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ELRCPartially AllowedPetition No E053 of 2021· [2021] KEELRC 8 (KLR)

Kamau v Kenya Accreditation Service (Petition E053 of 2021) [2021] KEELRC 8 (KLR)

Employment and Labour Relations Court
30 July 2021
7,882 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~32 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled that employers cannot unilaterally strip an employee of key duties or reopen settled disciplinary matters without consultation and proper approvals.

What this practically means

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Executive summary

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The petitioner, Chief Manager Corporate Services of the Kenya Accreditation Service (KENAS), petitioned alleging harassment, threats, intimidation and unfair unilateral changes to his employment, including removal of the Finance and Accounts function from his directorate and a show cause letter dated February 25, 2021 on surcharge for non-remittance of statutory deductions. The respondent raised a preliminary objection that the court lacked jurisdiction because the petitioner had not exhausted dispute resolution mechanisms under section 74 of the Public Service Commission Act and the PSC Regulations. The court dismissed the preliminary objection, holding that no Board decision existed capable of appeal to the PSC, and that the petition required constitutional interpretation which only the court could undertake. On the merits, the court found that only the Board could discipline an officer of the petitioner's grade, that the CEO had commenced disciplinary proceedings without a Board resolution or the investigations required by the HR Manual, and that matters including a prior surcharge had been settled after the petitioner's representations to the Human Resource Committee. It further held that the unilateral transfer of the Finance and Accounts function breached section 10(5) of the Employment Act and required Board and State Corporations Advisory Committee approval, rendering the changes irregular, illegal, null and void and violating the petitioner's rights under articles 41, 47 and 50(1). The court issued declarations, permanently restrained the respondent from revisiting matters settled as at December 8, 2020, reinstated the Finance and Accounts function to the petitioner's docket, refused damages, and awarded the petitioner costs.

Key legal issues

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01

Jurisdiction - exhaustion of internal dispute resolution mechanisms

Holding

The preliminary objection fails; the court has jurisdiction because no Board decision exists capable of appeal to the PSC and the petition raises constitutional interpretation which only the court may determine

Reasoning

The PSC Act applies to state corporations generally, but no decision by the Board has been made against which an appeal lies to the PSC. The petition challenges disciplinary proceedings and unilateral variation of contract, pleading constitutional breaches meeting the Anarita Karimi Njeru threshold. Under articles 23(1) and 165 the ELRC, not the PSC, interprets the Constitution in employment matters; exceptions to exhaustion apply where constitutional interpretation is at stake. Further, the PSC/HR Manual appeal scheme arguably denies access to court.

p. 16
02

Court's intervention in internal disciplinary proceedings

Holding

The disciplinary proceedings commenced by the CEO's letter of February 25, 2021 are unfair and the court will intervene to bar revisiting of issues already settled

Reasoning

Only the Board could discipline an officer at Grade KENAS 2, yet the CEO initiated the process without a Board resolution and without investigations required by the HR Manual. Matters including surcharge for improper performance had been settled after representations to the HRC, as confirmed by the CEO's letter of December 8, 2020. Revisiting settled matters would violate the petitioner's legitimate expectation; the respondent may only charge for matters arising after December 8, 2020.

p. 17
03

Unilateral transfer of Finance and Accounts function

Holding

The transfer was irregular, illegal, null and void as it was done without consultation, Board or SCAC approval, violating the petitioner's rights

Reasoning

Section 10(5) of the Employment Act mandates consultation before revising contractual terms; there was no evidence of consultation. The restructuring altered the organizational structure and staff establishment approved by SCAC, requiring Board and SCAC approval under the State Corporations Act and the Career Progression Guidelines. The unilateral action condemned the petitioner unheard, contrary to article 47, and rewrote his contract contrary to his legitimate expectation.

p. 20
04

Reliefs

Holding

Declarations granted, settled matters permanently restrained from being revisited, Finance and Accounts function reinstated, but damages refused

Reasoning

Having found the disciplinary process and transfer of functions arbitrary and unauthorized, the petitioner was entitled to declaratory relief, a permanent restraint on revisiting settled issues, and reinstatement of the Finance and Accounts function. Damages were refused because the petitioner remains employed and past disputes had been amicably resolved.

