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ELRCPartially AllowedELRC Claim dated 30th January 2024 (Nakuru)· [2025] KEELRC 539 (KLR)

Aoko v Egerton University (Employment and Labour Relations Cause E004 of 2024) [2025] KEELRC 539 (KLR)

Employment and Labour Relations Court
26 February 2025
2,772 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 an Egerton University employee who retired voluntarily could not claim constructive dismissal, and most money claims failed for lack of proof.

What this practically means

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Executive summary

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The Claimant, a Senior Technologist employed by Egerton University since 1988, sued claiming constructive dismissal. She alleged non-remittance of pension contributions from 2017 to mid-2021 (Kshs.1,364,076), failure to remit loan deductions to KCB Bank leading to adverse CRB listing, and unpaid deferred salary, contending these breaches created a hostile work environment that forced her early retirement letter of 6th April 2023. She sought a declaration of constructive dismissal, general damages of 12 months' pay, the monetary sums, costs and interest. After interlocutory judgment was set aside by consent, the claim was canvassed by written submissions, filed by the Claimant alone. The court framed three issues: constructive dismissal, entitlement to reliefs, and costs. Applying the Court of Appeal's ingredients in Coca Cola v Maria Kagai Ligaga, the court found no repudiatory breach or evidence of frustration; the early retirement letter was full of praise for the employer, so it could not be rescinded, and the Claimant was found to have voluntarily resigned without mistreatment or coercion. General damages were declined. The pension claim failed both for want of proof and because, per the Supreme Court in Albert Chaurembo Mumba, the ELRC lacks jurisdiction over pension scheme matters; she was left to pursue the Pension Fund directly. The KCB loan deductions claim was disallowed as unproved. The deferred salary claim was left open, with the case set for mention on 21st May 2025 for the Claimant's accounts. Each party was ordered to bear their own costs.

Key legal issues

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01

Whether the claimant was constructively dismissed

Holding

No - she voluntarily retired; the resignation letter was full of praise for the employer and did not satisfy the constructive dismissal ingredients in Coca Cola v Ligaga

Reasoning

The court applied the Court of Appeal's ingredients in Coca Cola East and Central Africa Limited v Maria Kagai Ligaga, including repudiatory breach of essential terms, an objective test, and causation. The claimant authored a letter of early retirement containing no complaint of mistreatment, and acknowledged receipt was accepted. Her later rescission was ineffective. No evidence was adduced of frustration in the course of employment, so the claim failed.

p. 5
02

Whether the court could award the unremitted pension funds claimed

Holding

No - the claim was not proved, and the ELRC has no jurisdiction over pension scheme matters

Reasoning

Relying on the Supreme Court's decision in Albert Chaurembo Mumba & 7 Others v Maurice Munyao & 148 Others, the court held that the Employment and Labour Relations Court Act confers no jurisdiction to resolve issues between pension scheme trustees and members. Further, the claimant produced no statement from the Pension Fund verifying non-remittance, and the burden of proof under Sections 107, 108 and 109 of the Evidence Act was not discharged.

p. 6
03

Whether deferred salary and loan deduction claims were proved

Holding

Not proved; deferred salary left open for further mention with accounts

Reasoning

The claimant did not explain how the deferred salary of Kshs.1,128,047.95 accrued or the period it covered, though her June 2023 payslip showed a deferred amount of Kshs.42,454.10. The court reserved that item for mention to receive the claimant's accounts. The KCB loan deductions claim of Kshs.650,822.93 was likewise unsupported and was disallowed.

p. 6

Legal principles established

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  • The Employment and Labour Relations Court lacks jurisdiction to deal with pension matters between trustees of a pension scheme and members of the scheme
  • An employee who voluntarily tenders an early retirement letter cannot rescind it and cannot claim constructive dismissal where the letter shows no repudiatory breach

Court orders

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  1. 1.Declined to award general damages for constructive dismissal as it was not proved
  2. 2.Found no legal basis to award pension moneys; claimant to follow the same directly with the Pension Fund
  3. 3.Disallowed the claim of Kshs.650,822/93 for non-remitted KCB loan deductions as not proved
  4. 4.Directed that the case be mentioned on 21st May 2025 to receive the claimant's accounts on deferred salary
  5. 5.Ordered each party to meet their respective costs of the suit

Authorities

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Legislation

  • Constitution of KenyaArticles 41(1), 41(2)(a), 159(2)(d), 48
  • Employment ActSections 5(1), 10(5), 19(4), 49
  • Retirement Benefits ActSection 53A
  • Pension ActSection 5(1)
  • Employment and Labour Relations Court ActSection 12
  • Evidence ActSections 107, 108, 109
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B

Cases cited (5)

  • Enid Nkirote Mukire V Kenya Yearbook Editorial Board
    (2022) eKLR
  • Milton M. Isanya V Aga Khan Hospital Kisumu
    (2017) eKLR
  • Coca Cola East and Central Africa Limited V Maria Kagai Ligaga
    (2015) eKLR
  • Universities Academic Staff Union (UASU) Egerton University Chapter V Egerton University & 2 others
    [2022] KEELRC 13430 (KLR)
  • Albert Chaurembo Mumba & 7 Others -vs- Maurice Munyao & 148 Others
    Supreme Court Petition 3 of 2016
Jurisdiction invoked
Article 162(2) of the Constitution and Section 12 of the Employment and Labour Relations Court Act (Employment and Labour Relations Court Act cited in the judgment)

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, "Aoko v Egerton University (Employment and Labour Relations Cause E004 of 2024) [2025] KEELRC 539 (KLR)", Case Analysis (2025). ELRC Claim dated 30th January 2024 (Nakuru). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/539/eng@2025-02-26

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