Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedCause No 309 of 2017· [2021] KEELRC 767 (KLR)

Anthony Nasenya Sakwa v Capwell Industries Limited [2021] KEELRC 767 (KLR)

Employment and Labour Relations Court of Kenya
15 October 2021
4,474 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~18 min to read original · ~4 min brief

The bottom line

#

A Kenyan court upheld an employee's dismissal for dishonesty but ordered his employer to pay an extra month's notice under the applicable CBA clause.

What this practically means

#

Executive summary

#
The claimant, a general worker employed by the respondent from July 2006 until 26 September 2016, sued for unlawful termination arising from an incident of 14 September 2016 in which four sacks of good rice (about 100 kgs) were found concealed among waste screenings at the husk area while he was in charge of the screening process. He sought a declaration that termination was unlawful, payment of Kshs 456,768/= in dues and benefits, and costs. He alleged a witch-hunt by a union official and complained that CCTV footage was withheld and the matter not reported to police. The respondent maintained that the claimant, solely in charge of screenings, was responsible, that a disciplinary hearing was held on 23 September 2016 with the chief shop steward present, and that it paid one month's salary in lieu of notice under clause 3(a)(i) of the CBA. The court framed two issues: whether the termination was unfair and unlawful, and entitlement to reliefs. Applying the shared burden under sections 47(5), 43(1) and 45(2) of the Employment Act, and the balance-of-probability standard, the court found the respondent had valid grounds - loss of trust in the claimant's honesty - and had complied with section 41 procedure. However, as the claimant had served about 10 years 2 months, clause 3(a)(ii) of the CBA entitled him to two months' notice pay, not one. The claim succeeded only to that extent: an award of Kshs 12,110/= being one additional month's notice pay. All other heads (September salary, loss of earnings, paternity leave, annual leave, medical and night shift allowances, and service gratuity) were dismissed for lack of proof, and each party was ordered to bear its own costs.

Key legal issues

#
01

Whether the respondent proved valid and fair reasons for termination

Holding

The respondent proved valid reasons: loss of trust in the claimant's honesty arising from concealed bags of good rice while he was in charge of screenings, satisfying sections 43(1) and 45(2)

Reasoning

The claimant was on duty and solely in charge of the screening and disposal of screenings on the material night; he could not explain how good rice reached the husk area. His allegation of a witch-hunt by the union official was unproved. Applying the McKinley test, the dishonesty/trust issue went to the root of the employment relationship, and the respondent genuinely believed the reasons for termination existed.

p. 4
02

Whether the claimant was accorded procedural fairness under section 41

Holding

Procedural fairness was satisfied: suspension letter stated reasons, notice of about 8 days to a disciplinary hearing, attendance with the chief shop steward, and signed minutes of the hearing

Reasoning

The claimant admitted attending the disciplinary hearing of 23 September 2016 and did not dispute the minutes, which bore his signature. He was advised to attend with the chief shop steward, who was present. The court therefore held the procedure met the legal threshold under the Employment Act.

p. 4
03

Entitlement to notice pay under the CBA

Holding

The claimant, having served approximately 10 years 2 months, was entitled to 2 months' notice/pay under clause 3(a)(ii) of the CBA, not 1 month; award of one additional month's salary (Kshs 12,110/=)

Reasoning

The duration of employment (from July 2006) was undisputed and confirmed by RW1 and pay slips; the CBA clause did not distinguish casual from permanent service, and conversion to permanent terms would in any event have occurred by operation of law under section 37(1)(c) of the Employment Act.

p. 5

Legal principles established

#
  • Under the Employment Act there is a shared burden of proof in unfair termination claims: the employee must prove termination occurred and was unfair under section 47(5), after which the employer must prove valid and fair reason under section 43(1) and 45(2).
  • In employment disputes the standard of proof is on a balance of probability, not beyond reasonable doubt, and the employer need only prove reasons it genuinely believed to exist.
  • Where an employer elects to terminate under a specific CBA clause, it is bound to comply with the notice period applicable to the employee's actual length of service.

Court orders

#
  1. 1.Award to the claimant of one month's salary in the sum of Kshs 12,110/= being additional notice pay (two months' notice pay due under clause 3(a)(ii) of the CBA instead of the one month paid)
  2. 2.Dismissal of the rest of the claims (salary for September 2016, compensation for loss of earnings, paternity leave, annual leave, medical allowance, night shift allowance and service gratuity)
  3. 3.Each party to bear its own costs

Authorities

#

Legislation

  • Employment Actsection 41, section 41(1), section 43(1), section 45(2), section 45(2)(b)(ii), section 45(2)(c), section 47(5), section 37(1)(c)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticle 159(2)(d), Article 48

Cases cited (9)

  • Loice Otieno vs Kenya Commercial Bank
    (2013) eKLR
  • Nicholas Otinyu Muruka vs Equity Bank Limited
    (2013) eKLR
  • Pius Machafu Isindu vs Lavington Security Guards Limited
    [2017] eKLR
  • Kenya Revenue Authority vs Reuwel Waithaka & others
    [2019] eKLR
  • Mary Wakwabubi vs British Airways
  • Standard Group Limited vs Jenny Luesby
  • H. Young (EA) Limited vs Samuel Gikunda Mbiuki
  • Bamburi Cement Limited vs William Kilonzi
    [2016] eKLR
  • McKinley vs BC Tel
    [2001] 2 S.C.R. 161, 2001 SCC 38
Jurisdiction invoked
Original jurisdiction under the Employment and Labour Relations Court Act over a claim for unfair termination and terminal benefits

Key timeline

#

Practical implications

#

Frequently asked questions

#

Later judgments citing this (1)

#

Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

#

Cite this brief

Caselaw, "Anthony Nasenya Sakwa v Capwell Industries Limited [2021] KEELRC 767 (KLR)", Case Analysis (2021). Cause No 309 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/767/eng@2021-10-15

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