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ELRCPartially AllowedCause No. 565 of 2012· [2014] KEELRC 8 (KLR)

Geoffrey Mwakio v Kenya Broadcasting Corporation [2014] KEELRC 8 (KLR)

Industrial Court of Kenya
9 May 2014
1,480 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled KBC unfairly fired an employee cleared of fraud, awarding him unpaid salary and Kshs.3 million in damages.

What this practically means

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Executive summary

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The Claimant, employed by the Kenya Broadcasting Corporation (formerly Voice of Kenya) from 30th October 1984, rose to the position of Senior Superintendent and had a clean service record. He was arrested in October 2005 and charged with fraud in Criminal Case No. 1188 of 2006, interdicted on half pay in December 2005, and dismissed on 21st June 2006. He was acquitted in November 2011 and sued for half salary for the interdiction period, reinstatement with arrears, or alternatively compensation for unlawful and unfair termination. The Claimant testified credibly, and the Respondent's Acting Chief Human Resource Officer confirmed the Claimant had no adverse record, was not given a Board disciplinary hearing, and ought to have been paid half salary for the entire interdiction. The Respondent's Principal Internal Auditor exonerated the Claimant, confirming he was not implicated in the fraud and that the corporation lost no money. The Court held that the Respondent failed to discharge its onus under Sections 43(1) and 45 of the Employment Act, 2007, and that the dismissal was unlawful and unfair. It awarded the unpaid half salary for the entire interdiction period up to the date of the Chief Magistrate's judgment, less amounts already paid, to be computed within 30 days. Finding reinstatement impractical after the lapse of time, the Court awarded general damages of Kshs.3 million in lieu of reinstatement, with an alternative option for the Respondent to re-engage the Claimant within 30 days and pay 12 months' salary of Kshs.311,604, failing which the alternative remedy abates and the Kshs.3 million becomes payable.

Key legal issues

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01

Whether the dismissal was for a valid reason and by fair procedure

Holding

The dismissal was unfair; the Respondent adduced no evidence of fraudulent conduct by the Claimant and its own Principal Internal Auditor exonerated him

Reasoning

The Respondent placed no evidence before the Court showing the Claimant committed fraud warranting dismissal. The Principal Internal Auditor's testimony and internal memo did not implicate him, and the corporation lost no money. The dismissal thus failed the test of valid reason and fair procedure under Sections 43(1) and 45 of the Employment Act, 2007.

p. 3
02

Entitlement to half salary during interdiction

Holding

The Claimant was entitled to the unpaid half salary for the entire period of interdiction, since the interdiction letter required him to remain at work

Reasoning

The interdiction on 14th December 2005 put the Claimant on half pay, but payment was only made for December 2005 to June 2006. The Respondent's own witness confirmed the Claimant ought to have been paid half salary for the entire period of interdiction. The Court awarded the outstanding half salary up to the date of the Chief Magistrate's judgment in November 2011.

p. 2
03

Appropriate remedy: reinstatement versus compensation

Holding

Reinstatement was impractical after the lapse of time; the Court awarded general damages of Kshs.3 million in lieu of reinstatement, with an alternative option of re-engagement plus 12 months' salary

Reasoning

Although the Court found the Claimant fully deserved to return to employment, many years had passed and circumstances at the workplace may have changed. It therefore fashioned an alternative remedy: re-engagement within 30 days plus 12 months' salary of Kshs.311,604, failing which the Respondent must pay Kshs.3 million in general damages.

p. 3

Legal principles established

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  • An employer bears the onus to justify a dismissal for a valid reason and in accordance with fair procedure under Sections 43(1) and 45 of the Employment Act, 2007
  • An employee interdicted on half pay pending criminal charges is entitled, upon acquittal, to the unpaid half salary for the entire period of interdiction

Court orders

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  1. 1.Payment of full salary for the entire period of interdiction from 6th December 2005 to the date of judgment by the Chief Magistrate on 11th November 2011, less amounts already paid, to be computed and filed for approval within 30 days
  2. 2.General damages in lieu of reinstatement assessed at Kshs.3 million
  3. 3.In the alternative, the Respondent may re-engage the Claimant within 30 days and pay twelve months' salary in the sum of Kshs.311,604 as compensation for unlawful dismissal
  4. 4.If the Claimant is not re-engaged within 30 days, the alternative remedy shall abate and the Respondent shall pay the Kshs.3 million general damages

Authorities

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Legislation

  • Public Service ActPart IV, Section 23 (1-6)
  • Employment ActSections 43(1), 45(1), 45(2)(a) and (c)
Jurisdiction invoked
Industrial Court of Kenya, Employment and Labour Relations jurisdiction (Cause No. 565 of 2012)

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, "Geoffrey Mwakio v Kenya Broadcasting Corporation [2014] KEELRC 8 (KLR)", Case Analysis (2014). Cause No. 565 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/8/eng@2014-05-09

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