Ngetich & 3 others v County Service Board Bomet & another (Civil Appeal 20 of 2018) [2022] KECA 732 (KLR) (28 April 2022) (Judgment)
Neutral citation:
[2022] KECA 732 (KLR)
Republic of Kenya
Civil Appeal 20 of 2018
HM Okwengu, A Mbogholi-Msagha & KI Laibuta, JJA
April 28, 2022
Between
Robert Kipkirui Ngetich
1st Appellant
Joseph Bernard Sigei
2nd Appellant
Bernard Kipngeno Tonui
3rd Appellant
Kiprono Chirchir Peter
4th Appellant
and
County Service Board Bomet
1st Respondent
Chairman, County Service Board Bomet
2nd Respondent
(Being an appeal against the Ruling and Orders of the Employment and Labour Relations Court at Kericho (D. K. Njagi Marete, J.) delivered on 15th December 2017 in E.L.R.C Case No. 46 of 2017
Cause 46 of 2017
)
Judgment
1.By a Statement of Claim dated 21st September 2017, the appellants (Robert Kipkirui Ng’etich, Joseph Benard Sigei, Benard Kipng’eno Tonui and Kiprono Chirchir Peter) sued the respondents (the County Public Service Board Bomet (the Board) and the Chairman of the County Public Service Board Bomet) in the Industrial Court of Kenya at Kericho Civil Suit (now ELRC Cause) No. 46 of 2017 claiming on their own behalf and on behalf of 350 others –
2.The appellants’ case was that they were employees of the 1st respondent serving as community and area administrators, having been allegedly appointed in writing on diverse dates between 15th October 2015 and 18th April 2017. They claimed to have earned salaries well within the respondents’ knowledge.
3.According to the appellants, the 1st respondent had published an advertisement on 5th March 2015 for the posts of community and area administrators thereby calling upon qualified persons to make applications; that it shortlisted qualified persons to be interviewed; that it delegated its responsibility to the Human Resource Department to aid them in the process; and that it issued the claimants with appointment letters indicating their respective roles and remuneration.
4.In response to the appellants’ claims, the respondents contended that, if the appellants had been appointed as alleged, the respondents played no role in their recruitment; that they did not participate in or render any decision relating to their alleged employment; that, if there was such delegation, the delegated authority did not include the formal appointment of the selected candidates; that such appointment was exclusively reserved for the 1st respondent pursuant to section 59(1) (b) of the County Governments Act, 2012; that delegated authority would only have covered the processing of the recruitment while final appointment rested with the 1st respondent; that the respondents were not involved in the recruitment of the appellants; that the appellants’ claim was an afterthought, ill-conceived, pre-mature and brought in bad faith; and that their suit was fatally defective for non-joinder of parties and, in particular, failure to join the County Secretary. They denied the particulars of loss and damage pleaded in the Statement of Claim.
5.The appellants’ suit proceeded to full hearing at the conclusion of which the Employment and Labour Relations Court (D. K. Njagi Marete, J) delivered its judgment on 15th December 2017 dismissing the appellants’ claim on the grounds that there was no lawful employment of the appellants by the 1st respondent; that their case was founded on intended termination, which had not taken place; that the appellants had not established any sustainable cause of action; and that their employment was void ab initio. The learned Judge directed that each party bears their own costs.
6.Aggrieved by the decision of Njagi Marete, J. the appellants filed this appeal praying that –(a)This appeal be allowed.(b)The judgment, decree and any other subsequent orders issued in Case No. 46 of 2017 be set aside, and that judgment be entered as prayed.(c)“Costs of this appeal as well as the trial court” [sic].
7.The appellants fault the learned Judge’s decision on the following 11 grounds on which their appeal is anchored. According to them –
8.Having examined the record of appeal and the grounds on which it is founded, we are of the considered view that the appeal stands or falls on our findings on the following issues of law and fact in respect of which learned counsel filed written submissions:(a)Whether the appellants were at all material times lawfully employed by the 1st respondent.(b)Whether the appellants had a legitimate expectation to be retained in the 1st respondent’s employment on permanent basis on expiry of their contractual terms of service.(c)Whether the appellants had a sustainable cause of action against the respondents.(d)What orders ought we to make in this appeal.(e)Who bears the costs of this appeal.
