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ELRCDismissedCause No. 544 of 2019· [2021] KEELRC 1475 (KLR)

Laureen M Nzau v Kenya Revenue Authority [2021] KEELRC 1475 (KLR)

Employment and Labour Relations Court of Kenya
16 April 2021
MMM. Mbaru
4,427 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 KRA's dismissal of a finance officer for gross misconduct, confirming employers win when they prove both valid reasons and fair procedure.

What this practically means

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Executive summary

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The claimant, employed by the Kenya Revenue Authority as an Officer, Finance (Grade KRA 3) in January 2014, was deployed to the JKIA finance office in July 2017 where she collected Air Navigation Service Charge revenue on behalf of the Kenya Civil Aviation Authority. Following investigations by the respondent's intelligence department into failure to bank revenue amounting to approximately Kshs.22.6 million, she was interdicted in November 2018, issued a show cause notice in May 2019, subjected to a disciplinary hearing, and her employment was terminated on 20th June 2019 for gross misconduct under section 44(4)(c) of the Employment Act and the KRA Code of Conduct. She claimed unfair termination and discrimination, asserting she was a cashier and not a reconciliation officer, that she was singled out among cash office staff who received only warnings, and that she was denied documents for her disciplinary hearing. She sought a declaration of unfair termination, reinstatement or damages, compensation, costs and interest. The respondent maintained the termination was for valid reason and followed fair procedure. The court framed four issues, applied sections 43, 45 and 44 of the Employment Act, and found the investigations report established valid reasons: the claimant failed to ensure acknowledgements on handover of monies and neglected reconciliation duties, facilitating fraud and theft. The court held the procedure was fair, complied with sections 41 and 45, and rejected the discrimination claim. The claim was dismissed with each party bearing own costs; the claimant to attend clearance for her terminal dues.

Key legal issues

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01

Whether termination was for a valid and fair reason

Holding

Termination was justified; the claimant failed in her reconciliation duties and facilitated fraud

Reasoning

The court found the investigations report outlined the claimant's failure to undertake reconciliation duties and to ensure acknowledgement of handed-over monies, which led to loss of funds. Though the claimant claimed she was only a cashier, the court held she remained functionally a reconciliation officer and was bound by best accounting practices regardless of designation.

p. 5
02

Whether the procedure followed was fair

Holding

Procedure was fair and in adherence to sections 41 and 45 of the Employment Act

Reasoning

Upon interdiction there was a notice to show cause, the claimant replied in writing, and she was invited to make oral representations before a disciplinary panel before termination. The court held this was due process, and declined to interfere with the employer's discretion in opting for termination rather than summary dismissal.

p. 6
03

Whether the claimant was discriminated against

Holding

No discrimination established

Reasoning

The court accepted the Supreme Court's definition of discrimination and found that the claimant's duties were distinct and personal; she could not rely on colleagues' treatment without demonstrating they held similar duties and failed to perform them diligently. Investigations had found her culpable.

p. 6

Legal principles established

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  • An employer must prove the reason for termination; failure renders termination unfair under sections 43 and 45 of the Employment Act
  • Suspicion on reasonable and sufficient grounds of committing a criminal offence against the employer's property may amount to gross misconduct justifying summary dismissal under section 44(4)(g)

Court orders

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  1. 1.The claim is dismissed
  2. 2.The claimant shall attend at the shop floor for clearance and upon which the dues outlined in the letter dated 20th June 2019 shall be addressed
  3. 3.Each party shall bear own costs
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act in a claim of unfair termination under the Employment Act, 2007

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, "Laureen M Nzau v Kenya Revenue Authority [2021] KEELRC 1475 (KLR)", Case Analysis (2021). Cause No. 544 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1475/eng@2021-04-16

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