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ELRCPartially AllowedCause No 637 of 2019· [2022] KEELRC 966 (KLR)

Erastus Chege Mwangi v Kenya Railways Corporation [2022] KEELRC 966 (KLR)

Employment and Labour Relations Court
27 January 2022
10,439 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~42 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled Kenya Railways unfairly fired a surveyor who raised land compensation concerns, awarding him six months' salary.

What this practically means

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Executive summary

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The Claimant, employed by Kenya Railways Corporation from 30th December 2011 and rising to Principal Land Surveyor, was terminated on 23rd September 2019 after initiating a draft letter to the Chairman of the National Land Commission and communicating with the Commission to pend compensation payments for parcel Ngong/Ngong 18549, part of the land proposed for acquisition for the SGR Phase 2A project. The Respondent alleged gross misconduct for sharing unauthorized/confidential information with the public. The court framed two issues: whether the termination was unfair and whether the Claimant was entitled to the reliefs sought. On substance, the court found the Respondent had not proved a valid and fair reason: the National Land Commission is a constitutional partner entity, not 'the public'; the Manual did not define 'confidential information'; no evidence showed the disclosure was confidential or detrimental; and the Claimant acted in good faith to protect public resources, arguably protected by Section 16 of the Access to Information Act. Procedurally, however, the termination complied with Section 41 of the Employment Act, the Claimant having been accorded two opportunities to be heard. On remedies, reinstatement was refused as impracticable given the strained relationship and the Claimant's contribution to his termination. The court awarded salary for September 2019, the unpaid salary from February to August 2019, six months' gross salary as compensation under Section 49(1)(c), payment for unutilized leave days, and a certificate of service, with costs and interest. Claims for anticipatory earnings, pension for the unexpired term, golf membership, medical benefits and service pay were disallowed for lack of legal basis or evidence.

Key legal issues

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01

Whether the Respondent had a valid and fair reason for terminating the Claimant

Holding

The Respondent failed to prove a valid and fair reason; the National Land Commission is not 'the public', the information shared was not shown to be confidential, and the disclosure was arguably in the public interest and made in good faith

Reasoning

The termination letter alleged sharing of unauthorized information with the public, but the Manual did not define 'confidential information' or 'public'. The National Land Commission is a constitutional commission and a key stakeholder in the SGR project; communication between the two public bodies was inevitable. The Respondent led no evidence that the SGR project was delayed or that its business was detrimentally affected. The Claimant acted in good faith to protect public resources, consistent with Section 16 of the Access to Information Act.

p. 9
02

Whether the procedure of termination complied with Section 41 of the Employment Act

Holding

Procedurally fair; the Claimant was accorded two opportunities to be heard and present his defence

Reasoning

A show cause letter was issued and answered; an investigation committee and the HRMAC heard the Claimant with a representative of his choice. The delay between interdiction and hearing was not shown to be prejudicial, and the Claimant had no evidence that requested documents were requested or denied. An appeal is not a judicial process and there is no obligation to accord a fresh hearing on appeal.

p. 11
03

Whether reinstatement was an appropriate remedy

Holding

Reinstatement refused; it was impracticable and the Claimant contributed to the termination

Reasoning

Under Section 49(4) of the Employment Act, the court must weigh the practicability of reinstatement, the employee's contribution to termination, and the strained relationship. The Claimant filed suit seven days after termination without exhausting the internal appeal, his communication antagonized the two institutions, and his profession limited him to the Survey department. Submissions did not canvass reinstatement as the principal remedy.

p. 12
04

Quantum of compensation for unfair termination

Holding

Six months' gross salary awarded under Section 49(1)(c) of the Employment Act

Reasoning

Although the Claimant sought 24 months, no legal basis for that figure was urged; the court applied Section 49(1)(c) which caps compensation at 12 months. Considering the length of service (about 7 years 8 months), clean disciplinary record, good faith of the disclosure, but also the Claimant's substantial contribution to his own termination and the three months' notice terminable contract, six months was fair, consistent with Court of Appeal practice.

p. 12

Legal principles established

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  • For a termination to be fair it must pass both substantive justification and procedural fairness tests
  • The employer bears the burden of proving a valid and fair reason and fair procedure under Section 45 of the Employment Act
  • Disclosure of information to a partner public entity such as the National Land Commission in the course of duty does not amount to disclosure to the public
  • Whistle-blower disclosure in the public interest is protected under Section 16 of the Access to Information Act, 2016
  • Reinstatement is discretionary and the court must consider its practicability
  • Claims for anticipatory earnings/unexpired term of contract are not anchored in law

