The Employment and Labour Relations Court in Nairobi has delivered a landmark ruling against the Kenya Civil Aviation Authority (KCAA), ordering the reinstatement and compensation of a senior employee whose contract was unfairly terminated.
Justice Mathews Nduma, in a judgment delivered on 25th September 2025, found that KCAA violated the rights of Vivian Nyakerario Ongwae, a Flight Operations Inspector, by failing to renew her fixed-term contract in a fair and timely manner.
Background of the Case
Ms. Ongwae had served the aviation regulator since 2016 under three successive contracts. Her last contract expired on 31st December 2023. In September 2023, she formally applied for renewal as required, but KCAA’s Director General, Emile Arao, only communicated the decision not to renew her contract via a letter dated 12th January 2024—twelve days after the contract had already lapsed.
The court heard that Ongwae, who had a mortgage and other financial obligations, was left in limbo by the delayed communication.
Court’s Findings
Justice Nduma ruled that while the contract vested renewal discretion in the Director General, that power had to be exercised reasonably and in good faith. By delaying the communication and failing to give valid reasons, the DG acted unreasonably, maliciously, and in violation of the employee’s constitutional rights.
The judgment further revealed that KCAA’s own Human Capital Advisory Committee had recommended renewal of Ms. Ongwae’s contract, but the DG disregarded the advice without justification. The court held that this violated her legitimate expectation and her constitutional right to fair administrative action under Articles 41 and 47 of the Constitution.
Court Orders Against KCAA
The court issued the following orders:
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Quashed the KCAA’s January 2024 decision not to renew the contract.
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Issued a mandatory injunction compelling KCAA to renew Ms. Ongwae’s contract for three years, effective from the date of judgment.
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Ordered KCAA to pay her general damages equivalent to six months’ salary (Kshs. 2,221,104) for breach of her constitutional and contractual rights.
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Directed that the damages attract interest until fully settled.
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Ordered KCAA to bear the costs of the petition.
Wider Implications
Justice Nduma emphasized that public bodies must exercise their administrative powers with fairness, reason, and transparency. He cautioned that constitutional principles in public service are binding obligations, not symbolic ideals.
This ruling is expected to set a precedent for similar employment disputes, reinforcing that state corporations and public employers cannot disregard due process or legitimate expectations in matters of contract renewal.