Nairobi, July 28 -- For years, employers across Kenya have relied on rolling short-term contracts to fill permanent roles while avoiding the costs and obligations that come with permanent employment. A Court of Appeal ruling now threatens that practice, holding that workers who perform continuous, long-term duties cannot be kept indefinitely on renewable contracts simply because employers choose to label them temporary.

In a decision with potentially wide implications for private employers, county governments, and State corporations that rely on rolling fixed-term contracts, the three-judge bench also said prolonged insecure employment breaches the constitutional right to fair labour practices. Employees who perform permanent work for ye...