Ogola v Strathmore University (Employment and Labour Relations Cause E060 of 2021) [2025] KEELRC 2173 (KLR)
The bottom line
#A Kenyan court confirmed that fixed term contracts simply expire on their end date, but employers must still pay at least the legal minimum wage.
What this practically means
#Executive summary
#Key legal issues
#Whether the termination of the fixed term contract was unfair
No unfair termination arose; the contract expired on 17th February 2020 by effluxion of time and the letter of 6th February 2020 merely informed the Claimant of the end date
The court found the Claimant signed a letter notifying her of the end of her fixed term contract on 6th February 2020, which correctly informed her the contract would end on 17th February 2020. In cross-examination she conceded the contract came to an end and she was not terminated due to theft. On that evidence the court held the issue of unfair termination did not arise, and claims for notice pay and 12 months' compensation failed.
Whether the Claimant was underpaid during the contract year
Yes - the court found she was underpaid by Kshs. 657.6775 per month for the contract year, totalling Kshs. 7,892
Applying the 2019 wages guidelines, a cook was entitled to Kshs. 14,658.85 plus 15% house allowance (Kshs. 2,198.8275), giving gross pay of Kshs. 16,857.6775. The Claimant received Kshs. 15,000 rising to Kshs. 16,000, both below the guideline figure, so the court awarded the shortfall of Kshs. 657.6775 per month for twelve months.
Whether the Claimant was entitled to service pay
The court awarded service pay of Kshs. 30,343.80 notwithstanding that the Claimant was an NSSF member
Although the Respondent argued that Section 35(5) of the Employment Act excludes service pay for NSSF members and the Claimant herself prayed that the service pay claim be dismissed on that ground, the court nonetheless awarded service pay computed at 15% of the guideline gross salary of Kshs. 16,857.6775 multiplied by 12. This appears inconsistent with the statutory exclusion both parties invoked.
Legal principles established
#- A fixed term contract lapses automatically on its expiry date and its non-renewal does not amount to unfair termination
- Fixed term contracts carry no rights, obligations or expectations beyond the date of expiry
- Service pay under Section 35(5) of the Employment Act is not payable to employees who are members of NSSF or a registered pension or provident fund
Court orders
#- 1.Respondent to pay the Claimant underpayment for the contract year of Kshs. 7,892
- 2.Respondent to pay the Claimant service pay of Kshs. 30,343.80, being 15% of Kshs. 16,857.6775 x 12
- 3.Total award of Kshs. 38,236/- less statutory deductions
- 4.Respondent to pay costs of the suit plus interest at court rates with effect from the date of the judgment
- Jurisdiction invoked
- First-instance employment and labour relations claim under the Employment Act (court's inherent employment jurisdiction; no specific constitutional provision stated)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ogola v Strathmore University (Employment and Labour Relations Cause E060 of 2021) [2025] KEELRC 2173 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2173/eng@2025-07-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.