William Kadima & 18 others v National Social Security Fund Board of Trustees [2018] KEELRC 1196 (KLR)
The bottom line
#Kenyan employees must sue over unfair termination within three years of dismissal — employer apologies or debt acknowledgements won't buy extra time.
What this practically means
#Executive summary
#Key legal issues
#Accrual of the cause of action in employment claims
The cause of action accrued on the date of termination (30th April, 2013), not on later events such as the Bwondora committee report or acknowledgement of debt
Relying on Hilarion Mwabolo v Kenya Commercial Bank, the court held that accrual takes effect from the date of termination as communicated. Matters taking place at the workplace after termination do not apply to the former employee. A suit filed on 15th May, 2017 was over three years, in fact four years, after termination and therefore outside the three-year window in section 90 of the Employment Act, 2007.
Effect of acknowledgement of debt on limitation under section 90
Acknowledgement of a debt does not lift or extend the limitation period for employment claims under section 90
The claimants argued that the Bwondora committee report of May 2014, the respondent's admission of owing Kshs.45,915,113.79, and the letter of 9th September, 2016 to the Commission on Administrative Justice acknowledged the debt and lifted the limitation period. The court held that the authorities relied on related to civil cases unrelated to causes of action arising out of employment, and section 90 applies in mandatory terms with no such extension available.
Scope of the preliminary objection on limitation
The objection succeeded only against the claimants listed in paragraph 2 of the Statement of Defence; the suit continues as against the remaining claimants
The respondent's objection targeted the nine named former employees who exited through voluntary early retirement on 30th April, 2013. The court allowed the objection only to the extent of those claims, dismissing them as time barred and directing amendment of the Memorandum of Claim to remove them, leaving the rest of the claim intact.
Legal principles established
#- A cause of action in employment claims accruing from termination takes effect from the date of termination as stated in the letter communicating the termination
- Section 90 of the Employment Act applies in mandatory terms and the reasons for extending time in civil cases are not available under it
- Termination of employment, whether lawful or unlawful, is actionable from the date it is effected
Court orders
#- 1.The preliminary objections by the respondent are allowed
- 2.The claims relating to employees terminated on 30th April, 2013 are time barred and are dismissed
- 3.The claimant shall amend the Memorandum of Claim removing claimants set out under paragraph 2 of the Statement of Defence from the record
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (section 90 invoked on limitation)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "William Kadima & 18 others v National Social Security Fund Board of Trustees [2018] KEELRC 1196 (KLR)", Case Analysis (2018). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1196/eng@2018-05-15
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.