Bukono v Kabarak University (Employment and Labour Relations Cause E203 of 2025) [2026] KEMC 399 (KLR)
The bottom line
#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
#Executive summary
#Key legal issues
#Nature of the termination of the fixed-term contract
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
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.
Effect of the discharge voucher
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
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.
Consequence of the settlement on the suit
Having waived his rights by the discharge voucher, the claimant cannot maintain this suit, which was dismissed in its entirety
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.
Legal principles established
#- 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
#- 1.The claim is dismissed in its entirety
- 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
#Practical implications
#Frequently asked questions
#Cite this brief
#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.