The judge noted that Mbeche worked for a period of 4 years for Sasra. He had worked for the ministry from May 2008 to August 2010 when he was seconded to Sasra. Cumulatively he worked for both the ministry and Sasra for 6 years. The judge noted that Mbeche did not contribute to the circumstances leading to the termination of his contract. He expected to serve until retirement at the age of 60 years. He was a young man aged 32 years when his contract was terminated. He expected to serve for another 28 years
By The Weekly Vision
The Chief Executive Officer at The Sacco Societies Regulatory Authority Mr Peter Njuguna is in trouble after the Employment and Labour Relations Court ruled that he unfairly terminated the employment contract of Mr Renolo Mbeche unfairly.
Mbeche was seconded to Sasra from the Ministry of Industrialization and Enterprise Development for a period of 3 years, he was then required to apply for the position of ICT Manager after an internal advertisement was made and was successful upon interview. However, at the end of the 3 years, the ministry wrote to Sasra requesting the release of Mr Mbeche back to the ministry for further deployment. Sasra wrote back, stating it was now a fully established authority, and had absorbed the officers who were there on secondment, including Mr Mbeche on a permanent and pensionable basis.
Mr Mbeche had even applied for a loan with CFC Bank where Sasra wrote to the bank confirming that he was their ICT Manager. But in a strange twist, Sasra later wrote him a letter threatening to remove him from the payroll if he failed to report back to the ministry for redeployment.
Later the ministry through Sasra wrote to Mr Mbeche, informing him that he had deserted, and therefore removed his name from the payroll after writing him a letter to show cause why disciplinary action should not be taken against him. They also claimed that at no time did they absorb Mr Mbeche as a permanent and pensionable employee and at the date of termination, he had been paid all his provident fund dues in the scheme operated by Kenindia Assurance Company. He was paid a sum of Ksh 1,355,372 and signed a discharge voucher.
The judge noted that the ministry acted ultra vires, purported to instruct an employee who was not on its payroll, and who was no longer under its control, to report to its head office, failing which Mr Mbeche was deemed to have deserted, and would be removed from the ministry’s payroll.
The ruling reads “It is declared that the 2nd Respondent acted ultra vires, in purporting to terminate the claimant’s contract with the 1st Respondent”.
The judge noted that Mbeche worked for a period of 4 years for Sasra. He had worked for the ministry from May 2008 to August 2010 when he was seconded to Sasra. Cumulatively he worked for both the ministry and Sasra for 6 years. The judge noted that Mbeche did not contribute to the circumstances leading to the termination of his contract. He expected to serve until retirement at the age of 60 years. He was a young man aged 32 years when his contract was terminated. He expected to serve for another 28 years.
The ruling by Judge James Rika dated 31st May 2023 reads “However, Sasra paid him nothing on termination. He is granted equivalent of 7 months’ gross monthly salary, in compensation for unfair termination at Ksh. 2,128,000. The prayer for notice pay is granted, at Ksh. 304,000, equivalent of 1-month gross salary”.
The judge further noted “It is declared that termination of the contract of employment between the Claimant and the 1st Respondent, by the 1st Respondent was unfair. The 1st Respondent shall pay to the Claimant a total sum of Ksh. 2,151,215”.
