Rachael Njambi Thuo v County Government of Nyandarua [2022] KEELRC 1050 (KLR)
The bottom line
#A Kenyan county government was ordered to pay Kshs.1 million for cutting an employee's house allowance without consulting her or giving written notice.
What this practically means
#Executive summary
#Key legal issues
#Whether reduction of the contractual house allowance breached the contract
Yes - the reduction from Kshs.40,000 to Kshs.15,200/13,600 without consultation or written notice breached section 10(5) of the Employment Act and the contract
The appointment letter dated 24th August 2015 stipulated house allowance of Kshs.40,000 which the claimant accepted. Though SRC circulars were in force at appointment, the respondent failed to apply them due to error, then reduced the allowance without consulting the claimant or notifying her in writing. Section 10(5) of the Employment Act requires consultation and written notice for any change to contract terms. The respondent's silence in response to inquiries compounded the breach.
Whether the SRC directive absolved the respondent of liability
No - the respondent had a right to alter the emoluments to correct the error but had to follow the statutory process of consultation and written notification
The court accepted that SRC circulars of 10th December 2014 and 11th August 2015 directed the reduction and were in force at the claimant's appointment, and that the respondent's initial appointment at the higher rate was an error. However, this did not permit unilateral variation; the respondent was required to consult the employee and notify her of the change in writing, which it failed to do. The respondent was directed to seek concurrence with SRC to correct the mistake.
Legal principles established
#- An employment contract may only be altered after consultation with the employee, with written notification of the change as required by section 10(5) of the Employment Act
- Unilateral variation of contractual remuneration by an employer, even pursuant to an SRC directive, constitutes breach of contract
Court orders
#- 1.Damages of Kshs.1,000,000 awarded to the claimant for breach of contract
- 2.Respondent directed to seek concurrence with the SRC to correct the mistake in altering the house allowance
- 3.Costs of the case awarded to the claimant
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment contracts (Employment Act 2007)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Rachael Njambi Thuo v County Government of Nyandarua [2022] KEELRC 1050 (KLR)", Case Analysis (2022). Cause No. 178 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1050/eng@2022-01-20
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.