Court Dismisses Tenwek Hospital’s Bid to Recover Sh7.4 Million from Doctor

The Employment and Labour Relations Court has dismissed Tenwek Mission Hospital’s attempt to recover Sh7.4 million from Dr. Ian Orwa. The hospital sought to reclaim the funds it spent on Orwa’s training after he failed to adhere to a post-training service agreement.

Background of the Dispute

Tenwek Mission Hospital, renowned for its training programs in partnership with the Pan African Academy of Christian Surgeons (PAACS) and the College of Surgeons of Eastern, Central, and Southern Africa (COSECSA), had sponsored Orwa’s orthopedic surgery residency. The training, conducted at Tenwek’s facility, was part of PAACS’s efforts to advance surgical expertise across Africa.

Orwa, who graduated with a bachelor’s degree in Medicine and Surgery from Kenyatta University in December 2013, began his training at Tenwek in January 2015 under a bond agreement. This agreement stipulated that he would work at Tenwek for a minimum of five years post-training or refund the costs incurred.

Claims and Counterclaims

According to Tenwek, the agreement required Orwa to either serve the hospital or repay the training costs amounting to Sh7.4 million with interest. The hospital argued that Orwa, who had initially received a monthly stipend that grew over time, had breached the contract by not returning to work for them.

However, Justice David Nderitu found discrepancies in Tenwek’s claims. The hospital’s calculation of the total training cost was deemed inaccurate. Additionally, a payroll officer’s testimony contradicted itself by referring to the payments as a stipend rather than a salary.

Orwa countered that his training expenses were covered by PAACS through Tenwek and that he had been authorized by PAACS Director Amanda McCoy to work at Jumuia Friends Hospital Kaimosi, not Tenwek. He also contested the conditions of the bond agreement, which included a compulsory HIV test and mandatory church affiliation, calling them discriminatory and unlawful.

Court’s Verdict

Justice Nderitu’s ruling highlighted that Tenwek’s role in Orwa’s training was facilitative rather than contractual. The court found no legal basis for Tenwek to claim repayment, ruling that it would be unjust to force Orwa to refund the money paid as salary.

The judge emphasized that Tenwek’s attempt to enforce the bond agreement constituted an illegal restraint of trade. The decision underscores the importance of clarity and fairness in employment agreements and training contracts.

Implications

This ruling sets a precedent in the legal handling of training agreements and reinforces the need for transparent and fair contractual obligations. Tenwek Mission Hospital’s case highlights the complexities involved in training sponsorships and the legal protections afforded to employees under such agreements.