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Case Brief · caselaw.co.ke
ELRCPartially AllowedNot stated in judgment (cause filed 20th April 2012; Amended Memorandum of Claim dated 28th February 2018)· [2019] KEELRC 2532 (KLR)

Ephantus Githui v Kenya Railways Staff Retirement Scheme [2019] KEELRC 2532 (KLR)

Employment and Labour Relations Court
18 January 2019
3,351 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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Kenyan employers who fire staff without stating reasons and holding a disciplinary hearing will pay heavily, even where misconduct is suspected.

What this practically means

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Executive summary

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The Claimant, formerly Finance Manager of the Kenya Railways Staff Retirement Benefits Scheme from 12th October 2006, was suspended on 21st November 2011 pending the outcome of a criminal charge of stealing by servant concerning Kshs.1,200,000, and his employment was terminated on 6th February 2012 by a letter that gave no reasons. He claimed unfair and unlawful termination, seeking among other reliefs a declaration, a certificate of service, twelve months' compensation, pension contributions, accumulated leave pay, salary during the whole suspension period, and three months' pay in lieu of notice. The Respondent maintained the termination was for gross misconduct - failure to keep proper records and release of funds without an approved requisition - and that the Claimant abandoned his internal appeal. The court found the termination unfair: the termination letter was silent on reasons, no show cause letter was issued, and there was no record of a disciplinary hearing, contrary to section 41 of the Employment Act and the Scheme's own Regulations. It held that civil proceedings do not bar disciplinary proceedings and that the process was flawed irrespective of the abandoned appeal. The defamation claim failed as it was not specifically pleaded or proved. Judgment was entered for the Claimant for Kshs.2,909,487.00, comprising salary during suspension to the termination date, three months' pay in lieu of notice, 76 days' leave pay, and six months' compensation, with costs to the Claimant and interest as ordered.

Key legal issues

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01

Whether the termination was unlawful and unfair

Holding

Yes - no reasons were given, no show cause letter issued, and no disciplinary hearing was held

Reasoning

Section 41(1) of the Employment Act mandates an employer to explain reasons and accord a hearing before termination on grounds of gross misconduct. The termination letter was silent on reasons. RW1 admitted no show cause letter was issued and there was no record of a disciplinary hearing. Both the statutory procedure and the Scheme's own Regulations (Clause 9.13) were breached, so the termination was unfair regardless of the alleged misconduct.

p. 4
02

Whether the claim for defamation succeeded

Holding

No - the claim failed

Reasoning

Defamation requires pleaded and proved defamatory words published to third parties lowering the plaintiff's reputation. The Claimant did not specifically plead the claim nor prove the newspaper words were defamatory or lowered his reputation. The Respondent's statement that money was lost was a fact evidenced by the institution of criminal proceedings.

p. 5
03

Whether the Claimant was entitled to the reliefs sought

Holding

Partially - salary during suspension to termination date, pay in lieu of notice, leave pay and 6 months' compensation were awarded; other heads were not

Reasoning

RW1 admitted the Claimant's dues were unpaid. The Claimant was entitled to salary from suspension to termination, three months' pay in lieu of notice, pay for untaken leave (the Respondent failing to produce evidence leave was taken), and compensation of six months for unfair termination. The certificate of service had already been issued, and no payments post-termination were recognised.

p. 5

Legal principles established

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  • Where the termination letter is silent on the reasons for termination, the employer fails to prove the reason was valid and fair, rendering the termination unfair under section 45(2) of the Employment Act
  • Institution of civil proceedings is not a bar to disciplinary proceedings, and an employee's abandonment of an internal appeal cannot cure an already flawed disciplinary process

Court orders

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  1. 1.Salary during suspension from 1st November 2011 to 6th February 2012 of Kshs.620,298.80
  2. 2.Pay in lieu of notice – 3 months of Kshs.575,989.80
  3. 3.Annual leave 76 days of Kshs.561,220.80
  4. 4.Compensation of Kshs.1,151,979.60
  5. 5.Total award of Kshs.2,909,487.00
  6. 6.Respondent to pay claimant's costs of the suit
  7. 7.Interest to accrue on items 1 and 2 from the date of filing suit and on the rest of the items from the date of judgment

Authorities

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Legislation

  • Employment Actsection 41(1)
  • Employment Actsection 45(2)
  • Employment Actsection 43
  • Employment Actsection 74
  • Constitution of Kenyaarticle 41(1)
  • Kenya Railways Staff Retirement Benefits Scheme Regulations (Staff Regulations Terms and Conditions)Clause 9.13, 9.13.2, 9.13.3.1

Cases cited (8)

  • Patrick Kariuki vs. Del Monte (K) Limited
    [2012] eKLR
  • Grace Gacheru Muriithi vs. Kenya Literature Bureau
    [2012] eKLR
  • Paul Ng'eno vs. Pyrethrum Board of Kenya Limited
    [2013]
  • Mary Chemweno Kiptui v Kenya Pipeline Company Limited
    [2014] eKLR
  • Ronald Wamalwa & Another vs. Masinde Muliro University
    [2018] eKLR
  • Francis Nyongesa Kweya vs. Eldoret Water and Sanitation Company Limited
    [2017] eKLR
  • Teachers Service Commission vs. Joseph Wambugu Nderitu
    [2016] eKLR
  • Nation Media Group Limited vs. Onesmus Kilonzo
    [2017] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (employment dispute)

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, "Ephantus Githui v Kenya Railways Staff Retirement Scheme [2019] KEELRC 2532 (KLR)", Case Analysis (2019). Not stated in judgment (cause filed 20th April 2012; Amended Memorandum of Claim dated 28th February 2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2532/eng@2019-01-18

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