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ELRCDismissedCause No E017 of 2023· [2024] KEELRC 1997 (KLR)

Mbandu & 6 others v County Government of Kakamega & 2 others (Cause E017 of 2023) [2024] KEELRC 1997 (KLR)

Employment and Labour Relations Court
25 July 2024
15,150 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~61 min to read original · ~4 min brief

The bottom line

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Seven dismissed Kakamega County finance officers lost their bid for reinstatement because they waited over three years, but each keeps a 12-month salary award from the Public Service Commission.

What this practically means

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Executive summary

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Seven former employees of the County Government of Kakamega (various accounting and finance officers) were dismissed in December 2020 following disciplinary proceedings over alleged misappropriation of imprest and irregular payments. Their appeals to the County Public Service Board were dismissed; appeals and reviews to the Public Service Commission resulted in findings of procedurally unfair termination and an award of 12 months' salary compensation each under section 49 of the Employment Act, but no reinstatement. The claimants sued, seeking to set aside the PSC decision, reinstatement, declarations of unconstitutionality, withheld salaries, damages and costs. The 1st and 2nd Respondents (County Government and Board) maintained the process was fair and substantively justified; the PSC defended its decision as lawful and discretionary. The court framed the sole issue as whether the claimants were entitled to the reliefs sought, principally reinstatement. It held that the fairness of the terminations had been conclusively determined by the PSC under section 77 of the County Governments Act and section 85 of the Public Service Commission Act, so the court had no jurisdiction to reopen that question, only supervisory jurisdiction, applying the exhaustion-of-remedies doctrine and the Karume principle. Reinstatement was barred because more than three years had elapsed since the December 2020 dismissals under section 12(3)(vii) of the ELRC Act, and the claimants' positions of trust and unresolved questions over transactions made reinstatement inappropriate, as guided by Kenya Airways v Mbugua. The claim was dismissed, the PSC compensation decisions were adopted as a decree of the court with interest at court rates, and each party was ordered to bear its own costs.

Key legal issues

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01

Whether the court could reopen the fairness of the claimants' termination determined by the Public Service Commission

Holding

The court had no jurisdiction to reopen the issue of fairness of the termination, which had been determined to finality by the Commission and accepted by the Board; only supervisory (judicial review) jurisdiction lay over the quasi-judicial decision

Reasoning

The claimants appealed to the PSC under section 77 of the County Governments Act read with section 85 of the Public Service Commission Act, which heard the appeals on merit and awarded 12 months' compensation. The Board accepted that decision. Requiring the court to hear the dispute afresh would contradict Article 159(2)(c) on ADR and the Karume principle that a prescribed statutory procedure be strictly followed. Judicial review is confined to procedural fairness and lawfulness.

p. 26
02

Whether the claimants were entitled to reinstatement instead of the 12 months' compensation awarded

Holding

Reinstatement was unavailable: more than three years had lapsed since the December 2020 dismissals, ousting the court's reinstatement jurisdiction, and the claimants' positions of trust as accountants with unresolved questions over transactions made reinstatement inappropriate

Reasoning

The claimants pleaded dismissal letters dated 15th December 2020 and the suit was filed in September 2023, beyond the three-year limit in section 12(3)(vii) of the Employment and Labour Relations Court Act. The court, guided by Kenya Airways Limited v Alex Wainaina Mbugua, held that mutual trust and confidence, lost where an employee faces unresolved financial misconduct questions, makes reinstatement inappropriate; compensation was adequate.

p. 27
03

Whether the PSC's decision to award compensation rather than reinstatement should be disturbed

Holding

The court was satisfied the Commission's decision was appropriate and upheld it, adopting the compensation decisions as a decree of the court

Reasoning

There was no evidence of malice, ill will or bad faith, and no iota of evidence to justify interference. The Commission had considered both substantive and procedural aspects, found procedural unfairness, exercised its discretion under section 49 of the Employment Act, and gave reasons for not reinstating. The only complaint was the choice of remedy, which fell within the Commission's discretion.

p. 27
04

Whether advertisement and filling of the claimants' positions pending appeal invalidated the process

Holding

Since an appeal or review before the Commission does not suspend implementation of a decision under section 88(4) of the Public Service Commission Act, the post-termination advertisement of the positions was lawful

Reasoning

Section 88(4) expressly provides that implementation of a decision shall not be deferred or suspended pending appeal or review. The court therefore held that the alleged advertisement of the positions previously held by the claimants after termination was lawful, rejecting the claim of premeditation and predetermination.