9.In support of their respective cases, parties filed written submissions. At the hearing, learned counsel for the appellants (Mr. Shadrack Omondi, holding brief for Mr. Peter Wanyama) adopted their written submissions and list of authorities dated 22nd November 2021 while learned counsel for the respondents (Mr. Kirwa) adopted his written submissions dated 14th February 2022. In addition, learned counsel for the appellants and learned counsel for the respondents made oral highlights of their submissions at the hearing of the appeal.
10.We need to point out at the onset that this being a first appeal, it is also our duty, in addition to considering submissions by learned counsel, to analyze and re-assess the evidence on record and reach our own conclusions in the matter. This approach was adopted by this Court in Arthi Highway Developers Limited v West End Butchery Limited and 6 others [2015] eKLR citing the case of Selle v Associated Motor Boat Co. [1968] EA p.123.
11.In Selle’s case (ibid), the Court held:
12.This Court clarified the circumstances under which it would be constrained to interfere with the decision of a superior court in Alfarus Muli v Lucy M Lavuta & Another [1997] eKLR where the learned Judges held that:
13.The critical issue in this appeal is whether the appellants were lawfully employed by the 1st respondent and, if so, on whose behalf. This raises yet another question as to who ought to have been joined in the appellants’ suit as the principal respondent in the trial court. In other words, did the 1st respondent have statutory power to employ the appellants, or any other person for that matter, on its own behalf? Could such power be subdelegated so as to bind the respondents in contracts of service with the appellants or any of them?
14.Section 59(1) of the County Governments Act, 2012 sets out the functions and powers of a County Public Service Board. The section reads:
15.In addition to the foregoing, Boards have additional powers to make appointments in county public service pursuant to section 63(1) of the Act, which reads:
16.The appellants’ case was that they were recruited by the Human Resource Department of the 1st respondent following an advertisement “… to fill the posts of community and area administrators”. They contend that they were issued with letters of appointment on contract for a term of one (1) year in each case, and beginning on different dates. According to them, the HR Department was acting in discharge of powers delegated by the 1st respondent.
17.In its defence, the 1st respondent denied ever delegating power to the HR Department to undertake the recruitment in issue. According to them, the Board did not participate in or make any decision in the matter. It is noteworthy from the record, though, that the appellants served in the employment of the Bomet County Government for the respective contractual terms of one year, which was subsequently renewed, the last of such renewal being 5th January 2017.
18.It was in anticipation of the expiry of the term of service under their respective contracts that the appellants filed suit sometime in September 2017 seeking inter alia a declaration that the impending termination of service was unlawful; orders to compel the respondents to issue them with confirmation letters; in the alternative, an award of compensation equivalent to 25 years of service; and costs of the suit.
19.Upon hearing the parties, the learned Judge considered the following among others to be the main issues in contention at the trial court: whether the appellants were lawfully employed by the respondents; whether there was an intended termination of the appellants’ employment by the respondents; and whether the respondents were obligated to issue the appellants with letters confirming their employment. Put differently, whether the appellants had legitimate expectation to be retained in employment on permanent terms upon expiry of their respective fixed-term contracts of service. In our considered view, the issues that arose for determination by the trial court are essentially the same as those in contention on appeal before us.
20.As to whether the appellants’ recruitment in service of Bomet County Government was lawful, we take cognizance of the Board’s power under section 59(1) (b) of the Act to “appoint persons to hold or act in offices of the County Public Service, including in the Boards of cities and urban areas within the county and to confirm appointments.” In effect, the exercise of this power by the 1st respondent would ordinarily be in its capacity as the statutory agent of the Bomet County Government.
21.From the record of appeal as filed, it is evident that the initial appointments of the appellants were undertaken by “the County Government of Bomet Human Resources”. To our mind, this is a department of the County Government of Bomet and not a unit of the 1st respondent. It is also noteworthy that the renewal of the appellants’ contracts of service were undertaken by “Office of the County Secretary”. That office is undoubtedly an office in the county executive and not an office in the 1st respondent. Clearly, neither the 1st or 2nd respondent had a hand in the recruitment of the appellants or renewal of their fixed-term contracts of service. To our mind, the recruitment of the appellants and subsequent renewal of their fixed-term contracts were acts of County Government of Bomet, who were not joined as party to the suit before the trial court.
