account to SCE
Totals
17. Intangible Assets-Software

Cost
Shs
At 30 June 2013
7,978,914
Additions
2,322,865
At 30 June 2014
10,301,798
Amortization and impairment

2013/2014
Amortization
(2,060,356)
Impairment loss
At 30 June 2014
(8,241,423)
Net book values

At 30 June 2013
10,301,779
At 30 June2014
8,241,423
47
18. Long Term Receivables
2014
2013
Shs
Shs
Long term Receivables from Exchange Transactions
3,780,255
Total Finance Costs
3,780,255
2014
2013
Shs
Shs
9,190,250
10,011,418
94,350
94,350
279,000
54,000
HELB payable
78,102
55,814
Insurance Payable
60,006
16,000
135,194
Mortgage payable
35,350
35,350
NHIF Payable
77,180
66,540
NSSF payable
221,000
192,200
Payable to RHC
203,794
203,794
2,439,910
652,730
482,054
431,860
5,001,993
3,434,940
18,298,183
15,248,996
2014
2013
Shs
Shs
2,879,201
2,211,366
19.Trade and other payables from exchange transactions
Pay as You Earn

VAT
Donations payable
Loan payable
Sheria sacco payable

Welfare payable
Other Payables
Total trade payables
20. Non-Current Liability Obligation
Pension Payable
48
21.
Capital Commitments
Capital commitments at the end of the year for which no provision has been made in these financial
statements. This was in relation to renovation works in our new office premises for works in progress. The
payment of which is to crystallize in the financial year 2014/2015.
2014 2013
Kshs Kshs
Authorised and contracted for 34,719,035
Authorised but not contracted for
_________ _________
22.
34,719,035
========
=========
Operating lease commitments

Operating lease commitments represent rentals payable by the Council for its leased office premises.
Operating lease payments made during the year amounted to Kshs. 10,555,464.00 (Ten Million five
hundred and fifty five thousand four hundred and sixty four shillings only).
At the end of the reporting period, the company had outstanding commitments of Kshs.69, 253, 927.60
under non-cancellable operating leases in relation to the lease of office premises.

23.
Financial Risk Management

Risk is an integral part of operations in any institution. NCLR is exposed to various risks, including credit
risk and liquidity risk. The risk management strategy is based on a clear understanding of various risks,
disciplined risk assessment and measurement procedures and continuous monitoring.
NCLRs overall risk management programme focuses on unpredictability of changes in the business
environment and seeks to minimise the potential adverse effect of such risks on its performance by setting
acceptable levels of risk. NCLR does not hedge any risks and has in place policies to ensure that credit is
extended to customers with an established credit history.
The financial risk management objectives and policies are as outlined below:
(a) Credit risk

Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender. NCLRs
credit risk is primarily attributable to its cash and cash equivalents and trade receivables. The amounts
presented in the statement of financial position are net of allowances for doubtful receivables, estimated
by the councils management based on prior experience and their assessment of the current economic
environment.
49
Bank balances are fully performing. The trade receivables under the fully performing category are paying
their debts as they continue trading .The default rate is low. The debt that is overdue is not impaired and
continues to be paid.
The amount that best represents the companys maximum exposure to credit risk is made up as follows:

At 30 June2014
Bank balances
Receivables from exchange
transactions
Receivables from non exchange
transactions

At 30 June 2013
Bank balances
Receivables from exchange
transactions
Receivables from non exchange
transactions

Total Fully
Amount Performing
Past due
Impaired
Kshs Kshs Kshs Kshs
45,159
45,159 - 16,785,995
16,785,995 - 685,596
685,596 - ========= ========= ======== ========
22,143,968
22,143,968 - 17,379,440
17,379,440 - 769,815
769,815 - ========= ========= ======== ========
b) Liquidity risk
Prudent liquidity risk management includes maintaining sufficient cash to meet company obligations.
Ultimate responsibility for liquidity risk management rests with the council board members, which has
built an appropriate liquidity risk management framework for the management of the councils short,
medium and long-term funding and liquidity management requirements. The council manages liquidity
risk by maintaining banking facilities through continuous monitoring of forecast and actual cash flows.
The table below analyses the councils financial liabilities that will be settled on a net basis into relevant
maturity groupings based on the remaining period at the balance sheet date to the contractual maturity
date. The amounts disclosed in the table below are the contractual undiscounted cash flows. Balances
due within 12 months equal their carrying balances, as the impact of discounting is not significant.
Less than 1 month
Kshs
At 30 June2014
Trade payables
5,001,996
Taxation 9,284,600
Others 9,050,791
23,337,383

