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ELRCPartially AllowedCause No 841 of 2013· [2020] KEELRC 531 (KLR)

Paschal Akong’o Sihudu & 34 others v Attorney General [2020] KEELRC 531 (KLR)

Employment and Labour Relations Court
12 August 2020
8,294 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~33 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled 35 meteorological staff were unlawfully retrenched in 2000 and awarded them severance, compensation and KES 500,000 each in damages.

What this practically means

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Executive summary

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Pascal Akong'o Sihudu and 34 other claimants, former Meteorological Assistants in the Kenya Meteorological Department, sued the Attorney General under the Government Proceedings Act claiming that their early retirement with effect from 1st October 2000 under the Civil Service Staff Retrenchment Programme was unlawful, fraudulent and unconstitutional. They sought declarations of wrongful retrenchment, damages, exemplary damages and reinstatement. The Respondent filed a blanket denial, did not adduce documentary evidence of compliance with retrenchment procedure, and contended the retrenchment followed Civil Service Reform Programme guidelines and that pre-2007 employers were not obliged to give reasons or a hearing. The court, Maureen Onyango J, found the Claimants were public officers appointed by the Public Service Commission (a fact admitted in the Respondent's submissions). It held that the purported 'early retirement' on abolition of office was in substance a redundancy which failed to comply with Section 16A of the repealed Employment Act (no notice to the union or labour officer, no one month's notice, no severance) and Regulation 20 of the Public Service Commission Regulations, and that the Permanent Secretary usurped the PSC's constitutional powers under section 107 of the former Constitution. The Respondent's recruitment of 32 trainees into the Department undermined its claim that offices were abolished. Following the preliminary decree in Ishmael Omula Egala & 7 Others v Attorney General on identical facts, the court declined reinstatement but awarded each Claimant severance at 15 days' pay per completed year, one month's salary in lieu of notice, three months' gross salary as compensation, and KES 500,000 exemplary damages, with costs and interest. The suit succeeded on the core claims but failed on reinstatement.

Key legal issues

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01

Whether the Claimants were public officers appointed by the Public Service Commission

Holding

Yes - letters of appointment, confirmation and related correspondence confirmed they were public officers in the Kenya Meteorological Department, and the Respondent admitted this in submissions despite a blanket denial in its defence

Reasoning

The Claimants produced appointment letters, confirmation letters, re-alignment/upgrades and certificates. The defence denied the averments wholesale but its written submissions admitted the Claimants were duly appointed public officers. The court accepted the documents and the admission as establishing public office.

p. 7
02

Whether the retrenchment/early retirement was wrongful and unlawful

Holding

Yes - the purported early retirement was in substance a redundancy which did not comply with Section 16A of the repealed Employment Act or Regulation 20 of the Public Service Commission Regulations

Reasoning

The notification letters did not disclose reasons, selection criteria, notice or severance as required. The Respondent filed no documents proving due process beyond payment vouchers. It then recruited 32 trainees to fill the vacated positions, contradicting the claim that offices were abolished. The PS acted outside section 107 of the former Constitution, which vested appointment and removal powers in the PSC.

p. 8
03

Whether the employer was obliged to give reasons and a hearing before 2007

Holding

The Ezekiel Nyangoya Okemwa position (employers could terminate at will pre-2007) was held irrelevant because the public service was still bound by constitutional natural justice and its own regulations

Reasoning

While the old employment law allowed termination at will, the former Constitution espoused natural justice for administrative bodies, and public service regulations and policies specifically governed termination and retrenchment, including Regulation 20 and the Sensitization Manual on Retrenchment.

p. 9
04

What remedies flow from the unlawful retrenchment

Holding

Severance at 15 days' pay per completed year, one month's salary in lieu of notice, three months' gross salary as compensation, and KES 500,000 exemplary damages per Claimant; reinstatement refused

Reasoning

Following the Ishmael Omula Egala preliminary decree on identical facts, the court adopted the same remedial scheme but declined reinstatement, instead awarding exemplary damages to compensate for the PSC's failure to reinstate the Claimants for over seven years and the suffering in that period.

