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ELRCPartially AllowedNot stated in the judgment as provided· [2019] KEELRC 2174 (KLR)

Patrick Kamunya Wambui v Wananchi Sacco Society Limited [2019] KEELRC 2174 (KLR)

Employment and Labour Relations Court
27 February 2019
1,148 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court upheld a SACCO employee's dismissal because he was heard before being fired, but rejected his multi-million shilling claim for salaries to retirement age.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent SACCO on 6th February 2000 and risen from messenger to assistant marketing manager, was serving as a loans officer at the Gakindu branch when he was suspended on 23rd February 2017 and summarily dismissed on 2nd June 2017 over irregular coffee loans and failure to recover sums. He sued for wrongful dismissal, claiming unpaid salaries of Kshs. 13,871,664/- being the balance of his term to retirement at 60 years, plus costs. The Respondent filed a defence and counterclaim for the difference between the Claimant's terminal dues and loan sums owed to it, asserting his salary was Kshs. 68,248.25. The Respondent framed four issues: wrongfulness of termination, whether the Claimant owed Kshs. 266,790.70, grantability of the reliefs, and appropriate orders. The court found the Claimant had replied to the allegations in writing and was heard by the board before dismissal, so the dismissal accorded with section 41 of the Employment Act. It declined the claim for salaries to retirement age as ungrantable, following D. K. Njagi Marete v Teachers Service Commission. As the parties owed each other money, the court gave them two weeks to agree the mutual liabilities, failing which it would determine them from the documents filed after mention. The judgment is silent on costs.

Key legal issues

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01

Whether the summary dismissal was wrongful and procedurally fair

Holding

The dismissal was lawful and procedurally fair as the Claimant responded to the allegations in writing and was heard by the board before dismissal

Reasoning

The Claimant was suspended over irregular coffee loans at Gakindu branch, replied to the Respondent's letters of 6th and 14th September 2016, and was heard by the board before dismissal. The dismissal letter acknowledged that he defended himself and even appealed. Section 41 of the Employment Act requires an explanation and a hearing, both of which occurred orally and in writing, so the dismissal accords with the statute.

p. 2
02

Whether the Claimant was entitled to lost salary for the unexpired term to retirement

Holding

The relief of salaries to retirement age is not grantable

Reasoning

The Claimant sought salaries he would have earned for 16 years to retirement at 60. The court held this is not a remedy a court can give, citing D. K. Njagi Marete v Teachers Service Commission, and declined to grant it.

p. 2
03

Whether the Claimant owes the Respondent loan dues (counterclaim)

Holding

Left to the parties to compute mutual liabilities, failing which the court would determine them from the documents

Reasoning

The Claimant admitted owing money on a loan while the Respondent claimed Kshs. 266,790.70. As both parties owed each other, the court directed them to agree on the liabilities within two weeks, failing which it would determine them based on the documents filed after mention.

p. 2

Legal principles established

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  • An employee is deemed to have been heard in accordance with section 41 of the Employment Act where the employee responded to allegations in writing and was heard orally before dismissal
  • Courts will not grant compensation for salaries an employee would have earned until retirement age

Court orders

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  1. 1.The court granted the parties two weeks to determine the liabilities owed on either side, given that each party owed the other
  2. 2.If the parties are unable to agree, the court to give its determination based on the documents availed after a mention in two weeks
  3. 3.It is so ordered

Authorities

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Legislation

  • Employment ActSection 41

Cases cited (4)

  • Naftali Ayot Okaja v Rai Plywood Kenya Limited
    [2017] eKLR
  • Mary Mutanu Mwendwa v Ayuda Ninos De Africa Kenya (Anidan K)
    [2013] eKLR
  • CMC Aviation Limited v Mohammed Noor
    [2015] eKLR
  • D. K. Njagi Marete v Teachers Service Commission
    [2013] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (specific provision not cited in the judgment)

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, "Patrick Kamunya Wambui v Wananchi Sacco Society Limited [2019] KEELRC 2174 (KLR)", Case Analysis (2019). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2174/eng@2019-02-27

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