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Fixed-term employment contracts and legitimate expectation for renewal
  • Employment & Benefits
  • Kenya
  • 24 October 2018

The underlying understanding between the parties of fixed-term employment contracts is that once the fixed period has ended, the contract is automatically terminated without any further liability on the employer's part on account of unfair termination or redundancy. However, despite this apparently clear intention, Kenyan jurisprudence is awash with claims lodged by employees on the grounds that the non-renewal of such contracts amounted to unfair termination.

Party misconduct and escalating arbitration costs: who's to blame?
The Offices of Njeri Kariuki
  • Arbitration & ADR
  • Kenya
  • 27 September 2018

Section 19A of the Arbitration Act was introduced to add statutory clout to party obligations, including the need for expedition during proceedings to minimise unnecessary expenditure. Despite Section 19A's mandate that parties fully cooperate in order to expedite the arbitral process, party misconduct remains an issue. Arbitrators must ensure that all of the minutes and orders for direction, as well as any arbitral awards, reflect the fact that parties can and will be held responsible for any delays in the proceedings.

Constructive dismissal – novel remedy for harassed employees
  • Employment & Benefits
  • Kenya
  • 18 April 2018

Normally, when an employee resigns, he or she is not entitled to claim damages against the employer. Indeed, if the employee resigns without giving the requisite contractual notice, the employer is entitled to recover the pay in lieu of notice through legal proceedings and there is usually no valid defence to such a claim. However, constructive dismissal is treated as a dismissal by the employer and the employee is entitled to damages for unfair termination.

Why Kenya needs law on transfer of employees
  • Employment & Benefits
  • Kenya
  • 28 March 2018

Since 2007 Kenya has had one of the most robust labour law regimes in the world. The Employment and Labour Relations Court is famed worldwide for its pro-employee ideology and is known to bend over backwards to ensure that employees who call on it do not go home empty handed. It is therefore surprising that Kenya has not enacted legislation to regulate the seamless transfer of employees from one company to another following a merger or acquisition.

Why 'you're fired!' is no longer law
  • Employment & Benefits
  • Kenya
  • 14 March 2018

For a termination to be lawful, the employer must have a valid reason and adopt a fair termination process. Further, the reasons must be given before the termination takes place. The law does not require that the employee accept the reasons given, but if the employee disputes their validity, he or she could challenge the termination on grounds of unfairness. As it is unrealistic to expect an employee facing dismissal to accept the reasons given, Parliament should reconsider this requirement.

Restrictive covenants in employment contracts
  • Employment & Benefits
  • Kenya
  • 21 February 2018

The validity and enforceability of restrictive covenants during the employment period is usually not debatable. However, what frequently results in litigation is whether and to what extent these restrictive covenants are enforceable after the termination of employment. For a restrictive covenant to stand, the employer must demonstrate that it has a legitimate proprietary interest and that the intention is not merely to punish the employee.

Special Economic Zones Act and foreign direct investment
  • International Trade
  • Kenya
  • 29 April 2016

The Special Economic Zones Act has elicited much speculation about whether it is the right tool to promote Kenya's economic development. The act seeks to revolutionise trade in Kenya by creating a conducive environment for investment. 'Special economic zones' are selected geographical regions where certain policies that enhance business are put in place. As far as import duties and levies are concerned, they are regarded as being outside the customs territory.

Contemnor's right of audience
  • Litigation
  • Kenya
  • 09 February 2016

Failure to grant a contemnor the right of audience in an appeal or application for stay of execution of orders limits a fundamental right provided for by the Constitution and leads to an abuse of judicial power and unenforceable orders. Despite the value of the law on contempt of court, a contemnor's right of audience should not be limited arbitrarily. Contempt proceedings should not be used to serve the interests of the parties at the expense of the administration of justice.

Taming telecoms monopolies – is it a case of declaring success illegal?
  • Competition & Antitrust
  • Kenya
  • 06 August 2015

Safaricom has faced challenges since the Communications Authority of Kenya proposed regulations that aim to declare it a dominant player due to its control of the telecoms industry. The new regulations would significantly affect how an entity in the sector can be declared dominant. Safaricom's chief executive officer has suggested that such a move is akin to punishing success.

