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ELRCPartially AllowedCause No 122 of 2015· [2016] KEELRC 688 (KLR)

Cecilia Wangechi Ndung’u v County Government of Nyeri & another [2016] KEELRC 688 (KLR)

Employment and Labour Relations Court
23 September 2016
3,088 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled Nyeri County unlawfully removed a County Executive Member and ordered it to pay her over Kshs.4.45 million.

What this practically means

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Executive summary

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The claimant, former Nyeri County Executive Member for Culture, Gender and Social Development, sued after the governor abolished her department and removed her from office on 8.04.2015, following her successful constitutional petition (Petition No. 1 of 2014, affirmed on appeal) in which her earlier removal had been quashed. She sought lost future earnings for the unexpired five-year term of Kshs.9,310,914.90, plus costs and interest. The court framed three issues: res judicata, lawfulness of the removal, and remedies. It held the suit was not res judicata because the 8.04.2015 removal was a new cause of action post-dating the earlier litigation. On lawfulness, the court found the removal based on considerations from a letter previously quashed by certiorari and on unsubstantiated allegations of poor performance, failing the valid-reason requirements of sections 43(1) and 47(5) of the Employment Act. It further held that a county executive committee resolution under section 46 of the County Governments Act was a mandatory precondition to abolishing a department, making the governor's unilateral reorganisation illegitimate. The Employment Act was held to apply to state officers absent better contractual or statutory terms. On remedies, the court awarded gratuity of Kshs.1,038,552.30 (31% of basic pay for years served) and 12 months' gross salary (Kshs.3,412,500.00) as compensation under section 49, holding lost future earnings beyond that cap require proof of inability to mitigate or contractual/legislative basis. Judgment of Kshs.4,451,052.20 with interest and costs was entered for the claimant. The claim succeeded in part; the full unexpired-term claim was refused.

Key legal issues

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01

Res judicata

Holding

The suit is not res judicata; the removal of 8.04.2015 post-dated the earlier petition and appeal and constituted a new cause of action

Reasoning

The petition judgment (05.12.2014) and appeal judgment (18.03.2015) predated the April 2015 removal. A notice of motion in the petition had already found the removal a new cause of action not decidable by application. The cause of action here sprouts from the 8.04.2015 removal.

p. 3
02

Lawfulness of the removal

Holding

The removal was unlawful, unfair and unjustified

Reasoning

The governor relied on reasons contained in a letter already quashed by certiorari, and on allegations of poor performance never established under sections 43(1) and 47(5) of the Employment Act. Further, section 46 of the County Governments Act required county executive committee involvement in abolishing a department, which was not shown.

p. 4
03

Applicability of the Employment Act to state officers

Holding

The Act applies in absence of specific or better terms

Reasoning

The term of service was not stated in the appointment letter and remuneration was set by the SRC. Following Margaret Lorna Kariuki v Embu County Government, where special terms are absent or inferior, the Employment Act's minimum safeguards (valid reasons, notice, hearing) apply by default to state officers.

p. 5
04

Remedies

Holding

Gratuity of Kshs.1,038,552.30 plus 12 months' gross salary (Kshs.3,412,500.00) as compensation, totalling Kshs.4,451,052.20

Reasoning

Gratuity computed at 31% of basic pay for years served per the SRC Gazette Notice. For lost earnings, 12 months' compensation under section 49 as the statutory maximum, considering service record, lack of contribution, no notice, and the aggravating conduct in defying prior court findings.

p. 5

Legal principles established

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  • A resolution by the county executive committee under section 46 of the County Governments Act is a mandatory precondition before a valid reorganisation abolishing a CEC office; the governor's unilateral decision is not legitimate
  • Compensation for lost future earnings from unfair termination is capped at 12 months' gross salary under section 49 of the Employment Act unless the claimant establishes inability to mitigate or a legislative/contractual basis for full payment
  • The Employment Act, 2007 applies to state officers where no specific or better contractual/statutory terms exist; inferior special terms trigger the Act's application by default

Court orders

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  1. 1.The respondent to pay the claimant Kshs.4,451,052.20 by 01.12.2016 failing interest at court rates from the date of judgment till full payment
  2. 2.The respondent to pay the claimant's costs of the suit

Authorities

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Legislation

  • Constitution of KenyaArticles 27(1)(2)(3), 28, 41, 50, 174
  • County Governments Act, 2012Sections 30(2)(e), 46
  • Employment Act, 2007Sections 3, 3(5), 41, 43(1), 47(5), 49

Cases cited (4)

  • Cecilia Wangechi Ndungu v The County Government of Nyeri [2014]eKLR
    Petition No. 1 of 2014, Nyeri
  • The County Government of Nyeri and Another v Cecilia Wangechi Ndungu [2015]eKLR
    Civil Appeal No. 2 of 2015, Nyeri
  • Stephen Otieno Oroto & 4 Others v Jacktone N. Ranguma and Another [2016]eKLR
  • Margaret Lorna Kariuki v Embu County Government [2015]eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes; Employment Act, 2007 and County Governments Act, 2012

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, "Cecilia Wangechi Ndung’u v County Government of Nyeri & another [2016] KEELRC 688 (KLR)", Case Analysis (2016). Cause No 122 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/688/eng@2016-09-23

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