The German School Society & another v Ohany & another (Civil Appeal 325 & 342 of 2018 (Consolidated)) [2023] KECA 894 (KLR)
The bottom line
#Kenya's Court of Appeal cut a German School employee's awards by over half, confirming redundancy pay requires consultation but rejecting pension discrimination and speculative back pay claims.
What this practically means
#Executive summary
#Key legal issues
#Limitation under section 90 of the Employment Act - continuing injury
The claims for underpayment, back pay and loss of benefits constituted a continuing wrong within section 90, so the suit filed after termination was in time.
Drawing on Indian Supreme Court authority, the court distinguished a continuing wrong (a single wrongful act creating a continuing source of injury, such as recurring underpayment each month) from recurring wrongs and from the mere continuing effect of a completed wrong. Because the respondent continued to work under unequal pay, the breach was continuing and crystallised on termination; the claim filed in December 2014, after termination in July 2014, was within the limitation period.
Jurisdiction of the ELRC over pension eligibility disputes
The ELRC had jurisdiction; the Supreme Court decision in Albert Chaurembo Mumba was distinguishable because the respondent was never a member of the scheme under the Retirement Benefits Act.
Article 163(7) binds all courts to Supreme Court decisions, but a case is only authority for what it decides. Mumba involved members of a retirement benefits scheme governed by the Retirement Benefits Act; here the respondent was not yet a member and her complaint was denial of the opportunity to join. Material differences in facts, including ineligibility by age, distinguished the precedent, and ELRC jurisdiction flows from Article 162(2)(b) of the Constitution.
Whether the trial court erred in finding the pension scheme's existence was never brought to the respondent's attention, and the discrimination claim
The finding was against the evidence; the respondent knew of the scheme and never applied in time, so the discrimination award collapsed.
The respondent's own admissions in cross-examination showed she knew of the scheme, that her window to join lapsed in 1997, that she was a trustee and knew joining was voluntary, and that by 2014 she was over 55 and ineligible. Her letter of 12 May 2014 complained of denial of membership, not lack of knowledge of the scheme. The damages for discrimination, being premised on the contrary finding, could not stand.
Lawfulness of the redundancy
The notice dated 12 June 2014 met the notification requirements of section 40(1)(a) and (b), but the termination was unfair for want of consultations, which are implied in section 40.
The court adopted Kenya Airways v Aviation & Allied Workers Union: consultation is implicit in the Employment Act, supported by ILO Convention No. 158 and Article 47 of the Constitution and the Fair Administrative Action Act. Although the letter contained the reasons for and extent of the intended redundancy, there was no evidence of any consultations of the kind envisaged, so the trial judge's finding of unfair termination on procedural grounds was upheld.
Quantum of compensation for unfair termination
The maximum award of 12 months' salary was excessive; 6 months' gross pay (Kshs. 2,972,670/=) sufficed under sections 49(1)(c) and 49(4) of the Employment Act.
The court must exercise discretion judicially, considering the statutory factors including length of service, expectations of continued employment, prospects of comparable employment, severance already paid and the circumstances of termination. Weighing factors (a), (e), (f), (g), (h) and (m), and noting the respondent had already received notice pay, severance at 15 days per year and accrued leave, 12 months was excessive and 6 months was appropriate.
Sustainability of the back pay award of Kshs. 4,975,360/= made on review
The award was set aside: the claim was not specifically pleaded, the period covered was not pleaded or proved, and the award rested on speculation that the respondent could have worked to 2015.
Pleadings set the bounds of a case; evidence cannot cure a plea never made. The statement of claim sought €43,264.55 from 2008 'onwards', an imprecise prayer, while the reviewed award covered 2003 to September 2007, a period neither pleaded nor in evidence. An error of that magnitude is not an error on the face of the record justifying review, and the defence was wrongly dismissed as a mere denial.