p. 28

Legal principles established

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  • Where an administrative remedy has been exhaustively pursued and determined by a body clothed with jurisdiction, the court has no jurisdiction to reopen the merits and can only exercise supervisory jurisdiction
  • The Employment and Labour Relations Court may only order reinstatement within three years of dismissal
  • Reinstatement is not an automatic remedy; it is discretionary and depends on factors such as position of trust and practicability
  • An appeal or review before the Public Service Commission does not stay or suspend implementation of the impugned decision

Court orders

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  1. 1.The Claim dated 13th September 2023 is dismissed
  2. 2.The decisions of the Public Service Commission on compensation of the claimants pursuant to section 89 of the Public Service Commission Act are adopted as Decree of the Court
  3. 3.The monies to be paid with interest at court rates from the date of the Decree until payment in full
  4. 4.Each party to bear own costs
  5. 5.Right of appeal

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 10, 35, 41, 47, 50, 159(2)(c), 162(2)(a), 232, 234(2)(i)
  • Employment ActSections 35(1)(c), 41, 43, 43(1) and (2), 45, 47(5), 49, 49(1)(c), 49(3), 49(4)
  • Public Service Commission ActSections 85, 86, 87, 88(4), 89
  • County Governments ActSections 59, 77
  • County Public Service Board ActSection 59
  • Employment and Labour Relations Court ActSection 12(3)(vii)
  • Fair Administrative Actions ActNot specified
  • Public Officer Ethics ActNot specified
  • Public Finance Management Regulations, 2015Regulations 22(2)(b), 146; Section 143(1)
  • Public Service Commission Regulations 2020Regulation 67
  • PSC (County Appeals Procedure) Regulations, 2022Regulation 21
  • County Discipline ManualPart Four

Cases cited (25)

  • Walter Anuro v Teachers Service Commission
    (2013) eKLR
  • Alphonse Machanga Mwachanya v Operation 680 Limited
    (2013) eKLR
  • Godfrey Paul Okutoyi v Habil Olaka of the Kenya Bankers Association & Anor
    (2018) eKLR
  • Republic v Public Procurement Administrative Review Board & 3 others
    Miscellaneous Application No. 267 of 2014
  • Ken Freight (EA) Limited v Benson K. Nguti
    SC Pet No. 37 of 2018 (2019) eKLR
  • Kenya Revenue Authority & 2 others v Darasa Investments Limited
    (2018) eKLR
  • Obonyo and Another v Municipal Council of Kisumu
  • Hema Hospital v Wilson Makongo Marwa
  • Alfred Githinji v Mumias Sugar Company Limited
    Civil Appeal No. 194 of 1991 (UR)
  • Central Bank of Kenya v Julius Nkonge
    (2000) eKLR
  • George Onyango Akuti v G4S Security Services Limited
    (2013) eKLR
  • Joseph Njogu Kamunge v Charles Muriuki Gachari
    (2016) eKLR
  • Jacob Orlando Ochanda v Kenya Hospital Association t/a Nairobi Hospital
    (2019) eKLR
  • Kenya Airways v Aviation & Allied Workers Union Kenya & 3 others
    (2014) eKLR; Civil Appeal No. 46 of 2013
  • Central Bank of Kenya v Julius Nkonga Nkabu
    (2002) eKLR
  • Engineer Francis N. Gachuri v Energy Regulatory Commission
    (2013) eKLR
  • Kenya Shipping Clearing Freight Logistics and Warehouse Workers Union v May Freight Ltd
    (2020) eKLR
  • Alfred Nyungu Kimungui v Bomas of Kenya
    (2013) eKLR
  • Joshua Rodney Marimbah v Kenya Revenue Authority
    (2021) eKLR
  • Elizabeth Wakanyi Kibe v Telkom Kenya Ltd
    (2014) eKLR
  • Associated Provincial Picture Houses Ltd v Wednesbury Corporation
    (1948) 1 KB 223
  • Kenya Airways Limited v Alex Wainaina Mbugua
    (2019) eKLR
  • Kenya Airways Limited v Alex Mbugua
    (2019) eKLR
  • De Francesco v Barnum
    (1890) 45 ChD 430
  • Speaker of the National Assembly v James Njenga Karume
    [1992] eKLR
Jurisdiction invoked
Article 162(2)(a) of the Constitution (Employment and Labour Relations Court); PSC decision enforceable under section 89 of the Public Service Commission Act

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, "Mbandu & 6 others v County Government of Kakamega & 2 others (Cause E017 of 2023) [2024] KEELRC 1997 (KLR)", Case Analysis (2024). Cause No E017 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1997/eng@2024-07-25

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