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Court of AppealPartially AllowedNot stated in the judgment

Roadtainers (Msa) Ltd v Munuve (Civil Appeal E116 of 2022) [2025] KECA 1302 (KLR)

Court of Appeal of Kenya
18 July 2025
6,912 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~28 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal scrapped a 12-month unfair dismissal award because the employee had signed an unchallenged discharge voucher accepting final settlement.

What this practically means

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Executive summary

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This is a first appeal from the Employment and Labour Relations Court at Mombasa (Ndolo, J.), which had found the respondent's termination on health grounds unfair and awarded him 12 months' salary (Kshs.341,136) as compensation, while dismissing his claims for notice pay, leave pay and public holidays and dismissing the appellant's counterclaim for Kshs.236,670. The Court of Appeal, in a unanimous judgment of Murgor, Laibuta and Ngenye-Macharia, JJA, identified five issues: procedural and substantive lawfulness of the termination, the duty to redeploy, the effect of the discharge voucher, and proof of the counterclaim. The Court held that although section 41 of the Employment Act was not strictly followed, a separation meeting attended by the respondent's wife and a colleague satisfied the required degree of fairness; the reasons for termination on health grounds were lawful, and the appellant was not necessarily obliged to reassign duties where the respondent proved no capacity for alternative work. Crucially, the Court found that the respondent had voluntarily signed a discharge voucher on 23rd July 2016, witnessed by his wife and colleague, which he never challenged in his pleadings or at trial, and that it absolved the appellant from further claims. The award of 12 months' compensation was therefore set aside. The dismissal of the counterclaim was upheld because special damages were not strictly proved and the Petty Cash Voucher was never formally produced as an exhibit. The appeal succeeded partially; each party was ordered to bear its own costs of the appeal.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.whether the procedure for termination of the respondent's employment was in accordance with the laid down procedure as underpinned in the Employment Act
  2. 2.whether the respondent's termination and the reasons thereof were lawful
  3. 3.whether the appellant was obligated to assign other duties to the respondent
  4. 4.the place and effect of the discharge voucher signed by the parties
  5. 5.whether the appellant proved its counterclaim

Key legal issues

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01

Lawfulness and procedural fairness of termination on grounds of physical incapacity

Holding

Although the statutory procedure under section 41 was not strictly adhered to, a meeting attended by the respondent, his wife and a colleague sufficed; the reasons for termination on health grounds were lawful and the appellant discharged its burden under section 47(5).

Reasoning

The Court held that fairness does not invariably require an oral hearing; the procedure must achieve the statutory degree of fairness. Two independent medical reports established 40-50% disability from brain injury. The respondent never denied that a separation meeting was held in the presence of his wife and a colleague, so he could not claim his termination was a fait accompli or that he had no opportunity to make representations. The Court declined to infer bad faith, noting the appellant had kept him on payroll for close to a year and tried to find him alternative placement.

p. 10
02

Obligation to redeploy an incapacitated employee

Holding

The appellant was not necessarily obligated to assign the respondent other duties, particularly where he led no evidence of any skills qualifying him for alternative duties.

Reasoning

Despite Dr. Mulunga's recommendation for lighter duties, the respondent, who was employed solely as a driver, adduced no evidence of skills or qualifications useful to the appellant that would have supported alternative placement, nor did he identify any duties he could perform. The Court found the appellant had no feasible redeployment option and was not acting in bad faith when it terminated on health grounds, so the trial court's contrary finding on redeployment was disturbed.

p. 10
03

Effect of the discharge voucher

Holding

The discharge voucher of 23rd July 2016, executed voluntarily and witnessed by the respondent's wife and colleague, absolved the appellant from further claims and defeated the award of 12 months' compensation.

