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ELRCStruck OutCause No E588 of 2024· [2025] KEELRC 988 (KLR)

Kirera & 549 others v Central Bank of Kenya (Cause E588 of 2024) [2025] KEELRC 988 (KLR)

Employment and Labour Relations Court
28 March 2025
2,304 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court struck out 210 former Central Bank employees' pension claim, ruling pension disputes belong to the Retirement Benefits Appeals Tribunal, not the ELRC.

What this practically means

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Executive summary

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The Claimants, former permanent and pensionable employees of the Central Bank of Kenya, filed a Memorandum of Claim on 22nd July 2024 seeking a declaration that the Respondent was in wholesale breach of its contractual obligations and orders of specific performance compelling payment of pension benefits from their mandatory retirement date of 1st March 1997, with interest, reinstatement into the Pension Scheme, and costs. They alleged that in 2010 their deferred pension matured but the Respondent declined liability, and that prior proceedings were tainted by an impersonation of the Central Bank. The Respondent filed a Notice of Preliminary Objection contending that jurisdiction vests in the Retirement Benefits Authority, that the suit failed to comply with Rule 23(2) and (3) of the Court's Rules, and that the suit was res judicata given prior proceedings before the Retirement Benefits Appeals Tribunal, the ELRC and the Court of Appeal. The Claimants opposed, arguing that the Central Bank of Kenya Pension Fund was a distinct legal entity from the Respondent, that Article 162(2)(a) conferred jurisdiction on the ELRC, and that substantive justice should prevail over procedural technicalities. The Court framed three issues: jurisdiction, res judicata, and competence of the suit. Relying on the Court of Appeal's decision in Civil Appeal No. 204 of 2017 and Samuel Kamau Macharia, the Court held it had no jurisdiction over a pension dispute falling within the RBA and the Retirement Benefits Appeals Tribunal and already heard and determined by that Tribunal. The remaining issues were left as academic. The Court upheld the Preliminary Objection, struck out the suit with no order as to costs, on 28th March 2025.

Key legal issues

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01

Whether the ELRC has jurisdiction over the pension dispute

Holding

The Court lacks jurisdiction; pension disputes fall within the RBA and Retirement Benefits Appeals Tribunal, and there is no statutory appeal route from that Tribunal to the ELRC.

Reasoning

The dispute concerns matured pension benefits previously litigated before the Retirement Benefits Appeals Tribunal, the ELRC and the Court of Appeal. The Court of Appeal in Civil Appeal No. 204 of 2017 held there is no provision in the Retirement Benefits Act for escalation of disputes beyond the Tribunal to the ELRC. A court's jurisdiction flows only from the Constitution or statute, and the Court must down tools once it finds it lacks jurisdiction.

p. 5
02

Whether the suit is res judicata

Holding

Not determined; the question became academic once the Court found it lacked jurisdiction.

Reasoning

The Court reasoned that after finding no jurisdiction, delving into res judicata and the competence of the suit would be a mere academic exercise. Notably, the Court observed that it did not matter that the Respondent as sued was not a party in the earlier Tribunal appeal, indicating it would likely have found the dispute re-invented as a suit to bypass prior decisions.

p. 5

Legal principles established

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  • There is no provision in the Retirement Benefits Act for escalation of disputes beyond the Retirement Benefits Appeals Tribunal to the ELRC; the ELRC has no jurisdiction to entertain a pension dispute falling within the RBA and the Appeals Tribunal's jurisdiction and already heard and determined by that Tribunal.
  • A court's jurisdiction flows from the Constitution or legislation or both, and it cannot arrogate to itself jurisdiction exceeding that conferred by law.

Court orders

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  1. 1.Upheld the Respondent's Notice of Preliminary Objection to the extent that the Court lacks jurisdiction to entertain the suit.
  2. 2.Struck out the Claimants' suit with no order as to costs.

Authorities

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Legislation

  • Constitution of Kenya 2010Article 162(2)(a)
  • Constitution of Kenya 2010Article 159(2)(d)
  • Pension ActCap. 189 Laws of Kenya
  • Retirement Benefits ActCap. 197; Sections 3, 46, 47, 48, 49
  • Employment and Labour Relations Court (Procedure) RulesRule 23(2) and (3)
  • Central Bank of Kenya Pension Fund Trust Deed; Central Bank of Kenya Pension Rules and Regulations; Central Bank of Kenya Board of Directors InstructionsN/A

Cases cited (8)

  • Dunlop Pneumatic Tyres Co. Ltd v Selfridge & Co. Ltd
    [1915] AC 847
  • Mumo Matemu v Trusted Society of Human Rights Alliance & 5 Others
    [2013] eKLR
  • Owners of the Motor Vessel "Lillian S" v Caltex Oil (Kenya) Ltd
    [1989] KLR 1
  • Stafi Pension Fund & Kenya Commercial Bank Stafi Retirement (DC) Scheme 2006 and another v Ann Wangui & 524 Others
  • Samuel Kamau Macharia & another v Kenya Commercial Bank Limited & 2 Others
    [2012] eKLR
  • George Omondi & 209 Others v Retirement Benefits Authority and Central Bank Pension Fund, Retirement Benefits Appeals Tribunal Appeal No. 4 of 2010
  • George Omondi & 210 Others v Retirement Benefits Appeal Tribunal, Central Bank Pension Fund & Retirement Benefits Authority, Nairobi ELRC Appeal No. 5 of 2014 (formerly HCCA No. 5 of 2014)
  • George Omondi & 210 Others v Retirement Benefits Appeals Tribunal, Central Bank of Kenya Pension Fund & Retirement Benefits Authority, Civil Appeal No. 204 of 2017
Jurisdiction invoked
Article 162(2)(a) of the Constitution of Kenya 2010; Retirement Benefits Act (Cap. 197), Sections 46-49

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, "Kirera & 549 others v Central Bank of Kenya (Cause E588 of 2024) [2025] KEELRC 988 (KLR)", Case Analysis (2025). Cause No E588 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/988/eng@2025-03-28

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