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ELRCPartially AllowedNot stated in the judgment as provided· [2020] KEELRC 1531 (KLR)

Anthony Muthumbu Wachira v Kenya Airports Authority [2020] KEELRC 1531 (KLR)

Employment and Labour Relations Court
2 March 2020
2,256 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court ruled KAA's dismissal of its ICT chief was procedurally fair but lacked valid reasons, awarding him Kshs 2.8 million.

What this practically means

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Executive summary

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The Claimant, employed by the Kenya Airports Authority as General Manager – ICT in 2006, was summarily dismissed on 29 October 2010 following an internal audit of ICT projects, on grounds of failure to competently perform his duties in the implementation of LAN/WAN projects, with alleged losses of about Kshs 6 million. He filed this cause in December 2010 alleging unfair termination and breach of contract, later amending the claim to add discrimination and violations of fair administrative action, access to justice and fair hearing. The proceedings were stayed at various points pending judicial review proceedings in the High Court and an appeal to the Court of Appeal. The court identified procedural and substantive fairness as the principal issues. On procedure, it held the Respondent substantially complied with sections 35(1), 36, 41 and 47(5) of the Employment Act: the Claimant was notified of allegations, made representations and was heard; allegations of bias were unevidenced. On substance, however, the Respondent failed to prove valid and fair reasons: joint verification revealed audit inaccuracies, switches were accounted for, and Certificates of Completion were issued by other senior officers. The dismissal was declared procedurally fair but substantively unfair. The court awarded compensation of 4 months' gross salary (Kshs 2,342,868/-) and unpaid salary balances (Kshs 468,575/-), totalling Kshs 2,811,443/-, and directed the Respondent to compute and pay dues in the dismissal letter. Claims for salary in lieu of notice, severance/service pay, medical cover and discrimination failed. The Claimant was denied costs for late filing of submissions.

Key legal issues

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01

Procedural fairness of the summary dismissal

Holding

The Respondent substantially complied with statutory procedural fairness requirements under sections 35(1), 36, 41 and 47(5) of the Employment Act.

Reasoning

The Claimant was notified of the allegations, given the show-cause notice, supplied the audit report, made written representations and appeared before the Staff Committee of the Board. Allegations of bias against committee members lacked evidential support. Although the hearing was scheduled with less than 7 days' notice contrary to the Respondent's Disciplinary Policies, and the Respondent did not explain this, the court still found substantial compliance with the statutory requirements.

p. 3
02

Substantive fairness (valid and fair reasons)

Holding

The reasons for summary dismissal did not constitute valid or fair reasons.

Reasoning

The Respondent was required to prove the validity and fairness of the reasons for dismissal under sections 43 and 45 of the Employment Act. The Claimant gave detailed responses, a joint verification with an audit officer established inaccuracies in the audit report, switches were all accounted for, and Certificates of Completion were issued by other senior officers, not the Claimant. The Claimant, though Head of ICT, could not be wholly blamed.

p. 4
03

Fair administrative action claim

Holding

Claim failed because the Claimant did not prove the Respondent was exercising an administrative function.

Reasoning

The court applied the distinction drawn in Chirwa v Transnet between fair administrative action and an employer's contractual authority. Disciplinary action pursuant to an employment contract is an exercise of contractual power, not an administrative function, so the fair administrative action framework did not apply absent proof that the employer acted administratively.

p. 2
04

Compensation for unfair (substantively) unfair termination

Holding

Compensation equivalent to 4 months' gross salary awarded, considering about 4 years of service.

Reasoning

The court exercised discretion under the Employment Act taking into account the length of service of about 4 years. The gross salary at separation was Kshs 585,717/-, yielding an award of Kshs 2,342,868/-. Combined with uncontested salary balances of Kshs 468,575/-, the total award was Kshs 2,811,443/-.

p. 4

Legal principles established

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  • An employee alleging bias or prejudice on the part of a disciplinary committee bears the burden of producing sufficient evidence of bias.
  • An employer must prove valid and fair reasons for dismissal under sections 43 and 45 of the Employment Act, 2007.
  • A person claiming violation of fair administrative action must prove the employer was exercising an administrative function rather than contractual power as employer.
  • Service pay is not payable where the employee contributes to NSSF and a pension scheme under section 35(5) & (6) of the Employment Act.

Court orders

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  1. 1.Declaration that the summary dismissal of the Claimant, though procedurally fair, was not for valid and fair reasons
  2. 2.Award of compensation equivalent to 4 months' gross salary of Kshs 2,342,868/-
  3. 3.Award of unpaid salary balances of Kshs 468,575/-
  4. 4.Total award of Kshs 2,811,443/-
  5. 5.Respondent to compute and pay the dues set out in the dismissal letter
  6. 6.Claimant denied costs

Authorities

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Legislation

  • Employment Act, 2007section 35(1)
  • Employment Act, 2007section 35(5) & (6)
  • Employment Act, 2007section 36
  • Employment Act, 2007section 41
  • Employment Act, 2007section 43
  • Employment Act, 2007section 45
  • Employment Act, 2007section 47(5)

Cases cited (1)

  • Chirwa v Transnet
    (2007) ZACC 23
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (the judgment does not cite the specific constitutional provision)

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, "Anthony Muthumbu Wachira v Kenya Airports Authority [2020] KEELRC 1531 (KLR)", Case Analysis (2020). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1531/eng@2020-03-02

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