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Case Brief · caselaw.co.ke
ELRCPartially AllowedNot stated in the judgment (ELRC Cause, Statement of Claim dated 29th June 2016)· [2021] KEELRC 525 (KLR)

James Andako v National Industrial Training Authority [2021] KEELRC 525 (KLR)

Employment and Labour Relations Court
11 November 2021
4,284 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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NITA's audit manager won KShs 3.1 million after a Kenyan court found his dismissal lacked both evidence and fair procedure.

What this practically means

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Executive summary

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The Claimant, employed by NITA as Manager, Internal Audit from November 2013, was sent on compulsory leave in February 2016 following whistle-blower reports of anomalies in the Internal Audit Department, issued a notice to show cause in March 2016, accorded an oral hearing before the Board's Human Resource Governance and Administration Committee in April 2016, and summarily dismissed on 27 April 2016. His appeal was dismissed on 13 May 2016 without a further hearing. He sued seeking a declaration that the dismissal was unprocedural, unfair, unlawful and unconstitutional, reinstatement or alternatively 60 months' salary, damages, costs and interest. The court framed three issues: validity of the reasons for termination, procedural fairness, and entitlement to relief. It found the weighty charges of negligence and losses under the Public Finance Management Act were not supported by any documentary or oral evidence, the Claimant having given comprehensive written responses to each charge; hence no valid reason existed under Sections 41 and 45 of the Employment Act. On procedure, the Claimant was denied the investigation report and other documents, given less than the 21 days prescribed by NITA's HR Manual, not offered the right to be accompanied, and no minutes of the hearing were produced. The dismissal was declared unfair. Reinstatement was refused as time-barred under Section 12(3)(vii) of the ELRC Act and not warranted in exceptional-circumstances terms. The court awarded Kshs.3,105,010, being ten months' gross salary, as general damages for distress and anguish with interest at court rates, plus costs; the 60 months' claim was refused as excessive. Judgment entered for the Claimant on 11 November 2021, delivered virtually under COVID-19 directions.

Key legal issues

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01

Validity of reasons for termination

Holding

The Respondent failed to prove the weighty charges and had no valid reason for termination under Sections 41(1 and 2) and 45(2) of the Employment Act

Reasoning

The charges included negligence causing losses under Sections 197 and 198 of the Public Finance Management Act, but no documentary or oral evidence of the alleged negligence or losses was tabled. The Claimant gave comprehensive, detailed responses to each charge, explaining that imprest overlap rested with other departments and that medical payments were approved by the tender committee. Without evidence of loss, the Respondent failed the statutory test of a valid and fair reason.

p. 4
02

Procedural fairness of the disciplinary process

Holding

The procedure did not comply with Section 41 of the Employment Act

Reasoning

The Claimant was not availed the investigation report and other relevant documents underlying the charges, was given less than the 21 days prescribed by the Respondent's HR Manual to respond to the notice to show cause, was not offered the option of being accompanied by a fellow employee or union representative, and no minutes of the disciplinary committee meeting were produced to show how the hearing was conducted. The appeal was dismissed without any further hearing.

p. 5
03

Effect of the Respondent failing to call witnesses

Holding

The absence of the Respondent's oral evidence did not defeat the defence, as the court may act on the pleadings, but the untested claims did not discharge the Respondent's burden

Reasoning

The Respondent chose not to adduce evidence or avail witnesses for cross-examination, relying on written statements. The court held there was no necessary prejudice in foregoing oral evidence, but the alleged losses and negligence remained unproven, so the Respondent could not establish valid reasons for the dismissal.

p. 5
04

Appropriate remedies for unfair termination

Holding

Reinstatement unavailable; 10 months' salary awarded as compensation; 60 months' claim refused

Reasoning

Reinstatement was time-barred under Section 12(3)(vii) of the ELRC Act and the Kenya Airways authority requires exceptional circumstances. Damages at large were assessed on a conventional yardstick, giving 10 months' salary. The 60 months' prayer was refused to avoid unjust enrichment, applying the proportionality principle in D.K. Njagi Marete v Teachers Service Commission.

