Redington Kenya Limited v Nabende & another (Cause 135 of 2020) [2021] KEELRC 1050 (KLR)

The 1st Respondent separately entered into two contracts of employment, one with the Claimant and one with the 2nd Respondent. The Claimant's suit concerns breach of the contract between the Claimant and the 1st Respondent, including the restrictive covenant in clause 7. Under the doctrine of privity, obligations under that contract bind only its parties. The 2nd Respondent was a stranger to the contract, was not privy to its terms, and the alleged breach was not attributable to its act or omission. The court found no cause of action against it and held it neither a necessary nor proper party, so its name was struck out.

The court adopted the Court of Appeal's exposition in Savings & Loan (K) Limited v Kanyenje Karangaita Gakombe & another, which recognised that a contract cannot be enforced by or against a third party, subject to exceptions including collateral contracts relating to the same subject matter. The Claimant's allegation that the 2nd Respondent knowingly employed the 1st Respondent and benefited from disclosure of confidential information did not bring the case within those exceptions, so no obligation could be imposed on the 2nd Respondent.