Brief Background:
The Employment and Labour Relations Court (ELRC) delivered a judgment in the case of Omondi v Mathare Youth Sports Association & another (Cause No. 1049 of 2018) on April 24, 2025. The claimant, Bonface Omondi, sought declarations that his termination was wrongful, malicious, and unfair, violating his constitutional rights, particularly under Articles 27(5) and 41(1) of the Constitution of Kenya. He also sought compensation, including two months' salary in lieu of notice (KSh 59,800), general damages equivalent to twelve months' salary (KSh 358,800), aggravated damages for defamation (KSh 3,000,000), and payment for 24 days of earned leave (KSh 23,920).
The respondents, Mathare Youth Sports Association and Bob Munro, denied the claimant's allegations and contested his entitlement to the reliefs sought. In a ruling dated September 29, 2021, the court struck out the name of the second respondent, Bob Munro, from the proceedings, finding him not a necessary party to the suit. See Kenya Law
The ELRC ultimately dismissed the claimant's case, finding that he had not established that his termination was wrongful, malicious, or unfair. Consequently, the court denied all the reliefs sought by the claimant.
For more detailed information, you can access the full judgment on the Kenya Law website: Kenya Law.
Case Analysis:
In Omondi v Mathare Youth Sports Association & another [2025] KEELRC 1158 (KLR), the Employment and Labour Relations Court (ELRC) clarified the legal standing of fixed-term contracts in employment law, particularly where such contracts are repeatedly renewed and where disciplinary concerns arise near their end.
Key Points on Fixed-Term Contracts:
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Effluxion of Time:
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The Respondent argued, and the court agreed, that the Claimant’s employment came to an end by effluxion of time, not through termination.
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Even though the contract had been renewed almost ten times, each contract remained a distinct, time-bound agreement.
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Disciplinary Allegations vs. Natural Expiry:
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The Respondent raised allegations of misconduct but did not act on them through formal termination or disciplinary proceedings.
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Instead, the contract was allowed to lapse naturally, and this choice was deemed lawful.
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The court noted that if the contract had been terminated early due to misconduct, a different legal analysis would have applied.
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No Automatic Conversion:
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Repeated renewals of fixed-term contracts do not convert them into permanent contracts.
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The court rejected the idea that the employer had a continuing obligation to renew, stating that assuming so would “render the purpose” of fixed-term contracts “nonsense.”
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Court’s Holding:
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The Claimant's contract expired at the agreed end date, and his employment was not unfairly terminated.
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The mention of misconduct in the non-renewal letter did not amount to dismissal, since there was no actual termination before the contract’s expiry.
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Legal Implication:
The judgment reinforces that in Kenyan employment law, fixed-term contracts remain enforceable as such, and their natural expiry cannot be equated to unfair dismissal, even if prior misconduct is cited—so long as no premature termination occurs.
The decision in Omondi v Mathare Youth Sports Association & another [2025] KEELRC 1158 (KLR) sets a significant precedent in Kenyan employment law, particularly regarding the handling of fixed-term employment contracts.
Here's a summary of how this case may influence similar disputes:
1. Reinforces the Validity of Fixed-Term Contracts
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The court confirmed that even repeated renewals of fixed-term contracts do not transform them into permanent contracts.
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Employers and employees alike will now have clearer expectations: each fixed-term contract is distinct, and renewal does not imply permanence.
2. Clarifies Non-Renewal vs. Termination
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The ruling distinguishes between non-renewal due to expiry and termination (including dismissal).
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An employer is not obligated to renew a fixed-term contract, even if allegations of misconduct exist, provided the contract is allowed to expire naturally without issuing a dismissal.
3. Protects Employer Discretion in Renewals
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Employers retain the discretion to decline renewal of a fixed-term contract without having to prove misconduct or follow disciplinary procedures—unless early termination occurs.
4. Limits Claims of Unfair Termination
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Employees on fixed-term contracts will have limited grounds to claim unfair termination unless:
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The contract is terminated before expiry without just cause, or
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Due process is not followed in early dismissal.
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5. Encourages Clarity in Employment Agreements
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Both employers and employees are encouraged to clearly define the duration, renewal terms, and expectations in fixed-term contracts to avoid ambiguity and disputes.
Overall Impact:
This case strengthens legal clarity around the end of employment by effluxion of time, helping employers avoid liability where contracts end naturally, while also signaling to employees that long service under fixed terms does not automatically create indefinite employment.
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