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Court of AppealPartially AllowedCivil Appeal No. 352 of 2017· [2019] KECA 65 (KLR)

Kenya Broadcasting Corporation v Geoffrey Wakio

Court of Appeal
20 December 2019
3,558 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal limited a wrongfully dismissed employee's compensation to 12 months' salary, ruling that extra general damages cannot be added on top of statutory awards.

What this practically means

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Executive summary

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The respondent, employed by the appellant from 1985, was arrested in 2005 over alleged fraud, interdicted on half pay in December 2005, and dismissed for loss of confidence in June 2006 while the criminal case was pending. He was acquitted in November 2011 and successfully sued for unfair termination. The Employment and Labour Relations Court (Nduma, J.) found the dismissal unfair, declined reinstatement as impractical, awarded 12 months' salary under section 49(1)(c) of the Employment Act, Ksh.3 million general damages in lieu of reinstatement, and salary arrears computed through the interdiction period to November 2011. A further judgment on quantum followed on 4th December 2014 after the judgment of 9th May 2014. The Court of Appeal, sitting as a first appellate court, held that the award of maximum compensation was judicially exercised and left it undisturbed, but set aside the Ksh.3 million general damages, holding that general damages are not awardable for wrongful termination where the statutory maximum under section 49(1)(c) has been granted, remedies being compensatory not punitive. It limited salary arrears to the interdiction period from 6th December 2005 to 21st June 2006, since the employment relationship ended on termination. It further declared the judgment of 4th December 2014 null and void on functus officio grounds, applying Telkom Kenya v John Ochanda and the Raila Odinga approval of the Pretorius exposition. The appeal was allowed in part and each party ordered to bear its own costs.

Key legal issues

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01

Interference with the award of 12 months' salary as maximum compensation

Holding

The discretion to award the maximum 12 months' compensation was judicially exercised given the long criminal trial, disregard of fair labour practices and impracticality of reinstatement; the Court declined to interfere.

Reasoning

The Court reaffirmed that the maximum award under section 49(1)(c) must rest on sound principles. The trial Judge gave reasons: the immense loss from the lengthy criminal trial in which the respondent was acquitted, the appellant's disregard of fair labour practices, and the impracticality of reinstatement after the relationship had broken down. Practicability is a statutory factor under section 49(4), and the Court found the discretion properly exercised.

p. 4
02

Award of Ksh.3 million general damages in lieu of reinstatement

Holding

The award was set aside; general damages are not available for unfair termination where maximum statutory compensation under section 49(1)(c) has been granted.

Reasoning

Relying on Central Bank of Kenya v Julius Nkonge and CMC Aviation v Mohammed Noor, the Court held that damages for wrongful termination are limited to salary in lieu of notice, and that section 49 remedies compensate rather than punish the employer. Having received the maximum 12 months' compensation, the respondent had no legal entitlement to a further general damages award; the trial Judge therefore acted on wrong principles.

p. 4
03

Salary arrears for the interdiction period

Holding

Salary arrears (half pay withheld) were payable only from 6th December 2005 to 21st June 2006, when the employment relationship ended on termination.

Reasoning

The employment relationship and status ended upon termination on 21st June 2006; thereafter no employer/employee relationship existed and no salary could accrue. The trial court erred in computing arrears up to November 2011. The employment was also not terminated on 12th June 2006 as the appellant had argued, but on 21st June 2006 as found by the trial Judge.

p. 5
04

Functus officio and the second judgment of 4th December 2014

Holding

The judgment of 4th December 2014 was null and void because the trial court had already dispensed with the merits and made final orders in its judgment of 9th May 2014.

Reasoning

Applying the functus officio doctrine as defined in Telkom Kenya v John Ochanda and the Pretorius excerpt approved by the Supreme Court in Raila Odinga, the Court held that a court with adjudicative powers may exercise them only once in relation to the same matter. Order 21 Rule 3(3) of the Civil Procedure Rules permits only correction of clerical or arithmetic mistakes under section 99 of the Civil Procedure Act, not merit-based re-engagement with the case.

p. 5

Legal principles established

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  • An appellate court will not disturb an award of damages unless it is so inordinately high or low as to represent an entirely erroneous estimate, or the judge proceeded on wrong principles or misapprehended the evidence.
  • General damages are not awardable for wrongful or unfair termination; the damages payable are limited to the statutory remedies under section 49 of the Employment Act, including salary in lieu of notice.
  • An award of the maximum 12 months' pay under section 49(1)(c) must be justified on sound judicial principles and must not be capricious or whimsical.
  • Once a court has rendered final judgment and perfected its orders it becomes functus officio; a subsequent judgment disposing of the same merits is null and void, save for correction of clerical or arithmetic errors under section 99 of the Civil Procedure Act.
  • Remedies under section 49 of the Employment Act are discretionary, not mandatory, and are compensatory rather than punitive.

Court orders

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  1. 1.The award of general damages of Ksh.3 million set aside
  2. 2.The appellant to pay the respondent 12 months' salary as compensation for unfair termination
  3. 3.The appellant to pay salary arrears, if not paid, from 6th December 2005 to 21st June 2006 (half salary withheld during interdiction)
  4. 4.Each party to bear own costs in the appeal
On appeal from
Employment and Labour Relations Court at Nairobi
Industrial Cause No. 565 of 2012
Jurisdiction invoked
First appellate jurisdiction over the Employment and Labour Relations Court

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (7)

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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, "Kenya Broadcasting Corporation v Geoffrey Wakio", Case Analysis (2019). Civil Appeal No. 352 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/65/eng@2019-12-20

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