22.Be that as it may, the appellants continued to serve and draw salaries for the duration of their respective fixed-term contracts of service. But that is not to say that their de facto recruitment was in accordance with statute law, which requires either recruitment by a Board or by an officer expressly empowered by the Board in writing to do so pursuant to section 86(1). In the circumstances, we find nothing to fault the learned Judge in concluding that the appellants’ contractual engagement was contrary to statute law. In effect, it was irregular and, therefore, could not found a sustainable claim or right to continue in service on expiry of their contracts.
23.The question then arises as to whether the appellants were recruited by the HR Department of the County Government of Bomet and their contracts subsequently extended by the County Secretary in exercise of authority delegated by the 1st respondent. While the 1st respondent had power under section 86(1) to delegate their power, such delegation is required to be in writing to a specific person or office, as the case may be. In this regard, section 86(1) reads:
24.We find no evidence of such delegation on record and, accordingly, draw the conclusion that the appellants’ contractual recruitment by the HR Department of the County Executive and the subsequent renewal by the County Secretary were irregularly conducted and contrary to statute. However, in so far as the appellants’ terms of engagement, whether or not properly contracted, were for fixed terms of service, it was within the 1st respondent’s power under section 74 of the County Governments Act to regulate such contracts, including power to bring them to an end. Section 74 of the Act provides:
25.Having carefully considered the appellants’ case and the defence raised by the respondents, we form the considered view that the learned Judge was correct in holding that the appellants’ recruitment was unlawful; that the same were on fixed-term contracts whose renewal was for the 1st respondent to determine. In effect, the appellants had no legitimate expectation of such renewal or conversion of their previous fixed-term contracts to permanent employment confirmed in writing as prayed by the appellants.
26.In George S. Onyango vs. Board of Directors of Numerical Machining Complex Limited and 2 Others [2014] eKLR, the Industrial Court upheld the general rule that fixed-term contracts, as was the case here, carry no expectation of renewal. Accordingly, the appellants cannot be said to have a legitimate expectation of having their fixed-term contracts renewed or converted to permanent employment in the absence of an express promise or regular practice to that end (see Teresa Karlo Omondi vs. Transparency International Kenya [2017] eKLR). Neither had the trial court power to stand in the way of their disengagement at the end of the respective fixed terms for which they were contracted or otherwise direct the respondents to employ them on any particular terms.
27.In view of the foregoing, we form the considered view that the appellants had no cause of action against the respondents to warrant interference with the learned Judge’s decision. We form this view, first, on account of non-joinder in that the appellants ought to have joined their employer, the county government or the County Secretary in the suit in the trial court and, secondly, for want of any right of claim against the respondents.
28.Finally, we take the liberty to lend clarity to the often-cited doctrine of
29.We hasten to observe that, in principle, contracts of service which are entered into irregularly could not, and cannot, be validly extended; that any subsequent employment could only be undertaken by the 1st respondent in accordance with the County Governments Act, 2012; that the appellants have no legitimate expectation to be retained in employment of the county government; and that such retention was not for the trial court, or this Court for that matter, to order and direct.
30.The term “legitimate expectation” is a technical term of profound doctrinal basis. It is not the expression of wishful thinking or desire capable of translation into a legal right. Arvind Thapliyal enunciates the doctrine of legitimate expectation in 2006 (8) SCJ p.721 thus:
31.We agree with the learned author that legitimate expectation is not a legal right, but “… an expectation of a benefit, relief or remedy that may ordinarily flow from a promise or established practice”. From the record before us, we find no evidence of a promise or established practice on the part of the respondents or any of them to convert the fixed-term contracts of service to employment on permanent terms in favour of the appellants whose employment on contract was, in any event, in contravention of statute law. In so far as their employment was irregular, its invalidity could not, and cannot, be the basis of legitimate expectation of continued service on any terms. To our mind, such expectation is not tantamount to a right capable of enforcement in courts of law.
32.In Jitendra Kumar vs. State of Haryana & Others 2012 (78) ACC 70, the Supreme Court of India explained that –
33.The doctrine is essentially a creature of administrative law, having been evolved by the courts for the purpose of regulating the exercise of power by administrative authorities so as to provide effective safeguards from arbitrariness or abuse of power. It belongs to the domain of constitutional and administrative law. It cannot be read into or transplanted root-and-branch into the domain of the law of contract, or into our comprehensive and meticulously drafted employment laws for that matter, such as the extant statutory regulation of contracts of employment in county public service as is the case here.
