Benjamin Muoki Katunge v Dodo World Kenya Limited [2019] KEELRC 1940 (KLR)
The bottom line
#A Kenyan court awarded a financial controller six months' salary because his employer fired him over embezzlement claims without a hearing or proof.
What this practically means
#Executive summary
#Key legal issues
#Whether the termination was for valid reasons and by fair procedure
The termination was unfair; the employer failed to prove valid reasons and denied the claimant a disciplinary hearing.
Allegations of embezzlement and misconduct could justify termination if proved, but the burden lies on the employer. The respondent admitted no disciplinary process was undertaken; no letter or memorandum asked the claimant to respond to the accusations; no audit report was produced; and the claimant learned of the accusations only in the termination letter.
What salary should form the basis of compensation
Kshs 175,000/= per month, not the alleged Kshs 240,000/=, as the increment letter was denied and uncorroborated.
The respondent's director denied authoring the increment letter (BMK2) and the claimant produced no payslip, bank statement or cheque to corroborate the higher salary. In the absence of such proof, the confirmed salary of Kshs 175,000/= was used to compute notice, salary for September and the award for unfair termination.
Legal principles established
#- The burden of proving reasons for termination rests on the employer, who must show the employee was confronted with the accusations and given a chance to explain.
- Termination without a disciplinary hearing, without notice of accusations and without an audit report to support embezzlement allegations is unfair under section 45 of the Employment Act.
Court orders
#- 1.One month's salary in lieu of notice of Kshs 175,000
- 2.Salary for 5 days in September of Kshs 29,170
- 3.15 days pro rata leave for 2013 of Kshs 87,500
- 4.Six months' salary for unfair termination of service of Kshs 1,050,000
- 5.Costs of the suit to the claimant
- 6.Items (a), (b), (d) to be subject to taxes and statutory deductions
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act (termination of employment claim, section 45 Employment Act applied)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Benjamin Muoki Katunge v Dodo World Kenya Limited [2019] KEELRC 1940 (KLR)", Case Analysis (2019). Cause No 1646 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1940/eng@2019-03-01
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.