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ELRCPartially AllowedPetition No E076 of 2023· [2023] KEELRC 1243 (KLR)

Adan & 2 others (Suing on their behalf and on behalf of 76 other aggrieved employees of the respondent) v Wajir Wasco Limited alias Wajir Water & Sewarage Company Limited & another (Petition E076 of 2023) [2023] KEELRC 1243 (KLR)

Employment and Labour Relations Court
25 May 2023
3,741 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~15 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ordered Wajir Water Company to pay 79 workers all withheld salaries and confirmed county water companies answer to employment courts, not county service boards.

What this practically means

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Executive summary

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The 79 petitioners, employees of Wajir Water & Sanitation Company Limited (WajWASCO), moved the Court by petition and notice of motion seeking conservatory orders directing payment of salaries withheld since October 2022, suspension of unpublished audit reports, and access to payroll records. They alleged the stoppage followed human resource audits without a hearing, violated Articles 41, 47 and 50, and targeted them for clan-based political discrimination. The respondents, represented by the County Government of Wajir and WajWASCO, raised a preliminary objection founded on section 77 of the County Government Act (Public Service Commission jurisdiction), section 82 of the Water Act, and section 9(2) of the Fair Administrative Action Act on exhaustion of remedies. They also alleged the petitioners were ghost workers or fraudulently appointed without County Public Service Board recruitment. The Court dismissed the preliminary objection, holding that WajWASCO is an autonomous company under the Companies Act whose employees are not subject to the Board or the Commission absent any cession of human resource powers, following the Bomet Water decision; that Water Act appeals concern the provider's core statutory functions; and that a pending County Assembly petition does not oust the Court's jurisdiction. On the application, the Court found the appointment letters established employment, that the respondents offered no proof of alleged fraud and improperly shifted their burden of proof, and that no due process under Article 236 had been initiated. A conservatory order issued directing payment of all withheld salaries from October 2022 and continued payment while the contracts subsist, but the Court declined to bar the 1st respondent from lawful human resource and disciplinary processes. Costs of the objection and application were reserved in the cause.

Key legal issues

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01

Whether the Public Service Commission route under section 77 of the County Government Act applies to employees of a county-owned water company

Holding

It does not; the 1st respondent is an autonomous company and no cession of its human resource powers to the County Public Service Board was shown

Reasoning

The Court adopted the holding in Kenya County Workers Union v Bomet Water & Sanitation Company Limited, reasoning that a company limited by shares under the Companies Act is independent of the County Public Service Board. The respondents produced no memorandum or articles showing the company ceded its human resource functions to the Board, and no decision was exhibited that could be subject of an appeal to the Commission.

p. 6
02

Whether section 82 of the Water Act provides an alternative remedy barring the suit

Holding

No; appeals under that section concern the water provider's core statutory functions under section 72, and further appeals lie to the Environment and Land Court, not this Court

Reasoning

The Court found that appealable decisions of a water services provider relate to its core functions such as licensing and disconnection decisions concerning water resources and services. The petitioners' dispute concerns employment and salaries, not such decisions. Moreover, subsequent appeals under section 124 lie to the Environment and Land Court, so section 82 cannot divest this Court of jurisdiction over employment disputes.

p. 7
03

Whether a pending petition before the County Assembly ousts the Court's jurisdiction

Holding

No provision or principle establishes that a pending County Assembly petition bars the Court's jurisdiction

Reasoning

The respondents argued that the petitioners had petitioned the Wajir County Assembly and that the proceedings were an abuse of process. The Court held that no established provision or principle provides that a petition pending before a County Assembly ousts or bars the Court's jurisdiction over the dispute.

p. 7
04

Whether interim conservatory orders should issue

Holding

Yes, as to payment of withheld and continuing salaries; the employment relationships were shown by appointment letters, no evidence of fraud was exhibited, and due process under Article 236 had not been initiated

Reasoning

The petitioners exhibited appointment letters by the 1st respondent's board, establishing employment. The respondents alleged fraud and forged letters but exhibited no proof, attempting to shift their burden of proof. Audit reports were investigative only, with no disciplinary proceedings initiated. Public officers enjoy due process protection under Article 236 before removal, so until lawful termination the contracts must be performed, justifying the salary conservatory order. The Court declined to bar the 1st respondent's human resource prerogatives generally.

p. 8

Legal principles established

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  • Employees of a water company incorporated under the Companies Act and owned by a county government are not subject to the County Public Service Board or the Public Service Commission appeal mechanisms absent a cession of human resource functions
  • Section 82 of the Water Act appeals concern the provider's core functions under section 72, and subsequent appeals lie to the Environment and Land Court, not this Court
  • A party alleging fraud or irregular employment bears the burden of proving it and cannot shift that burden to the employee
  • Public officers enjoy constitutional protection of due process prior to removal under Article 236, and contracts of service must be honoured until lawfully terminated

Court orders

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  1. 1.The preliminary objection is dismissed with costs in the cause
  2. 2.Pending the hearing and determination of the petition, a conservatory order issued directing the 1st respondent and its agents to pay the petitioners and other aggrieved employees all withheld salaries from October 2022 to date, and to continue paying salaries as and when they fall due for as long as the contracts of service are in place
  3. 3.Parties to set down the petition for mention for directions for expeditious hearing and determination
  4. 4.The costs of the application in the cause

Authorities

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Legislation

  • Constitution of KenyaArticles 10, 22, 27, 28, 30, 41, 47, 50, 258, 232(2), 236, 260
  • Employment Actsections 5, 7
  • Fair Administrative Action Actsections 4, 9(2)
  • Employment and Labour Relations Actsections 3, 12(1)(a), 12(2), 12(3)
  • County Government Actsections 6(5), 59, 63, 77, 82/83
  • Water Actsections 55, 72, 77, 82, 83, 124
  • Public Finance Management Actsection 2(1)
  • Public Service Commission Act2017, on public bodies and companies whose employees are public servants
  • Companies ActCap 486
  • Wajir County Assembly Standing OrdersStanding Order 212
  • WASREB Corporate Guidelinesparagraph 3.3.3 (2018)
  • Mwongozo Codenot specified

Cases cited (2)

  • Kenya County Workers Union v Bomet Water & Sanitation Company Limited
    [2022] eKLR
  • Board of Management of Uhuru Secondary School v City County Director of Education & 2 Others
    [2015] eKLR
Jurisdiction invoked
Articles 22, 258 of the Constitution; sections 3 and 12 of the Employment and Labour Relations Act

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, "Adan & 2 others (Suing on their behalf and on behalf of 76 other aggrieved employees of the respondent) v Wajir Wasco Limited alias Wajir Water & Sewarage Company Limited & another (Petition E076 of 2023) [2023] KEELRC 1243 (KLR)", Case Analysis (2023). Petition No E076 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1243/eng@2023-05-25

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