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ELRCStruck OutPetition (ELRC), Nairobi· [2024] KEELRC 2608 (KLR)

Adika v Embassy of Sweden Nairobi (Employment and Labour Relations Petition E144 of 2023) [2024] KEELRC 2608 (KLR)

Employment and Labour Relations Court
24 October 2024
3,307 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court struck out a pension interest petition, ruling the claimant had to first use the Retirement Benefits Tribunal before going to court.

What this practically means

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Executive summary

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The petitioner was employed by the respondent from 3rd October 2006 until his summary dismissal on 11th May 2016, following allegations that he fraudulently transferred Kshs. 54,259,700.00 of the respondent's funds and withdrew Kshs. 2,800,000.00 into his personal account, leading to criminal proceedings. The respondent withheld his pension until 17th May 2023, when it paid a gross sum of Kshs. 5,135,897.00 (net Kshs. 3,797,528.00). The petitioner filed a constitutional petition seeking interest on the withheld pension for the seven-year delay, alleging unfair labour practice and violation of Articles 40, 41, 43 and 47 of the Constitution. The respondent raised preliminary objections: the ELRC lacked jurisdiction over pension disputes, which fall under the Retirement Benefits Act mechanism (sections 46 and 48, Retirement Benefits Tribunal); the petitioner failed to exhaust statutory remedies; and the doctrine of avoidance barred constitutional litigation. The petitioner countered that constitutional and equitable issues transcended a typical pension dispute. The court agreed with the respondent, holding that the petitioner ought to have first referred the matter to the Retirement Benefits Tribunal and was guilty of not exhausting alternative remedies. Applying the doctrine of avoidance, it found no necessity to determine the constitutional issues. Noting the criminal trial's bearing on the delay and the petitioner's lack of clean hands, the court struck out the petition as prematurely filed and an inappropriate mode of litigation, ordering each party to bear their own costs. (Matheus Nduma, J, 24th October 2024.)

Key legal issues

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01

Exhaustion of alternative remedies in pension disputes

Holding

Petition struck out for failure to first refer the dispute to the Retirement Benefits Tribunal under the RBA

Reasoning

The court accepted the respondent's preliminary objections. The petitioner admitted the tribunal route existed under section 46(1) of the RBA, and the claim for interest on delayed pension was a mundane dispute resolvable by the statutory mechanism. The petitioner's failure to exhaust deprived the court of jurisdiction notwithstanding constitutional framing.

p. 7
02

Doctrine of avoidance

Holding

Court declined to determine the constitutional issues (Articles 40, 41, 43, 47) since relief could be afforded through statutory remedies

Reasoning

Following Communications Commission of Kenya v Royal Media Services, a court will not determine a constitutional issue where the matter may be properly decided on another basis. The constitutional claims were framed to confer jurisdiction but the underlying dispute was an ordinary pension interest claim.

p. 7
03

Entitlement to interest on delayed pension

Holding

No determination on the merits; the court noted the petitioner's lack of clean hands given the criminal conviction findings and the criminal trial's contribution to the delay

Reasoning

The court observed that the summary dismissal arose from fraud findings in the criminal trial and that the criminal proceedings contributed to the delay in pension payment. It did not make a definitive ruling on interest entitlement, having struck out the petition on jurisdictional grounds.

p. 7

Legal principles established

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  • Where an Act of Parliament prescribes a clear procedure for redress of a grievance, that procedure must be strictly followed (exhaustion doctrine)
  • A court need not determine constitutional issues where a dispute can be resolved through other appropriate statutory remedies (doctrine of avoidance)

Court orders

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  1. 1.The petition is struck out for having been filed prematurely before this court
  2. 2.Each party to bear their own costs of the suit

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 10(2)(b), 22(1), 23(1), 28, 40, 41, 43, 47, 165
  • Retirement Benefits Actsections 40, 46(1), 48
  • Trustee Act Cap 167
  • Employment and Labour Relations Court Actsection 12(1)
  • Fair Administrative Action Act, 2015sections 9(4)
  • Civil Procedure Actsection 26(1)

Cases cited (18)

  • Arvind Shah & 7 others v Mombasa Bricks & Tiles Ltd & 5 others
    Petition No. 18 (E020) of 2022 eKLR
  • ALianze v Saul Cavil
    Appeal 134 of 2017 [2022] KECA 583 (KLR)
  • Nicholus v Attorney General & 7 others
    Petition Ae007 of 2007
  • Republic v National Environment Management Authority
    [2011] eKLR
  • Republic v Independent Electoral and Boundaries Commission (IEBC) Exparte National Super Alliance (NASA) Kenya & 6 others
    [2017] eKLR
  • Omaga Enterprises (Kenya) Limited v Eldoret Sirikwa Hotel Ltd & 2 others
    [2001] eKLR
  • Nahnkumar M. Shah v Mumias Sugar Company Ltd
    [2010] eKLR
  • Ajay Indravadan Shah v Children's International Bank Ltd
    [2003] eKLR
  • H. N. Sharma and another v Government of City of Delhi and others
    21st August 2020
  • Padma Nath v State of West Bengal and others
    [2019] SCC unreported 2185
  • Samuel Kamau Macharia and another v Kenya Commercial Bank Limited & 2 others
    [2012] eKLR
  • Albert Chaurembo Mumba and 7 others v Maurice Munyao and 148 others
    [2019] eKLR
  • Jumar v Postal Corporation of Kenya
    [2024] KEELRC
  • Speaker of the National Assembly v Karume
    [1992] KECA
  • Mutange Tea and Coffee Company Ltd v Shikana Limited and another
    [2013] eKLR
  • Communications Commission of Kenya and 5 others v Royal Media Services Limited and 5 others
    [2014] eKLR
  • Brookside Dairy Limited v Mohamed and another
    [2022] KEHC
  • Aliela v Kenton College Trust and another
    [2023] KEELRC
Jurisdiction invoked
Articles 22(1), 23(1) and 165 of the Constitution; section 12(1) of the Employment and Labour Relations Court Act (invoked by petitioner); court found want of jurisdiction via exhaustion and avoidance doctrines

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, "Adika v Embassy of Sweden Nairobi (Employment and Labour Relations Petition E144 of 2023) [2024] KEELRC 2608 (KLR)", Case Analysis (2024). Petition (ELRC), Nairobi. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2608/eng@2024-10-24

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