Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedNot stated in the judgment as provided· [2016] KEELRC 1435 (KLR)

Tom Mboya Ochieng v Programme For Appropriate Technology In Health Path -Kenya [2016] KEELRC 1435 (KLR)

Employment and Labour Relations Court
19 February 2016
1,952 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

#

A Kenyan court upheld a dismissal for conflict of interest but awarded the employee notice pay and a refund because the employer's handbook lacked summary dismissal provisions.

What this practically means

#

Executive summary

#
The Claimant, employed by the Respondent as a Procurement Officer on 1st October 2012, was summarily dismissed by letter dated 16th December 2013 on the ground of conflict of interest: he allegedly used a company associated with his wife, Mbombo Enterprises, to transport his household goods from Nairobi to Kisumu without disclosing his interest, contrary to the Respondent's Procurement Policy. The Claimant alleged he had endorsed his disclosure on his employment contract and that the dismissal was malicious; he sought a declaration of wrongful dismissal, salaries and bonuses to the end of his five-year contract (Kshs. 16,477,506), refund of a Kshs. 79,000 surcharge, general damages, costs and interest. The Respondent denied all allegations. The court framed two issues: whether there was a conflict of interest justifying summary dismissal, and whether the Claimant was entitled to the prayers sought. The court found the dismissal justified, holding that the alleged handwritten endorsement did not form part of the contract, that the printed procurement policy took precedence, and that the Claimant improperly processed the tender and payments for Mbombo Enterprises. It further found the disciplinary hearing fair. However, because the Respondent's Employee Hand Book made no provision for summary dismissal, the court reduced the dismissal to Involuntary Termination, awarding one month's salary in lieu of notice (Shs. 311,039) and ordering refund of the surcharged Shs. 79,000, a total of Shs. 390,039. Damages for the contract term and general damages were refused. Each party was ordered to bear its own costs.

Key legal issues

#
01

Whether the Claimant's dismissal for conflict of interest was justified

Holding

Dismissal was justified; the Claimant failed to prove the handwritten endorsement formed part of his contract and he improperly processed the tender and payments for a company associated with his wife

Reasoning

The court disbelieved the Claimant's claim that the contract was unsigned when he endorsed conditions, noting no employment contract would be valid without signature. Even if endorsed, handwritten endorsements would not bind the Respondent against the printed procurement policy, and the Claimant failed to explain why he handled the tender and payments for Mbombo Enterprises if he had disclosed his interest. The printed document takes precedence over handwritten text.

p. 4
02

Whether the Claimant received a fair disciplinary hearing

Holding

The Claimant failed to prove the hearing was unfair; minutes showed he was given an opportunity to state his case and he declined the right to be accompanied

Reasoning

The Respondent's witness produced minutes showing the Claimant was given a fair opportunity to state his case. The Claimant was informed of his right to be accompanied by a fellow employee but did not take it up. Having forgone that safeguard, his word stood against the Respondent's witness and the minutes, and under Section 47(5) of the Employment Act he who alleges must prove.

p. 4
03

Whether summary dismissal was available under the Respondent's disciplinary framework

Holding

The Employee Hand Book made no provision for summary dismissal, so the dismissal was reduced to Involuntary Termination with one month's salary in lieu of notice

Reasoning

The court perused the Respondent's Kenya County Program Employee Hand Book and found it provided for involuntary termination under Section 8000 but contained no provision for summary dismissal. The court therefore converted the summary dismissal into involuntary termination, entitling the Claimant to one month's salary in lieu of notice.

p. 5
04

Whether the Claimant was entitled to refund of the surcharged Shs. 79,000/= paid to Mbombo Enterprises

Holding

Refund ordered; the Hand Book provided no basis for the surcharge, and entitlement to transportation of household goods had accrued upon reporting for duty

Reasoning

The court found no provision in the Employee Hand Book or justification in law for the surcharge. The Respondent confirmed the Claimant was entitled to transportation of his household goods upon employment and this was in fact done. The flawed tendering process did not disentitle the Claimant to that accrued right.

p. 5

Legal principles established

#
  • Under Section 47(5) of the Employment Act, the employee bears the burden of proving unfair termination or wrongful dismissal, while the employer bears the burden of justifying the grounds for termination
  • An employee with a conflict of interest should excuse themselves from the procurement decision process
  • Where there is a conflict between a handwritten and a printed document, the printed document takes precedence

Court orders

#
  1. 1.The summary dismissal of the Claimant is reduced to Involuntary Termination as provided in the Respondent's Employee Hand Book
  2. 2.The Claimant is awarded one month's salary in lieu of notice of Shs. 311,039
  3. 3.Refund to the Claimant of Shs. 79,000/= deducted from his salary
  4. 4.Each party shall bear its own costs

Authorities

#

Legislation

  • Employment ActSection 47(5)

Cases cited (9)

  • Bernard Shisiali Muhatia v Speedex Logistics Ltd
    [2013] eKLR
  • Nazareno Kariuki v Feed the Children Kenya
    [2013] eKLR
  • Judicial Service Commission v Gladys Boss Shollei & another
    [2014] eKLR
  • Jackson Butiya v Eastern Produce K Limited
    Industrial IC No. 335 of 2011
  • Abudi Ali Mahadhi v Ramadhani Said & Freight Forwaders Limited
    [1999] EKLR
  • Prime Bank Ltd v Esige
    [2005] eKLR
  • Margaret Njeri Muiruri v Bank of Baroda (Kenya) Limited
    [2014] eKLR
  • Mary Mutanu Mwendwa v Ayuda Ninos De Africa-kenya (Anidan K)
    [2013] eKLR
  • Maurice Otieno Yongo v Aga Khan Hospital Kisumu
    [2015] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over claims of unfair termination and wrongful dismissal

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.

Cite this brief

#

Cite this brief

Caselaw, "Tom Mboya Ochieng v Programme For Appropriate Technology In Health Path -Kenya [2016] KEELRC 1435 (KLR)", Case Analysis (2016). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1435/eng@2016-02-19

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