Mutira v Metropolitan National Sacco Ltd & another (Cause E708 of 2022) [2024] KEELRC 2360 (KLR) (30 September 2024) (Judgment)

Summary at a glance

Facts

Dennis Nyaga Mutira was employed by Metropolitan National Sacco Ltd as Deputy Finance Manager from September 1, 2014, and later as Head of Human Resource Management. His contract was due to expire on August 31, 2022. The Respondent requested confirmation of his interest in renewing the contract, which he signed on June 30, 2022. The Respondent did not renew the contract, and Mutira was terminated on August 31, 2022.

Issues

• Whether the Claimant had a legitimate and reasonable expectation that his employment contract would be renewed.
• Whether termination of the Claimant’s employment contract was unfair.
• Whether the Claimant is entitled to the reliefs sought.

Reasoning

The Court held that the Respondent's letter dated June 22, 2022, seeking confirmation of the Claimant's interest in renewing the contract was a clear and unambiguous promise. The Claimant's reasonable expectation was not met when the Respondent did not renew the contract and terminated his employment.

Outcome

The Court found the termination of the Claimant's employment contract to be unfair.

Remedies

• A declaration that termination of the Claimant’s employment was unfair.
• 3 months’ salary in lieu of notice Kshs.1,113,000.00.
• Salary for 5 years remainder Kshs.22,260,000.00.
• 12 months’ salary compensation Kshs.4,452,000.00.
• Severance pay Kshs.1,484,000.00.
• Gratuity Kshs.4,578,488.00.
• Superannuation Kshs.2,339,456.00.
• Accrued leave days (33 days) Kshs.408,100.00.
• Certificate of service.
• Damages for violation of constitutional rights Kshs.36,635,044.00.