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ELRCDismissedNot stated in the judgment· [2019] KEELRC 888 (KLR)

Victor Makori v Public Service Commission & another [2019] KEELRC 888 (KLR)

Employment and Labour Relations Court
20 September 2019
598 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court ruled that a pension claim cannot be thrown out just because years have passed, since pension is constitutionally protected property.

What this practically means

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Executive summary

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The Petitioner, dismissed from employment around 2000/2001, moved the Employment and Labour Relations Court on 24 September 2018 alleging unfair dismissal and that the failure to pay terminal dues and/or pension amounted to unfair labour practices and violated Articles 23(1), 27, 28, 41(1), 47 and 57 of the Constitution. The Respondents filed a Notice of Preliminary Objection dated 15 April 2019 on four grounds: that the suit was time barred under section 90 of the Employment Act, 2007 and the Limitation of Actions Act (Cap 22); that the Court lacked jurisdiction to extend time; that the suit was an abuse of process; and that it should be struck out with costs. They argued 43 years had elapsed and that the claim was res judicata given the Petitioner's earlier malicious prosecution suit (Milimani Civil Case No. 7390 of 2003), dismissed for want of prosecution. The Petitioner countered that limitation did not apply to constitutional rights violations, that acquitted public officers were normally reinstated without loss of benefits, and that disputed facts required a hearing. The Court observed the Employment Act, 2007 did not apply to a cause accrued in 2000/2001, noted pension was an accrued right under the retired Constitution and arguably protected as property under Article 40 of the 2010 Constitution, and referred to Henry Kamau Ngare v Teachers Service Commission and Director of Pensions v Abdul Majid Cockar. Holding that the Petition raised a fundamental question on the vesting of pension and terminal benefits and was not purely contractual, the Court dismissed the preliminary objection with no order as to costs.

Key legal issues

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01

Whether limitation under section 90 of the Employment Act and the Limitation of Actions Act defeats the Petition

Holding

The preliminary objection fails because the Petition is not purely a contractual dispute but raises a fundamental question on vesting of pension and terminal benefits.

Reasoning

The cause of action accrued around 2000/2001, so the Employment Act, 2007 does not apply. The Respondents argued 43 years had lapsed and that a prior malicious prosecution suit was res judicata. The Petitioner argued constitutional rights violations were not subject to limitation. The Court held pension as property is protected under Article 40 and the Petition raised a fundamental question of vesting of pension, so limitation could not defeat it at a preliminary stage.

p. 2
02

Status of pension as a constitutional property right

Holding

Pension was recognised as an accrued right/benefit under the retired Constitution and entitlement to pension as property is preserved under Article 40 of the 2010 Constitution.

Reasoning

The Court noted that under the retired Constitution pension was an accrued right/benefit, and that entitlement to pension as a species of property is arguably preserved in Article 40 of the Constitution of Kenya, 2010. It also noted prior decisions of the Court of Appeal and this Court on vesting of pension were relevant to the issue.

p. 2

Legal principles established

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  • A petition raising a fundamental question as to the vesting of pension and/or terminal benefits is not purely a contractual dispute susceptible to defeat on account of the law of limitation.
  • Entitlement to pension, as a species of property, is preserved under Article 40 of the Constitution of Kenya, 2010.

Court orders

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  1. 1.The preliminary objection dated 15 April 2019 is dismissed
  2. 2.No order as to costs

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 23(1), 27, 28, 40, 41(1), 47, 57
  • Employment Act, 2007section 90
  • Limitation of Actions ActCap 22 Laws of Kenya

Cases cited (2)

  • Henry Kamau Ngare v Teachers Service Commission & Ar
    (2016) eKLR
  • Director of Pensions v Abdul Majid Cockar
    Civil Appeal No. 50 of 1999
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under Article 23(1), 41(1) and 47 of the Constitution as invoked in the Petition

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, "Victor Makori v Public Service Commission & another [2019] KEELRC 888 (KLR)", Case Analysis (2019). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/888/eng@2019-09-20

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