Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
Caselaw
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCStruck OutELRC Cause (number not stated in judgment)· [2020] KEELRC 1574 (KLR)

James Opato Olundo v Kenya Railways Corporation [2020] KEELRC 1574 (KLR)

Employment and Labour Relations Court
3 February 2020
HWHELLEN WASILWA
2,789 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

#

Kenya's Employment Court struck out a retired railway worker's pension claim, ruling it has no jurisdiction over pension matters.

What this practically means

#

Executive summary

#
The Claimant, James Opata Olundo, retired from the Respondent, Kenya Railways Corporation, on 30/04/2006 after 33 years and 7 months of service. His benefits were computed at Kshs. 409,005/-, of which Kshs. 100,000/- was paid, with the balance of Kshs. 309,005/- plus a monthly pension of Kshs. 5,112.55 due. In 2012 the Respondent paid him Kshs. 682,221.15, which it treated as full and final payment. The Claimant claimed Kshs. 4,007,294/- in further benefits, contending the 2012 payment was belated and should have triggered a recalculation, and that unpaid pension rights constitute a continuing injury that does not lapse. The Respondent filed a preliminary objection asserting want of statutory notice, time-bar under Section 87(b) of the Kenya Railways Corporation Act and Section 90 of the Employment Act, and lack of jurisdiction. It relied on authorities including Owners of Motor Vessel 'Lillian S' and Divecon Ltd v Samani. The Claimant countered that pension claims fall under the Pensions Act, particularly Section 16A, and that limitation issues require evidence at trial. In a brief ruling delivered on 3rd February 2020, Lady Justice Hellen Wasilwa held that, as a matter relating to pension, the Court of Appeal had in Civil Appeal No. 20/2017 stated that the Employment and Labour Relations Court's jurisdiction does not extend to pension matters. Finding it futile to consider the merits of the objection, she struck out the claim with no order as to costs. Notably, the limitation arguments of both parties were left undecided.

Key legal issues

#
01

Jurisdiction over pension claims

Holding

The court struck out the claim for want of jurisdiction, holding that pension matters fall outside the ELRC's jurisdiction as stated by the Court of Appeal in Civil Appeal No. 20/2017.

Reasoning

The court noted the claim concerns late payment of pension and that the Claimant relies on Section 16A of the Pensions Act. Relying on the Court of Appeal's statement in Civil Appeal No. 20/2017 that the ELRC's jurisdiction does not extend to pension matters, the judge declined to consider the merits of the limitation arguments and struck out the claim without costs.

p. 4
02

Limitation of actions

Holding

Fully argued but not decided; the court found it futile to consider the merits of the preliminary objection given the lack of jurisdiction.

Reasoning

The Respondent argued the claim, filed on 24/02/2017, was barred under Section 87(b) of the Kenya Railways Corporation Act and Section 90 of the Employment Act, the cause of action having accrued on full payment in June 2012. The Claimant argued continuing injury and non-lapsing pension rights. The court did not determine these arguments, resting instead on lack of jurisdiction.

p. 4

Legal principles established

#
  • The Employment and Labour Relations Court lacks jurisdiction over pension matters, per the Court of Appeal in Civil Appeal No. 20/2017

Court orders

#
  1. 1.The claim is struck out
  2. 2.No order as to costs

Authorities

#

Legislation

  • Pensions ActSection 2; Section 16A
  • Kenya Railways Corporation Act (Cap 397)Section 3(1); Section 81(a); Section 87(b)
  • Employment Act, 2007Section 90; Section 93
  • Limitation of Actions Act (Cap 22)Section 4(1); Part III; Section 31
  • Public Authorities ActSection 3(2)
  • The Kenya Railways Corporation (Pensions) Regulations1983 Regulations

Cases cited (8)

  • Justus Atulo Ashioya –v- Akshar Team Security Ltd
    Industrial Cause No. 849 of 2011
  • Joseph Sebastian Ringo –v- Kenya Railways Corporation
    [2015] eKLR
  • Teachers Service Commission –v- Pauline Kasumba Osembe (suing on behalf of the Estate of John Mugonya Kasuma) & 2 others
    [2019] eKLR
  • Owners of Motor Vessel ‘Lillian S’ v Calter Oil (Kenya) Limited
    (1989) KLR 1
  • Divecon Ltd v Samani
    [1995-1998] 1 EA 48
  • Peter Njogu Mwangi & 3 Others v General Motors E.A Limited & 3 others
    [2018] eKLR
  • Joseph Sebastian Ringo –v- Kenya Railways Corporation
    Civil Appeal No. 129 of 2017
  • Charles M. Shitiavai –v- City Council of Nairobi
    (2012)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act; the court found its jurisdiction does not extend to pension matters

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "James Opato Olundo v Kenya Railways Corporation [2020] KEELRC 1574 (KLR)", Case Analysis (2020). ELRC Cause (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1574/eng@2020-02-03

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