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ELRCPartially AllowedNot stated in the judgment as provided· [2024] KEELRC 1792 (KLR)

Mwangi v Kenya Revenue Authority (Employment and Labour Relations Cause 148 of 2019) [2024] KEELRC 1792 (KLR)

Employment and Labour Relations Court
11 July 2024
6,818 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled that Kenya Revenue Authority unfairly dismissed its driver after a six-year disciplinary delay, awarding him over Kshs. 1.6 million.

What this practically means

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Executive summary

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The claimant, a driver employed by the Kenya Revenue Authority since 2008 (he said 2007), was interdicted on 11/6/2012 over an alleged faked carjacking of a KRA vehicle on 10/1/2012 outside Times Tower. After two disciplinary processes, numerous unfulfilled requests for documents and over six years on half pay, he was dismissed on 1/8/2018 for misuse of the vehicle and failure to report the purported carjacking. His appeal was dismissed within three days without an oral hearing, apparently by the same committee that had heard the disciplinary case. The ELRC at Nairobi (Nduma J) framed three issues: validity of reason, fairness of procedure, and entitlement to reliefs. The court held that the six-year delay, the failure to avail essential documents, the subjection of the claimant to two disciplinary processes amounting to double jeopardy, and the irregular appeal process grossly violated Article 47 of the Constitution, section 4 of the Fair Administrative Action Act and sections 41, 43 and 45 of the Employment Act, and constituted unfair labour practice under Article 41. The court relied on Wednesbury, CCSU, and Kenfreight EA Limited v Benson K Nguti. Reinstatement was refused as time-barred under section 12(3)(vi) of the ELRC Act. The claimant was awarded Kshs. 51,000/= in lieu of notice, Kshs. 612,000/= as maximum 12 months' compensation, Kshs. 943,500/= arrears of half salary, pension, interest and costs.

Key legal issues

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01

Valid reason and fair procedure for termination

Holding

The termination was substantively and procedurally unfair: the respondent failed to conclude the disciplinary process within six months, failed to avail essential documents, subjected the claimant to double jeopardy, and did not prove approval of termination and appeal by the Commissioner General

Reasoning

The respondent violated its own Rules and Regulations Governing Discipline and Grievances by keeping the claimant on interdiction for over six years, failing to supply documents necessary for his defence, running two disciplinary processes without explaining the fault in the first, and dismissing the appeal without a hearing as a review before the same committee. This breached sections 41, 43 and 45 of the Employment Act and Articles 41 and 47 of the Constitution, constituting unfair labour practice.

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Remedies

Holding

Claimant awarded one month's salary in lieu of notice, maximum 12 months' compensation, arrear half salary for the interdiction period, pension, interest and costs

Reasoning

Following the Supreme Court in Kenfreight EA Limited v Benson K Nguti, the court exercised its discretion under section 49 of the Employment Act, considering the six years of unlawful half-pay interdiction, non-payment of terminal benefits and pension, the claimant's clean record of 11 years and lack of contribution to the dismissal. Reinstatement was refused as time-barred.

p. 13

Legal principles established

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  • An inordinate delay of six years in determining a disciplinary case against an employee on interdiction is a gross violation of the right to fair administrative action under Article 47(1) of the Constitution read with section 4 of the Fair Administrative Action Act, 2015
  • Subjecting an employee to two disciplinary processes without availing the proceedings and recommendations of the first violates the principle of legality and amounts to double jeopardy
  • Reinstatement under section 12(3)(vi) of the ELRC Act is only available within three years of dismissal

Court orders

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  1. 1.Kshs. 51,000/= in lieu of notice
  2. 2.Kshs. 612,000/= in compensation (maximum 12 months' salary under section 49 of the Employment Act)
  3. 3.Kshs. 943,500/= arrear salary (unpaid half salary for 37 months of interdiction)
  4. 4.Pension due and payable for the period 2007 to 11/8/2018, to be computed by the respondent within 30 days and filed for approval
  5. 5.Interest at court rates from date of interdiction till payment in full for item (c), and from date of judgment on items (a), (b) and (d) till payment in full
  6. 6.Costs of the suit to the claimant

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 41, 47(1), 48, 50
  • Employment Act, 2007Sections 41, 41(1)(2), 43, 44(a)(c), 45, 49(1)(c) and (4)
  • Fair Administrative Action Act, 2015Section 4
  • Employment and Labour Relations Court Act, No. 18 of 2014Section 12(3)(vi)
  • KRA Code of Conduct (Rules and Regulations Governing Discipline and Grievance)Parts 5.6.5.5, 6.2, 6.2.5.4, 6.2.5.6, 6.2.5.9, 6.5.5, 7.2, 7.4, 7.5, 7.8, 8.2, 9.11, 11.2, 11.3, 11.4, 7.10, 8.1.1

Cases cited (7)

  • Associated Provincial Picture Houses v Wednesbury Corporation
    (1948) 1 KB 223
  • Council of Civil Service Unions v Minister for the Civil Service
    (1985) AC 374
  • Anisminic v Foreign Compensation Commission
    (1969) 1 ALL ER 20
  • Republic v Public Procurement Administrative Review Board & 2 Others Ex parte Pelt Security Services Limited
    (2018) eKLR
  • Republic v National Land Commission and 2 others Exparte Archdiocese of Nairobi Kenya Registered Trustees St Joseph Mukasa Catholic Church Kahawa
    2018 eKLR
  • Chief Constable Pietermaritzburg v Shim
    1908 29 NLR 338
  • Kenfreight EA Limited v Benson K Nguti
    (2019) eKLR
Jurisdiction invoked
Employment and Labour Relations Court Act, No. 18 of 2014; Employment Act, 2007

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, "Mwangi v Kenya Revenue Authority (Employment and Labour Relations Cause 148 of 2019) [2024] KEELRC 1792 (KLR)", Case Analysis (2024). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1792/eng@2024-07-11

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