p. 21

Legal principles established

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  • Where a specific dispute resolution mechanism is prescribed by the Constitution or statute, it must be resorted to first before invoking the court's jurisdiction
  • An employee need not exhaust internal appeal mechanisms where no decision has been made that is capable of appeal and the petition involves constitutional interpretation within the court's exclusive jurisdiction
  • The court may intervene in an employer's internal disciplinary process where the process contravenes the Constitution, legislation, contract or policy, or offends natural justice
  • Any change to matters stipulated in a contract of employment requires consultation with the employee under section 10(5) of the Employment Act
  • Unilateral alteration of an employee's functions amounting to a change of organizational structure requires approval of the employer's Board and the State Corporations Advisory Committee

Court orders

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  1. 1.The respondent's preliminary objection is dismissed
  2. 2.A declaration that the respondent's actions violated the petitioner's rights under articles 41, 47 and 50(1) of the Constitution and were therefore unlawful and unfair
  3. 3.The respondent is permanently restrained from revisiting the settled issues (matters settled as at December 8, 2020) in the impugned disciplinary proceedings
  4. 4.The Finance and Accounts function be and is hereby reinstated to the petitioner's docket forthwith
  5. 5.Any other relief sought and not expressly granted is dismissed
  6. 6.The petitioner is awarded costs of the suit

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 10, 23(1), 27, 28, 41, 47, 50(1), 73, 159(2)(c), 162(2)(c), 165(5), 232, 236, 260
  • Employment Act, 2007Sections 4, 10(5), 41
  • Public Service Commission Act, No 10 of 2017Sections 2, 3, 74(1)
  • Public Service Commission Regulations, 2005Paragraph 31
  • Public Service Commission Regulations, 2020Paragraph 68
  • Human Resource Practitioner's Act, 2012Section 12
  • Fair Administrative Action ActNot specified
  • State Corporations ActSection 27(1)(c)
  • Kenya Accreditation Service ActSection 3
  • Guidelines on Design of Organization Structures in the Public Service, May 2015Guideline 2.2, Steps 5 and 6

Cases cited (20)

  • Josephine Washifutswa Nambiro v Energy and Petroleum Regulatory Authority
    [2020] eKLR
  • Eustace Muriithi Njeru v Energy and Petroleum Regulatory Authority
    [2020] eKLR
  • Stella Nkatha Kebongo v Barclays Bank Limited
    [2016] eKLR
  • Agnes Ongadi v Kenya Electricity Transmission Company Limited
    [2016] eKLR
  • Jane Achieng & another v University of Nairobi
    [2015] eKLR
  • Esther W Kiege & another v Kenya Forest Service & another
    [2018] eKLR
  • Mutanga Tea and Coffee Company Limited v Shikara Limited & another
    [2015] eKLR
  • Secretary, County Public Service Board v Hulbai Gedi Abdille
    [2017] eKLR
  • Savraj Singh Chania v Diamond Trust Bank (Kenya) Limited & another
    [2020] eKLR
  • Kenya Union of Domestic, Hotels, Education And Allied Workers (Kudhehia Workers) v Salaries and Remuneration Commission
    [2014] eKLR
  • Abraham Gumba v Kenya Medical Supplies Authority
    [2017] eKLR
  • James Angawa Okeyo v Kenya Plant Health inspectorate Services
    [2020] eKLR
  • Speaker of the National Assembly v Njenga Karume
    [1992] KLR 21
  • William Odhiambo Ramogi & 3 others v Attorney General & 4 others; Muslims for Human Rights & 2 others (Interested Parties)
    [2020] eKLR
  • Anarita Karimi Njeru v Republic
  • R v Independent Electoral and Boundaries Commission (IEBC) & others Ex Parte The National Super Alliance Kenya (NASA)
  • Moffat Kamau and 9 others v Aelous (K) Ltd and 9 others
  • Booysen v The Minister of Safety and Security and OR
    [2011] 1 BLLR 83 (LAC)
  • Rebecca Ann Maina & 2 others v Jomo Kenyatta University of Agriculture and Technology
    [2014] eKLR
  • Mulwa Msanifu Kombo v Kenya Airways
    [2013] eKLR
Jurisdiction invoked
Articles 23(1) and 165 of the Constitution; Employment and Labour Relations Court jurisdiction over employment and labour relations matters

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, "Kamau v Kenya Accreditation Service (Petition E053 of 2021) [2021] KEELRC 8 (KLR)", Case Analysis (2021). Petition No E053 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/8/eng@2021-07-30

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