Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedELR. CAUSE NO. 66 OF 2017 (FORMERLY KSM ELR. CAUSE NO. 111 OF 2016)· [2021] KEELRC 84 (KLR)

Alfred Kipkoech Kibet v Mumias Sugar Company Ltd [2021] KEELRC 84 (KLR)

Employment and Labour Relations Court
16 December 2021
3,529 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

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

#
The Claimant, an Electrical and Instrument Superintendent employed by Mumias Sugar Company Ltd from November 2011, challenged the termination of his employment on 1st/2nd February 2016 on allegations that he conspired with other employees to steal eight rolls of copper tapes from Booker Academy, causing a loss of Kshs. 309,600. He sought a declaration of unfair termination, payment of Kshs. 2,908,655.78, a certificate of service, costs and interest. The Respondent, though it had filed a response and witness statements, did not attend the hearing and its defence case was closed; it also filed no submissions. The court framed three issues: validity of reasons, procedural fairness, and reliefs. It found valid and justifiable reasons existed, based on the investigation report, the security officer's statement that copper tapes were loaded into the Claimant's car, and his admitted presence at the school. However, the termination violated the mandatory procedure in section 41 of the Employment Act because the Claimant was never granted a hearing, rendering it unlawful and unfair. The court declared the termination unfair and awarded compensatory damages of three months' gross salary (Kshs. 531,236.31), two months' notice pay (Kshs. 354,157.54), and 28 days' accrued leave (Kshs. 81,368.00), all subject to statutory deductions, with interest from the date of judgment. Claims for February 2016 salary and gas/car allowance arrears were declined for lack of proof, and costs were refused because no demand notice preceded the claim, each party bearing its own costs.

Key legal issues

#
01

Whether there were valid and justifiable reasons for termination

Holding

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

Reasoning

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.

p. 4
02

Whether the termination was lawful and fair

Holding

No - the procedure violated section 41 of the Employment Act because the Claimant was never given a hearing

Reasoning

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.

p. 4
03

Reliefs: notice pay and leave

Holding

Two months' notice pay per the contract and employer manual awarded; 28 days' accrued leave awarded as the employer failed to keep leave records

Reasoning

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.

p. 4
04

Compensation for unfair termination under section 49

Holding

Three months' gross salary awarded as adequate compensation given the Claimant's contribution to the termination

Reasoning

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.

p. 5

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. 1.Declaration that the termination of the Claimant's employment by the Respondent was unfair
  2. 2.Compensatory damages for 3 months' gross salary, total sum of Kshs. 531,236.31
  3. 3.Notice pay for 2 months' salary, total sum of Kshs. 354,157.54
  4. 4.Accrued annual leave for 28 days, total sum of Kshs. 81,368.00
  5. 5.Awards subject to statutory deductions
  6. 6.Interest on the awards at court rates from the date of judgment until payment in full
  7. 7.Each party to bear own costs

Authorities

#

Legislation

  • Employment ActSection 45(1)
  • Employment ActSection 45(4)
  • Employment ActSection 41
  • Employment ActSection 43(2)
  • Employment ActSection 49(1)(c)
  • Employment ActSection 49(4)
  • Employment ActSection 50
  • Employment ActSection 74(1)(f)
  • Employment ActSection 28
  • Employment ActSection 46

Cases cited (2)

  • Postal cooperation of Kenya -vs- Andrew K. Tanui
    (2019)
  • Gilbert Mariera Makori -vs- Equity Bank Limited
    2016 eKLR
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.