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ELRCPartially AllowedMemorandum of Claim dated 24th July 2024 (ELRC, Nyeri)

Loise v Murang’a University of Technology (Cause E032 of 2024) [2025] KEELRC 2192 (KLR)

Employment and Labour Relations Court
23 July 2025
7,136 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~29 min to read original · ~4 min brief

The bottom line

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Kenya's ELRC confirmed employers can discipline public officers for off-duty misconduct, but dismissed almost all the employee's claims for unfair termination.

What this practically means

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Executive summary

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The claimant, employed by the respondent university in 2011 and confirmed as Assistant Accountant, was dismissed on 21st November 2023 for misconduct relating to his off-duty service as treasurer (2012-2016) and chairman (2017-2021) of the Murang'a University SACCO (MUSACCO). The dismissal followed an Inspection Report by the County Cooperative Department which found abuse of office, financial mismanagement, excessive loans in breach of the two-thirds and multiplier rules, and failure to recover member loans. The claimant sued for a declaration of unfair termination, reinstatement, salary and benefits, CBA arrears and damages. The respondent justified the dismissal on grounds of violated integrity obligations under Chapter Six of the Constitution, the Leadership and Integrity Act, the Public Officer Ethics Act and the HR Staff Code of Conduct. The court framed three issues: valid and fair reason, fair procedure, and reliefs. It held that a public officer is disciplined by the employer even for off-duty conduct, since Article 75, section 52 of the Leadership and Integrity Act and the contractual HR Policy bind him in private life; the unchallenged Inspection Report supplied a valid reason. Procedure was fair: show cause, hearing with union officials, and two internal appeals, though the claimant refused to take plea. The claim consequently succeeded only in respect of admitted CBA arrears of Kshs.127,435 with interest from filing, payable upon clearance; reinstatement was barred by Article 75(3) disqualification, and damages were refused. Each party was ordered to bear own costs.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the termination was grounded on a valid and fair reason.
  2. 2.Whether fair procedure was followed.
  3. 3.Whether the reliefs sought are merited.

Key legal issues

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01

Whether an employer may discipline and dismiss an employee for off-duty conduct as an official of a separate legal entity (the staff SACCO)

Holding

Yes. As a public officer the claimant was bound by Chapter Six of the Constitution and integrity legislation whether on or off duty; the HR Staff Code of Conduct formed part of his contract and extended the employer's disciplinary reach to his private financial dealings, and the unchallenged Inspection Report supplied a valid and fair reason for dismissal.

Reasoning

The court relied on Article 260 definitions of public officer, section 52 of the Leadership and Integrity Act applying Chapter Six to all public officers, and Article 75. It noted the claimant admitted being a public officer required to uphold integrity even while serving in the SACCO. The SACCO's separate legal personality did not insulate him: the conduct damaged his integrity as a public officer and the employment relationship with colleagues. The HR Policy Schedule 3 formed part of the contract, bringing off-duty conduct under the employer's control.

p. 12
02

Whether fair procedure under section 41 of the Employment Act was followed

Holding

Yes. The claimant was served a show cause letter, responded in writing, was informed of the charges, attended a disciplinary hearing with union officials, and exhausted two tiers of internal appeal; his own refusal to take plea did not vitiate the process.

Reasoning

Section 41 requires explanation of reasons, notification of charges and an opportunity to be heard with a fellow employee or union representative present. The claimant was served with charges indicating the laws violated and their particulars, attended the hearing with union officials but declined to take plea, insisting the University had no jurisdiction over SACCO matters. The disciplinary committee considered witness evidence; appeals to the Staff Appeals Committee and University Council were heard and dismissed. The court held the mandatory procedure was satisfied.

p. 13
03

Whether reinstatement and damages were available

Holding

No. The dismissal being lawful, the primary prayers collapsed; additionally, Article 75(3) disqualifies the claimant from holding any other public office. Only admitted CBA arrears of Kshs.127,435 were awarded.

Reasoning

Having found valid reason and fair procedure, the court held the dismissal was not unfair under section 45 of the Employment Act. It invoked Article 75(3) to bar reinstatement. The alternative salary/benefits prayer was vague and unsupported, and general and exemplary damages had no foundation. The admitted CBA arrears were awarded with interest, conditioned on clearance per section 6.8 of the Terms of Service.

p. 14

Legal principles established

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  • A public officer is not immune from disciplinary action by the employer for unethical conduct or breach of integrity committed off duty.
  • Off-duty unethical conduct amounting to violation of Chapter Six of the Constitution, the Leadership and Integrity Act and the employer's HR policy constitutes a valid and fair reason for termination of employment.
  • A person dismissed from office for contravention of Article 75(1) is disqualified from holding any other State office.

Court orders

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  1. 1.Judgment entered for the claimant in the sum of Kshs.127,435 plus interest at court rates from the date of filing the suit, payable upon the claimant completing clearance as required by section 6.8 of the respondent's Terms of Service
  2. 2.Claim otherwise dismissed (declaration of unfair termination, reinstatement, salary/benefits, general and exemplary damages refused)
  3. 3.Each party to bear own costs of the suit

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (termination of employment challenged under section 45 of the Employment Act); the judgment does not cite a specific constitutional jurisdictional provision

Relief refused

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Declaration that termination was unfair, wrongful and unlawful; reinstatement; payment of salary from suspension to reinstatement

Dismissal was for valid reason and followed fair procedure; claimant further disqualified from holding public office under Article 75(3) of the Constitution

p. 14

Alternative prayer for payment of salary and benefits

No basis laid before the court; lacked particulars and supporting evidence

p. 14

General damages and exemplary damages

Dismissal was lawful; no foundation for damages

p. 14

Costs

Since the suit has substantially failed, each party shall bear own costs of the suit.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

they cannot be the devil in their private life and an angel while on public duty. Such duality in the character of public oficer demeans the public ofice they hold
p. 12Off-duty integrity obligations of public officers
The above provision in the respondent's HR Policy Manual forms part of the claimant's employment contract and thereby brings his conduct, whether on duty or ofi duty, under the telescope and the whip of his employer
p. 12HR policy as contractual term extending employer's disciplinary reach
I enter judgment for the claimant in the sum of Kshs.127,435 plus interest as indicated above. Since the suit has substantially failed, each party shall bear own costs of the suit.
p. 14Final orders and costs
Consequently, I grant the said prayer for Kshs.127,435 plus interest at court rates from the date of filing the suit.
p. 14Award of admitted CBA arrears

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, "Loise v Murang’a University of Technology (Cause E032 of 2024) [2025] KEELRC 2192 (KLR)", Case Analysis (2025). Memorandum of Claim dated 24th July 2024 (ELRC, Nyeri). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2192/eng@2025-07-23

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