Admissibility of polygraph tests in court
  • Litigation
  • Kenya
  • 02 June 2015

The Evidence Act does not provide directly for the use of lie detectors or the admissibility of polygraph reports in court. However, it does provide for the admissibility of computer-generated reports, with certain qualifications. Written consent from the tested parties will demonstrate that a lie detector test was not taken under duress or undue influence. The signature of an agreement ought to be witnessed by independent witnesses.

Interests under which land can be held in Kenya
  • Real Estate
  • Kenya
  • 13 March 2015

The Kenyan Constitution guarantees the right of every individual to acquire and own land in Kenya, either individually or in association with others. Kenyan citizens have the right to own land of any description in any part in Kenya, and they cannot be deprived of this right except under exceptional circumstances. Foreigners can hold land in Kenya only under a leasehold tenure not exceeding a 99-year term.

Foreigners and property ownership in Kenya
  • Real Estate
  • Kenya
  • 31 October 2014

The Constitution, the Lands Act and the Land Registration Act grant the right to each person, either individually or in association with others, to acquire and own land in Kenya. Many foreign investors have been duped into entering into agreements with locals with a view to the locals purchasing properties on their behalf. Such unnecessary partnerships often turn sour and should be avoided.

High Court rules judiciary is not under Parliament's control
  • Litigation
  • Kenya
  • 01 July 2014

The new Constitution heralded a new dawn in the management of public affairs. Conflict and competition ensued among the three arms of government and the courts were faced with balancing the respective powers and interests of the three institutions. In recognition of the constitutional issues involved, the chief justice constituted a five-judge bench to hear the issues around the doctrine of separation of powers, governance and the rule of law.

Flaws in identification parade process
  • Litigation
  • Kenya
  • 11 March 2014

Two recent cases have seen convictions quashed as the identification parades were deemed highly unsatisfactory or improper. The general jurisprudence in Kenyan courts is that failure to adhere to identification parade guidelines will invalidate any evidence gathered there. Recent police reforms should ensure that the evidence obtained during a parade cannot be impeached due to a minor technicality.

Court throws out election petitions where unqualified advocate acts
  • Litigation
  • Kenya
  • 14 January 2014

The Advocates Act prescribes the requirements necessary to qualify to act as an advocate of the Kenya High Court. Any action taken up by an unqualified person is considered illegitimate. In a recent decision the court held that an advocate was an unqualified person as he did not have a practising certificate. The election petition was dismissed on the sole ground that an unqualified advocate had purported to act.

Nairobi Centre for International Arbitration commences operations
  • Arbitration & ADR
  • Kenya
  • 16 May 2013

The Nairobi Centre for International Arbitration Act demonstrates the government's commitment to promoting reconciliation, mediation, arbitration and traditional dispute resolution mechanisms in Kenya. The act's main objective is to establish an independent, non-profit-making international organisation for commercial arbitration based in Nairobi.

Kenya set to introduce real estate investment trusts
  • Capital Markets
  • Kenya
  • 14 May 2013

Kenya is poised to be the third African country to establish a real estate investment trust (REIT) as an investment vehicle if the Capital Markets Authority's promise to gazette the 2012 Capital Markets Regulations by May 2013 is delivered. With Kenya's developed capital market and high demand for real estate, investment in a REIT will guarantee a high level of continuing income for investors.

Generic drugs: the right to access affordable medication
  • Intellectual Property
  • Kenya
  • 25 March 2013

Following the enforcement of the Anti-counterfeiting Act, three HIV/AIDS patients petitioned the Constitutional Court to declare the act illegal because it could deny them access to generic medicines. The court ruled that intellectual property should not override the right to life, right to health and right to human dignity outlined in the Constitution.

High Court to supervise Judges and Magistrates Vetting Board
  • Litigation
  • Kenya
  • 26 February 2013

As part of the judicial reform process the Constitution commands Parliament to enact law establishing procedures for vetting judicial officers to determine their suitability to continue in office. The Judges and Magistrates Vetting Board has already declared several senior judges unfit to continue holding office. This triggered the filing of five suits with the Constitutional High Court challenging the process of removing the judges.

New bid to revamp the judiciary: Supreme Court and Court of Appeal judges purged
  • Litigation
  • Kenya
  • 21 August 2012

In 2010 Kenya ratified the Constitution 2010 through a national referendum. A key theme of the new Constitution was to clean up the judiciary, which was perceived as being corrupt. The Vetting of Judges and Magistrates Board has already vetted judges of the Supreme Court and the Court of Appeal, and has made public its determinations. The process of vetting judges continues to receive widespread public support.