Peter Macharia Gakure & another v Amica Savings & Credit Limited [2019] KEELRC 1930 (KLR)
The bottom line
#Kenya's Employment Court dismissed two SACCO employees' unfair termination claims but also refused to hear the SACCO's counterclaim, which belongs to the Co-operative Tribunal.
What this practically means
#Executive summary
#Key legal issues
#Procedural and substantive fairness of the termination under Section 41 of the Employment Act
The terminations were both substantively and procedurally fair
The court found that although the Claimants were not given a copy of the audit report, they were given the allegations against them and an opportunity to respond, evidenced by the admission letter of 6th March 2017 and their attendance at the disciplinary meetings. The minutes recorded the proceedings and a report recommending summary dismissal was made. The court thus held that the hearing satisfied the dictates of Section 41 and the Claimants failed to prove otherwise.
Jurisdiction over the counterclaim for loans and losses
The court lacks jurisdiction; the dispute belongs to the Co-operative Tribunal
The court held that the audit losses and loan dues are disputes concerning the business of a co-operative society between the society and its members, which Section 76 of the Co-operative Societies Act directs to the Tribunal established under Section 77. Consequently the court could not entertain the counterclaim nor even set off the sums due against any award, and the counterclaims failed alongside the claims.
Legal principles established
#- Disputes concerning the business of a co-operative society, including claims by a society for debts due from members, must be referred to the Co-operative Tribunal and fall outside the employment court's jurisdiction
- An employer satisfies Section 41 of the Employment Act where the employee is given the allegations and an opportunity to respond, even if a copy of the audit report is not availed
Court orders
#- 1.Dismissal of the Claimants' suits
- 2.Dismissal of the Respondent's counterclaims
- 3.Each party to bear their own costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act; counterclaim jurisdiction ousted by Section 76 of the Co-operative Societies Act
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.
- Kisavi alias Douglas Mutinda Kisavi v Uchongaji Sacco Limited (Appeal E224 of 2024) [2025] KEELRC 756 (KLR)[2025] KEELRC 756 (KLR)6 Mar 2025
Cite this brief
#Cite this brief
Caselaw, "Peter Macharia Gakure & another v Amica Savings & Credit Limited [2019] KEELRC 1930 (KLR)", Case Analysis (2019). Cause No 213 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1930/eng@2019-03-26
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.