LUCY NYANDIA MWANGI V MATHENGE AND MUCHEMI ADVOCATES [2013] KEELRC 355 (KLR)
The bottom line
#A Kenyan court ruled that a firm's employees keep their jobs when the owner dies, and firing them without reason is unfair.
What this practically means
#Executive summary
#Key legal issues
#Whether the employment contract lapsed automatically on the employer's death
It did not; the business continued under successor employers, so the purported automatic lapse was not a valid termination reason and constituted unfair termination
The firm did not change name, nature or place of business; only the partners changed following Mathenge's death and Muchemi's resignation. Under section 43 of the Employment Act the reason for termination was invalid, and under section 45 the termination was unfair, entitling the Claimant to compensation.
Identity of the employer after the Founder's death
Waweru Mathenge and Agnes Njoroge, as registered successor partners, were the successor employers
Statutory definitions of employer under the Employment Act, Labour Relations Act, Industrial Court Act and Labour Institutions Act include heirs, successors and agents. Waweru was a beneficiary of the Estate; Njoroge took control of the Firm, ran its bank accounts with LSK authority, and settled its N.S.S.F liabilities. Both qualify to shoulder employment obligations.
Whether severance pay was payable
No, because there was no genuine redundancy; the business continued and no redundancy was declared
Redundancy law under section 40 applies where the business stops trading or a genuine restructuring is undertaken with consultation and redundancy benefits. The Respondent offered no redundancy payments and left employees uncertain of their status. Had it wished to end old employees' contracts, it ought to have declared redundancy and paid the benefits.
Whether N.S.S.F membership bars severance pay
No; N.S.S.F membership bars only service pay under section 35(6), not severance pay under section 40
The Court clarified that section 35(6) excludes employees due for pension under N.S.S.F from service pay, but severance pay on redundancy under section 40 is a distinct entitlement requiring a minimum of 15 days' salary per completed year. However, on the facts no redundancy arose, so neither was payable.
Legal principles established
#- A contract of employment does not lapse automatically on the death of the proprietor where the business continues in operation under successor employers
- Employees should not bear the burden of unmasking their employer's legal or business structures
- Successor partners who take over a continuing business are presumed to be successor employers of its employees
- Where a business ceases on the death of the owner, redundancy law applies; where the business continues, termination requires valid reason under sections 43 and 45 of the Employment Act
Court orders
#- 1.Declaration that termination of the Claimant's contract on the ground that the Respondent's Founding Partner G.K. Mathenge had died was unfair termination
- 2.Respondent to pay the Claimant 10 months' gross salary amounting to Kshs. 160,000
- 3.Payment within 30 days of delivery of the Award
- 4.Claimant to collect her certificate of service from the Respondent forthwith
- 5.No order on costs
- Jurisdiction invoked
- Employment and labour relations dispute under the Industrial Court Act 2011
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Omuhaka v Muraguri (Employment and Labour Relations Appeal E314 of 2025) [2026] KEELRC 2420 (KLR)[2026] KEELRC 2420 (KLR)20 Aug 2026
Cite this brief
#Cite this brief
Caselaw, "LUCY NYANDIA MWANGI V MATHENGE AND MUCHEMI ADVOCATES [2013] KEELRC 355 (KLR)", Case Analysis (2013). Cause 811 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/355/eng@2013-05-09
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.