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ELRCPartially AllowedNot stated in judgment· [2021] KEELRC 2305 (KLR)

Fredrick Oduor Lamba v Kenya Electricity Generating Company PLC [2021] KEELRC 2305 (KLR)

Employment and Labour Relations Court
15 January 2021
JRJames Rika
6,666 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 KenGen's dismissal of a manager who misused a company vehicle, confirming employers win when they have valid reasons and follow fair procedure.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent State Company from 1998 and appointed Administration Manager in May 2016, was dismissed following an accident in which a Respondent vehicle killed a pedestrian at Yala on 22nd July 2017. The vehicle had been dispatched ostensibly for benchmarking at Sondu Miriu but was used to collect the Claimant from Kisumu Airport for private purposes. After a notice to show cause, a disciplinary hearing on 14th September 2017, and an unsuccessful internal appeal, his contract was terminated on 19th January 2018, with summary dismissal commuted to normal termination. The Claimant challenged both the validity of the reasons and the fairness of the procedure, seeking reinstatement or alternatively compensation exceeding Kshs. 6.6 million, notice pay, leave dues, defamation and constitutional damages, and a certificate of service. The Court found that the Claimant repeatedly conceded wrongdoing and gave inconsistent accounts of his travel, and that the benchmarking claim was a façade concealing personal use of the vehicle. It held the Respondent had valid reasons under Sections 43 and 45 of the Employment Act and that the procedure met the minimum statutory standards under Section 41, noting the notice, hearing, commutation of dismissal and appeal. Reinstatement and all monetary claims were declined, as were defamation, punitive, aggravated and constitutional damages. The Court ordered release of the Certificate of Service under Section 51, allowed the Claimant to take up the outstanding offer of notice pay, leave days and retirement benefits, and made no order on costs. Judgment was delivered by James Rika, Judge, on 15th January 2021.

Key legal issues

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01

Valid reason for termination

Holding

Termination was substantively justified - the Claimant misused the Respondent's vehicle for personal errands and violated the Transport Policy

Reasoning

The Claimant repeatedly conceded wrongdoing from his reply to the notice to show cause through the disciplinary hearing, asking for leniency. His explanations about travel to Kisumu were inconsistent and he could not produce a boarding pass. The Court found benchmarking was a façade and that the vehicle was converted to personal use.

p. 7
02

Procedural fairness

Holding

The disciplinary procedure complied with Sections 41 and 45 of the Employment Act

Reasoning

The matter was investigated, a notice to show cause issued and answered, the Claimant was notified of and attended the disciplinary hearing, minutes showed a fair hearing, summary dismissal was commuted to normal termination on account of long service, and the internal appeal was heard.

p. 7
03

Remedies

Holding

Only the Certificate of Service was merited; reinstatement and monetary claims declined

Reasoning

Since termination was justified and fair, compensation and reinstatement were not available. The Claimant was at liberty to take up the offer of notice pay, pending leave and retirement benefits already made by the Respondent.

p. 7

Legal principles established

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  • An employer must have valid reasons under Sections 43 and 45 of the Employment Act to justify termination
  • Compliance with Section 41 procedural requirements (notice to show cause, hearing, appeal) meets the minimum statutory standards of fairness
  • A certificate of service is merited under section 51 of the Employment Act

Court orders

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  1. 1.The Claim, save for the prayer on release of the Certificate of Service, is declined
  2. 2.The Claimant is at liberty to take up the offer of notice, pending leave days and benefits under the Retirement Scheme, made to him by the Respondent
  3. 3.No order on the costs
  4. 4.Certificate of Service to be availed to the Claimant
Jurisdiction invoked
First-instance employment dispute under the Employment Act

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, "Fredrick Oduor Lamba v Kenya Electricity Generating Company PLC [2021] KEELRC 2305 (KLR)", Case Analysis (2021). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/2305/eng@2021-01-15

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