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ELRCDismissedEmployment Appeal arising from Kericho CM Employment Cause No. E020 of 2021 (lead file) and E017, E018, E019, E021, E022 and E023 of 2021· [2024] KEELRC 660 (KLR)

Cheruiyot & 6 others v Kericho Water & Sanitation Company Limited(KEWASCO) (Appeal E005 of 2022) [2024] KEELRC 660 (KLR)

Employment and Labour Relations Court
13 March 2024
5,587 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 casual workers cannot claim permanent jobs where the employer cancelled appointment letters before they took effect.

What this practically means

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Executive summary

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Seven former employees of Kericho Water and Sanitation Company Limited appealed against the judgment of Hon. E. K. Makori CM (3rd August 2022, Kericho Employment Causes E017–E023 of 2021, E020 as lead file) which dismissed their claim with costs. The appellants, engaged between 2012 and 2017 on renewable six-month contracts, were issued permanent and pensionable appointment letters on 30th October 2019 by the outgoing Managing Director, Eng. Joseph Terer, following a purported board resolution. A new Managing Director assumed office, and the letters were recalled on 9th November 2019; the appellants were subsequently made to sign fresh short-term contracts. The respondent maintained the letters were issued illegally: no board resolution (or quorum), no advertisement, no appraisals, no budgetary allocation, no compliance with the HR manual, and discriminatory selection of 26 out of 47 casuals. The conciliator found the letters fraudulent. The appeal was canvassed by written submissions. The respondents also challenged the record of appeal for lacking a certified decree. On the first appeal, Justice Hellen Wasilwa re-evaluated the evidence and agreed with the trial magistrate: the conversion lacked board sanction, the selection criteria were discriminatory, and the letters were recalled before taking effect, so no proper contract was illegally revoked. The appeal was dismissed with no orders of costs.

Key legal issues

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01

Legality of the conversion contracts of employment

Holding

The conversion to permanent and pensionable terms was not validly sanctioned by the Respondent's board, which lacked quorum; the selection criteria were discriminatory; and the letters were recalled before taking effect

Reasoning

The Court re-evaluated the evidence on the first appeal and found the claimants' own witness (the former Managing Director) admitted there was no quorum and no budget approval for the conversion. The criteria for picking the 26 of 47 casuals were unexplained. The letters dated 30th October 2019, to take effect in January 2020, were recalled in November 2019 before crystallising, so no proper contract was illegally revoked.

p. 10
02

Disturbance of the trial court's judgment on appeal

Holding

The trial magistrate properly considered the evidence rather than the submissions, and no basis existed for interference

Reasoning

The Court reviewed the trial record and evidence of both sides, including RW-1's confirmation that no budget allocation or board resolution existed. Finding the magistrate had considered the evidence adduced in finding illegality, the Court saw no reason to disturb the dismissal of the claim.

p. 10
03

Status of the Respondent (private company vs statutory body)

Holding

The appeal did not succeed on this ground; the Respondent argued it emanates from LVSWDA created under section 65 of the Water Act, and the appellants' complaint did not alter the outcome

Reasoning

The appellants argued the Respondent is a private limited company lacking the characteristics of a statutory body, while the Respondent contended it is a creature of statute by dint of section 65 of the Water Act. The Court's disposition did not turn on this issue, as the appeal failed on the legality findings.

p. 10

Legal principles established

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  • On a first appeal the court is mandated to re-evaluate the evidence afresh and make its own finding on the same
  • A contract tainted by illegality yields no rights capable of protection and courts will not aid its enforcement

Court orders

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  1. 1.The appeal is dismissed
  2. 2.No orders of costs - each party to bear their own costs

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 159(2)(d); Articles 27, 28, 29, 41 and 47
  • Companies Act (Cap 486, Laws of Kenya)registration of private limited companies
  • Water Actsection 65 (creation of water works development agencies)
  • Employment Acttermination and conversion provisions (as argued by appellants)
  • Civil Procedure Actsection 27(1) (costs follow the event); section 65(1)(b)
  • Civil Procedure RulesOrder 42 Rule 2
  • County Governments Actnot specified
  • Urban Areas and Cities Actnot specified

Cases cited (18)

  • Titus Muiruri V Kenya Canners Ltd
    [1988] eKLR
  • Thomas Mugambi Nthiga V County Government of Embu & Another
    [2020] eKLR
  • Gitonga V ABC Manufacturing Ltd
    [2015] eKLR
  • Bwana Mohamed Bwana V Silvano Buko Bonaya & 2 Others
    [2015] eKLR
  • Kilonzo David t/a Silver Bullets Bus Company V Kyalo Kiluki & Another
    [2018] eKLR
  • Ndegwa Kamau t/a Sideview Garage vs Isika Kalumbo
    [2016]
  • Kulwant Singh Roopra vs James Nzili Maswii
    [2014]
  • Joseph Kamau Ndungu vs Peter Njuguna Kamau
    [2014]
  • Paul Karenyi Leshuel V Ephantus Kariithi Mwangi & Another
    [2015] eKLR
  • Municipal Council Of Kitale –versus- Fedha
    Civil Appeal No. 7 of 1998, (1983) eKLR
  • Mustafa Hamesa Dase & 7 Others V County Government of Tana River & Another
    [2022] eKLR
  • Kenya Airways Limited V Satwant Singh Flora
    [2013] eKLR
  • Jackson Cheruiyot Rono V County Secretary Bomet & Another
    [2017] eKLR
  • Trans Mara Sugar Co. Ltd & Another V Ben Kangwaya Ayiemba & Another
    [2020] eKLR
  • David Sironga Ole Tunai V Francis Arap Muge & 2 Others
    [2014] eKLR
  • Kenya Plantation and Agricultural Workers Union V Kenya Cuttings Limited
    [2013] eKLR
  • Angeline Musali Mutua V Vegro (K) Ltd
    [2020] eKLR
  • Independent Electoral and Boundaries Commission & another v Stephen Mutinda Mule & 3 others
    [2014] eKLR
On appeal from
Kericho Magistrates Court
Employment Cause E020 of 2021 (lead file, with E017, E018, E019, E021, E022 and E023 of 2021)
Jurisdiction invoked
First appeal from the Magistrates' Court under the Employment and Labour Relations Court's appellate jurisdiction (Civil Procedure Act section 65 read with the Employment and Labour Relations Court Act); judgment does not cite a specific jurisdictional article

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, "Cheruiyot & 6 others v Kericho Water & Sanitation Company Limited(KEWASCO) (Appeal E005 of 2022) [2024] KEELRC 660 (KLR)", Case Analysis (2024). Employment Appeal arising from Kericho CM Employment Cause No. E020 of 2021 (lead file) and E017, E018, E019, E021, E022 and E023 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/660/eng@2024-03-13

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