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ELRCDismissedCause No 1601 of 2013· [2018] KEELRC 639 (KLR)

Agnes W. Kinuthia & 607 others v University of Nairobi & 2 others [2018] KEELRC 639 (KLR)

Employment and Labour Relations Court
9 November 2018
2,188 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court dismissed 608 ex-university workers' retrenchment claims because they produced no evidence to support their allegations.

What this practically means

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Executive summary

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This was an employment and labour relations suit commenced by plaint in the High Court on 09.04.2002 and determined on pleadings, documents and final submissions pursuant to a consent order of 16.04.2018. The 608 claimants, former employees of the respondent retrenched effective 31.03.2001 under a Staff Retrenchment Programme, claimed Kshs.279,940,364.00 comprising commuting, house and transport allowances, value of unsupplied uniforms, overtime, a balance of the golden handshake, and training allowance, together with a declaration that the retrenchment was induced breach of contract, discriminatory, illegal, null and void, and general damages. The respondent defended the suit, asserting that the retrenchment was a justified, government-sanctioned exercise under the Public Universities Reform Programme, conducted on prescribed LIFO and FIFO criteria, with union (KUDHEIHA) involvement and sensitization workshops, and that all dues totalling Kshs.149,558,971.15, including a Kshs.45,000.00 golden handshake per employee, were paid. Two third parties were enjoined through the Attorney General. Byram Ongaya J dismissed the suit: the representative-suit objection was misconceived as claimants sued individually; there was no misjoinder of retrenched staff though normal retirees were misjoined; no particulars of inducement, breach, discrimination or any violated constitutional or statutory provision were pleaded or proved; the monetary claims and the golden handshake balance failed for want of evidence; and third-party liability did not arise. Each party was ordered to bear its own costs in view of the many years the suit had taken.

Key legal issues

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01

Commencement and joinder of the suit

Holding

Suit properly instituted in individual capacities by all listed claimants; no misjoinder of retrenched staff arising from the same transaction, though normal retirees were misjoined

Reasoning

All 608 claimants were listed in the plaint, so the representative-suit objection was misconceived. Because the claims arose from one transaction, the retrenchment exercise, joinder was proper despite the work being overwhelming. However, persons who had retired normally and were never retrenched should not have been named as plaintiffs, amounting to misjoinder, though no striking-out orders were sought.

p. 20
02

Legality and fairness of the retrenchment

Holding

Retrenchment was justifiable, non-discriminatory and lawful; claim failed

Reasoning

The respondent demonstrated a financial case of overstaffing and labour costs exceeding working capital, a government-wide retrenchment programme under PURP, prescribed LIFO and FIFO criteria, sensitization workshops and union (KUDHEIHA) involvement. The claimants pleaded no particulars of inducement, breach or discrimination, cited no provision violated, and did not show better-retained candidates or material breaches of the CBA.

p. 20
03

Monetary claims for allowances, uniforms, overtime and training

Holding

Claims failed for want of evidence and particulars

Reasoning

The claimants did not show what was paid and what was withheld, how individual entitlements and computations arose, or that grievances predated retrenchment. Uniforms, if anything, were to be supplied in kind rather than money. No prescribed training with an allowance existed. The court held the prayers unjustified on a balance of probability.

p. 20
04

Golden handshake balance

Holding

No valid claim; PURP guideline of Kshs.45,000.00 per employee was paid

Reasoning

Under the PURP guidelines applicable to the respondent (as a public university) rather than the general Civil Service Retrenchment Programme guidelines, each retrenched employee was entitled to and was paid a golden handshake of Kshs.45,000.00. The claim for a balance of Kshs.134,024,940.00 therefore failed.

p. 20
05

Liability of third parties

Holding

Not determined as unnecessary

Reasoning

Since the claimants' suit was dismissed in its entirety, the question of the third parties' liability did not arise for determination.

p. 20

Legal principles established

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  • A retrenchment exercise conducted in accordance with prescribed criteria (LIFO/FIFO), with union involvement and sensitization workshops, is justifiable and not discriminatory
  • A party claiming breach, inducement or discrimination must plead and prove particulars and cite the provision violated
  • A suit arising out of the same transaction (retrenchment) by many claimants is not a misjoinder even if numerous, though normal retirees joined as claimants amount to misjoinder

Court orders

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  1. 1.Judgment entered for the respondent for dismissal of the suit
  2. 2.Each party to bear own costs of the suit

Authorities

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Legislation

  • University of Nairobi Act
  • Collective Bargaining Agreement (CBA) between the parties
  • Public Universities Reform Programme (PURP) guidelines
  • Civil Service Reform Retrenchment Plan 2000 - 2002
Jurisdiction invoked
Original employment and labour relations suit transferred to the Employment and Labour Relations Court (commenced by plaint in the High Court on 09.04.2002)

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, "Agnes W. Kinuthia & 607 others v University of Nairobi & 2 others [2018] KEELRC 639 (KLR)", Case Analysis (2018). Cause No 1601 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/639/eng@2018-11-09

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