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Court of AppealPartially AllowedCourt of Appeal, Nairobi· [2026] KECA 1605 (KLR)

The Judicial Service Commission v Peter Musyoki Mbiti

Court of Appeal of Kenya
31 July 2026
5,187 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed the clerk's sacking was unfair, but refused to return him to his job, cutting compensation to twelve months' salary.

What this practically means

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Executive summary

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The Judicial Service Commission appealed against the judgment of the Employment and Labour Relations Court (Rika, J.) declaring the dismissal of Peter Musyoki Mbiti, a court clerk/accountant at Loitoktok Law Courts, unfair and ordering his reinstatement with salary arrears. The dismissal followed allegations that he failed to account for Kshs. 200,000 in cash bail received in 2016. The Court of Appeal, disposed of by written submissions, framed two issues: whether valid and fair reasons for dismissal existed under sections 43 and 45 of the Employment Act, and whether the remedies granted were available in law. On the first issue, the Court affirmed the trial court: the employer bore the burden of proving valid reasons on a balance of probabilities, and mere suspicion, or the absence of a written handover record, did not discharge it. Significantly, the appellant's own witness testified that the accountant in charge admitted receiving the money. The finding of substantive unfairness therefore stood, and the judgment below was affirmed on liability. On remedies, however, the Court allowed the appeal in part. Section 12(3)(vii) of the ELRC Act imposes a mandatory three-year jurisdictional limit on reinstatement; more than three years had elapsed, so the ELRC lacked jurisdiction and the reinstatement order was set aside. The award of salary arrears for one year and nine months also found no support in section 49(1) of the Employment Act and was set aside, substituted with compensation equivalent to twelve months' gross salary under section 49(1)(c). As each party succeeded in part, each was ordered to bear its own costs both in the ELRC and in the appeal.

Key legal issues

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01

Whether the appellant established valid and fair reasons for the respondent's dismissal under sections 43 and 45 of the Employment Act

Holding

The dismissal lacked substantive justification and was unfair; mere suspicion or absence of a written handover record does not prove misconduct.

Reasoning

Sections 43, 45 and 47(5) place the burden of proving valid and fair reasons on the employer on a balance of probabilities. The respondent openly received the cash bail and issued official receipts; the station's practice required handover to the accountant in charge; the appellant's own witness testified that the accountant admitted receiving the money and undertook to refund it. No satisfactory explanation emerged why the respondent alone should bear responsibility. Mere suspicion cannot substitute proof.

p. 8
02

Whether the ELRC had jurisdiction to order reinstatement more than three years after dismissal

Holding

It did not; section 12(3)(vii) of the ELRC Act is a mandatory jurisdictional limitation, and the reinstatement order was set aside.

Reasoning

Reinstatement under section 12(3)(vii) is couched in mandatory terms and constitutes a jurisdictional limitation on the court's remedial powers. By the date of judgment (12 February 2024) more than three years had elapsed from either the dismissal letter of 4 January 2021 or its effective date of 25 September 2019. Jurisdiction flows from statute and cannot be conferred by sympathy or judicial discretion, so the order could not stand.

p. 10
03

Whether the award of salary arrears for one year and nine months was sustainable in law

Holding

It was not; the statutory remedy is compensation capped at twelve months' gross salary under section 49(1)(c), and the arrears award was substituted with such compensation.

Reasoning

Section 49(1)(c) empowers the court to award compensation not exceeding twelve months' gross salary having regard to the section 49(4) factors. The statutory remedy is compensation for unfair termination, not payment of salary for periods when no services were rendered, unless otherwise specifically provided by law. An arrears award of one year and nine months finds no support in section 49(1) and could not be sustained; a twelve-month compensation award was substituted considering length of service and the appellant's failure to justify the dismissal.

p. 10
04

Procedural fairness of the disciplinary process

Holding

Not open for determination; the ELRC found procedural fairness was met and the respondent filed no cross-appeal, so those findings were binding.

Reasoning

The learned Judge expressly found that the disciplinary process complied with the Employment Act, the Fair Administrative Action Act and Article 47. Those findings were not challenged by cross-appeal, and in the absence of one they remain undisturbed and binding for purposes of the appeal. Procedural fairness therefore did not fall for determination and the appeal turned only on substantive justification and remedies.

p. 7

Legal principles established

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  • Section 12(3)(vii) of the Employment and Labour Relations Court Act is a jurisdictional limitation: once three years have elapsed from dismissal, the ELRC is divested of jurisdiction to order reinstatement, however unfair the termination.
  • The employer bears the legal burden of proving valid and fair reasons for termination under sections 43, 45 and 47(5) of the Employment Act on a balance of probabilities; mere suspicion, administrative lapses or absence of documentation do not discharge that burden.
  • Reinstatement is an exceptional, discretionary remedy, not an automatic consequence of a finding of unfair termination.
  • Compensation for unfair termination must be anchored strictly within the statutory framework of section 49 of the Employment Act, capped at twelve months' gross salary.
  • A respondent who does not cross-appeal cannot impeach or vary adverse findings of the trial court; unchallenged findings remain binding on appeal.

Court orders

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  1. 1.The order of reinstatement issued by the ELRC is set aside.
  2. 2.The award of salary arrears from 25th September 2019 to 28th June 2021 is set aside.
  3. 3.Substituted therefor is an award of compensation equivalent to twelve (12) months' gross salary pursuant to section 49(1)(c) of the Employment Act.
  4. 4.Save for the foregoing variation on remedies, the judgment of the Employment and Labour Relations Court is affirmed.
  5. 5.Each party shall bear its own costs both before the Employment and Labour Relations Court and in this appeal.
On appeal from
Employment and Labour Relations Court
ELRC Cause No. E834 of 2021
Jurisdiction invoked
First appeal to the Court of Appeal under the Court of Appeal Rules, 2022 (Rule 31(1)) against the judgment of 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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Cite this brief

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Cite this brief

Caselaw, "The Judicial Service Commission v Peter Musyoki Mbiti", Case Analysis (2026). Court of Appeal, Nairobi. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2026/1605/eng@2026-07-31

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