Omukoto v Shah (Employment and Labour Relations Appeal E011 of 2024) [2025] KEELRC 2887 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Whether the exclusive jurisdiction clause (Clause 13, courts of England and Wales) barred the Kenyan courts from hearing the employment claim
The Magistrate erred in failing to consider exceptional reasons justifying litigation in Kenya; the preliminary objection should be set aside and the suit proceed in Kenya.
The court acknowledged that jurisdiction clauses are generally binding and cannot be rewritten, but drew on United India Insurance to hold that strong reasons permit departure. Clause 3(2) preserved the employee's existing Kenyan employment contract, which strengthened the exception. Strong reasons existed: both parties reside in Kenya, contract executed and performed partly in Kenya, evidence and witnesses in Kenya, convenience and prejudice to the Appellant. The threshold for exception was met.
Whether the claim was time-barred under section 89 of the Employment Act
In the absence of any document proving the date of termination or separation, the court took the separation date to be on or about 4th October 2019, so the claim filed on 13th July 2022 was within three years and not time-barred.
The court examined the foreign contract covering 11th May 2019 to 4th October 2019 and noted payments made on 1st July 2019 and 7th October 2019. No document showed the actual date of termination; the Respondent's claim of desertion in 2019 gave no specific date. On that basis the claim filed on 13th July 2022 fell within the three-year limitation period under section 89 of the Employment Act.
Legal principles established
#- A court cannot rewrite a contract between parties; parties are bound by their terms unless coercion, fraud or undue influence is pleaded and proved.
- Exclusive jurisdiction clauses should be respected, but Kenyan courts may assume jurisdiction where strong reasons are shown, such as the contract being performed in Kenya.
- Strong reasons justifying departure from a contractual jurisdiction clause include parties residing in Kenya, location of evidence, convenience of litigating locally and potential prejudice.
- Under section 89 of the Employment Act, claims arising out of employment or a contract of service must be commenced within three years of the act or default complained of.
- A first appellate court must re-examine, reassess and reanalyse the evidence and reach its own justified conclusion.
Court orders
#- 1.The Preliminary Objection dated 19th August 2022 be set aside
- 2.The suit to proceed before the Chief Magistrate's Court in Kenya
- 3.The appeal is allowed and the claim to proceed to hearing
- 4.The costs of the appeal to be in the cause
- On appeal from
- Chief Magistrate's Employment and Labour Relations Court at Nakuru
- Not stated
- Jurisdiction invoked
- First appellate jurisdiction over the Chief Magistrate's Employment and Labour Relations Court at Nakuru (appeal from ruling upholding a preliminary objection)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Omukoto v Shah (Employment and Labour Relations Appeal E011 of 2024) [2025] KEELRC 2887 (KLR)", Case Analysis (2025). Not stated in the judgment (Memorandum of Appeal dated 12th March 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2887/eng@2025-10-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.