Kago v Inades Formation Kenya (Cause E953 of 2021) [2024] KEELRC 2179 (KLR)
The bottom line
#Kenya's Employment Court confirmed that when a fixed-term contract expires after proper notice of non-renewal, that is not unfair termination and no compensation is owed.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.Whether the Claimant was unfairly terminated or her contract terminated by effluxion of time.
- 2.Whether the Claimant was discriminated against by the Respondent.
- 3.Whether the Claimant is entitled to the reliefs sought.
Key legal issues
#Whether the Claimant was unfairly terminated or her contract ended by effluxion of time
The contract ended by effluxion of time; there was no termination and no legitimate expectation of renewal
The Claimant's contracts were fixed-term, the last running from 1st January 2021 to 31st July 2021, renewable at the employer's option depending on donor funds and performance. She was notified on 30th April 2021 that the contract would not be renewed, served the full term to 31st July 2021 and was paid her final dues. Following the authorities on fixed-term contracts, no claim for unfair termination could be maintained.
Whether the Claimant was discriminated against
The discrimination claim failed for lack of proof
The Claimant alleged she alone got a 7-month extension while peers got three years, but called no witness to prove peers received longer contracts and never complained when issued with the 7-month contract, only after serving the full term. Evidence showed she skipped trainings relevant to her performance. She therefore did not discharge the burden of proving differential treatment on a prohibited ground.
Whether the Claimant is entitled to the reliefs sought
No reliefs were due; the entire claim was dismissed with costs
Having found no unfair termination and no discrimination, and having found that the Claimant served her full term and was paid her final dues including leave pay, the court found nothing payable. The claim for service pay was also undermined by the employer's pension and NSSF contributions, and the leave claim had been abandoned in cross-examination.
Legal principles established
#- Fixed-term contracts expire by effluxion of time and carry no legitimate expectation of renewal; non-renewal does not amount to unfair termination
- Where a fixed-term contract lapses by effluxion of time, the employer is not obliged to give grounds for termination so long as it gave due notice of non-renewal
- An allegation of discrimination must be proved on a balance of probabilities with evidence of differential treatment of persons in similar positions
Court orders
#- 1.The claim in its entirety is dismissed with costs
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Employment and Labour Relations Court original jurisdiction under the Employment Act and the Employment and Labour Relations Court Act (not expressly cited in the judgment)
Relief refused
#Declaration that termination of employment was unfair, wrongful and illegal
The Claimant was never terminated; her fixed-term contract ended by effluxion of time after notice of non-renewal
Compensation of Kshs 1,709,340/- (12 months' salary) for unfair termination
No unfair termination was established, hence no compensation payable
Service pay of Kshs 284,890/- (two months' salary)
The Respondent maintained a pension scheme with CFC Life Assurance Ltd and remitted NSSF dues; the entire claim was dismissed as without merit
Payment for 13 accrued leave days (Kshs 59,735/-)
The Claimant confirmed in cross-examination that she was paid her final dues including leave pay and she dropped the claim
Costs
The claim is dismissed with costs to the Respondent
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
The claim in its entirety is therefore found without merit and is hereby dismissed with costs.
The claimant was therefore not terminated but her contract ended by effuxion of time.
fixed term contracts carry no rights, obligations, or expectations beyond the date of expiry.
The Claimant is therefore not entitled to any compensation for unfair termination.
The Claimant has therefore not discharged her burden of proof that she was discriminated against by the Respondent
Issues in the judgment
#The Respondent's pleadings state the initial contract was extended 'for a further period of one and half months from 12th November,2020 and terminated on 31st Decembewr,2020' (which is longer than one and a half months), while the Claimant testified the extension was for one month
The court enumerated three issues but the numbered list omits the letter 'd.' before the third issue
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kago v Inades Formation Kenya (Cause E953 of 2021) [2024] KEELRC 2179 (KLR)", Case Analysis (2024). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2179/eng@2024-09-06
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.