p. 5

Legal principles established

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  • In a disciplinary hearing an employee must be availed the materials and evidence against him; failure to do so offends procedural fairness
  • Both a valid reason and procedural fairness are mandatory in termination of employment
  • Reinstatement can only be awarded within three years of dismissal

Court orders

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  1. 1.Declaration that the Claimant was unfairly terminated
  2. 2.Award of Kshs.3,105,010 (310,501 x 10) as general damages for distress and anguish and in full and final settlement, with interest at court rates
  3. 3.Costs of the suit awarded to the Claimant

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 50(1)
  • Constitution of Kenya, 2010Article 41
  • Constitution of Kenya, 2010Article 159(2)(d)
  • Constitution of Kenya, 2010Article 48
  • Employment Act, 2007Sections 41(1 and 2), 41, 44(3), 44(4a & 4e), 45(2), 45(4)(b), 47(5), 49, 49(4)
  • Employment and Labour Relations ActSections 12(3)(vii), 12(4)
  • Public Finance Management Act, 2012Sections 197(1)i, 198(ia & b)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B

Cases cited (19)

  • KENYA POWER & LIGHTING COMPANY LIMITED V KENNETH LUGALIA IMUGUA
    [2016] eKLR
  • SUNIL KUMAR CHHABRA V G4S SECURITY SERVICES LIMITED
    [2013] EKLR
  • LAWRENCE LIEN SHOONA V EAST AFRICA PORTLAND CEMENT COMPANY LIMITED
    [2018] eKLR
  • SABINA MUTUA V AMEDO CENTRE KENYA LIMITED
    [2017] eKLR
  • MICHAEL ODHIAMBO OPIYO V BIDCO AFRICA LIMITED
    [2021] eKLR
  • KAHARA MBUGUA VS. NITA
    Nairobi ELRC Cause No. 625 of 2016
  • PURITY MWIRIGI VS. NITA
    ELRC Cause No. 130 of 2016
  • MOSES KAUNDA MORO V CMC MOTORS GROUP LTD
    [2013] eKLR
  • RAEL MWIYATHI MUTINDA V KENYA COMMERCIAL BANK LIMITED
    [2019] eKLR
  • CFC STANBIC BANK LTD VS. DANSON MWASHAKO MWAKUWONA
    [2015] eKLR
  • IDRIS OMAR ABDI V GARISSA WATER AND SEWERAGE COMPANY LIMITED
    [2021] eKLR
  • D. K. NJAGI MARETE V TEACHERS SERVICE COMMISSION
    [2013] eKLR
  • David Mwangi Gioko & 51 Others v. Nairobi City Water & Sewerage Company Limited
    Industrial Court Cause No. 1722 of 2011 [2013] eKLR
  • Maria Kagai Ligaga v. Coca Cola East Africa Limited
    Industrial Court Cause No. 611 [N] of 2009 (unreported)
  • PATRICK ABUYA VS INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA & ANOTHER
    (2015) eKLR
  • MAIN A MWANGI VS THIKA COFFEE MILLS LIMITED
    (2012) eKLR
  • KENYA AIRWAYS LIMITED VS AVIATION AND ALLIED WORKERS UNION KENYA AND 3 OTHERS
    (2014) eKLR
  • SOTIK HIGHLANDS TEA ESTATES AND KENYA PLANTATIONS AND AGRICULTURAL WORKERS UNION
    Civil Appeal No. 23 of 2017
  • KIMAKIE CO-OPERATIVE SOCIETY VS GREEN HOTEL
    (1988) eKLR 242
Jurisdiction invoked
Employment and Labour Relations Act (Sections 12(4) and 12(3)(vii)) and Article 41 of the Constitution

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, "James Andako v National Industrial Training Authority [2021] KEELRC 525 (KLR)", Case Analysis (2021). Not stated in the judgment (ELRC Cause, Statement of Claim dated 29th June 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/525/eng@2021-11-11

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