=========
50
Betwee 1 3 months
Kshs
Over 3 months
Kshs
========
=========
At 30 June2013
Trade payables
3,434,941
-
Taxation
10,105,768 - Others 6,079,653
19,620,362

========= ======== =========
24. Capital risk management
The councils objectives when managing capital are to safeguard the companys ability to continue as a
going concern in order to maintain an optimal capital structure to reduce the cost of capital.
The capital structure of the council consists of equity attributable to equity holders, comprising capital fund
, reserves and retained earnings. The council would ordinarily monitor its capital risk using the gearing ratio.
Gearing ratio is calculated as net borrowings over the total capital. The company had no borrowings at 30 June
2014 and 30 June 2013.

2014 2013

Kshs Kshs
The constitution of capital managed by the council is as follows:
Capital fund
23,565,276 23,565,276
Other reserves 165,992,168 67,588,203
Retained earnings
37,633,886 28,197,593

__________ _________
Net Assets
227,191,330 119,351,072

========= =========
25. Related Parties

Key management Salaries and Allowances
2014 2013
Kshs Kshs
34,090,433.40

29,242,232
There were no other related party transactions in the reporting year.

26. Segment Reporting
The Council does not have any reporting segments as all operations of the Council are managed from its
secretariat at the Head office. The core business of the National Council for Law Reporting continues to be as
per the principal activities outlined in (I a) above. There were no special segments of business that warranted
separate reporting in the financial year under consideration.
27. Ultimate holding entity
The immediate parent institution of the National Council for Law Reportings is the Judiciary of Kenya.
51
28. Currency
The financial statements are presented using the functional currency Kshs.
29.Events after the reporting period

There are no material non-adjusting events after the reporting date.
Progress on Follow Up of Auditor Recommendations

There were no issues raised by the external auditor from the previous financial year that were still outstanding.
Ag. Editor /Chief Executive Officer

Date.........................................
52
Chairman of the Council

Date.................................
10
Challenges and Risks in The

Financial Year 2013 - 2014
The challenges and risks faced by Kenya Law in the year FY 2013 - 2014
included:
1. Lack of adequate human resource to effectively carry out various departmental functions compounded
by a temporary freeze on new recruitments and remunerations reviews that were in line with Government
austerity measures.
2. Lack of adequate infrastructural resources
3. Inadequate training for its members of staff based on the staff training needs assessment. Additional
training is required to ensure that the organization keeps up with the changes in the industry
4. Limited financial allocation resulting in activities that were planned for not being carried out due to
financial constraints
5. Delays in procurement
6. Sourcing and collection of county legislation: Counties are yet to establish a County Gazette as required
by the County Governments Act which causes delay in publishing the county legislation.
7. Sourcing for funding for projects such as the translation of all the Laws into Kiswahili.
8. Following up with the layout issues for the outsourced publications. External suppliers often times face
challenges in terms of timelines for products outsourced to them especially in layout services.
9. Power challenges - Lack of consistent electricity is the single greatest challenge in the computing
infrastructure.There is need for a clean and reliable power solution complete with UPSs in case of power
failure.
10. Lack of proper offsite backup - There is need for Kenya Law to have an offsite backup solution especially
for its critical data. This will ensure that service provision is not interrupted in case of any downtime.
11. Performance management - Lack of a well developed and insitutionalised performance management
system impedes on objective performance measurement standard as well as creating challenges of
individual member of staff training requirements.
53
11
Organizational Outlook For The

