Alfred Kipkoech Kibet v Mumias Sugar Company Ltd [2021] KEELRC 84 (KLR)
The bottom line
#A Kenyan court ruled Mumias Sugar unfairly sacked an employee by skipping the mandatory hearing, awarding him over Kshs. 966,000 despite valid theft-related reasons.
What this practically means
#Executive summary
#Key legal issues
#Whether there were valid and justifiable reasons for termination
Yes - evidence of investigation, statements of security officer and co-conspirators, and the Claimant's presence at Booker Academy when the copper tapes were taken supported the employer's reasons
The court evaluated the investigation report and witness statements. The security guard reported loading 5 rolls of copper tapes into the Claimant's private car after being told the materials were for him; the Claimant admitted being at the school on the material date. Section 43(2) grounds the reason in what the employer germanely believed at termination. The Claimant's assertion that the termination was retaliation for a complaint letter was unproved as the letter was unacknowledged and not raised in his show-cause response.
Whether the termination was lawful and fair
No - the procedure violated section 41 of the Employment Act because the Claimant was never given a hearing
Section 41 mandates an explanation of reasons in a language the employee understands and entitlement to a fellow employee or union representative's presence. The show cause letter and response preceded termination, but no disciplinary hearing was held and the appeal was decided without a hearing. The Court of Appeal in Postal Corporation of Kenya v Andrew K. Tanui held section 41 mandatory. Despite valid reasons, absence of a hearing rendered the termination unlawful and unfair.
Reliefs: notice pay and leave
Two months' notice pay per the contract and employer manual awarded; 28 days' accrued leave awarded as the employer failed to keep leave records
The appointment letter and employer manual provided for two months' notice for service over five years, so the Claimant was awarded Kshs. 354,157.54. On leave, the Respondent did not dispute the claim or produce leave records as required under section 74(1)(f), a position followed from Gilbert Mariera Makori v Equity Bank Limited, so 28 days' leave was awarded at Kshs. 81,368.00.
Compensation for unfair termination under section 49
Three months' gross salary awarded as adequate compensation given the Claimant's contribution to the termination
Under sections 49(1)(c) and 49(4), the court considered the circumstances, the employee's contribution, length of service of about five years, and the fact that he had secured comparable employment at Kwale Sugar Company. Because valid reasons existed, the Claimant contributed to the termination, so three months' gross salary (Kshs. 531,236.31) was deemed adequate rather than the twelve months sought.
Legal principles established
#- Section 41 of the Employment Act is couched in mandatory terms and a termination without a hearing is unlawful and unfair even where valid reasons exist
- An employee terminated for valid reasons but through an unfair procedure contributes to the termination, reducing compensatory damages under section 49(4)
Court orders
#- 1.Declaration that the termination of the Claimant's employment by the Respondent was unfair
- 2.Compensatory damages for 3 months' gross salary, total sum of Kshs. 531,236.31
- 3.Notice pay for 2 months' salary, total sum of Kshs. 354,157.54
- 4.Accrued annual leave for 28 days, total sum of Kshs. 81,368.00
- 5.Awards subject to statutory deductions
- 6.Interest on the awards at court rates from the date of judgment until payment in full
- 7.Each party to bear own costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, sections 41, 43, 45, 49 and 50
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Alfred Kipkoech Kibet v Mumias Sugar Company Ltd [2021] KEELRC 84 (KLR)", Case Analysis (2021). ELR. CAUSE NO. 66 OF 2017 (FORMERLY KSM ELR. CAUSE NO. 111 OF 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/84/eng@2021-12-16
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.