Ieleweke kuwa the question before the court was NOT about the legality of MRC, rather, kama ni haki kwa serikali kudeclare MRC kuwa kikundi haramu ukizingatia katiba mpya. The judges found that the government was in the wrong. the government could not prove that MRC met all the conditionalities laid to enable the government declare them illegal.
I believe that is why the judge told MRC to register as a political party. He knows that as is stands now - MRC is an unregistered entity - other than the fact that, the government, under the old MOI era mentality, under-estimated the threshold required for the case and the independence of the judiciary, assumed they would easily win ( even MRC themselves were surprised ) the case.
So now the only option for MRC is to be constituted as a political party since their agenda is political in nature. Problem with that is the political parties act. Which mandates that a political party must have offices and members all over the country. MRC solely in PWANI will not meet this threshold and thus cannot be registered as a political party! You can guess what happens after that.