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ELRCDismissedCause No. 1888 of 2017 (Ruling No. 2)· [2020] KEELRC 445 (KLR)

Miriam Cherogony v African Rural and Agricultural Credit Association & another [2020] KEELRC 445 (KLR)

Employment and Labour Relations Court of Kenya at Nairobi
25 September 2020
1,519 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 international organisations cannot hide behind immunity to avoid lawsuits by their local employees over employment contracts.

What this practically means

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Executive summary

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This is Ruling No. 2 in an employment cause before the Employment and Labour Relations Court at Nairobi, deciding a preliminary objection dated 5 February 2020 by the International Fund for Agricultural Development (2nd Respondent). The objection contended that the 2nd Respondent enjoys immunity from legal process under the United Nations Convention on Privileges and Immunities of the Specialised Agencies, read with the Agreement establishing IFAD and the UN-IFAD Agreement, and that the dispute arose from official rather than private matters. The Claimant opposed, arguing that no Host Country Agreement had been produced, that no Cabinet Secretary order under section 9 of the Privileges and Immunities Act applied the Act to the 2nd Respondent, and that under section 11 immunity covers only official functions and not private contracts such as the consultancy/employment contract in issue. The Court set out the three elements for an immunity plea drawn from Karen Njeri Kandie v Alssane Ba and extensively reviewed the Court of Appeal's decision in Embassy of Sweden, Nairobi v Lucy Muingo Kusewa, which endorsed restrictive immunity and held that employment contracts belong to the private law domain and remain subject to the Employment Court's jurisdiction. The Court held this principle applies equally to international organisations. The objection was dismissed with costs, and directions were issued for filing of Responses, witness statements, documents, agreed issues and a hearing date. The Claimant's Host Country Agreement argument was noted as not determinative.

Key legal issues

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01

Whether an international organisation enjoys immunity from legal process in an employment dispute

Holding

Immunity in employment matters is restrictive, not absolute; employment contracts fall within private law and remain subject to the jurisdiction of the Employment and Labour Relations Court

Reasoning

The Court considered the three elements for a plea of immunity as set out in Karen Njeri Kandie v Alssane Ba: existence of immunity, waiver, and whether the dispute is intrinsically linked to the mandate of the immunised entity. Relying on the Court of Appeal decision in Embassy of Sweden, Nairobi v Lucy Muingo Kusewa, the Court held that employment contracts fall within private law where immunity is restricted, and that local employees' contracts are subject to the Employment Court's jurisdiction.

p. 2
02

Whether the absence of a Host Country Agreement was determinative of the objection

Holding

The Court observed obiter that the Claimant's argument on the lack of a Host Country Agreement would not have been determinative, since the Convention arguably applies directly under Article 2(6) of the Constitution

Reasoning

The Claimant argued that immunity was not demonstrated absent a Host Country Agreement and a Cabinet Secretary order under section 9 of the Privileges and Immunities Act. The 2nd Respondent countered that under Article 2(6) of the Constitution the Convention automatically formed part of Kenyan law, and a Note Verbale applied the Host Agreement to it. The Court declined to decide this point, finding for the Claimant on the private law issue instead.

p. 3

Legal principles established

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  • Employment contracts belong to the private law domain and absolute immunity does not apply to them, even where the employer is an immunised international organisation

Court orders

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  1. 1.The Notice of Preliminary Objection by the 2nd Respondent is dismissed with costs
  2. 2.2nd Respondent to file and serve its Response, witness statements and documents on or before 16 October 2020
  3. 3.1st Respondent to file and serve witness statements and documents on or before 16 October 2020
  4. 4.Claimant to file and serve any Reply within 7 days of service of the Responses
  5. 5.Agreed Issues to be filed before 30 October 2020
  6. 6.In default of agreeing on Issues by 30 October 2020, Claimant's initial proposed issues to be deemed as trial Issues
  7. 7.Hearing date to be taken in the registry after compliance

Authorities

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Legislation

  • United Nations Convention on Privileges and Immunities of the Specialised AgenciesArticle III section 4
  • Agreement establishing the International Fund for Agricultural Development
  • Agreement between the United Nations and the International Fund for Agricultural Development
  • Privileges and Immunities Actsections 9, 11
  • Constitution of Kenya, 2010Article 2(6)
  • United Nations Convention on Jurisdictional Immunities of States and their Property 2004
  • Vienna Convention on the Law of Treaties

Cases cited (6)

  • Karen Njeri Kandie v Alssane Ba & Ar
    (2015) eKLR
  • Bentley v Consulate General of Barbados/Invest Barbados
    2010 HCR TO 2258 (Can LII)
  • Embassy of Sweden, Nairobi v Lucy Muingo Kusewa & Ar
    Nairobi Civil Appeal No. 345 of 2017
  • Cudak v. Lithuania
  • Dube and Another vs American Embassy and another
  • Sebina vs South Africa High Commission
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment claims; objection based on immunity under the United Nations Convention on Privileges and Immunities of the Specialised Agencies and the Privileges and Immunities Act

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, "Miriam Cherogony v African Rural and Agricultural Credit Association & another [2020] KEELRC 445 (KLR)", Case Analysis (2020). Cause No. 1888 of 2017 (Ruling No. 2). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/445/eng@2020-09-25

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