Court orders

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  1. 1.Declaration that the Claimant's termination of employment was unfair and unlawful
  2. 2.Salary for the days worked in September 2019, if not already paid
  3. 3.Unpaid portion of the Claimant's salary from February 2019 to August 2019, if not already paid
  4. 4.Equivalent of six (6) months' gross salary as compensation for unfair termination
  5. 5.Payment for unutilized leave days unless already paid
  6. 6.Certificate of service to issue within 30 days of the judgment
  7. 7.Costs of the suit to the Claimant
  8. 8.Interest at court rates from the date of judgment till payment in full

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 10; Article 67(1); Article 67(2); Article 159(2)(d); Article 48; Article 31
  • Employment ActSections 41, 42(1), 43(1), 44(3), 44(4), 45(1), 45(2), 47(5), 49(1)(c), 49(3)(a), 49(4)(c)
  • Access to Information Act, 2016Sections 14(1), 16, 16(1), 16(2), 16(5)
  • National Land Commission Act, 2012Section 5(2)(a)
  • Leadership and Integrity Act, 2012Part II
  • Public Officers Ethics ActSection 10
  • Anti-Corruption and Economic Crimes Act, 2003Section 65
  • Bribery Act, 2016Not specified
  • Official Secrets ActNot specified
  • Civil Procedure ActSection 1B
  • Civil Procedure RulesOrder 21 Rule 1
  • ILO Termination of Employment Convention, 1982Not specified
  • Kenya Railways Corporation Human Resource Policy and Procedures Manual, 2017Paragraphs 1.2.2(i), 10.4(1)-(2), 10.5, 10.12.1, 10.16.1, 10.16.2, 11.4(h), 11.14(b), 11.16.11(iii), 11.17, 11.18, 11.24

Cases cited (26)

  • Cooperative Bank of Kenya Limited v Banking Insurance & Finance Union (K)
    (2017) eKLR
  • Peter Wangai v Egerton University
    [2019] eKLR
  • Michael Sistu Mwaura Kamau v Ethics & Anti-Corruption Commission & 4 others
    [2017] eKLR
  • Kenfreight (E.A) Limited v Benson K. Nguti
    (2016) eKLR
  • Okiya Omtata Okoiti & 2 others v Attorney General & 3 Others
    (2014) eKLR
  • Baseline Architects Limited & 2 others v National Hospital Insurance Fund Board Management
    [2008] eKLR
  • Marilyn Muthoni Kamau & 2 others v Attorney General & another
    (2016) eKLR
  • Pamela Nelima Lutta v Mumias Sugar Co. Ltd
    (2017) eKLR
  • Amos Kitavi Kivite v Kenya Revenue Authority
    (2020) eKLR
  • Leland Salano v Intercontinental Hotel
    (2013) eKLR
  • Magdalene Kiboi & 17 Others v Engen Kenya Limited
    (2019) eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    [2013] eKLR
  • National Bank of Kenya v Anthony Njue John
    [2019] eKLR
  • Janet Nyandiko v Kenya Commercial Bank Limited
    [2017] eKLR
  • CMC Aviation Limited v Mohammed Noor
    [2013] eKLR
  • Standard Group Limited v Jenny Luesby
    [2018] eKLR
  • Loice Otieno v Kenya Commercial Bank Ltd
    [2013] eKLR
  • Samuel Mwangi Wachinga v Endarasha Farmers' Co-operative Society
    [2018] eKLR
  • Kenya Airways Limited v Alex Wainaina Mbugua
    [2019] eKLR
  • Kenya Airways Limited v Allied & Aviation Workers Union Kenya
    [2014] eKLR
  • Judicial Service Commission v Joseph Riitho Ndururi
    [2021] eKLR
  • Ol Pejeta Ranching Limited v David Wanjau Muhoro
    [2017] eKLR
  • Freight In Time Limited v Rosebell Wambui Munene
    [2018] eKLR
  • Engineer Francis N. Gachuri v Energy Regulatory Commission
    [2013] eKLR
  • Elizabeth Wakanyi Kibe v Telkom Kenya Limited
    [2014] eKLR
  • D. K. Njagi Marete v Teachers Service Commission
    [2020] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and the Employment and Labour Relations Act (first-instance employment claim)

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, "Erastus Chege Mwangi v Kenya Railways Corporation [2022] KEELRC 966 (KLR)", Case Analysis (2022). Cause No 637 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/966/eng@2022-01-27

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