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ELRCPartially AllowedCause No 858 of 2017· [2021] KEELRC 289 (KLR)

Kenneth Muhenye Ogongo v Tea Warehouse Limited & another [2021] KEELRC 289 (KLR)

Employment and Labour Relations Court
3 December 2021
2,851 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 warehouse clerk's dismissal for failing to report missing tea, ruling the process was fair and rejecting malicious prosecution claims.

What this practically means

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Executive summary

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The claimant, employed as a Warehouse Clerk on a fixed term contract running to 31.05.2019, sued the 1st respondent (his employer) and the Attorney General after 200 packages of tea went missing at the Jomvu Warehouse. He was dismissed following a disciplinary process and was arrested and charged with stealing by servant, spending 130 days in custody before being discharged under section 87(a) of the Criminal Procedure Code. He claimed unpaid salary, pay for the unexpired term of his contract, leave dues, twelve months' compensation for unfair termination, and general damages for malicious prosecution. The court framed five issues and held that the employment relationship and the termination for the tea loss were undisputed. The termination was found fair: the claimant received a show-cause letter, responded, attended a disciplinary hearing with staff of his choice, and was heard, satisfying section 41 of the Employment Act, 2007; his own admission that as records keeper he noticed the missing tea but failed to report it supplied a valid reason under sections 43 and 45. On malicious prosecution, applying the elements from Clerk and Lindsell and Glinski v McIver, the court found the available information amounted to reasonable suspicion to prefer the charge; the variance between 200 and 360 packages was a point of amendment only. Only the September 2016 salary of Kshs. 20,755.00 was awarded, payable by 15.12.2021 with interest at court rates thereafter, and each party was ordered to bear its own costs.

Key legal issues

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01

Fairness of summary dismissal for failure to report loss of tea

Holding

Termination was not unfair or unlawful; the employer had a valid reason and followed due process

Reasoning

The claimant received a show-cause letter, responded, was invited to a disciplinary hearing with staff of his choice, was heard, and a termination letter issued, satisfying section 41 of the Employment Act. He did not dispute that 200 bags of tea went missing while he was the in-charge clerk, and by his own admission as records keeper he noticed the loss but did not report it. The employer thereby discharged the burden under sections 43 and 45 read with 47(5) of the Act.

p. 3
02

Malicious prosecution

Holding

Not established; police and prosecutor had reasonable and probable cause

Reasoning

At the time of the report, arrest and prosecution, the available information was that substantial quantities of tea went missing while the claimant was in-charge, that he had noticed the loss but failed to report it, and that he and another were arrested. That information amounted to reasonable suspicion to prefer a charge of stealing by servant. The variance between 200 and 360 packages was merely a point of amendment of the charge and did not diminish the reasonable suspicion.

p. 4
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Entitlement to remedies

Holding

Only September 2016 salary of Kshs. 20,755.00 awarded; all other heads declined

Reasoning

September 2016 salary was awarded because there was no evidence it was ever paid. Leave claims failed because the claimant had taken four leave days and none was due for the period served; there was no evidence of travel to take annual leave. Pay for unexpired contract tenure was unjustified since the claimant had not worked and the respondent had not occasioned his inability to engage profitably elsewhere. Compensation and malicious prosecution damages failed with the underlying claims.

p. 4

Legal principles established

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  • Elements of malicious prosecution: prosecution by the defendant, determination in claimant's favour, absence of reasonable and probable cause, and malice - with the onus of proving each on the claimant
  • An employer who gives notice and affords a hearing satisfies section 41 of the Employment Act, 2007, and where a valid reason exists the termination is fair
  • Where the information available to police disclosed reasonable suspicion, an arrest and prosecution are not without reasonable and probable cause and malicious prosecution fails

Court orders

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  1. 1.The 1st respondent to pay the claimant Kshs. 20,755.00 being September 2016 salary by 15.12.2021
  2. 2.Interest at Court rates from the date of filing the suit if payment is not made by 15.12.2021
  3. 3.Each party to bear own costs of the suit

Authorities

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Legislation

  • Employment Actsections 41, 43, 45, 47(5)
  • Penal Codesection 281 (stealing by servant)
  • Criminal Procedure Codesection 87(a)

Cases cited (1)

  • Glinski –Versus- Mclver
    (1962) AC 726
Jurisdiction invoked
Article 162(2)(a) of the Constitution / Employment and Labour Relations Court Act (employment and labour relations dispute; not expressly quoted in 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, "Kenneth Muhenye Ogongo v Tea Warehouse Limited & another [2021] KEELRC 289 (KLR)", Case Analysis (2021). Cause No 858 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/289/eng@2021-12-03

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