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ELRCDismissed· [2024] KEELRC 188 (KLR)

Kenya National Union of Nutritionists and Dieticians v Nairobi City County Government & 2 others (Employment and Labour Relations Cause E972 of 2023) [2024] KEELRC 188 (KLR)

Employment and Labour Relations Court
9 February 2024
5,497 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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The Employment and Labour Relations Court ruled that 35 Nairobi county health workers on fixed contracts were not entitled to automatic conversion into permanent, pensionable jobs.

What this practically means

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Executive summary

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The Claimant, a trade union for nutritionists and dieticians, sued on behalf of 35 members (the Grievants) hired by the Public Service Commission (3rd Respondent) on fixed term contracts to serve the Nairobi Metropolitan Services (NMS), a special purpose vehicle created to execute functions transferred from Nairobi City County Government to the National Government by a Deed of Transfer of Functions dated 25th February 2020. The Claimant sought declarations that the fixed term contracts had been converted into permanent and pensionable contracts, relying on section 51 of the Public Service Superannuation Scheme Act, a circular of 3rd August 2021, internal NMS appraisal memos, the Handover Framework, legitimate expectation and an allegation of discrimination. The Respondents maintained that the Grievants were hired on three-year fixed term contracts tied to the temporary transfer arrangement, retained by the County on the same terms under the Handover Framework, subject to absorption only if vacancies existed and on the same terms. The court held that the Public Service Superannuation Scheme Act applies only to National Government public servants, that the Grievants were not transferred employees under section 33, that the 3rd Respondent's circular excluded persons on short term special programmes such as NMS staff, and that the power to hire county personnel vests exclusively in the County Public Service Board under section 59 of the County Governments Act, so the circulars could not override statute. Legitimate expectation and discrimination claims failed for lack of foundation and evidence. The suit was dismissed with costs to the Respondents.

Key legal issues

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01

Applicability of the Public Service Superannuation Scheme Act to the Grievants

Holding

The Act does not apply to the Grievants because they were recruited to serve the County Government, not the National Government, and their engagement was not a transfer of services under section 33 of the Act.

Reasoning

The Act defines 'Government' as the National Government and 'public service' as employment in its service. County Governments are not represented on the Board of Trustees, and the only county-related window is section 33 on transfer of services. The Grievants were newly hired by the 3rd Respondent for the NMS arrangement, not transferred from National Government service, so neither the Act nor its section 51 conversion provision applies to them.

p. 8
02

Whether the 3rd Respondent's circular of 3rd August 2021 converted the Grievants' contracts

Holding

It did not; the circular implemented the Act for National Government civil servants and expressly excluded persons on short term special programmes such as those serving under the NMS.

Reasoning

The circular flowed from the Head of Public Service's memo of 20th November 2020, which excluded employees on Local Agreement (contract) terms. The Grievants were hired on Local Agreement terms and served under the NMS, a special programme vehicle not anchored in law. Further, the 3rd Respondent's constitutional mandate over counties is limited to hearing appeals under article 234(2)(i) and it could not unilaterally impose personnel on the County.

p. 9
03

Whether the Handover Framework obliged the County to absorb the Grievants on permanent and pensionable terms

Holding

It did not; absorption was subject to availability of vacancies and the staffing needs of the 1st Respondent, and the Grievants were retained on the same fixed terms lapsing on 22nd February 2024.

Reasoning

Clause 3.3 of the Handover Framework required seconded staff to revert to their previous positions, while newly hired staff were to be absorbed only subject to vacancies and county staffing needs. The power to appoint county personnel is exclusively vested in the 2nd Respondent under section 59(1)(b) of the County Governments Act, and any circular purporting to direct otherwise would be null and void.

p. 10
04

Discrimination claim

Holding

The claim failed; advertisement of the Grievants' positions did not constitute discrimination and the Grievants were free to apply.

Reasoning

No evidence established discrimination. The advertisement was in anticipation of the lapse of the fixed term contracts by effluxion of time and complied with the constitutional imperative that public positions be competitively and equitably filled. The Respondents had indicated the Grievants were free to apply for the positions.

p. 10

Legal principles established

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  • The Public Service Superannuation Scheme Act, including section 51 on conversion of contracts, applies only to public servants in the employment of the National Government and its agencies, not County Government employees.
  • Circulars cannot override express statutory provisions vesting the power to appoint county personnel in the County Public Service Board.

Court orders

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  1. 1.The Claimant's suit was dismissed
  2. 2.Costs of the suit were awarded to the Respondents

Authorities

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Legislation

  • Constitution of Kenya, 2010article 234(2)(i); articles 154, 155 and 234(3)(b)
  • Public Service Superannuation Scheme Actsections 2, 5, 6, 7, 8, 10, 33 and 51
  • County Governments Actsections 57 and 59(1)(b)
  • County Governments Retirement Scheme ActNot specified
  • ELRC Procedure RulesRule 28(3)
  • Legal Notice No. 156Commencement of the Public Service Superannuation Scheme Act (1st January 2021)
  • Executive Order No. 1 of 2020Establishment of the Nairobi Metropolitan Services
Jurisdiction invoked
Original employment and labour relations jurisdiction of the Employment and Labour Relations Court

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Kenya National Union of Nutritionists and Dieticians v Nairobi City County Government & 2 others (Employment and Labour Relations Cause E972 of 2023) [2024] KEELRC 188 (KLR)", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/188/eng@2024-02-09

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