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ELRCDismissedCause No 1887 of 2016· [2023] KEELRC 1594 (KLR)

Mutema v Kenya Methodist University (Cause 1887 of 2016) [2023] KEELRC 1594 (KLR)

Employment and Labour Relations Court
30 June 2023
SRStella Rutto
5,399 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~22 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court confirmed that when a fixed-term contract simply expires, its non-renewal is not unfair termination and no damages are owed.

What this practically means

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Executive summary

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The claimant, formerly Vice Chancellor of the respondent university, was employed on a five-year fixed term contract effective 25th March 2010, with a provision that he would be 'eligible for reappointment for a further five years final term.' By letter dated 5th February 2015, the University Council's Chairman informed him that his contract, expiring on 24th March 2015, would not be renewed. He sued for unpaid gratuity of Kshs.27,715,240, declarations of unfair dismissal and breach of legitimate expectation, pay in lieu of six months' notice, constitutional damages and costs. The respondent maintained the contract was fixed term and not renewable, that no notice obligation for non-renewal existed, and that the claimant's tenure was marked by poor financial stewardship. The court, in a judgment by Stella Rutto, Judge, framed three issues: whether non-renewal amounted to unfair termination, whether it violated legitimate expectation, and whether the claimant was entitled to the reliefs sought. Relying on Court of Appeal authority, the court held that fixed term contracts carry no expectation of renewal and that the claimant's contract terminated by effluxion of time on 24th March 2015; the December 2014 handing over was merely the claimant proceeding on leave while on full pay. The court rejected the claimant's reading of 'shall be eligible' as conferring automatic reappointment, noting that he had himself applied for renewal, and held that the six months' notice clause applied only to premature termination. The entire claim was dismissed with each party bearing its own costs.

Key legal issues

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01

Whether non-renewal amounted to unfair termination

Holding

Non-renewal of a fixed term contract is not unfair termination; the contract ended by effluxion of time

Reasoning

The claimant's contract had a fixed start and end date, making it a fixed term contract. Following Court of Appeal authority, such contracts carry no expectation of renewal. The contract ran its course and terminated on 24th March 2015. The handing over in December 2014 was not a termination, as the claimant remained on full pay until the contract's official end. A claim of unfair termination therefore cannot lie.

p. 2
02

Whether the claimant had a legitimate expectation of renewal

Holding

No legitimate expectation arose from the contract, the Charter, or the circumstances

Reasoning

The words 'shall be eligible for reappointment' mean only eligibility for consideration, not automatic renewal. The claimant's own letter requesting renewal showed he knew reappointment was not automatic. The six months' notice clause governed premature termination only. Following the Supreme Court and Court of Appeal, no clear, unambiguous representation inducing a reasonable expectation was demonstrated.

p. 9
03

Whether the December 2014 handing over amounted to termination

Holding

It did not; the claimant proceeded on leave on full pay until the contract's end

Reasoning

The claimant handed over to an acting Vice Chancellor on 30th December 2014 to take accumulated leave. He was paid up to the contract's official end date. The court found nothing suggesting termination in December 2014.

p. 10

Legal principles established

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  • Fixed term contracts carry no rights, obligations or expectations of renewal beyond their expiry date
  • Non-renewal of a fixed term contract terminates it by effluxion of time and does not amount to unfair termination
  • A provision that an officer 'shall be eligible' for reappointment does not create automatic reappointment or legitimate expectation of renewal

Court orders

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  1. 1.The claim is dismissed in its entirety
  2. 2.Each party to bear its own costs

Authorities

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Legislation

  • Employment ActSection 35(1)(c)
  • Constitution of Kenya, 2010Articles 27, 28, 29, 30, 40, 41, 47, 159(2)(d), 48
  • Civil Procedure ActSection 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (9)

  • Teresa Carlo Omondi v Transparency International-Kenya
    [2017] eKLR
  • Francis Njeru Kariuki v Crown Paints Kenya Limited
    [2022] eKLR
  • Linda Ndenengo Mwakungu v Open Society Institute Company Limited
    [2020] eKLR
  • Transparency International vs Teresa Carlo Omondi
    Civil Appeal 81 of 2018 / (2023)
  • Registered Trustees of the Presbyterian Church of East Africa & another v Ruth Gathoni Ngotho-Kariuki
    [2017] eKLR
  • Trocaire vs Catherine Wambui Karuno
    [2018] eKLR
  • Communications Commission of Kenya & 5 others v Royal Media Services Limited & 5 others
    Petition No 14 of 2014, [2014] eKLR
  • South African Veterinary Council vs Szymanski
    2003(4) S.A. 42 (SCA)
  • British Broadcasting Corporation vs Ioannou
    [1975] 2 All ER 999
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes under the Employment Act, 2007

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, "Mutema v Kenya Methodist University (Cause 1887 of 2016) [2023] KEELRC 1594 (KLR)", Case Analysis (2023). Cause No 1887 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1594/eng@2023-06-30

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