A dispute between Davy Koech and his former employer, the Kenya Medical Research Institute (Kemri), will now be heard by the Employment and Labour Relations Court, seven years after filing.
The Court of Appeal declined to strike out the matter, as pleaded by Kemri, and instead directed that it be heard by the proper court.
Dr Koech, who was sacked in August 2007, sued his former employer claiming Sh124.8 million in damages.
He accused Kemri of unlawful termination.
When he filed the case in 2010, Dr Koech moved to the Commercial Division of the High Court but Kemri challenged the decision saying the court did not have the jurisdiction to handle the matter.
The employer argued that the division had no jurisdiction to deal with employment disputes.
This, Kemri argued, was a preserve of the Employment and Labour Relations Court.
But Justice Kihara Kariuki (then High Court judge) dismissed the application for reasons that Dr Koech had pleaded general damages for defamation arising from what he termed as tarnished name and reputation.