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ELRCPartially Allowed· [2025] KEELRC 1113 (KLR)

Kimathi v Meru University of Science & Technology (Employment and Labour Relations Cause E013 of 2024) [2025] KEELRC 1113 (KLR)

Employment and Labour Relations Court
4 April 2025
8,575 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~34 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled a university unfairly demoted and discriminated against a director, awarding her over Kshs. 4 million, but refused to rewrite her signed contract.

What this practically means

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Executive summary

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The claimant was engaged by Meru University of Science & Technology as the inaugural Director of the Income Generating Unit on a two-year fixed-term contract, renewed for a further two years at a higher retainer salary. In May 2023 she was deployed to serve as Coordinator in the RICE Directorate, reporting to Director RICE rather than the Vice Chancellor, and her contract lapsed on 22nd October 2023 without renewal; her October 2023 salary was withheld for eight months pending clearance. She sued for declarations of unlawful demotion and unfair non-renewal, renewal of her contract at a Deputy Vice-Chancellor's pay package, gratuity, allowances, commission, damages and costs. The court, Makau J, framed three issues: the applicable terms of service, discrimination, and entitlement to reliefs. It held the governing terms were the appointment letter, renewal letter and the Grade 5-15 Terms and Conditions she voluntarily signed; no vitiating factor was pleaded, so the court could not rewrite the contract or award the two years' salary omitted contrary to Statute 35. It found the deployment amounted to an unjustified demotion, the salary withholding was discriminatory and inhuman, denial of gratuity breached clause 5.2.1, and the non-renewal was lawful expiry of a fixed term with no legitimate expectation. Judgment was entered for the claimant for leave (Kshs.58,497.88), gratuity (Kshs.2,008,740.48) and general damages (Kshs.2,000,000), with costs and interest; the termination-related and under-employment reliefs were refused.

Key legal issues

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01

Terms of the claimant's contract of employment

Holding

The terms were those in the appointment letter, renewal letter and the Grade 5-15 Terms and Conditions of Service she voluntarily signed, not Statute 35 or the DVC terms

Reasoning

The appointment letter expressly incorporated a Terms of Service document. The claimant admitted signing the Grade 5-15 terms and never signed the DVC terms. She pleaded no vitiating factor, so the court could not rewrite the contract; her claim of under-employment was an attempt to correct a bad bargain after learning new information.

p. 13
02

Whether the respondent discriminated against and unfairly treated the claimant

Holding

Yes - the claimant was a victim of direct and indirect discrimination and unfair treatment

Reasoning

The court found she was never told of or paid her 1% commission despite outstanding appraisals; she was demoted by deployment to report to Director RICE instead of the Vice Chancellor; her October 2023 salary was withheld for eight months without legal or contractual justification, and she was denied contractual gratuity contrary to clause 5.2.1, contrary to Articles 27, 28, 41, 47, 232 and 236 of the Constitution.

p. 14
03

Whether non-renewal of the contract amounted to unfair termination

Holding

No - the fixed-term contract expired automatically and renewal was discretionary

Reasoning

Statute 35 provided renewal was at the discretion of the University based on satisfactory performance. The contract lapsed on the due date; legitimate expectation does not arise on renewal of fixed-term contracts, so claims for notice pay and 12 months' compensation failed.

p. 14
04

Whether the deployment to RICE as Coordinator was a demotion

Holding

Yes - the deployment was unfair, unlawful and amounted to an unjustified demotion

Reasoning

As Director IGU she reported to the Vice Chancellor under Statute 35; after deployment she reported to Director RICE, a diminished reporting level, without prior consultation, constituting demotion even though her salary remained the same.

p. 13
05

Entitlement to gratuity

Holding

Gratuity awarded at 31% of the last basic salary under clause 5.2.1 of the Grade 5-15 terms

Reasoning

The court found the Grade 5-15 terms applied; clause 5.2.1 provides gratuity at 31% of monthly basic salary for contract staff employed one year and above. The respondent could not both rely on and disown those terms; it could not approbate and reprobate.

p. 15
06

Whether employment on two-year terms contrary to Statute 35's three-year term violates the statute

Holding

The court observed this was a violation of Statute 35 and of Article 232 values, but no compensation awarded for it

Reasoning

Although the claimant voluntarily accepted the shorter term and could not claim the two years' salary, the court noted the failure to employ her per the statute violated the statute and public service values.

p. 15

Legal principles established

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  • A court cannot rewrite a contract voluntarily entered into by parties absent coercion, fraud or undue influence
  • Legitimate expectation does not arise in the renewal of a fixed-term contract; non-renewal is not unfair termination
  • Demotion may entail imposition of a position with diminished authority or reporting level even without salary variation
  • Definition of direct and indirect discrimination

Court orders

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  1. 1.Declaration that the deployment of the claimant to the Directorate of RICE was unfair, unlawful and amounted to a demotion without justification
  2. 2.Payment of leave for 13 unutilized leave days of Kshs.58,497.88
  3. 3.Payment of gratuity of Kshs.2,008,740.48 pursuant to Clause 5.2.1 of the Terms of Service
  4. 4.General damages of Kshs.2,000,000.00 for violation of constitutional rights and unfair treatment and discrimination
  5. 5.Award subject to statutory deductions, with costs of the suit plus interest at court rates from the date of judgment
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Constitution and Employment Act (claims of unfair labour practices, discrimination and breach of contract of employment)

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, "Kimathi v Meru University of Science & Technology (Employment and Labour Relations Cause E013 of 2024) [2025] KEELRC 1113 (KLR)", Case Analysis (2025). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1113/eng@2025-04-04

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