Kenya Commercial Bank Limited v Bogita (Employment and Labour Relations Appeal E286 of 2024) [2025] KEELRC 1729 (KLR)
The bottom line
#Kenya's Employment Court cut a banker's award to Kshs 1,045,005, confirming that a fixed-term contract ends on its expiry date, but union-negotiated benefits still apply to non-union staff.
What this practically means
#Executive summary
#Key legal issues
#Whether legitimate expectation of renewal of a fixed-term contract existed
No legitimate expectation of renewal arose; the contract ended by effluxion of time and there was no unfair termination
The court re-evaluated the evidence and found the respondent served on back-to-back fixed-term contracts each of not more than one year. The Court of Appeal decision in Transparency International - Kenya v Omondi, on which the trial court's contrary finding relied, had since been overturned and was not good law. The appellant never gave any indication it would renew the last contract. Following the binding Court of Appeal jurisprudence, the court held there could be no obligation on the employer beyond the appointed end date of a fixed-term contract, save for terminal dues.
Whether the Respondent was entitled to benefits under the CBA despite non-membership of BIFU
The trial court's finding that the Respondent was entitled to CBA benefits was upheld, following Omondi Justus Ranga'nga & 28 others v KCB Bank Kenya Ltd & BIFU
The court found that an identical factual issue concerning employees on one-year contracts in the same cadre had already been determined by Justice M. Mbaru in Ranga'nga v KCB & BIFU, where the employer was held bound to apply CBA terms as minimum conditions of employment and where discrimination was declared. That decision had not been overturned on appeal. The court therefore declined to take a different position on the Respondent's entitlement to CBA-based benefits.
Whether the award of Kshs. 1,514,170/- should be disturbed
Underpayment of Kshs. 954,135/- upheld; leave allowance substituted at Kshs. 90,870; notice pay, compensation and house allowance set aside
Having found no unfair termination, the notice pay and compensation for wrongful termination could not stand. On house allowance, the court found the contract provided a consolidated salary which was all-inclusive, invoking section 31(2)(a) of the Employment Act, so the award was set aside. Underpayment was restricted to the CBA period of 21 months and left undisturbed. Leave allowance was recomputed as the differential between Kshs. 68,716 and Kshs. 23,281 for two months, yielding Kshs. 90,870.
Legal principles established
#- The doctrine of legitimate expectation does not arise in the renewal of a fixed-term contract, save where the employer by acts, omission or promise indicated renewal was forthcoming.
- Where an employment contract consolidates house allowance into the monthly salary, no separate award of house allowance may be made under section 31(2)(a) of the Employment Act.
- The terms negotiated under a CBA apply to employees performing the same work regardless of membership or contract status, per section 59(1)(b) of the Labour Relations Act.
Court orders
#- 1.Underpayment of salaries awarded at Kshs. 954,135/-
- 2.Leave allowance awarded at Kshs. 90,870
- 3.Interest on the total sum of Kshs. 1,045,005/- (underpayment and leave allowance) at court rates from date of judgment
- 4.Costs of the suit awarded
- 5.Each party to bear own costs in the appeal
- 6.Stay order of 30 days granted
- On appeal from
- Chief Magistrate's Court at Nairobi, Milimani Law Courts
- MC.ELRC No. E899 of 2021
- Jurisdiction invoked
- First appellate jurisdiction over the magistrates' court (Employment and Labour Relations Court appeal from the Chief Magistrate's Court)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kenya Commercial Bank Limited v Bogita (Employment and Labour Relations Appeal E286 of 2024) [2025] KEELRC 1729 (KLR)", Case Analysis (2025). Appeal against judgment in MCELRC No. E899 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1729/eng@2025-06-12
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.