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ELRCDismissedCause No. 925 of 2010· [2013] KEELRC 195 (KLR)

Hosea Muruaigi Gichohi v Kenya Agricultural Research Institute [2013] KEELRC 195 (KLR)

Industrial Court of Kenya
1 July 2013
DMD.K. Njagi Marete
1,030 words in judgment
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The bottom line

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Kenya's Industrial Court upheld an employee's summary dismissal and ordered him to repay his employer Kshs. 503,382 after finding fraud in handling company goods.

What this practically means

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Executive summary

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The claimant, initially employed by the Kenya Trypanosomiasis Research Institute (KETRI) as Storeman II and later transferred to the respondent KARI pursuant to a presidential circular of July 2004, was interdicted on 27th March, 2006 on allegations of conspiracy to defraud and neglect of duty, placed on half pay, and summarily dismissed by letter dated 6th July, 2007. He sought a declaration that the dismissal was unjustified, unlawful and void, damages of Kshs.5,367,880.00, or in the alternative reinstatement with arrears, plus costs. The respondent denied the claim, maintained the dismissal was lawful following the claimant's failure to account for toner cartridges valued at Kshs.503,382.00 delivered by Intermoss Technologies, and counter-claimed for Kshs.534,607.00 as loss occasioned by the claimant's negligence. The court framed four issues: validity of the termination, entitlement to relief, the counter-claim, and costs. Relying on the investigation evidence of DW1 Nyaga Karugutira, the court found the claimant unaccountable and fraudulent, held the summary dismissal regular and lawful, and dismissed the claim with costs to the respondent. Judgment was entered for the respondent on the counter-claim in the sum of Kshs.503,382.00, with the balance of Kshs.31,225.00 (costs awarded in CMCC No. 3989/2008) to be pursued under that cause. Judgment was delivered on 1st July, 2013 by D.K. Njagi Marete, J.

Key legal issues

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01

Whether the summary dismissal of the claimant was justified

Holding

The dismissal was regular and lawful; the claimant failed to account for toner cartridges valued at Kshs.503,382.00 delivered to KETRI and received by him

Reasoning

The court relied on the investigation evidence of DW1, Nyaga Karugutira, concerning the invoice for Kshs.503,382.00 from Intermoss Technologies. The claimant was found unaccountable and fraudulent in his dealings, and his evidence did not come out clearly, so the claim failed.

p. 2
02

Whether the respondent is entitled to its counter-claim

Holding

Judgment for the respondent on the counter-claim for Kshs.503,382.00, being loss occasioned by the claimant's neglect and fraud

Reasoning

The court found fraud by the claimant occasioning loss of Kshs.503,382.00 to the employer. The balance of the counter-claim (Kshs.31,225.00) being costs awarded in CMCC No. 3989/2008 was not granted and should be pursued under that cause through execution.

p. 2

Legal principles established

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  • An employee who cannot account for goods received on behalf of the employer and whose fraud occasions loss may be lawfully summarily dismissed and held liable in damages to the employer

Court orders

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  1. 1.That this claim be and is hereby dismissed with costs to the respondent.
  2. 2.The respondent is entitled to the amount of Kshs.503,382.00 being the Counter-Claim.
  3. 3.That the claimant be and is hereby ordered to meet the amount of Counter-Claim.
Jurisdiction invoked
Reference to the Industrial Court of Kenya under a memorandum of claim dated 12th August, 2010 (the judgment does not expressly cite the enabling provision)

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, "Hosea Muruaigi Gichohi v Kenya Agricultural Research Institute [2013] KEELRC 195 (KLR)", Case Analysis (2013). Cause No. 925 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/195/eng@2013-07-01

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