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ELRCDismissed· [2021] KEELRC 686 (KLR)

Humprey Crister Musuluma Lwamba v Roche Kenya Limited [2021] KEELRC 686 (KLR)

Employment and Labour Relations Court
21 October 2021
2,915 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 upheld Roche Kenya's summary dismissal of a sales manager over conflict-of-interest misconduct, confirming employers win when they prove valid reasons and fair process.

What this practically means

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Executive summary

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The claimant, formerly Regional Sales Manager for Roche Kenya Limited, sued for general damages for unfair dismissal and defamation, an official apology, salary for 16 unserved years to retirement, costs and interest. He alleged his summary dismissal was actuated by malice and vendetta after he emailed the Global CEO in Switzerland directly about the successful 300 million Rand Ethiopia tender, drawing a reprimand from the South African General Manager, Mr. Duncan Mackay. The respondent contended the dismissal followed complaints by its Ethiopian distributor, Retina Pharmaceuticals, of conflict of interest: the claimant allegedly pressured Retina to employ or benefit Mr. Mekonnen Merawe, misused personal email, made false representations about EPHI conflicts, and derailed Retina's performance. Two law firms investigated; the claimant was invited to show cause, given written and virtual oral hearings, dismissed on 13 May 2019, and his appeal was dismissed. The court framed three issues: valid reason, fair procedure, and entitlement to relief. Applying sections 36, 41, 43, 44, 45, 46 and 47 of the Employment Act, 2007, it held the employer discharged its burden under sections 43 and 47(5), that the claimant failed to exonerate himself from the serious allegations, and that the process complied with section 41 and the applicable HR policy. The malice and defamation claims failed. The suit was dismissed in its entirety, with each party bearing their own costs in light of the claimant's prior service.

Key legal issues

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01

Valid reason for summary dismissal

Holding

The respondent proved valid reasons: conflict of interest and breach of good faith in dealings with its Ethiopian distributor, Retina.

Reasoning

The court reviewed the allegations in the investigation reports - exerting undue pressure on Retina to employ or benefit Mr. Merawe, use of personal email for official business, false representations, and derailing the distributor's contractual performance. The claimant did not satisfactorily rebut the findings, and his malice/vendetta theory did not displace the specific misconduct charges. The employer thus discharged its statutory burden.

p. 4
02

Fairness of the procedure

Holding

The respondent complied with section 41 and its HR policy by giving the claimant written representations and a virtual hearing; the multi-jurisdictional nature excused absence of a formal disciplinary enquiry and cross-examination.

Reasoning

The claimant was notified of contemplated suspension, invited to show cause, given written and oral representation opportunities via video conference, and an appeal was heard and dismissed. The court accepted that the complaint spanned Kenya, Ethiopia and South Africa, making a conventional disciplinary enquiry impractical, and that the claimant failed to show the process was wrongful or actuated by malice.

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03

Claim of defamation and malice/vendetta

Holding

Rejected; the claimant failed to demonstrate the dismissal was wrongful or actuated by malice, and a lawful dismissal is not professional defamation.

Reasoning

The claimant's narrative centred on reprimand by Mr. Mackay after his direct email to the Global CEO and on the company's award success. The court held the excellent performance was 'besides the point' since dismissal rested on specific conflict-of-interest allegations the claimant could not exonerate himself from. Lawful dismissal cannot found a defamation claim.

Legal principles established

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  • The employer bears the onus of demonstrating both a valid reason for termination and a fair hearing, under sections 43(1) and (2) and 47(5) of the Employment Act.
  • Section 41 requires an employer to give an employee the opportunity to make written and oral representations before termination for misconduct.

Court orders

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  1. 1.The suit is dismissed in its entirety.
  2. 2.Each party to bear their own costs of the suit.

Authorities

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Legislation

  • Employment Act, 2007Part V; Sections 36, 41, 43(1) and (2), 44, 45, 46, 47(5)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007 invoked; no constitutional article stated)

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, "Humprey Crister Musuluma Lwamba v Roche Kenya Limited [2021] KEELRC 686 (KLR)", Case Analysis (2021). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/686/eng@2021-10-21

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