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ELRCDismissedCause No. 97 of 2015· [2016] KEELRC 833 (KLR)

Benjamin Chepkairor v Kenya Urban Roads Authority [2016] KEELRC 833 (KLR)

Employment & Labour Relations Court of Kenya
19 July 2016
DMD. K. Njagi Marete
2,073 words in judgment
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The bottom line

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A Kenyan court upheld KURA's dismissal of a Senior Accountant for negligence, because the employee was given a fair hearing before being fired.

What this practically means

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Executive summary

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The claimant, formerly a Senior Accountant with the Kenya Urban Roads Authority at its Central Kenya Regional office in Nyeri, was interdicted following an internal audit into transport management and thereafter summarily dismissed. He challenged the dismissal as unlawful, arbitrary and in breach of the Employment Act, 2007 and the Constitution, complaining inter alia that the dismissal letter was signed by a non-existent 'managing director', and sought a declaration of unlawfulness, reinstatement, retained salary, notice pay, pension, leave pay, terminal benefits, gratuity and twelve years' projected earnings. The respondent maintained that the audit revealed negligence causing loss of funds through fictitious invoices, unsupported fuel payments and failure to reconcile supplier accounts; that the claimant was given a show-cause letter and a disciplinary hearing at which he admitted the omissions; and that the erroneous title on the dismissal letter was a corrected typographical error. The court framed three issues: lawfulness of the termination, entitlement to relief, and costs. Relying on the audit report and the claimant's admissions, it held that the respondent demonstrated negligence and improper conduct leading to loss of funds, and that the claimant, whose duties included processing payments, could not disclaim responsibility for verifying supporting documents. Due process was satisfied through the hearing afforded. The termination was held lawful, all relief was denied, and the claim was dismissed with each party bearing their own costs. Judgment delivered on 19th July 2016 by D. K. Njagi Marete, Judge.

Key legal issues

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01

Whether the claimant's summary dismissal was wrongful, unfair and unlawful

Holding

The termination was lawful; the respondent proved negligence and improper conduct causing loss of funds, and accorded the claimant due process.

Reasoning

The internal audit revealed payment of fictitious invoices, unsupported fuel payments and failure to reconcile supplier accounts. The claimant admitted the omissions before the disciplinary committee on 6th June 2013. The court rejected his assertion that verification of supporting documents was not his duty, holding that as Senior Accountant he was obliged to verify documents and advise the Regional Manager of irregular payments. He was given a show-cause letter and a disciplinary hearing, satisfying natural justice.

p. 4
02

Whether the claimant was entitled to the relief sought

Holding

Not entitled; lawful termination disentitles the claimant to all the reliefs claimed, including terminal benefits.

Reasoning

Having found the termination lawful, the court held the claimant loses all relief. The respondent had also argued that gross misconduct disentitled him to terminal benefits. The claims for gratuity, 12 years' projected earnings, notice pay, retained salary, pension and leave pay all fell with the finding on the first issue.

p. 4

Legal principles established

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  • Negligent and improper performance of an employee's contractual duties is a valid ground for summary termination of employment.
  • Where an employee is accorded a hearing and an opportunity to defend himself before dismissal, the termination is lawful.

Court orders

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  1. 1.The claim is dismissed in its entirety
  2. 2.Each party to bear their own costs of the claim

Authorities

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Legislation

  • Employment Act, 2007Section 44(4)(c)
  • Constitution of Kenya, 2010

Cases cited (3)

  • Peter Maina Kimani v Mwalimu Cooperative Society
    Industrial Court of Kenya Cause No. 603 of 2009 (unreported)
  • Josphat Ingosi Andulu & another v Nighingale Rubuka
    (2014) eKLR, Industrial Court Cause No. 487 of 2013
  • Ndao Mahupa v Crown Petroleum Ltd
    (2013) eKLR, Cause No. 88 of 2013
Jurisdiction invoked
Employment and labour relations jurisdiction over a wrongful/unfair dismissal claim under the Employment Act, 2007

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Benjamin Chepkairor v Kenya Urban Roads Authority [2016] KEELRC 833 (KLR)", Case Analysis (2016). Cause No. 97 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/833/eng@2016-07-19

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