Yamo v Kenya Rural Roads Authority (Cause E808 of 2021) [2023] KEELRC 1870 (KLR)
The bottom line
#A Kenyan court ruled that ending a long-serving employee's fixed-term contract without notice or a hearing was unfair, awarding her over Kshs 9.6 million.
What this practically means
#Executive summary
#Key legal issues
#Whether the termination of the claimant's contract was unfair and unprocedural
The court found the termination unfair, unprocedural and against the law governing fair labour practices, the respondent having broken the contract without cause or reason
The claimant had requested renewal as required, had been rated 'very good'/'good' in her appraisals, and had received a letter of June 30, 2021 which the court found extended her contract. The board's decision to terminate without reason, notice to show cause or a hearing breached the employment contract and fair labour practices, entitling her to notice pay and maximum compensation.
Whether a legitimate expectation of renewal had crystallized
The court held the claimant's expectations were legitimate and had crystallized via the letter of June 30, 2021
Applying the principles in Teresa Carlo Omondi, the court found that the claimant's 12 years of service, her timely renewal request, her good performance ratings and the extension letter of June 30, 2021 gave her rational and objective grounds; the expectations were legitimate and had crystallized, though reinstatement was no longer available.
Whether damages could be awarded for anticipated future service
Damages premised on service not yet rendered were refused
While the claimant succeeded on the fairness claim and was awarded notice pay and 12 months' compensation, the court declined gratuity and salaries for the six-year period she would hypothetically have worked, as these were premised on service not rendered.
Legal principles established
#- An employee claiming legitimate expectation of renewal of a fixed-term contract bears the burden of demonstrating rational and objective reasons for the expectation
- State corporations must handle contract renewals with regard to the requirements of the law, good governance and merit considerations
Court orders
#- 1.A declaration that the respondent board's decision to terminate the claimant's contract of employment on September 13, 2021 is unfair, unprocedural and against the law governing fair labour practices
- 2.Three-month's salary in lieu of notice of Kshs 1,934,625/-
- 3.Twelve months' salary as compensation for unfair and unprocedural termination of Kshs 7,738,500/-
- 4.Certificate of service within 24 hours of the judgment in compliance with section 51 of the Employment Act, failing which payment of Kshs 10,000/- per day for the breach
- 5.Interest on the sums in lieu of notice and compensation at court rates from the date of judgment till payment in full
- 6.Interest on the certificate of service penalty at commercial rates from the date of breach till compliance
- 7.Costs of the suit to the claimant
- Jurisdiction invoked
- Original jurisdiction under the Employment Act and the Employment and Labour Relations Court Act (not expressly cited in the judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Yamo v Kenya Rural Roads Authority (Cause E808 of 2021) [2023] KEELRC 1870 (KLR)", Case Analysis (2023). Cause No E808 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1870/eng@2023-07-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.