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MagistrateDismissedMC ELRC Cause No. E203 of 2025· [2026] KEMC 399 (KLR)

Bukono v Kabarak University (Employment and Labour Relations Cause E203 of 2025) [2026] KEMC 399 (KLR)

Chief Magistrate's Court at Nakuru (Employment and Labour Relations Division)
29 July 2026
2,313 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that a signed 'full and final settlement' voucher bars an ex-employee from suing for more, even if the amount paid seems small.

What this practically means

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Executive summary

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The claimant, engaged by Kabarak University as a cook on a written fixed-term contract running from 01/11/2021 to 31/10/2024, was terminated by letter dated 21/10/2022 on grounds of restructuring in the Catering Section, effective 1st November 2022, with three months' salary in lieu of notice, salary up to 31/10/2022, value of unutilised leave days and gratuity offered as terminal benefits. He acknowledged receipt of Kshs. 92,462.80 by executing a discharge voucher containing a full and final settlement clause. He nonetheless sued for unfair termination and breach of contract, claiming notice pay, October salary, leave dues, leave travelling allowance, gratuity, unpaid public holidays, salary for the unexpired term of the contract, overtime, and twelve months' compensation under section 49(1)(c) of the Employment Act, contending the termination was effectively a redundancy effected without hearing or compliance with sections 40, 41 and 45. The respondent maintained the termination was a lawful invocation of clause 2.0 of the contract and that the discharge voucher constituted full and final settlement. The court, applying Court of Appeal authority on discharge vouchers, found the voucher was voluntarily executed, free of misrepresentation, fraud or incapacity, and binding regardless of the adequacy of the amount. The termination was held to be a lawful contractual termination of a fixed-term contract, not a dismissal and not redundancy, with no substantive or procedural unfairness. The claimant's claims were held to be barred by waiver. The claim was dismissed in its entirety with costs to the respondent.

Key legal issues

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01

Nature of the termination of the fixed-term contract

Holding

The termination was a lawful contractual termination under clause 2.0, not a dismissal and not a redundancy; there was no substantive or procedural unfairness

Reasoning

The claimant was engaged on a written fixed-term contract running from 01/11/2021 to 31/10/2024, whose clause 2.0 expressly permitted termination before expiry by three months' notice or payment in lieu. The respondent invoked that clause and paid notice pay plus accrued dues. No position was abolished and no severance was computed, so section 40 redundancy provisions were not triggered. The court found no unfairness either substantial or procedural.

p. 8
02

Effect of the discharge voucher

Holding

The voluntarily executed discharge voucher acknowledging Kshs. 92,462.80 in full and final settlement binds the claimant and bars all further claims, regardless of adequacy of the amount

Reasoning

Applying Coastal Bottlers v Mithika and Thomas De La Rue v Omutelema, the court examined the import of the voucher and the voluntariness of its execution. The claimant admitted signing it, reading and understanding the 'full and final settlement' clause, and was not coerced; he never denied signing or questioned its veracity, and no misrepresentation or incapacity was discerned. It was therefore a binding contract giving effect to the parties' intention.

p. 9
03

Consequence of the settlement on the suit

Holding

Having waived his rights by the discharge voucher, the claimant cannot maintain this suit, which was dismissed in its entirety

Reasoning

Because the court was bound to give effect to the parties' settlement, it could not entertain the claims. The court also found the remaining monetary claims (overtime, leave travelling allowance, gratuity, public holidays, unexpired-term salary, statutory compensation) unavailable since the contract was contractually terminated with payment in lieu of notice made per clause 2.0 and the discharge voucher.

p. 10

Legal principles established

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  • A discharge voucher voluntarily executed and free of misrepresentation, fraud or incapacity is a binding contract that bars further claims arising from the employment relationship
  • Whether a discharge voucher bars further claims depends on the import of the agreement and whether it was voluntarily executed
  • Employment in Kenya is governed by the general law of contract as much as by the Employment Act and related statutes
  • Courts must enforce and give effect to the intention of the parties as expressed in their agreement

Court orders

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  1. 1.The claim is dismissed in its entirety
  2. 2.The claimant to pay costs of the suit
Jurisdiction invoked
Employment and Labour Relations jurisdiction of the magistrates' court over a claim for unfair termination and breach of employment contract (Employment Act, Sections 35, 36, 40, 41, 43, 45, 49(1)(c), 10(7), 74)

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, "Bukono v Kabarak University (Employment and Labour Relations Cause E203 of 2025) [2026] KEMC 399 (KLR)", Case Analysis (2026). MC ELRC Cause No. E203 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2026/399/eng@2026-07-29

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