p. 10

Legal principles established

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  • Retrenchment in the guise of early retirement on re-organisation or abolition of office is in substance redundancy and must comply with statutory redundancy requirements
  • Even before the Employment Act, 2007, public service terminations were governed by regulations, policies and constitutional principles of natural justice
  • General damages are not awardable for breach of contract; compensation for wrongful termination is measured by notice periods and statutory entitlements

Court orders

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  1. 1.Award of severance pay to each Claimant at the rate of 15 days of service for each complete year of service
  2. 2.Award of one month's salary in lieu of notice to each Claimant
  3. 3.Award of three months' gross salary as compensation for the unlawful and wrongful retrenchment to each Claimant
  4. 4.Award of exemplary damages of KES 500,000.00 to each Claimant
  5. 5.Payment per Schedule 1 - Award attached to the judgment
  6. 6.Costs of the suit to the Claimants
  7. 7.Interest at court rates from the date of judgment until payment in full

Authorities

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Legislation

  • Government Proceedings Act
  • Interpretation and General Provisions Act, Cap 2Section 23
  • Employment and Labour Relations Court Act, 2014Section 20(4)(c), (5) and (7)
  • Service Commissions Act, Cap 185 (repealed)Section 13
  • Public Service Commission Regulations (made under the Service Commissions Act Cap 185)Regulations 20 and 21
  • Employment Act, Cap 226 (repealed)Sections 16A, 30, 40
  • Employment Act, 2007Section 49
  • Trade Disputes ActSection 2
  • Constitution of Kenya (former)Section 107(1)
  • Constitution of Kenya, 2010Articles 159(2)(d) and 48
  • Civil Procedure ActSection 27; Section 1B
  • Civil Procedure RulesOrder 21 Rule 1
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rules 14(10) and 21
  • State Corporations Act, Cap 446Section 5(3)

Cases cited (18)

  • Loise Obengo v Nyanza Reproductive Health Society
    [2013] eKLR
  • Ishmael Omula Egala & 7 Others v The Attorney General (ELRC Cause No. 1255 of 2014, formerly HCCC No. 1512 of 2002 consolidated with HCCC No. 8 of 2003)
  • Bamburi Portland Cement Company Limited v Imranali Chandbhai Abdulhussein
    [1996] eKLR
  • Emerald Construction Co. Ltd v Lowthian
    [1966] 1 WLR 691
  • Ezekiel Nyangoya Okemwa v Kenya Marine & Fisheries Research Institute
    [2016] eKLR
  • Kenya Revenue Authority v Menginya Salim Murgani
    [2010] eKLR
  • Jane Njeri Wanyoike & 23 Others v Pan Africa Insurance Company Limited & 2 others
    [2017] eKLR
  • James Orengo v Attorney General, Nairobi HCC No. 207 of 2002
  • Amos Ng'ang'a Waiharo and 148 Others v Egerton University, Nakuru HCC No. 100 of 2002
  • Peter Baiye Gichohi & Another v Attorney General
    [2012]
  • Kennedy Maina Mirera v Barclays Bank of Kenya Limited
    [2018] eKLR
  • Directline Assurance Company Limited v Jeremiah Wachira Ichaura
    [2016] eKLR
  • Securicor Courier (K) Ltd v Benson David Onyango and Ann, Civil Appeal No. 323 of 2002 (UR)
  • Joseph Ileli Kikumbi v Central Bank of Kenya
  • Central Bank of Kenya v Nkabu
  • Kenya Bus Services Limited v Meleksadik Okutoi
  • Benedict Munene Kariuki and 14 Others v The Attorney General
    [2011] eKLR
  • Gitobu Imanyara and 2 others v Attorney General
    [2016] eKLR
Jurisdiction invoked
Employment and Labour Relations Court Act, 2014 (first-instance employment claim against the Attorney General under the Government Proceedings 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, "Paschal Akong’o Sihudu & 34 others v Attorney General [2020] KEELRC 531 (KLR)", Case Analysis (2020). Cause No 841 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/531/eng@2020-08-12

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