34.As already stated, the Doctrine of "Legitimate Expectation” is not a legal right in itself embedded in some statute or Code readily available for its inference and applicability. However, it is a right to be treated fairly and the same has been fashioned by judicial precedents of various courts in common law jurisdictions over a period of time, and is still in its evolving stage. As was observed by the Supreme Court of India in the case of National Buildings Construction Corporation vs. S. Raghunathan & Others AIR 1998 SC 2779, the doctrine has its genesis in the field of administrative law. Under the doctrine, “… the Government and its departments, in administering the affairs of the country, are expected to honour their statements of policy or intention and treat the citizens with full personal consideration without any iota of abuse of discretion.” See also Republic vs. Attorney-General and Another Ex Parte Waswa and 2 others [2005] 1 KLR p.280.
35.The evolution of the doctrine of Legitimate Expectation in the Common law jurisdiction may be traced to the obiter dictum of Lord Denning, MR in Sehmidt vs. Secretary of Home Affairs (1969) 1 All ER p.904 where he observed:
36.The Supreme Court of India also addressed itself to the concept of “legitimate expectation” in M/S. Sethi Auto Service Station vs. Delhi Development Authority & Others AIR 2009 SC p.904. While dealing with the question of allotment of a plot by the DDA, the Court held:
37.Explaining the nature and scope of the doctrine of legitimate expectation in Food Corporation of India Vs. Kamdhenu Cattle Feed Industries (1993) 1 SC p.71, a three-Judge Bench of the Supreme Court of India observed:
38.Likewise, the High Court in Republic vs. Kenya Revenue Authority, Ex Parte Shake Distributors Limited [2012] eKLR had this to say on the matter:
39.Our citation of the foregoing judicial decisions serve to demonstrate the proper place for the application of the doctrine of legitimate expectation for which there is little or no room in contractual engagements, such as the fixed-term contracts between the appellants and County Government of Bomet. We consider it necessary to pronounce ourselves on the matter in light of frequent claims in employment disputes erroneously founded on, inter alia, the belief that the doctrine applies on equal terms in contracts of service the same way as certain terms may be implied in commercial transactions. To hold otherwise so as to interfere with the logical termination of fixed-term contracts the subject of the appeal before us, solely on the ground of avoiding the disappointment of the perceived legitimate expectations of the individual appellants, would be to set the Courts adrift on what the High Court in Attorney General for New South Wales vs. Quinn referred to as “a featureless sea of pragmatism” (see Attorney General for New South Wales vs. Quinn [1990] HCA 21, 170 CLR 1).
40.From the afore-cited authorities and the respective submissions of learned counsel for the parties hereto, we reach the inescapable conclusion that the appellants did not, at the trial, and have not established to our satisfaction that they had a legitimate expectation to be retained in service of their county government as claimed. Neither do we find any evidence of abuse or misuse of administrative power by the instrumentalities or agencies of the respondents, or of the County Government of Bomet, that call for our intervention by invoking the doctrine of legitimate expectation in the appellants’ favour. In our considered judgment, the appellants’ case before the trial court and on appeal before this Court falls outside the scope of this doctrine. Accordingly, nothing can be done in the name of “legitimate expectation” to breath life into fixed-term contracts whose expiry brought each of them to a dead end.
41.Having carefully considered the record of appeal, the supplementary record of appeal, the impugned judgment, the written and oral submissions of learned counsel for the appellants and counsel for the respondents together with statutory and the afore-cited judicial authorities, we find that the appellants’ appeal has no merit and, accordingly, hereby order and direct that –(a)the appellants’ appeal be and is hereby dismissed;(b)The judgment of the Employment and Labour Relations Court at Kericho (D. K. Njagi Marete, J) delivered on 15th December 2017 in ELRC Cause No. 46 of 2017 be and is hereby upheld;(c)each party bears their own costs.
DATED AND DELIVERED AT NAIROBI THIS 28TH DAY OF APRIL, 2022HANNAH OKWENGU...........................................JUDGE OF APPEALA. MBOGHOLI MSAGHA............................................JUDGE OF APPEALDR. K. I. LAIBUTA............................................JUDGE OF APPEALI certify that this is a true copy of the originalSignedDEPUTY REGISTRAR