Court of Appeal Rules Against Endless Short-Term Contracts in Kenya

The Court of Appeal delivered a ruling that directly affects how employers structure employment relationships across Kenya. Workers who perform ongoing duties over extended periods can no longer be kept indefinitely on renewable short-term or casual contracts.

In the judgment delivered on 24 July 2026, judges examined the case involving the Kenya County Government Workers’ Union and Embu County Government. The union represented health workers who had served for years under successive short contracts. Some had worked for more than a decade after devolution transferred health services to counties in 2011.

The court looked past the contract labels. It focused on the actual nature of the work and the length of service. Repeated renewals without genuine breaks amounted to a strategy to deny workers job security and benefits.

The judges found that such practices violated fair labour principles under the Constitution. They ordered the county government and the public service board to regularise the affected employees’ terms to permanent and pensionable status.

This decision carries broad significance for many sectors. Construction stands out as one where casual and short-term arrangements have been common for decades. Labourers, masons, carpenters and other site workers frequently move between projects under daily or monthly contracts with the same firms.

The ruling suggests that continuity of service could support claims for permanent terms. Courts will examine the substance of the relationship rather than the paperwork alone. Employers in infrastructure projects may need to reassess how they engage workers on long-running sites or successive contracts.

The case highlights tensions between flexibility sought by employers and protections needed by employees. Construction firms often cite project-based work to justify short contracts. The court has drawn a line where work is effectively ongoing.

Legal observers expect the judgment to influence pending cases and future negotiations. Unions may push for regularisation where long service is evident. Employers will likely review contract templates to ensure compliance.

The decision reinforces provisions in the Employment Act regarding casual employees. It also aligns with constitutional guarantees of fair labour practices. Implementation will require careful monitoring across industries.

For the built environment sector, the implications are practical. Projects that span years or involve repeated engagements could face demands for conversion to permanent employment. This may raise costs through benefits and pensions but could improve workforce stability and skills retention.

The Court of Appeal has sent a clear message. Long-term work deserves corresponding employment security. How employers adapt will shape labour relations in construction and other sectors for years to come.