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ELRCDismissed

Kavua v Managing Director, Nairobi City Water and Sewerage Company Limited (Cause E112 of 2024) [2024] KEELRC 1457 (KLR)

Employment and Labour Relations Court
14 June 2024
964 words in judgment
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The bottom line

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What this practically means

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Executive summary

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The Claimant, employed as Supply Chain Manager from 2012 with his contract renewed for five years in June 2022, applied by notice dated 13th February 2024 to restrain the Respondent, the Managing Director of Nairobi Water and Sewerage Company Limited, from transferring him to the Non-Revenue Water Department as Non-Revenue Water Manager with immediate effect. He argued he was recruited on the strength of his professional licence from the Kenya Institute of Supplies Management and that the new role bore no relation to his profession. The Respondent replied that transfer and reassignment of roles is within the employer's mandate, both positions are management grades, and other managers had been similarly rotated. The Court determined the application on affidavits and submissions. It held that transfer and designation of employees is a managerial prerogative which courts will not disturb absent bad faith, irrationality, malice, illegality or breach of contract, following Mwaniki v. Registered Trustees of the Sisters of Mercy t/a Mater Misericordiae Hospital & Others [2023] eKLR. The Court found the dispute concerned a departmental transfer, not geographical relocation; the Claimant did not prove he was recruited solely on his practising licence, and licensing does not bar professionals from serving in other management capacities. It also questioned why the Managing Director alone was sued rather than the Company. The application was declined with no order on 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 Court should restrain the Respondent from transferring the Claimant and/or changing his job designation from Supply Chain Manager to Non-Revenue Water Manager
  2. 2.Whether the transfer and re-designation was in fundamental breach of the Claimant's terms and conditions of service
  3. 3.Whether the Claimant's professional licence to practise supply chain management bars the Employer from re-designating him to another management position
  4. 4.Whether the Managing Director is properly sued as Respondent rather than the Company

Key legal issues

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01

Scope of the employer's managerial prerogative over transfer and re-designation

Holding

The Court will not interfere with transfer and re-designation unless exercised in bad faith, irrationally, maliciously, illegally or contrary to contract

Reasoning

The Court held that transfer and designation of employees is a managerial function. The Claimant's contract provided he could be transferred anywhere; the dispute concerned a departmental transfer, not a geographical one. The Claimant failed to show fundamental breach of his terms of service, and the employer demonstrated a consistent policy of rotating managers across portfolios.

p. 2
02

Effect of the Claimant's supply chain management practising licence

Holding

The licence does not restrict the employer from allocating non-supply-chain management roles

Reasoning

The Court reasoned that professional licensing merely permits the professional to discharge professional services under the profession's rules; it does not determine what management role a professional is allocated. Human resource managers and lawyers within the organization also hold licences yet serve in other capacities, and flexibility in human resource management should not be unduly curtailed by courts.

p. 2
03

Proper party to the claim

Holding

The Claimant gave no explanation why he sued the Managing Director alone instead of the Company that employed him

Reasoning

The Court questioned the joinder of the Managing Director as sole Respondent, noting the Claimant's contract of employment was with Nairobi Water and Sewerage Company Limited and that the Managing Director is himself an employee of the Company who did not employ the Claimant. This went to the propriety of the claim's framing.

p. 3

Legal principles established

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  • Transfer and designation of employees is a managerial prerogative which courts will not interfere with absent bad faith, irrationality, malice, illegality or breach of contract
  • Job designation is not cast in bronze; professional licensing does not bar a professional from serving in other management capacities within an organization

Court orders

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  1. 1.The application filed by the Claimant dated 13th February 2024 is declined
  2. 2.No order on the costs

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 jurisdiction over an interlocutory application in a claim by an employee against his employer's Managing Director

Relief refused

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Injunction restraining the Respondent from transferring the Claimant and/or changing his job designation

Transfer and re-designation is a managerial prerogative not exercised in bad faith, irrationally, maliciously, illegally or contrary to contract; the Claimant failed to demonstrate fundamental breach

p. 3

Costs

No order on the costs (each party to bear their own costs, in effect)

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.

Transfer and designation of Employees, is a managerial prerogative. Courts will not interfere with the exercise of this prerogative, unless it is shown that it has been exercised in bad faith, irrationally, maliciously, illegally or contrary to the contract.
p. 2managerial prerogative over transfer and designation
An organization must be allowed the fiexibility, in managing its human resource function, without undue intervention from the Courts.
p. 2judicial non-intervention in human resource management
It is Ordered: a. The application filed by the Claimant dated 13th February 2024 is declined. b. No order on the costs.
p. 3final orders / disposition

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, "Kavua v Managing Director, Nairobi City Water and Sewerage Company Limited (Cause E112 of 2024) [2024] KEELRC 1457 (KLR)", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1457/eng@2024-06-14

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