A. Law Reporting Departmental Projections for The FY 2014 - 2015

The following are the departmental projections for the next financial year 2014/2015:
1. Continuously update the Law Reporting and layout manuals
2. Publish the following Products:
Kenya Law Reports;
i. KLR 2007 Volume 1
ii. KLR 2011 Volume 2
iii. KLR 2012 (Volumes 1,2 and3)
iv. KLR 2013 (Volumes 1,2 and 3)
v. KLR Election Petitions Volumes 5 and 6
3. Clear law reporting backlog from 1999 and 2007 Volume 1.
4. Hold regular meetings within the department, set up and enforce mechanisms for accountability.
5. Knowledge exchange training to learn on the best up to date software to use for layout
the departments different publications. This will enhance the in-house styles and create
publications comparable to those of other respected law reporting establishments.
6. The department will implement quality check procedures learnt when benchmarking with
other establishments to ensure consistency (content and physical outlook) in all publications.
7. The department will also seek to learn and train on the different printing materials that can be
used (both for cover and inner pages) for durability and aesthetic appeal.
B. ICT Departmental Projections for The FY 2014 - 2015

In the next financial year 2014-2015, the department aims at:
Formulation and dissemination of the new I.C.T Policy
Acquisition of new hardware and software as we carry out a phased replacement of computers.
Review and implementation of the internal universal accessibility guidelines.
Ensuring the reliability and efficiency of the councils I.C.T infrastructure and equipment by
carrying out regular maintenance exercises.
5. Establish an Information and Communications Technology (ICT) system for the collection and
management of the councils financial information.
6. Establish and implement an Integrated Human Resource Information System.
1.
2.
3.
4.
C. Research & Developments Departmental Projections for The Fy 2014

- 2015
In the Year 2014-2015, the department aims at:
1. Monitoring Law Reform issues emerging from the superior courts of record. This will contribute
to legal and administrative reforms by tracking and reporting to law reform institutions judicial
opinions containing pertinent pronouncements to legal and administrative reforms
54
2. Knowledge Sharing and Training of Judicial Officers, Advocates, Legal Researchers and other
Law Reporting institutions to promote knowledge, information and education in emerging
issues in law among judicial officers, the legal community and the public at large
3. Interdisciplinary research to develop Kenyan jurisprudence through the publication of a journal
on interdisciplinary research on pertinent issues of Kenyan law and the legal system
4. Enhance the publics access to legal information through the organizations internal and
external stakeholders
5. Monitoring local and international jurisprudence by keeping track of frontier and emerging
jurisprudence in Kenya, regional and international courts
D. Laws of Kenya (LOK) Departmental Projections for The FY 2014 - 2015

In the FY 2014 - 2015, the department aims to undertake the following:
1. Publication of service issue 2 of Laws of Kenya - The online edition of the Laws of Kenya are
updated on a daily basis. Service issues refer to the editorial process of incorporating enacted
laws, amendments and repeals to the twenty-two volumes that form the print edition of the
Laws of Kenya. Currently the print edition forming Service Issue 1 was updated until 31st
August, 2012, while the CD-ROM was updated until 31st December, 2012. The subsequent
Service Issue 2 will incorporate enacted laws, amendments and removal of repealed statutes
between 31st August, 2012 and 31st August, 2013.
2. Publication of Specialized Volumes:
a. Traffic Act (Cap. 403)
The Department plans to publish a popular version of the Traffic Act for members of the
public. Traffic laws are an essential part of the public life with great implications on the
economy as well as public road safety.
b. Family and Gender Law Revised Edition
The enactment of the Marriage Act No. 4 of 2014 and Matrimonial Property Act, No.49
of 2013 have brought in a new regime in family law, which renders it necessary to revise
the 2010 specialized edition of Family and Gender Law to incorporate these new family
laws.
c. Devolution Laws Grey Book
The transition to the devolved system of government has created demand for legislation
enacted to give effect and facilitate the first phase of this transition process. The
department intends to publish a Devolution Laws Grey Book containing these laws
on devolution for the benefit of the county governments, the transition authority, state
agencies involved in the devolution sector and the courts for matters arising out of the
devolved government operations.
3. Translation of Laws:
The department intends to undertake the translation of some Laws of Kenya into
Kiswahili, Kenyas national language, in line with Constitutional provisions on the use of
the these language.
55
4. Strategic Partnerships with Stakeholders:

