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ARTICLE · 20 OCTOBER 2026

When Does A Fixed-term Employment Relationship Become Permanent?

Cliffe Dekker Hofmeyr
Cliffe Dekker Hofmeyr
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Cliffe Dekker Hofmeyr

Cliffe Dekker Hofmeyr

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Kenya's Court of Appeal has clarified when successive short-term employment contracts cross the line into permanent employment, examining cases where workers performed essential duties for up to 20 years under rolling temporary arrangements. The ruling establishes that courts will look beyond contract expiry dates to assess whether the underlying work is genuinely temporary or permanent in substance, creating new compliance obligations for employers using fixed-term contracts.

KenyaEmployment and HR
Njeri Wagacha
Njeri Wagacha
Arnold Mutisya
Arnold Mutisya
Mitchelle Njeri
Mitchelle Njeri

Employers in Kenya routinely use fixed-term contracts to manage workforce flexibility. However, two recent decisions have sharpened the legal risk of retaining employees on successive short-term arrangements where the underlying work is permanent in nature. This article examines the Court of Appeal’s judgment in Kenya County Government Workers’ Union v Embu County Government and Another, Civil Appeal 178 of 2020 [2026] KECA 1481 (KLR) (the Kenya County Government Workers’ Union Case) delivered on 24 July 2026, read alongside the earlier Employment and Labour Relations Court (ELRC) decision in Gichuki v Kenya Power & Lighting Company PLC (Petition E021 of 2024) [2025] KEELRC 2578 (KLR) (the Gichuki Case), and sets out the practical implications for employers across both the public and private sectors.

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