Reasoning

Relying on Thomas De La Rue, Coastal Bottlers, Trinity Prime and Star Publications, the Court held that a discharge voucher is akin to a contract: it cannot of itself preclude enquiry into fairness, but once voluntarily executed and unchallenged, it binds. The respondent never pleaded coercion, fraud or lack of capacity in his pleadings or trial submissions, raising the capacity point only two years later; the presumption of voluntariness was therefore not rebutted and the award of compensation was unjustifiable.

p. 12
04

Proof of the appellant's counterclaim

Holding

The counterclaim for special damages failed because the causation of the accident was not established and the supporting Petty Cash Voucher was never formally produced as an exhibit.

Reasoning

Special damages must be specifically pleaded and strictly proved. Although a Petty Cash Voucher dated 11th November 2015 for Kshs.158,500 existed, it was not formally produced as an exhibit and thus carried no probative value. No evidence established that the respondent was to blame for the accident; the police abstract did not attribute blame. The trial court's dismissal of the counterclaim was therefore unassailable.

p. 12

Legal principles established

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  • A discharge voucher that is shown to have been freely and willingly executed by an employee, and which the employee has not challenged in the pleadings or on appeal, absolves the employer from further claims.
  • While an oral hearing is not always mandatory before termination, where no oral hearing is conducted the employer must ensure that the pre-termination procedure achieves the degree of fairness required by statute.
  • The burden of justifying the grounds for termination of employment rests on the employer under section 47(5) of the Employment Act.
  • A document that is admitted into evidence but not formally produced and proved is only hearsay, untested and an unauthenticated account.

Court orders

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  1. 1.Set aside the findings of the learned trial Judge (Ndolo, J.) in her judgment dated 7th October 2021 for compensation of 12 months' salary as damages for unlawful termination
  2. 2.A finding that the discharge voucher of 23rd July 2016 absolved the appellant from further claims
  3. 3.The appellant's counterclaim stands dismissed
  4. 4.Each party bears their own costs of the appeal

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority
majority
On appeal from
Employment and Labour Relations Court of Kenya at Mombasa
Not stated in the judgment
Jurisdiction invoked
First appeal to the Court of Appeal under rule 31(1)(a) of the Court of Appeal Rules, 2022

Relief refused

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The appellant's counterclaim for Kshs.236,670 in special damages

Special damages were neither specifically proved nor were the supporting documents formally produced as exhibits; no evidence established causation

p. 12

The respondent's claims for pay in lieu of notice, leave pay and public holidays (upheld as dismissed by the trial court)

The respondent was paid one month's salary in lieu of notice and leave pay, so no double compensation was due

p. 12

Costs

Each party bears their own costs of the appeal.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

In the end, we find that the appeal succeeds partially as follows
p. 13Disposition - partial success
We set aside the findings of the learned trial Judge (Ndolo, J.) in her judgment dated 7th October, 2021 for compensation of 12 months' salary as damages for unlawful termination.
p. 13Final orders - setting aside compensation award
We also make a finding that the discharge voucher of 23rd July 2016 absolved the appellant from further claims.
p. 13Final orders - effect of discharge voucher
However, the appellant's counterclaim stands dismissed.
p. 13Final orders - counterclaim
For this reason, we hereby order and direct that each party bears their own costs of the appeal.
p. 13Costs order
Our finding is that the appellant discharged its burden of proof under section 47 (5) of the Act, and that the reasons for the termination on health grounds were lawful.
p. 10Burden of proof and lawful termination on incapacity
We conclude that, by signing the discharge voucher, he absolved the appellant from future liability claims.
p. 12Binding effect of voluntarily executed discharge voucher

Issues in the judgment

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minor

The judgment states the accident occurred on 24th October 2015 in the background, but later records it as 23rd October 2015 as common ground.

minor

The counterclaim figure is inconsistently stated: the pleaded breakdown/recovery charge is Kshs.158,500 but the Petty Cash Voucher dated 11th November 2015 is described as being for the same recovery amount while the particularised total was Kshs.236,670; the pleading is internally consistent but the narrative description of the voucher is imprecise.

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Roadtainers (Msa) Ltd v Munuve (Civil Appeal E116 of 2022) [2025] KECA 1302 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/1302/eng@2025-07-18

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