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ELRCStruck OutCause No 1761 of 2015· [2025] KEELRC 817 (KLR)

Okoth v New Kenya Co-operative Creamaries (Cause 1761 of 2015) [2025] KEELRC 817 (KLR)

Employment and Labour Relations Court
13 March 2025
1,690 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~7 min to read original · ~4 min brief

The bottom line

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A Kenyan court struck out an unfair dismissal claim filed five years late, confirming employment claims must be filed within three years of termination.

What this practically means

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Executive summary

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The Claimant, formerly employed by the Respondent from January 2006 and promoted to Area Sales Manager for Nyanza and Western regions in February 2010, was terminated on 23rd November 2010 on grounds of abuse of office, gross misconduct and financial mismanagement. He filed a Memorandum of Claim on 2nd September 2015 seeking a declaration that his termination was unlawful and unfair, plus Kshs.1,430,000/- comprising salary in lieu of notice, salary for November 2010, leave, house allowance and compensation. The Respondent denied the claim, asserting the termination followed due process under the Employment Act, 2007 and its Code of Regulations, and contended in submissions that the suit was time barred. The court framed three issues: whether the suit was statute barred, whether the dismissal was unfair, and entitlement to reliefs. Treating limitation as a jurisdictional question to be resolved first, the court applied Section 90 of the Employment Act, 2007, which requires employment claims to be filed within three years of accrual of the cause of action. Relying on Court of Appeal authority that time runs from receipt of the termination letter and that the Section 90 period is mandatory and non-extendable, the court held the claim, filed nearly five years after termination, was statute barred. The court therefore lacked jurisdiction and struck out the suit in its entirety with no orders as to costs. The substantive fairness questions were not reached.

Key legal issues

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01

Whether the suit is statute barred

Holding

Yes - filed nearly five years after termination, beyond the three-year limitation in Section 90 of the Employment Act, 2007

Reasoning

The court held that limitation goes to jurisdiction and had to be addressed first. Relying on Section 90 of the Employment Act and authority that the limitation period is mandatory and non-extendable in contractual matters, the court found the cause of action accrued on termination on 23rd November 2010, and the claim filed on 2nd September 2015 was five years late, leaving the court without jurisdiction.

p. 4
02

Whether the Claimant was unfairly dismissed

Holding

Not determined - the suit was struck out on limitation grounds before this issue was reached

Reasoning

Because the court found it lacked jurisdiction owing to the statutory limitation bar, the substantive questions of unfair termination and entitlement to reliefs were not adjudicated upon. The court's analysis ended at the limitation issue, and the suit was struck out in its entirety.

p. 3

Legal principles established

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  • A claim based on a contract of service must be filed within three years of accrual of the cause of action under Section 90 of the Employment Act; the period is not extendable.
  • In employment claims, the cause of action accrues on the date of termination as communicated by the termination letter.

Court orders

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  1. 1.The suit is struck out in its entirety with no orders as to costs

Authorities

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Legislation

  • Employment Act, 2007Section 90
  • Employment Act, 2007Section 35
  • Limitation of Actions ActSection 4(1)

Cases cited (7)

  • John Kiiru Njiiri v University of Nairobi
    [2021] eKLR
  • James Mugeria Igati v Public Service Commission
    [2014] eKLR
  • Gathoni vs. Kenya Co-operative Creameries Ltd
    Civil Application No. 122 of 1981
  • Attorney General v Andrew Maina Githinji & Another
    (2016) eKLR
  • Wariahe v Teachers Service Commission
    (Employment and Labour Relations Petition E011 of 2023) [2023] KEELRC 2777 (KLR)
  • Beatrice Kahai Adagala v The Postal Corporation of Kenya
    [2015] eKLR
  • Divecon Limited v Samani
    [1995-1998] 1 EA p. 48
Jurisdiction invoked
Section 90 of the Employment Act, 2007 (limitation of employment claims)

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, "Okoth v New Kenya Co-operative Creamaries (Cause 1761 of 2015) [2025] KEELRC 817 (KLR)", Case Analysis (2025). Cause No 1761 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/817/eng@2025-03-13

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