The department will develop of strategic partnerships with stakeholders for the collection
of treaties, EAC legislation and county legislation for the revamping of the Treaties
Database, EAC legislation database and county legislation database, respectively.
5. Training on XML Mark-up:
The department will seek to enhance its technical skills by organizing for training on XML
mark-up. The training will lead to better understanding of XML and improve productivity.
E. SQAPE Projections for The FY 2014 - 2015

In the FY 2014 - 2015, the department aims to achieve the following:
1. Strategic alliances and partnerships to enhance provision of public legal information. This will
be done by establishing agreement with strategic organizations on universal access to the
Councils products and services
2. Enhance good corporate governance practices by institutionalizing good corporate governance
practices and developing and adopting a Council charter.
3. Implementation of Organizational Performance Management and undertaking of quarterly
and annual reporting on organizational performance
4. Develop and enhance the service delivery framework by formulating and disseminating
and continuously monitoring the Councils Service Delivery Charter, and developing and
implementing SLAs within the organization and with other institutions
5. Institutionalize Quality Management Systems (QMS) by developing and disseminatinga Council
Quality Policy and document procedures manual and acquire QMS Certification.
F. Human Resources and Administration Projections for The FY 2014 2015

In the coming year the Human Resource and Administration department will ensure effective and efficient
utilization of its team members in achieving the following projections:
1. Comprehensive trainings for staff on: soft skills, personal development, work life balance,
technical skills and team building
2. Approved and implemented HR Manual and schemes of service.
3. More awareness on health and work life balance by staff.
4. Conducting a Training Needs Analysis.
5. Purchase of furniture and office tools.
6. Enhanced staff participation in workplace activities.
7. Enhanced funding by donor partners.
8. Integration of all human resource systems.
9. Cascade of performance management systems to all cadres staff.
10. Improved performance for all staff and departments.
56
11. Effective management of employee relations
G. Marketing and Communication Projections for The FY 2014 - 2015

The activity projections for the department for the financial year 2014/2015 include:
1. Increased Annual Sales Revenue through the identification of new sales leads and
implementation of the sales plan.
2. Aggressive marketing campaigns covering all counties around the country for enhanced brand
awareness.
3. Conducting a customer satisfaction Survey to determine whether our publications are in sync
with the markets expectation as well as the loyalty of our customers.
57
12
Selected Conferences and

Trainings Undertaken in The
1. LSK Annual Conference 14th-18th August 2013 (Leisure Lodge Resort -Mombasa)
2. LSK Legal Awareness Week 23rd -27th September 2013 ( Milimani Law Courts-Nairobi )
3. ASK Show Sept 30th -6th October 2013 (Jamuhuri Park -Nairobi)
4. The Second all Kenyan Moot court competition at Kenyatta University where Kenya Law was a sponsor,
14th February 2014
5. Kenya Law Mobile App unveil at Strathmore, Feb 2014
6. LSK/Kenya Law CLE at the Laico Regency Hotel, Nairobi Friday, March 28 2014
7. International Conference on interpretation and shaping of transformative constitutions on 9-11th June
2014 at the Sarova Panafric Hotel
8. Legislative Drafting Training facilitated by Training and Consulting Associates (TCA) in partnership with
Kenya Law was held at Jumuia Place, Nairobi, between 28th October, 2013 and 1st November, 2013.
9. Legislative Drafting Training facilitated by Training and Consulting Associates (TCA) in partnership with
Kenya Law held at Jumuia Place, Nairobi, between 7th April, 2014 and 11th April, 2014.
10. The 6th Idlelo Conference on FOSS and Digital Commons was held at Strathmore University, Nairobi
Kenya between 24th and 26th March 2014. African Conference on Free and Open Source Software
(FOSS) and The Digital Commons (#Idlelo6)
11. Connected Kenya 2014 was held in Mombasa on the 14 April 17, 2014.
12. Microsoft Licensing Roundtable held on July 24, 2014.
58
Kenya Law Web developer Victor Cheruiyot (In stripes) gives a demo of the new Kenya Law App at the Strathmore Annual Law Conference held on July 4th
2014 at Strathmore University. Looking on are; The Chief Justice Dr. Willy Mutunga (right ) Kenya Law Ag. CEO Mr. Longet Terer(Extreme left) Strathmore
Law School Dean Dr. Louis Franceski and Former Attorney General of UK , Rt. Hon. Baroness Patricia Scotland(Centre)
59
13
Corporate Social Responsibility
Being aware of our obligation in the advancement of society, we care for the wellbeing of one another and of
the environment and we will align our processes, services and products with the attainment of positive social
outcomes.
Corporate responsibility is an integral part of how our business operates. It reflects the inescapable reality that if
the values of an organizationfail to resonate with the values of society, it is endangering long-term prosperity. Kenya
Law is committed to identifying and lives with the values which are important to our colleagues and customers.
The CSR projects for the financial year 2013/2014 include:

