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Court of AppealDismissedCivil Appeal No. 117 of 2020

Airtel Networks Kenya Limited v Angela Shukuru Ilondanga

Court of Appeal
25 September 2026
6,050 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~24 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that employers must strictly follow redundancy notice rules and prove a job truly disappeared, or pay heavy compensation.

What this practically means

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Executive summary

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This is a first appeal by Airtel Networks Kenya Limited against the judgment of Ongaya J in the Employment and Labour Relations Court, which had declared the termination of the respondent's employment on grounds of redundancy substantively and procedurally unfair and awarded her twelve months' salary as compensation. The appellant argued that the redundancy arose from a genuine restructuring affecting sixty-three positions, that the respondent's Express Shop Manager position was abolished and its functions outsourced, that it substantially complied with section 40 of the Employment Act by notifying the Ministry of Labour, and that the compensation award was manifestly excessive. The Court of Appeal distilled two issues: whether the termination was substantively and procedurally unfair, and whether the compensation award was properly made. On the first issue, the Court found the appellant failed to prove the position was genuinely abolished: the Parkside Shop continued operating, Kennedy Oluoch performed the same functions, and no outsourcing contract supported the appellant's explanation. On procedure, the notice was addressed to the Ministry of Labour rather than the local labour officer, lacked an effective date, and the respondent was never personally served with prior notice, contrary to the mandatory requirements of section 40(1)(a) and (b). On compensation, the Court held the trial judge judiciously exercised discretion under section 49, properly considering the respondent's service, clean record, abrupt termination and financial hardship, and accounting for the ex-gratia payment. The appeal was dismissed in its entirety with costs to the respondent. This judgment binds subordinate courts and tribunals on the burden of proving genuine redundancy and strict compliance with section 40 notice requirements.

Questions the Court framed

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

  1. 1.Whether the trial court erred in finding that the respondent's termination on account of redundancy was substantively and procedurally unfair
  2. 2.Whether the trial court properly exercised its discretion in awarding the respondent compensation equivalent to twelve months' salary

Key legal issues

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01

Whether the redundancy was genuine (substantive fairness)

Holding

The appellant failed to prove that the respondent's position was abolished; the Parkside Shop continued operating and Kennedy Oluoch performed the same functions, with no outsourcing contract on record

Reasoning

The central inquiry was whether the position, not the business, was abolished. The email of 25th February 2026 referred to Kennedy Oluoch as Shop Manager at Parkside Shop Airtel Kenya. RW1's claim that he was outsourced was unsupported by any outsourcing contract on the record, so the appellant failed to discharge its burden of proving a genuine redundancy.

p. 27
02

Whether the redundancy procedure complied with section 40 of the Employment Act

Holding

Procedural fairness was not met: the notice was addressed to the Ministry of Labour rather than the local labour officer, did not indicate the effective date, and the respondent was never personally served with prior notice

Reasoning

Section 40(1) is mandatory. Following Africa Nazarene University v David Mutevu, both union and non-union employees are entitled to notice of at least one month stating the reasons for and extent of the redundancy. The notice to the Ministry was defective and the respondent received only a termination letter with immediate effect.

p. 35
03

Whether the award of twelve months' salary as compensation was excessive

Holding

The trial court properly exercised its discretion under sections 49(1)(c) and 49(4); no basis to interfere with the maximum statutory award

Reasoning

The trial court considered the respondent's clean record, long service, promotions, abrupt termination and outstanding loan, and accounted for the ex-gratia payment and unpaid bonus within the compensation. The appellant did not demonstrate wrong principles, irrelevant considerations, or a plainly wrong decision.

p. 42

Legal principles established

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  • Redundancy requires compliance with both the substantive and mandatory procedural requirements of the Employment Act, including section 40 notice to the employee and the local labour officer
  • An employer alleging redundancy bears the burden of proving that the position was genuinely abolished; a bare assertion of outsourcing without documentary proof fails
  • Where the employee is not a union member, section 40(1)(b) requires written notice to the employee and the local labour officer, with the same one-month notice period as section 40(1)(a)
  • An appellate court will not interfere with the trial court's exercise of discretion on compensation unless misdirection in law, irrelevant considerations, or a plainly wrong decision is shown

Court orders

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  1. 1.Appeal dismissed in its entirety
  2. 2.Costs of the appeal awarded to the respondent

The bench

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

majority

Wrote the judgment

majority

Wrote the judgment

majority

Wrote the judgment

On appeal from
Employment and Labour Relations Court at Nairobi
ELRC No. 502 of 2016
Jurisdiction invoked
First appeal to the Court of Appeal under the Employment and Labour Relations Court appellate framework (not expressly stated in the judgment)

Relief refused

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Appellant's prayer to set aside or reduce the twelve months' salary compensation award

Trial judge exercised discretion under section 49 judiciously; no wrong principles or irrelevant considerations shown

p. 42

Appellant's contention that the redundancy was genuine and procedurally compliant

No outsourcing contract on record; statutory notice requirements under section 40 not met

p. 27

Costs

Appeal dismissed with costs to the respondent

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.

Consequently, we find no merit in this appeal and dismiss it in its entirety, with costs to the respondent.
p. 42Final orders - dismissal of appeal
It is so ordered.
p. 42Final orders - disposition
There being nothing to support the allegation that Kennedy was outsourced, we find that the appellant failed to prove that the appellant’s position was rendered redundant.
p. 27Burden of proving genuine redundancy
we agree with the trial Judge that the appellant failed to surmount the hurdle of procedural fairness as required by law.
p. 35Section 40 procedural compliance
whether an employee belongs to a trade union or not, the reasons and period of notice should be spelt out.
p. 31Construction of section 40(1)(a) and (b)
An appellate Court will not interfere with the exercise of discretion unless it is shown that the trial court misdirected itself in law, considered irrelevant matters, failed to consider relevant matters, or reached a plainly wrong decision.
p. 37Appellate interference with discretionary awards

Issues in the judgment

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material

Email to Kennedy Oluoch dated 25th February 2026, though the termination was in January 2016 and the trial court referred to an email of 25.02.2016

minor

Trial court quoted citing section 77 of the Employment Act for notification of abolition of office, apparently an error for section 40

minor

Respondent's submissions dated 28th October 2024 yet plenary hearing was on 18th February 2026; date sequence unusual but not impossible

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, "Airtel Networks Kenya Limited v Angela Shukuru Ilondanga", Case Analysis (2026). Civil Appeal No. 117 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2026/1915/eng@2026-09-25

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