Antony Kioko v Savannah Cement (EPZ) Limited [2015] KEELRC 752 (KLR)
The bottom line
#A Kenyan court ruled that dismissing an employee over unproven conflict-of-interest suspicions, without a disciplinary hearing, was unfair and awarded him eight months' salary.
What this practically means
#Executive summary
#Key legal issues
#Validity of the reason for termination
The Claimant proved on a balance of probabilities that his employment was terminated without a valid reason
The Respondent alleged conflict of interest between the Claimant and two business entities but called no witness, adduced no evidence, and did not table the Internal Audit report it alluded to. The witness statement of Joseph Wachira, who did not testify, contained no concrete evidence of wrongdoing. The Claimant had denied the allegations in response to the show cause letter.
Fairness of the termination procedure
The termination was procedurally unfair as the Claimant was not called to a disciplinary hearing despite having responded to the show cause notice
Although the Claimant was issued a notice to show cause and responded extensively denying any relationship with the named companies and Mr Kioko Mwangangi, the Respondent did not summon him to a disciplinary hearing before terminating his employment on 8th April 2013. The procedure therefore fell short of the requirements of section 45 of the Employment Act, 2007.
Entitlement to compensation under section 49 of the Employment Act
The Claimant was entitled to compensation for loss and damage arising from the unlawful and unfair termination
The court considered that the Claimant was falsely accused of impropriety, lost his means of livelihood, had not found alternative employment, was 46 years old with good career prospects in administration and procurement, and that his good name was tarnished based on mere speculation. It awarded eight months' salary amounting to Kshs 1,440,000 with interest and costs.
Legal principles established
#- An employer who alleges misconduct must adduce evidence to prove the allegations; termination based on mere speculation without a disciplinary hearing is unfair
- Unproven allegations of conflict of interest do not constitute a valid reason for termination under section 45 of the Employment Act
Court orders
#- 1.Award of eight months' salary as compensation for unlawful and unfair dismissal in the sum of Kshs 1,440,000
- 2.Interest at court rates on the award from the date of judgment until payment in full
- 3.Respondent to pay the costs of the suit
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Antony Kioko v Savannah Cement (EPZ) Limited [2015] KEELRC 752 (KLR)", Case Analysis (2015). Cause No. 686 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/752/eng@2015-07-10
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.