a. Participation in the Inua Dada Campaign Kenya Law participated in the campaign through fundraising,
purchase of sanitary towels, partnering with a womens group - LG Divas and presentation of these funds
and items at the Red Cross offices in South C. Nairobi on October 15, 2013
Kenya
HR Department participated through fundraising, purchase of sanitary towels, partnering with a womens group - LG Divas and presentation of these at
the Red Cross offices in South C. Nairobi. LG Divas Chair person Ms. Nancy Mbae graced the occasion.
60
Law also supported the Inua Dada Campaign through fundraising and visiting Marigat Baringo. The team
raised over Ksh. 100,000 and purchased 107 cartons of sanitary towels as well as 1500 pieces of innerwear.
They also donated clothes and shoes for the children. These were donated on October 30, 2013.
Clockwise from top: Excited pupils from Kampi ya Samaki and Kokwa Island Primary Schools display their sanitary towels, Lisper Njeru of the Law Reporting
Department helps a Kampi ya Samaki Primary School student put on shoes donated for the event, Emma Kinya of Law Reporting Department gives a
Kampi ya Samaki pupil sanitary towels and inner wear. Looking on - Beatrice Manyal of Law Reporting and Margret of Path to Womanhood Organization,
Pascal Othieno, Head of Department - Finance, issues the Kenya Constitutions to the Head Teacher, Kampi ya samaki Primary School. Looking on - Andrew
Halonyere, Innocent Ayatola and Derrick Nzioka of Law Reporting Department.
61
b. Members of staff drawn from various

departments participated the annual
Standard Chartered Marathon, 2013
edition. This initiative aimed at helping
over 1000 children with eyesight
problem access medical care. The
marathon was held on October 26,
2013.
Kenya Laws Law former Editor Michael Murungi

(second left ) and other staff members at the
Organisations Stand during the Marathon
62
Kenya Laws Law reporter Mr. Nelson Tunoi assists a member of the public during the legal aid clinic. Carolyne Wairimu of the Marketing and Communications
Department assists members of the public during the legal aid clinic.Kenya Laws Andrew Halonyere(left) offers a Kenya Law Monthly booklet to an
attendee of the legal aid clinic in Huruma.
c. Kenya Law in conjunction with the Kenya Law Students Society (KLSS) organized a legal aid clinic at
the Huruma Chiefs Camp, Nairobi on November 19, 2013. Members of public were informed about the
mandate of the organization and the various products. Kenya Law staff and University of Nairobi students
also provided legal advice to the attendees.
63
14
NCLR staff 2013 - 20 14
Starting from left

