JUDGEMENT OF THE COURT
1. Professor Mwangi S. Kimenyi (hereinafter referred to as the respondent) was the Executive Director of the Kenya Institute for Public Policy Research and Analysis (hereinafter called “KIPPRA).The parent Ministry of KIPPRA at the time relevant to this appeal was the Ministry of Planning. A contract of employment dated 8th February 1999 initiated the relationship between the respondent and KIPPRA. This is the 1st contract of employment. Under this contract, the respondent became an employee of KIPPRA. This first contract was initially for five years. Prior to the expiry of the first contract, the respondent resigned on 1st September 2002 and the resignation was accepted by the KIPPRA Board of Directors on 5th December, 2002. A recruitment exercise was done with the approval of KIPPRA Board but no suitable replacement was found. It was then that the idea of a second contract was mooted. A second contract of employment, whose validity is in issue, was signed betwee…