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ELRCPartially AllowedCause No 801 of 2013· [2015] KEELRC 1658 (KLR)

Kuria v Kenya Broadcasting Corporation (Cause 801 of 2013) [2015] KEELRC 1658 (KLR)

Industrial Court (Employment and Labour Relations Court)
28 September 2015
3,416 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court ruled KBC unfairly retired its manager without a fair hearing and awarded him 12 months' salary.

What this practically means

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Executive summary

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The Claimant, formerly Manager Technical Services of the Kenya Broadcasting Corporation, was sent on compulsory leave on 13th July 2005 and, after being notified on 18th October 2005 of charges concerning procurement advice, VAT omissions, advice on a switcher purchase and information given to the tendering committee, was compulsorily retired on 1st November 2005 under Section 1.26 of the Corporation's Salaries, Terms and Conditions of Service. He sued in 2006 seeking a declaration that his dismissal/retirement was unlawful, lost earnings (amended to Kshs. 73,719,706.60), general, exemplary and promotional-opportunity damages, costs and interest. The Respondent defended the suit as lawful retirement for incompetence following a hearing, and counterclaimed for Kshs. 62,622.80 said to have been overpaid. The suit was transferred to this Court under Section 22 of the 6th Schedule of the Constitution and was determined on pleadings, affidavits, documents and submissions. The court found no admission of wrongdoing in the Claimant's response and held the reasons insufficient for termination in the public interest, noting that the faults were attributable to other departments or previous office holders and that poor signal quality was systemic. The termination was found unfair for want of compliance with the stipulated procedure and for want of valid reasons, and for non-compliance with Section 41 of the Employment Act. The court awarded 12 months' compensation of Kshs. 1,272,000/-, dismissed the counterclaim as unproved, and awarded the Claimant costs. General and exemplary damages had been abandoned; the declaration and lost-earnings claims were not granted in the terms sought.

Key legal issues

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01

Whether the termination was for valid reasons and in accordance with fair procedure

Holding

The termination was unfair: the reasons were insufficient and the stipulated disciplinary procedure and safeguards under Section 41 of the Employment Act and the Respondent's terms of service were not accorded to the Claimant

Reasoning

The court examined the charges levelled against the Claimant - insufficient advice on procurement of spares, misleading information on VAT, wrong advice on the switcher, and false information to the tendering committee - and found the Claimant had not admitted wrongdoing in his response. The court found the faults were attributable to other departments or prior office holders, that poor signals were a systemic failure, and that no preliminary investigation or committee probe was conducted. Hence neither valid reason nor fair procedure was established.

p. 6
02

Whether the Respondent proved its counterclaim for Kshs. 62,622.80

Holding

The counterclaim was dismissed as it was not proved

Reasoning

The Respondent alleged that at the time of retirement the Claimant owed it the difference between liabilities of Kshs. 302,622.80 and dues of Kshs. 240,000/-. The Claimant denied the liabilities as fictitious. The suit was determined on pleadings, affidavits, documents and submissions, and the Respondent did not discharge the burden of proving the alleged overpayment.

p. 6
03

What compensation is payable for the unfair termination

Holding

The court awarded 12 months' compensation of Kshs. 1,272,000/- based on the monthly salary of Kshs. 106,000/-

Reasoning

Having found the termination unfair for want of compliance with procedure and want of valid reasons, the court applied a 12-month salary equivalent as compensation, rejecting the Claimant's claim for lost earnings up to retirement and the abandoned claims for general and exemplary damages.

p. 6

Legal principles established

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  • Procedural fairness in termination must be adhered to, and a termination is unfair where there is want of compliance with the stipulated procedure and want of valid reasons to justify it
  • An employee is entitled to procedural fairness including notice of specific complaints and an opportunity to show cause before termination under the employer's regulations
  • Assuming an office does not, by inference, make an employee liable for all defects attributable to previous office holders

Court orders

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  1. 1.Award of 12 months' compensation of Kshs. 1,272,000/- based on the Claimant's monthly salary of Kshs. 106,000/-
  2. 2.Dismissal of the Respondent's counterclaim as it was not proved
  3. 3.Costs of the suit awarded to the Claimant

Authorities

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Legislation

  • Kenya Broadcasting Corporation Actcap 221 Laws of Kenya
  • Constitution of KenyaSection 22 of the 6th Schedule
  • Kenya Broadcasting Corporation Salaries, Terms and Conditions of ServiceSection 1.26; Section 12(a) and (c); Section 1.26(c) and 1.26(d)
  • Employment ActSections 41, 43 and 45

Cases cited (9)

  • Kenya Ports Authority v Silas Obengele
    [2005] eKLR
  • Gideon K. Mutindi & 2 Others v Kenya Railways Corporation
    [2014] eKLR
  • Francis Waithaka Ngokonyo & 2 Others v Telkom Kenya Limited
    [2013] eKLR
  • Mohamed Ghias Quereshi & Anor. v Paramount Bank Ltd
    [2000] eKLR
  • Bachitter Singh Chase v Barclays Bank of Kenya
    [1990] eKLR
  • D.K. Njagi Marete v Teachers Service Commission
    [2013] eKLR
  • Paul Muhoro Kihara v Barclays Bank of Kenya
    [2004] eKLR
  • Muthuri v National Industrial Credit Bank Ltd
    [2003] eKLR
  • Joseph Karanja Wainaina v National Bank of Kenya
Jurisdiction invoked
Section 22 of the 6th Schedule of the Constitution of Kenya (suit transferred by Waweru J. to this Court)

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, "Kuria v Kenya Broadcasting Corporation (Cause 801 of 2013) [2015] KEELRC 1658 (KLR)", Case Analysis (2015). Cause No 801 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/1658/eng@2015-09-28

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