
The case of Transparency International Kenya v Omondi [2023] KECA 174 (KLR) is a significant decision in Kenyan employment law concerning fixed term employment contracts and the doctrine of legitimate expectation. The dispute arose from a contractual employment relationship in which the respondent's fixed term contract contained a clause providing that any extension would be subject to satisfactory performance and the employer's continued need for her services. A disagreement emerged as to whether that clause created a legitimate expectation that the contract would be renewed upon the fulfilment of those conditions. Following the decision of the Employment and Labour Relations Court in favour of the respondent, the appellant challenged the judgment before the Court of Appeal.
This article examines the legal principles governing fixed term contracts vis a vis the doctrine of legitimate expectation, with particular reference to the Court of Appeal's decision in Transparency International–Kenya v Omondi. It analyses the requirements for establishing legitimate expectation, explores the Court's interpretation of renewal clauses in fixed-term contracts, and concludes by highlighting practical measures that employers and employees can adopt to minimize disputes arising from the non-renewal of fixed-term employment contracts.