Stephen Ouma, Thomas Muchoki, John Paul Mutugi, Patrick Wahome, Jackline Arodi, Geoffrey Andare, Esther Adero, Jacinta Moraa, Josephat Mose, Moses Wan
Kiptoo, Kenneth Samiji, Humprhey Khamala, Rashid Kiplimo, Victor Ceruyiot, Musa Okumu, Eva Murage, Ag. CEO Mr. Longet Terer, Irene Wakio, Vivian Etyang, Phoeb
Julie Mbijiwe, Rose Nafula, Mary Shegu, Lisper Njeru, Brenda Okach, Pauline Wangui, Innocent Ayatollah, Cicilian Mburunga, Kipkemoi Sang, Beryl Ikamari, Josephin
Achieng, James Onguso, Winnie Mbori, Cornelius Lupao, Martin Mbui, and Linda Awuor.
64
njala, Martin Andago, Ken Oduor, Christian Ateka, Ruth Ndiko, Nelson Tunoi, Erick Obiero, Pascal Othieno, Janette Watila, Andrew Halonyere, Mutindi Musuva, Collins
be Ayaya, Naomi Mutunga, Lydia Midecha, Judy Nyamu, Dudley Ochiel, Jenipher Ogada, Eunice Mwangi, Phoebe Jumah, Laila Mbevi, Teddy Musiga, Yyvonne Kirina,
ne Mutie, Wamboi Kamau, Mary Wauguru, Njeri Githanga, Dorcas Kasia, Musembi Kasavu Janeffer Wachira, Robert Basweti, Ivy Njoki Kiarie, Emily Nakhungu, Pauline
65
ACK Garden Annex, 5th Floor, 1st Ngong Avenue,

Ngong Road, Upper Hill
P.O Box 10443 - 00100, Nairobi - Kenya
Tel: +254 (020) 2712767, 2011614 ,2719231
Mobile: +254 718 799 464, 736 863 309
www.kenyalaw.org
mykenyalaw
@mykenyalaw
Mykenyalaw
National Council for Law Reporting (Kenya Law) - A service state corporation in the Judiciary

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National Council for Law Reporting

Annual Report 2013-2014

National Council for Law Reporting Annual Report 2013 - 2014

National Council for Law Reporting Annual Report 2013 - 2014

NATIONAL COUNCIL FOR LAW REPORTING

National Council for Law Reporting Annual Report 2013 - 2014

National Council for Law Reporting Annual Report 2013 - 2014

Flagship brand name 1

National Council for Law Reporting Annual Report 2013 - 2014

Research and Development 16

National Council for Law Reporting Annual Report 2013 - 2014

10. Challenges and Risks in the Financial Year 2013 - 2014

11. Organizational Outlook for the Financial Year 2014 - 2015

13. Corporate Social Responsibility 60

National Council for Law Reporting Annual Report 2013 - 2014

The National Council for Law Reporting (Kenya Law)

Semi-autonomous State Agency (SAGA), State Corporation

The Judiciary of Kenya

Ranking and Classification: Service State Corporation, PC3C

Council of Directors with a Secretariat headed by the Editor/Chief Executive Officer

Flagship brand name

Address of Principal Office and Contacts:

Mandate and Functions

National Council for Law Reporting Act, Section 3

Legal Notice No. 29 of 2009

National Council for Law Reporting Annual Report 2013 - 2014

National Council for Law Reporting Annual Report 2013 - 2014

his is the third year of implementation of the Judiciary Transformation Programme

Dr. Willy Mutunga

National Council for Law Reporting Annual Report 2013 - 2014

Letter From The Chief

National Council for Law Reporting Annual Report 2013 - 2014

Hon. Dr. Willy M. Mutunga

Hon. Prof. Githu Muigai

Hon. Lady Justice Roselyne Nambuye

Hon. Lady Justice Lydia Achode

National Council for Law Reporting Annual Report 2013 - 2014

Mrs. Florence Mwangangi

Mr. Evans Monari

Ms. Christine Agimba

LLM - University of Warwick, England

Prof. Annie Patricia G. Kameri - Mbote

Dean, School of Law, University of Nairobi

National Council for Law Reporting Annual Report 2013 - 2014

Mr. Paul Sang

10. Mr. Longet Terer

National Council for Law Reporting Annual Report 2013 - 2014

NCLR Management Team

Ms. Linda Awuor Ochieng Ms. Emily Nakhungu

Ms. Wambui Kamau

Mr. Longet Terer

Ms. Janette watila

Team Leader - Research and

Team Leader - Laws of Kenya

Team Leader - Human Resources

Team Leader - Marketing and

National Council for Law Reporting Annual Report 2013 - 2014

Ms. Edna Kuria Muthaura

Mr. Pascal Othieno

Mr. Martin Andago