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ELRCDismissedCause No 2109 of 2017· [2019] KEELRC 2550 (KLR)

Stephen Maranga Obegi v Kenya Revenue Authority [2019] KEELRC 2550 (KLR)

Employment and Labour Relations Court
25 January 2018
1,364 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A former Kenya Revenue Authority employee lost his malicious prosecution and damages claims after the court found his dismissal lawful and his criminal case stemmed from public tip-offs, not his employer.

What this practically means

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Executive summary

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The Claimant, formerly an Assistant Licensing Officer employed by the Kenya Revenue Authority on permanent and pensionable terms from 1996, sued claiming damages for malicious prosecution and imprisonment, special damages of Kshs 155,000/- incurred in a criminal trial at Embu, lost prospective income of Kshs 2,767,894/- and pension. He had been charged with theft-related offences, convicted by the Magistrate's Court on 21 February 2005, dismissed by the Respondent on 4 February 2005, and had his convictions quashed by the High Court on 26 July 2005. The Court found the criminal complaint originated from a tip off by members of the public, not from the Respondent, so malicious prosecution and defamation failed. The dismissal was held lawful: under the pre-2007 framework an employer could terminate for good cause, bad cause or no cause with notice damages, and the Claimant had been suspended, informed of the allegations and given written and oral hearings under the Code of Conduct; any procedural deviation caused no prejudice. The quashing of the criminal conviction did not assist the Claimant, disciplinary proceedings having different standards of proof. Special damages failed because the Respondent was not responsible for the prosecution, and the investigating and prosecuting entities were not parties. Lost prospective income was unproved and unattainable in law following Bank of Uganda v Tinkamanyire. On pension, the Claimant was directed to apply under the Respondent's Pension Scheme. The Cause was dismissed with no orders as to costs on 25 January 2018 (as printed) by Radido Stephen, Judge.

Key legal issues

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01

Whether the Respondent maliciously prosecuted the Claimant

Holding

The complaint to the Police was not made at the behest of the Respondent; malicious prosecution fails for want of the setting in motion of the prosecution by the Respondent

Reasoning

The record of the Embu Magistrate's Court showed the Investigating Officer acted on a tip off from members of the public. There was no nexus shown between those members of the public and the Respondent, so no malice could be attributed to the Respondent in laying the information.

p. 2
02

Whether the dismissal of the Claimant was lawful

Holding

The dismissal was lawful as it was effected pursuant to contractual authority, following the Respondent's Code of Conduct

Reasoning

The pre-2007 legal framework allowed termination for good cause, bad cause or no cause provided notice-period damages were paid; natural justice was not statutorily required. The Claimant was suspended, given the allegations, invited to respond in writing and to an oral hearing before a Committee. Any procedural deviation caused no injustice or prejudice.

p. 2
03

Whether quashing of the criminal conviction invalidated the disciplinary dismissal

Holding

Quashing of the conviction did not assist the Claimant because disciplinary and criminal proceedings differ in objectives and standards of proof

Reasoning

The High Court quashed the Claimant's convictions on appeal, but the Court held that disciplinary proceedings then, as now, have different objectives, purposes and standards of proof from a criminal trial, so acquittal or quashing does not automatically render the disciplinary dismissal wrongful.

p. 2
04

Whether the Claimant was entitled to lost prospective income to retirement

Holding

The claim was not proved and is unattainable in law

Reasoning

Relying on Bank of Uganda v Tinkamanyire, the Court held that an employee whose contract is terminated prematurely or illegally cannot be compensated for the remainder of the period to retirement; the head of claim was also not proved.

p. 3

Legal principles established

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  • Compensation for the unexpired period of employment up to retirement is not an available remedy for premature or illegal termination of employment
  • Disciplinary proceedings have different objectives, purposes and standards of proof from a criminal trial; quashing of a criminal conviction does not without more invalidate disciplinary dismissal
  • Evidentiary material must be produced during the hearing and filed with submissions will not be considered

Court orders

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  1. 1.The Cause is dismissed with no orders as to costs

Authorities

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Legislation

  • Pensions law (referred to generically)Not specified

Cases cited (2)

  • Kasana Produce Store v Kato
    (1973) EA 190
  • Bank of Uganda v Tinkamanyire
    (2009) 2 EA 66
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over a cause of employment (specific statutory provision not stated in the judgment)

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, "Stephen Maranga Obegi v Kenya Revenue Authority [2019] KEELRC 2550 (KLR)", Case Analysis (2018). Cause No 2109 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2550/eng@2019-01-25

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