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ELRCDismissedNot stated in judgment· [2025] KEELRC 2017 (KLR)

Kariuki v Tangaza University College & another (Cause E375 of 2022) [2025] KEELRC 2017 (KLR)

Employment and Labour Relations Court
25 June 2025
DMD. K. Njagi Marete
1,056 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~4 min to read original · ~4 min brief

The bottom line

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When a Kenyan fixed-term contract simply expires and is not renewed, that is not an unfair dismissal — even after 12 years of service and promotions.

What this practically means

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Executive summary

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The Claimant, engaged on 1st February 2010 as a Financial Accountant on successive three-year fixed-term contracts, was promoted to Chief Accountant in February 2021, re-designated Strategic Planning Manager in August 2021, and appointed Acting Director of Finance and Strategy in November 2021 with extensions to 2nd March 2022. On 26th February 2022 the 2nd Respondent notified him that his contract would not be renewed upon expiry. He sued, contending this was unfair and wrongful termination in breach of legitimate expectation and the Employment Act, and sought declarations, quashing of the non-renewal letter, and damages for unlawful and unfair dismissal. The Respondents maintained there was no termination: the fixed-term contract simply expired on 2nd March 2022, the Claimant was duly notified of non-renewal, and all terminal dues, including pension and one month's salary in lieu of notice, were paid. The court framed four issues: whether there was a termination; whether it was wrongful, unfair and unlawful; entitlement to relief; and costs. Relying on authority that non-renewal of a fixed-term contract is not termination absent a renewal obligation, the court held the contract lapsed by effluxion of time; Sections 41 and 45 of the Employment Act apply to termination, not expiry; and legitimate expectation required a clear promise or representation which the 2nd February 2022 email did not constitute. With no termination found, the remaining issues fell away and the claim was dismissed, with each party bearing their own costs.

Key legal issues

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01

Whether non-renewal of the Claimant's fixed-term contract amounted to termination of employment

Holding

No termination occurred; the contract lapsed by effluxion of time and was not renewed.

Reasoning

The law distinguishes termination of employment from expiry of a fixed-term contract. The Claimant's contract ran to 2nd March 2022, was extended by a month, and he was notified on 26th February 2022 of non-renewal. The contract contained no renewal clause, so the employer was free not to renew. Sections 41 and 45 of the Employment Act govern termination, not expiry, and Section 35(3) notice requirements were met.

p. 3
02

Whether the Claimant had a legitimate expectation of renewal

Holding

The doctrine of legitimate expectation did not apply because there was no clear promise or representation of renewal.

Reasoning

Although the Claimant's 12-year service and successive promotions could suggest an expectation of renewal, the email of 2nd February 2022 merely noted a confusion of roles and did not guarantee, imply or suggest renewal. Citing Transparency International v Omondi, legitimate expectation requires a clear promise or representation, which was absent here.

p. 3
03

Whether the residual issues and relief fell for determination

Holding

With a finding of no termination, the remaining issues fell away.

Reasoning

Having found no termination of employment, the questions of wrongfulness, unfairness, unlawfulness and entitlement to relief did not arise for determination. The claim was therefore dismissed with each party bearing their own costs.

p. 3

Legal principles established

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  • Non-renewal of a fixed-term contract is not termination of employment unless the contract itself imposes an obligation to renew.
  • Sections 41 and 45 of the Employment Act, 2007 apply to termination, not to the expiry of a fixed-term contract.
  • Legitimate expectation of renewal requires a clear promise or representation by the employer; long service and promotions alone do not suffice absent such a representation.

Court orders

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  1. 1.The claim is dismissed.
  2. 2.Each party bears their own costs of the cause.
Jurisdiction invoked
Employment and labour relations jurisdiction under Article 162(2) of the Constitution (employment dispute; specific provision not quoted 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, "Kariuki v Tangaza University College & another (Cause E375 of 2022) [2025] KEELRC 2017 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2017/eng@2025-06-25

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