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ELRCPartially AllowedConsolidated suits filed 22nd September 2009 and 18th December 2009 (consolidated 23rd February 2011 by Chemmuttut J.)· [2015] KEELRC 441 (KLR)

Kipkemboi Cherono & another v Tana & Athi Rivers Development Authority [2015] KEELRC 441 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
20 August 2015
4,412 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~18 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that firing employees by backdating the letter to their suspension date is illegal, and awarded them over KShs 3 million each in unpaid salary.

What this practically means

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Executive summary

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Two consolidated claims filed in 2009 by former TARDA employees, Kipkemboi Cherono and Justus Mike Kittivo, challenged the termination of their services by letter dated 18th June 2009 backdated to 22nd September 2006, when they were suspended pending investigations by the Inspectorate of State Corporations into mismanagement at the Authority. Both testified that they were never issued show cause letters, never appeared before the Board, and were never charged (the 2nd Claimant's criminal case was terminated under Section 87(a)). The Respondent, through its Managing Director Stephen Githaiga, maintained that investigations disclosed fraud and abuse of office - irregular procurement of a Mercedes Benz and diesel for the 1st Claimant and irregular procurement of 100,000 eucalyptus trees and sale of firewood for the 2nd Claimant - justifying termination. The court framed two issues: whether the terminations were lawful, and if not, what remedies lay. It held the terminations were with cause, but that backdating them to September 2006 was illegal and manifestly unfair, depriving the employees of Article 47(1) and 50(1) constitutional safeguards; further, the suspension, valid only to December 2006, became illegal for being unending, and Section 41 procedural fairness was not observed. Future salary to retirement was refused as sanguine prospects. Each Claimant obtained a declaration of illegality, Kshs. 3,114,927/- being salary from December 2006 to 18th June 2009, a certificate of service, costs and interest, subject to statutory deductions under Section 49 of the Employment Act.

Key legal issues

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01

Whether the terminations were with cause

Holding

The Claimants were terminated with cause, as investigations by the Inspectorate of State Corporations revealed adverse findings of abuse of office and fraud against them

Reasoning

Investigations undertaken during the fiscal year 2004-2005 by the Inspectorate of State Corporations revealed serious cases of mismanagement. The adverse findings against the 1st Claimant concerned irregular procurement of a Mercedes Benz and diesel; the 2nd Claimant faced findings on irregular procurement of 100,000 eucalyptus trees and irregular sale of firewood causing a loss of Kshs. 26,000/-. These allegations even led to the arraignment of the 2nd Claimant in court, establishing that there was basis for termination.

p. 6
02

Legality of backdating the termination to the date of suspension

Holding

The backdating of the June 2009 termination to September 2006 was illegal and manifestly unfair

Reasoning

The court reasoned that backdating termination to a date already past would deprive the employees of the legitimate right to the safeguards of Article 47(1) and 50(1) of the Constitution - it would render any challenge to the process or any appeal or judicial review hopelessly out of time. The employees were entitled to those safeguards notwithstanding the circumstances of the termination.

p. 6
03

Legality of the prolonged suspension

Holding

The suspension was valid up to December 2006, after which it became illegal for being unending

Reasoning

The court held that suspension must be for a finite period. The suspension from September 2006 until June 2009 was inordinately long and without any justification, so the court fixed December 2006 as the point at which the suspension became illegal. The Claimants were nevertheless entitled to salaries from December 2006 until the contracts were terminated on 18th June 2009.

p. 6
04

Absence of show cause and procedural fairness

Holding

There should have been a show cause letter and procedural fairness as contemplated in Section 41 of the Employment Act before termination

Reasoning

The letters of administrative action were on record, but the employees should have been issued show cause letters and given procedural fairness under Section 41 of the Employment Act. The Respondent's Managing Director conceded in cross-examination that there was no notice to show cause when the Claimants were asked to appear before the investigation team.

p. 6
05

Whether prospective salary to retirement is recoverable

Holding

No - sanguine prospects or future salary to the date of retirement are not payable as remedies for unfair termination

Reasoning

The court concurred with Onyango J. and Rika J. that sanguine prospects are not available as remedies. There being no provision for future salaries in employment law practice in Kenya, the Claimants could not recover the millions in salary from 2006 to their anticipated retirement dates of 2023 and 2027. The recoverable salary was limited to the period December 2006 to 18th June 2009.

p. 6

Legal principles established

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  • It is illegal to backdate a termination of employment to a past date, as it deprives the employee of constitutional safeguards
  • Suspension must be for a finite period; an unending suspension becomes illegal
  • Future salary to the date of retirement (sanguine prospects) is not recoverable as a remedy for unfair termination
  • Before termination, an employee is entitled to a show cause letter and procedural fairness as contemplated by Section 41 of the Employment Act

Court orders

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  1. 1.Declaration that the termination in June 2009 backdated to September 2006 was illegal, for each Claimant
  2. 2.Payment to the 1st Claimant of salary from December 2006 till 18th June 2009 of Kshs. 3,114,927/-
  3. 3.Payment to the 2nd Claimant of salary from December 2006 till 18th June 2009 of Kshs. 3,114,927/-
  4. 4.Certificates of service for each Claimant
  5. 5.Claimants to each be paid costs of the suit with interest on the sums awarded from date of judgment till payment in full
  6. 6.Sums awarded to be subject to statutory deductions as provided for in Section 49 of the Employment Act

Authorities

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Legislation

  • Employment ActSection 43
  • Employment ActSection 45
  • Employment ActSection 41
  • Employment ActSection 49(1) and Section 49
  • Constitution of Kenya, 2010Article 47
  • Constitution of Kenya, 2010Article 50
  • Tana Athi River Development Authority Act (TARDA Act), Cap 443
  • State Corporation Act
  • TARDA Code of Regulationspara 7.15.4

Cases cited (11)

  • Nicholas Ontinyu Muruka v Equity Bank Ltd
  • Prof. Francis M. Njeruh v Jomo Kenyatta University of Agriculture and Technology
    [2013] eKLR
  • Loice Otieno v Kenya Commercial Bank Ltd
    [2013] eKLR
  • Philemon Wachara Obenge v Easy Mart Ltd
    [2013] eKLR
  • Donald Avude v Kenya Forest Service
    [2015] eKLR
  • Alphonce Maghanga Mwachanya v Operation 680 Ltd
    [2013] eKLR
  • Abraham Gumba v Kenya Medical Supplies Authority
    [2104] eKLR
  • Engineer Francis N. Gachuri v Energy Regulatory Commission
    [2013] eKLR
  • James Omwoyo Nyang'au v Heritage Insurance Company Limited
    [2014] eKLR
  • Samson Buluma Mumia v DPL Festive Limited
    [2012] eKLR
  • Dishon Onkoba v Factory Guards (MSA) Limited
    [2014] eKLR
Jurisdiction invoked
Original employment and labour relations jurisdiction over claims for unfair and unlawful termination

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, "Kipkemboi Cherono & another v Tana & Athi Rivers Development Authority [2015] KEELRC 441 (KLR)", Case Analysis (2015). Consolidated suits filed 22nd September 2009 and 18th December 2009 (consolidated 23rd February 2011 by Chemmuttut J.). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/441/eng@2015-08-20

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