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Court of AppealDismissedCivil Appeal No. 245 of 2005· [2013] KECA 11 (KLR)

Joram Achuku Oyooo v Kenya Fisheries & Research Institute Board of Trustees, Kenya Marine Fisheries Research Institute [2013] KECA 11 (KLR)

Court of Appeal of Kenya
24 May 2013
4,474 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal ruled that an employee's pension is governed by what his employment contract says, not general civil service pension rules.

What this practically means

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Executive summary

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This was a first appeal from the judgment of Tanui J of the High Court at Kisumu of 6th April 2005, which dismissed the appellant's suit claiming that his pension should have been calculated under the Pensions Act, Cap 189 and DPM Circular No. 5 of 11th November 1992 rather than the Kenya Marine and Fisheries Research Institute Staff Pension Scheme. The appellant, originally employed by the defunct East African Community in 1975 and absorbed into Kenyan service in 1977, accepted an offer of appointment from the first respondent in 1980 whose terms provided for retirement benefits in accordance with regulations stipulated by the Institute's Board of Management. Applying the principles in Selle v Associated Motor Boat Company, the Court re-evaluated the evidence and rejected all seven grounds of appeal. It held that the appellant's pension was properly governed by the Institute's scheme; that the DPM Circular applied only to mainstream civil servants and had become inoperative by the time of the appellant's application; that Mr. Nyandoro's pension calculations did not bind the respondents, benefits being the province of the Insurance Company of East Africa; that pension could not be backdated to a period when the respondent did not exist; that the trial judge's alleged bias was baseless; and that no estoppel arose because none was specially pleaded and the respondents never intentionally induced reliance on the Circular. The Court of Appeal affirmed the decision of the High Court and dismissed the appeal with costs to the respondents.

Key legal issues

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01

Whether pension entitlement was governed by the Pensions Act and DPM Circular or the Institute's staff pension scheme

Holding

The appellant's pension was governed by the Institute's Staff Retirement Benefits Scheme, as his letter of offer of 10th October 1980 provided that benefits would be as stipulated by the Board of Management, not under the Pensions Act

Reasoning

The appellant accepted the Institute's offer in writing, agreeing to abide by its regulations and conditions of service. Unlike the 1977 Ministry offer, the 1980 offer made no reference to the Pensions Act. The DPM Circular did not apply to parastatal employees, the appellant was advised he did not qualify, and the circular was inoperative by the time of his application.

p. 4
02

Whether the respondents were estopped from denying retirement under the DPM Circular

Holding

No estoppel arose: the claim was not specially pleaded, the respondents expressly advised the appellant the circular did not apply, and the letters relied on were written by mistake, some after retirement, and could not have induced his decision

Reasoning

Section 120 of the Evidence Act requires intentional causation of belief. The acceptance letter of 22nd July 1998 expressly stated benefits would be per the KMFRI pension scheme. Post-retirement letters could not have induced the pre-retirement decision, and the statements therein were made in error rather than intentionally.

p. 8
03

Whether the respondents were bound by Mr. Nyandoro's pension calculation

Holding

They were not; benefits were to be calculated by the Insurance Company of East Africa as administrators and underwriters of the scheme

Reasoning

The evidence of DW2 and DW4 established that the Insurance Company of East Africa, not Mr. Nyandoro, was responsible for calculating benefits. The appellant himself did not accept Nyandoro's figure, claiming a higher sum.

p. 6
04

Whether pension was payable for the period 1975 to 1980

Holding

No; the appellant's employment with the first respondent commenced on 1st July 1980, and cannot be backdated to a period when the first respondent did not exist in law

Reasoning

The Institute was only established on 10th October 1980, and the letter of offer stated employment was with effect from 1st July 1980. The claim to backdate employment to 1975 contradicted the express terms of appointment and sought to bind an entity that did not exist then.

p. 7
05

Alleged bias of the trial judge

Holding

The charge of bias failed; the trial judge carefully weighed all the evidence, and the longer treatment of the defence case was explained by four defence witnesses and extensive documentary evidence

Reasoning

Upon re-evaluation, the Court found no basis for bias. The trial judge evaluated each witness's evidence, and the Court was bound to give weight to the fact that the trial judge saw and heard the witnesses.

p. 7

Legal principles established

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  • A first appellate court must reconsider and re-evaluate the evidence and draw its own conclusions, while making due allowance for the fact that it neither saw nor heard the witnesses
  • Estoppel is a rule of evidence, not a cause of action, and must be specially pleaded with full detail of the facts relied upon

Court orders

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  1. 1.The appeal is dismissed with costs to the respondents

Authorities

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Legislation

  • Pensions ActCap 189 Laws of Kenya
  • Evidence ActSection 120
  • Directorate of Personnel Management Circular No. 511th November 1992

Cases cited (2)

  • Selle vs. Associated Motor Boat Company Ltd
    (1968) EA 123
  • Coppinger v. Norton
    (1920) 2 Ir. R. 241
On appeal from
High Court of Kenya at Kisumu
HCCC No. 252 of 2002
Jurisdiction invoked
First appeal to the Court of Appeal under the applicable appellate statutory framework (appeal as of right from the High Court in a civil suit)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Joram Achuku Oyooo v Kenya Fisheries & Research Institute Board of Trustees, Kenya Marine Fisheries Research Institute [2013] KECA 11 (KLR)", Case Analysis (2013). Civil Appeal No. 245 of 2005. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2013/11/eng@2013-05-24

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.