Kimathi v Meru University of Science & Technology (Employment and Labour Relations Cause E013 of 2024) [2025] KEELRC 1113 (KLR)
The bottom line
#Kenya's Employment Court ruled a university unfairly demoted and discriminated against a director, awarding her over Kshs. 4 million, but refused to rewrite her signed contract.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.What terms applied to the claimant's contract of employment.
- 2.Whether the respondent discriminated and unfairly treated her.
- 3.Whether she is entitled to the reliefs sought.
Key legal issues
#Terms of the claimant's contract of employment
The terms were those in the appointment letter, renewal letter and the Grade 5-15 Terms and Conditions of Service she voluntarily signed, not Statute 35 or the DVC terms
The appointment letter expressly incorporated a Terms of Service document. The claimant admitted signing the Grade 5-15 terms and never signed the DVC terms. She pleaded no vitiating factor, so the court could not rewrite the contract; her claim of under-employment was an attempt to correct a bad bargain after learning new information.
Whether the respondent discriminated against and unfairly treated the claimant
Yes - the claimant was a victim of direct and indirect discrimination and unfair treatment
The court found she was never told of or paid her 1% commission despite outstanding appraisals; she was demoted by deployment to report to Director RICE instead of the Vice Chancellor; her October 2023 salary was withheld for eight months without legal or contractual justification, and she was denied contractual gratuity contrary to clause 5.2.1, contrary to Articles 27, 28, 41, 47, 232 and 236 of the Constitution.
Whether non-renewal of the contract amounted to unfair termination
No - the fixed-term contract expired automatically and renewal was discretionary
Statute 35 provided renewal was at the discretion of the University based on satisfactory performance. The contract lapsed on the due date; legitimate expectation does not arise on renewal of fixed-term contracts, so claims for notice pay and 12 months' compensation failed.
Whether the deployment to RICE as Coordinator was a demotion
Yes - the deployment was unfair, unlawful and amounted to an unjustified demotion
As Director IGU she reported to the Vice Chancellor under Statute 35; after deployment she reported to Director RICE, a diminished reporting level, without prior consultation, constituting demotion even though her salary remained the same.
Entitlement to gratuity
Gratuity awarded at 31% of the last basic salary under clause 5.2.1 of the Grade 5-15 terms
The court found the Grade 5-15 terms applied; clause 5.2.1 provides gratuity at 31% of monthly basic salary for contract staff employed one year and above. The respondent could not both rely on and disown those terms; it could not approbate and reprobate.
Whether employment on two-year terms contrary to Statute 35's three-year term violates the statute
The court observed this was a violation of Statute 35 and of Article 232 values, but no compensation awarded for it
Although the claimant voluntarily accepted the shorter term and could not claim the two years' salary, the court noted the failure to employ her per the statute violated the statute and public service values.
Legal principles established
#- A court cannot rewrite a contract voluntarily entered into by parties absent coercion, fraud or undue influence
- Legitimate expectation does not arise in the renewal of a fixed-term contract; non-renewal is not unfair termination
- Demotion may entail imposition of a position with diminished authority or reporting level even without salary variation
- Definition of direct and indirect discrimination
Court orders
#- 1.Declaration that the deployment of the claimant to the Directorate of RICE was unfair, unlawful and amounted to a demotion without justification
- 2.Payment of leave for 13 unutilized leave days of Kshs.58,497.88
- 3.Payment of gratuity of Kshs.2,008,740.48 pursuant to Clause 5.2.1 of the Terms of Service
- 4.General damages of Kshs.2,000,000.00 for violation of constitutional rights and unfair treatment and discrimination
- 5.Award subject to statutory deductions, with costs of the suit plus interest at court rates from the date of judgment
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Constitution and Employment Act (claims of unfair labour practices, discrimination and breach of contract of employment)
Relief refused
#Order for renewal of contract as Director IGU at Deputy Vice-Chancellor's pay package
The contract was for a fixed term which lapsed automatically and renewal was discretionary
12 months' salary for unlawful dismissal and 3 months' pay in lieu of notice
The contract expired automatically on the due date, so there was no unfair termination
Payment of 2 years' salary for the two years omitted from the contract terms
The claimant voluntarily accepted the terms of her employment; no vitiating factor pleaded or proved
Gratuity and allowances at the Deputy Vice-Chancellor's rate
No proper particulars pleaded; gratuity awarded at 31% of her actual basic salary under the Grade 5-15 terms instead
Commission on net revenue generated by IGU
The claimant did not prove net revenue generated; although the court found she was never made aware of or paid the 1% commission
Unpaid salary for underemployment and exemplary/aggravated damages for discrimination
Under-employment claim failed as a bad bargain; exemplary/aggravated damages not awarded but general damages of Kshs.2,000,000 granted instead
Costs
The claimant is awarded costs of the suit plus interest at court rates from the date of this Judgment.
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
A court of law cannot rewrite a contract between parties. The parties are bound by the terms of their contract, unless coercion, fraud or undue influence are pleaded or proved.
Indeed, the doctrine of legitimate expectation does not arise in the renewal of a fixed-term contract and its non-renewal cannot constitute unfair termination or dismissal.
I am satisfied that the claimant's contract expired automatically on the due date and the employer had no obligation to renew it.
This action amounted to discrimination and inhuman treatment.
I award the claimant Kshs. 2,000,000 as general damages for the said violation of her rights under the Constitution, terms and conditions of service and the respondent's University Statutes by the respondent itself.
The award is subject to statutory deductions and the claimant is awarded costs of the suit plus interest at court rates from the date of this Judgment.
Issues in the judgment
#Retainer salary stated inconsistently: the appointment letter quoted in the judgment states Kshs.127,230 while the narrative and pleadings state Kshs.127,259
The court found the claimant was not paid commission at all, yet the Vice Chancellor testified the letter of appointment made her aware of the 1% rate; the judgment does not reconcile this with the claimant's admitted awareness of the commission provision in her letter
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kimathi v Meru University of Science & Technology (Employment and Labour Relations Cause E013 of 2024) [2025] KEELRC 1113 (KLR)", Case Analysis (2025). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1113/eng@2025-04-04
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.