Legal principles established
#- A claim premised on a continuing injury under section 90 of the Employment Act must be filed within 12 months after cessation of the injury; underpayments during a subsisting employment contract constitute a continuing wrong
- A case is binding only for what it actually decides; a precedent is distinguishable where the facts materially differ
- Consultation between employer and employee is an implied requirement of the redundancy process under section 40(1)(a) and (b) of the Employment Act
- No amount of evidence can be looked into on a plea never made in the pleadings; a court cannot grant relief not claimed or flow from facts not pleaded
- An award based on an assumption of future employment is premised on speculation and cannot stand
Court orders
#- 1.The award for damages for discriminatory practice in the sum of Kshs. 5,945,340/= is set aside
- 2.The damages for unlawful redundancy awarded in the sum of Kshs. 5,945,340/= are reduced and substituted with an award of Kshs. 2,972,670/=
- 3.The award of Kshs. 4,975,360/= for back pay (difference between pay earned between 2003 and September 2007) is set aside
- 4.The award for unlawful redundancy shall attract interest at the rate of 6% from the date of the judgment of the High Court
- 5.Each party shall bear its own costs of these consolidated appeals
- On appeal from
- Employment and Labour Relations Court at Nairobi
- ELRC Cause No. 2197 of 2014
- Jurisdiction invoked
- First appellate jurisdiction under the Employment and Labour Relations Court Act / Article 164 of the Constitution (first appeal against ELRC judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (25)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Mistry V. Naran Mulji & Co v Ali (Civil Appeal E055 of 2023) [2026] KECA 497 (KLR)[2026] KECA 497 (KLR)13 Mar 2026applied
- Mbuga v Nyamache; Nyakangi (Applicant) (Environment and Land Case 104 of 2021) [2026] KEELC 1078 (KLR)[2026] KEELC 1078 (KLR)26 Feb 2026applied
- Onyango v Mijengo Investments Limited (Appeal E045 of 2024) [2025] KEELRC 3730 (KLR)[2025] KEELRC 3730 (KLR)19 Dec 2025applied
- Export Consolidated Services Kenya Limited v Gitau (Appeal E162 of 2025) [2025] KEELRC 3689 (KLR)[2025] KEELRC 3689 (KLR)18 Dec 2025applied
- G4s Security Services (K) Ltd v Ongori (Civil Appeal E127 of 2022) [2025] KECA 1950 (KLR)[2025] KECA 1950 (KLR)21 Nov 2025followed
- Mayaka v Gleem & another (Cause E017 of 2025) [2025] KEELRC 2974 (KLR)[2025] KEELRC 2974 (KLR)30 Oct 2025followed
- Mwangi v Diamond Trust Bank (K) Limited (Cause 16 of 2019) [2025] KEELRC 2876 (KLR)[2025] KEELRC 2876 (KLR)21 Oct 2025applied
- Kahasu v Odinga (Appeal E195 of 2024) [2025] KEELRC 2766 (KLR)[2025] KEELRC 2766 (KLR)9 Oct 2025applied
- Muthoka v Kiri Consult Limited (Cause E873 of 2022) [2025] KEELRC 2760 (KLR)[2025] KEELRC 2760 (KLR)9 Oct 2025applied
- Mwarangu v Cathmed Limited (Cause E003 of 2024) [2025] KEELRC 2681 (KLR)[2025] KEELRC 2681 (KLR)30 Sept 2025followed
- Kaluworks Limited v Kichindo (Appeal E015 of 2025) [2025] KEELRC 2624 (KLR)[2025] KEELRC 2624 (KLR)29 Sept 2025
- Mwangi v Lake Basin Development Authority (Cause E001 of 2025) [2025] KEELRC 2602 (KLR)[2025] KEELRC 2602 (KLR)29 Sept 2025
- Riley Falcon Security Services Limited v Okwaro (Appeal E041 of 2025) [2025] KEELRC 2575 (KLR)[2025] KEELRC 2575 (KLR)25 Sept 2025applied
- Nzili v Kenya National Union of Teachers (Cause E007 of 2024) [2025] KEELRC 2566 (KLR)[2025] KEELRC 2566 (KLR)25 Sept 2025applied
- Nyaanga & 20 others v Parapet Cleaning Services (Cause E079 of 2022) [2025] KEELRC 2541 (KLR)[2025] KEELRC 2541 (KLR)25 Sept 2025applied
- Kibocha v Internet Solutions Kenya Limited (Cause 141 of 2020) [2025] KEELRC 2518 (KLR)[2025] KEELRC 2518 (KLR)25 Sept 2025applied
- Mbithi v Board of Management Tala High School (Appeal E367 of 2024) [2025] KEELRC 2510 (KLR)[2025] KEELRC 2510 (KLR)18 Sept 2025applied
- Kenga v Petrocity Enterprises Limited (Cause E051 of 2022) [2025] KEELRC 2495 (KLR)[2025] KEELRC 2495 (KLR)18 Sept 2025followed
- Amwanga v Senaca East Africa Limited (Appeal E047 of 2025) [2025] KEELRC 2323 (KLR)[2025] KEELRC 2323 (KLR)31 Jul 2025applied
- Corrugated Sheets Limited v Ngao (Appeal E031 of 2025) [2025] KEELRC 2322 (KLR)[2025] KEELRC 2322 (KLR)31 Jul 2025applied
- Kenga Equatorial Hotels Limited t/a Mombasa Continental Resort v Wanjiru (Appeal E023 of 2025) [2025] KEELRC 2321 (KLR)[2025] KEELRC 2321 (KLR)31 Jul 2025applied
- SGA Security Solutions Limited v Kitsao (Appeal E002 of 2025) [2025] KEELRC 2315 (KLR)[2025] KEELRC 2315 (KLR)31 Jul 2025followed
- Lumumba v Keitt Exporters Limited (Cause E201 of 2022) [2025] KEELRC 2277 (KLR)[2025] KEELRC 2277 (KLR)31 Jul 2025applied
- Ndenyele v Moi University Coast Campus (Appeal E045 of 2025) [2025] KEELRC 2205 (KLR)[2025] KEELRC 2205 (KLR)24 Jul 2025applied
- Ndiga v Aquavita Limited (Cause E689 of 2024) [2025] KEELRC 2195 (KLR)[2025] KEELRC 2195 (KLR)24 Jul 2025applied
Cite this brief
#Cite this brief
Caselaw, "The German School Society & another v Ohany & another (Civil Appeal 325 & 342 of 2018 (Consolidated)) [2023] KECA 894 (KLR)", Case Analysis (2023). Civil Appeal Nos. 325 & 342 of 2018 (consolidated). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2023/894/eng@2023-07-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.