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Court of AppealDismissedNot stated in the judgment· [2025] KECA 161 (KLR)

Gogni Rajope Construction Company Limited & 1 other v Cornel Otieno Omondi

Court of Appeal
7 February 2025
5,092 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~20 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that even a fired employee with only six months' service can win an unfair termination claim if the employer skipped fair procedure.

What this practically means

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Executive summary

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This is a unanimous first-appeal judgment of the Court of Appeal at Nairobi, delivered on 7th February 2025 by S. Ole Kantai, Ali-Aroni and L. Achode, JJA, dismissing the appellants' appeal with costs to the respondent. The respondent, engaged as an Assistant Projects Engineer under a two-year contract, was sent on compulsory leave on 24th July 2012 and his services were terminated by letter dated 30th August 2012 with effect from 24th July 2012. The Employment and Labour Relations Court found that although the employer had valid reasons for termination - unauthorized hiring out of an excavator, release of a company vehicle that was stolen, obtaining money by misrepresentation, and absconding duty - the process was flawed, offending sections 41(2) and 45(2)(c) of the Employment Act, and awarded Kshs. 1,222,146.42. On appeal, the Court of Appeal re-evaluated the evidence as on a retrial and agreed with the trial court: the impromptu meeting of 23rd July 2012 could not be the hearing contemplated by section 41; service of the show cause letter was unproved and its dates were irreconcilable with the termination, rendering it an afterthought; and no proper month's notice was issued. The court also rejected the appellants' argument that section 45(3) of the Act barred the respondent, with only six months' service, from claiming unfair termination. It held that the Kenfreight authority relied on was obiter on that point, that section 45(3) is not in tandem with best labour practices and is inconsistent with Articles 22, 24, 27 and 48 of the Constitution, echoing the High Court's declaration of unconstitutionality in the Momanyi case. The binding rule for lower courts is that valid reasons alone do not make a termination fair - fair procedure under sections 41 and 45(2)(c) is indispensable, and section 45(3) affords no refuge to employers.

Key legal issues

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01

Whether the termination was fair in procedure despite valid reasons

Holding

Although the 1st appellant proved valid and justifiable reasons for termination under section 43, the procedure was flawed: no proper hearing under section 41, unproved service of the show cause letter, and a termination letter with irreconcilable dates. Termination was therefore unfair under section 45(2)(c).

Reasoning

The court found the respondent's conduct amounted to gross misconduct, satisfying section 43. But reasons alone are insufficient: the impromptu 23rd July 2012 meeting was not the hearing contemplated by section 41; the show cause letter's service was unproved and its dates incoherent with the termination effective 24th July 2012; and no month's notice or payment in lieu was given. The trial court's finding was affirmed.

p. 7
02

Whether section 45(3) of the Employment Act bars an employee with less than thirteen months' service from claiming unfair termination

Holding

Section 45(3) is inapplicable to defeat the claim: it is inconsistent with Articles 22, 24, 27 and 48 of the Constitution and was declared unconstitutional by the High Court in the Momanyi case; the Kenfreight reference to it was obiter dictum.

Reasoning

The appellants' reliance on Kenfreight failed because the reference to section 45(3) there was obiter, the point not having arisen. The court reasoned that the Employment Act is a reformist statute, that section 45(3) discriminates on the basis of period served, closing the doors of justice to deserving litigants, and is void to the extent of inconsistency under Article 2(4).

p. 8
03

The award payable to the respondent

Holding

The trial court's award of Kshs. 1,222,146.42 (one month's salary in lieu of notice, salary for days worked in July 2012, leave allowance, and four months' salary for unfair termination) stands, the appeal having been dismissed.

Reasoning

The appellants conceded the notice pay, salary for days worked and leave allowance, but contested the Kshs. 800,000 compensation for unfair termination under section 45(3). Having found the termination procedurally unfair and section 45(3) inapplicable, the court saw no basis to interfere with the trial court's award.

p. 10

Legal principles established

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  • Valid reasons for termination alone are insufficient; an employer must also follow fair procedures under sections 41 and 45(2)(c) of the Employment Act, including proper notice and an opportunity to be heard.
  • An impromptu, casual meeting does not satisfy the hearing requirement of section 41 of the Employment Act; proper notice is required to enable the employee to prepare a defence.
  • Section 45(3) of the Employment Act, restricting unfair-termination claims to employees with thirteen months' continuous service, is inconsistent with the Constitution and affords employers no refuge.
  • On a first appeal, the Court of Appeal must reconsider and re-evaluate the evidence and reach its own conclusions, while making allowance for the fact that it neither saw nor heard the witnesses.

Court orders

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  1. 1.The appeal is dismissed
  2. 2.Costs of the appeal awarded to the respondent
On appeal from
Employment and Labour Relations Court (claim originally filed at the defunct Industrial Court)
Not stated in the judgment
Jurisdiction invoked
First appeal to the Court of Appeal from the Employment and Labour Relations Court

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Gogni Rajope Construction Company Limited & 1 other v Cornel Otieno Omondi", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/161/eng@2025-02-07

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.