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ELRCPartially AllowedCause No. 2263 of 2012 (Originally Nairobi High Court Civil Case No. 1299 of 1999)· [2018] KEELRC 2104 (KLR)

Alice Njeri Wamuiga v Central Bank of Kenya [2018] KEELRC 2104 (KLR)

Employment and Labour Relations Court of Kenya
17 April 2018
1,628 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 awarded a dismissed bank employee only three months' notice pay, refusing Kshs 438 million in claims never properly pleaded.

What this practically means

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Executive summary

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This judgment on quantum by Radido J in the Employment and Labour Relations Court at Nairobi concluded a long-running employment dispute commenced in the High Court in 1999 by Alice Njeri Wamuiga against the Central Bank of Kenya. A prior judgment of Ransley J (27 March 2006) had held that the Claimant's dismissal was not wrongful but that, having been dismissed for misconduct, she was entitled under Rule 6.21 of the contractual terms to three months' notice or three months' pay in lieu, reserving quantum, costs and the counter-claim. The remaining questions were the quantum of damages for breach of contract and the status of the Respondent's counter-claim. The Claimant sought Kshs 438,418,336.50 across multiple unpleaded heads. The Court declined to entertain these heads, holding that they had been introduced only through proposed amendments never allowed (Ringera J and Khamoni J having refused leave, and Mabeya J's later amendment orders having been set aside), that they could not be raised through submissions, and that the Court would be guided only by the pleadings on record. Applying the Court of Appeal decisions in Rift Valley Textiles v Oganda and Cyrus Nyaga Kabute, which bind the Court, it awarded only three months' pay in lieu of notice (Kshs 173,090/-) based on her salary of Kshs 57,696/-. The counter-claim was dismissed for want of proof. The Claimant, having severally disobeyed court orders, was denied costs. Judgment delivered on 17 April 2018.

Key legal issues

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01

Quantum of damages for breach of the contract of employment (wrongful dismissal) under the common law regime applicable at the time

Holding

The Claimant, having been dismissed without notice and having been entitled under the contract to three months' written notice or three months' pay in lieu, is awarded only three months' pay in lieu of notice; other heads are unpleaded and unavailable

Reasoning

The prior judgment of Ransley J established liability: the dismissal was justified but the Claimant was entitled to three months' notice or pay in lieu. The Court of Appeal authorities (Rift Valley Textiles v Oganda; Cyrus Nyaga Kabute) establish that damages for breach of employment contract are limited to the contractual terms, and those decisions bind this Court. The Claimant's salary at separation was Kshs 57,696/-, yielding three months' pay of Kshs 173,090/-.

p. 3
02

Whether unpleaded heads of relief could be entertained on submissions

Holding

No. Heads of relief not in the pleadings, and which the Claimant sought to introduce through an Amended Plaint that was never allowed, cannot be presented through submissions

Reasoning

Ringera J and Khamoni J had declined leave to amend, and Mabeya J's later order allowing amendment was set aside. The pleadings on record at the time of the High Court judgment did not contain the expansive heads now claimed. The Court held that it would be guided only by the pleadings formally on record, and the Claimant also never testified on those heads.

p. 2
03

The fate of the Respondent's counter-claim

Holding

Dismissed because the Respondent did not produce or prove any evidence in support of it

Reasoning

The Respondent opted not to call any witness and indicated it would rely on submissions based on the record. Having produced no evidence in respect of the counter-claim, it could not succeed and stood to be dismissed.

p. 3

Legal principles established

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  • On wrongful dismissal under the common law, damages flow according to the terms of the contract; aggravated damages, benefits to retirement age or arrears of salary beyond the contract terms are not available
  • A party cannot introduce unpleaded heads of claim through submissions; the Court is guided only by the pleadings formally on record

Court orders

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  1. 1.Award to the Claimant of pay in lieu of notice of Kshs 173,090/-
  2. 2.Dismissal of the Respondent's counter-claim for lack of proof
  3. 3.The Claimant is denied costs

Authorities

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Cases cited (2)

  • Rift Valley Textiles Limited v Edward Onyango Oganda
    (1994) eKLR
  • Cyrus Nyaga Kabute v Kirinyaga County Council
    Civil Appeal No. 29 of 1985 (Unreported)
Jurisdiction invoked
Jurisdiction following transfer from the High Court to the Employment and Labour Relations Court under Article 162(2) of the Constitution (implied); the suit was 'ordered that the suit be transferred to this Court for hearing and determination'

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, "Alice Njeri Wamuiga v Central Bank of Kenya [2018] KEELRC 2104 (KLR)", Case Analysis (2018). Cause No. 2263 of 2012 (Originally Nairobi High Court Civil Case No. 1299 of 1999). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/2104/eng@2018-04-17

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