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ELRCPartially AllowedCause No 413 of 2016· [2022] KEELRC 168 (KLR)

Manasses Sumbi v Total Kenya [2022] KEELRC 168 (KLR)

Employment and Labour Relations Court
31 March 2022
3,967 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled Total Kenya unfairly fired an employee over unproven poor performance, awarding him 8 months' salary and costs, while his outstanding loans were offset.

What this practically means

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Executive summary

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The claimant, formerly an Airport Superintendent and later Project Engineer employed by Chevron Kenya Limited and acquired by the respondent as a going concern in 2009, was summarily terminated on 4 September 2015 over cost variances on the New Jomvu Service Station project following audit queries. He sued for 18 years' salary of Kshs.7,998,912, general damages for wrongful termination, an injunction compelling release of a title deed over Athi River Block 2/3842 and transfer forms for motor vehicle KBX 774J, interest and costs. The respondent defended the claim on grounds of wilful neglect and poor work performance, and counterclaimed for outstanding car loan, house assistance, medical scheme and fuel card balances. The court framed three issues: lawfulness and fairness of the termination, the counterclaim, and remedies. It held the grounds amounted to poor work performance, which was unsubstantiated by appraisals or targets; bonuses and salary increments had continued into 2015, and the audit report relied on was never availed to the claimant or the court. Procedure under section 41 was also breached as the claimant was not invited to a disciplinary meeting with a representative of his choice. The termination was declared unlawful and wrongful. The court awarded 8 months' salary compensation (Kshs.3,555,072), refused payment in lieu of notice for want of a prayer, allowed the counterclaim for car loan and house assistance totalling Kshs.2,034,286.74, and rejected the medical and fuel card claims for lack of documentation. Title deed and log book to be released upon settlement of the deductions. Costs and interest were awarded to the claimant.

Key legal issues

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01

Whether the termination was for a valid reason

Holding

No; the issues amounted to poor work performance which was never substantiated by appraisals or targets, and the audit report relied on was never availed to the claimant or the court

Reasoning

Sections 43 and 45 of the Employment Act require the employer to prove valid reasons. The court found the grievances concerned work performance without any allegation of financial impropriety. There were salary reviews and bonuses into 2015 showing good performance, no prior adverse appraisal, and the audit report was never produced in court or shared with the claimant.

p. 4
02

Whether fair procedure under section 41 was followed

Holding

No; the claimant was not invited to a disciplinary meeting with a representative of his choice and new issues were introduced without notice

Reasoning

The employer failed to inform the claimant of his right to be accompanied by a fellow employee or union steward. Although there were some attempts at compliance (show cause letters and some meetings), the process was rushed, the audit report was withheld, and the guidelines on handling poor performance, including warnings, training and reassignment, were not followed.

p. 4
03

Whether the counterclaim for outstanding loans was proved

Holding

House assistance and car loan balances proved by sale agreement and payslips; medical scheme and fuel card claims rejected for want of documentation

Reasoning

The court accepted the respondent's testimony that amortization reduced the value of the housing asset and that a car loan balance remained unpaid. The claimant produced no proof he had cleared the balances. However, the medical scheme and fuel card amounts were unsupported by documents and were rejected.

p. 5

Legal principles established

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  • Termination of employment requires both substantive justification (valid reason proved by the employer) and procedural fairness under sections 41, 43 and 45 of the Employment Act
  • Allegations of poor work performance must be substantiated by performance appraisals and targets, not merely audit queries or unsupported assertions
  • An employee must be afforded the section 41 right to be accompanied by a fellow employee or shop floor union steward at a disciplinary hearing

Court orders

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  1. 1.Declared the claimant's termination unlawful and wrongful
  2. 2.Awarded compensation under section 49(1) of the Employment Act of 8 months' salary (Kshs.444,384 x 8 totalling Kshs.3,555,072/-)
  3. 3.Allowed the counterclaim for house assistance and car loan; Respondent to deduct Kshs.2,034,286.74 as outstanding amounts
  4. 4.Rejected the counterclaim for the medical scheme and fuel card bill for lack of documentation
  5. 5.Upon implementation of the deductions, Respondent to release the title deed and the log book to the Claimant
  6. 6.Costs awarded to the Claimant
  7. 7.Interest at court rates from date of judgment till full payment

Authorities

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Legislation

  • Employment Actsection 41
  • Employment Act 2007sections 43 and 45
  • Employment Act 2007section 49(1)
  • Employment Actsection 44(4)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48

Cases cited (4)

  • Abraham Gumba v Kenya Medical Supplies Authority, Industrial Cause No. 1073 of 2012
  • Maina Mwangi v Thika Coffee Mills Limited (2012) eKLR
    (2012) eKLR
  • Walter Onuro v Teachers Service Commission No. 955 of 2011
  • Kenfreight (E.A) Limited v Benson K. Nguti (2016) eKLR
    (2016) eKLR
Jurisdiction invoked
Original jurisdiction under the Employment Act 2007 (Employment and Labour Relations Court)

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, "Manasses Sumbi v Total Kenya [2022] KEELRC 168 (KLR)", Case Analysis (2022). Cause No 413 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/168/eng@2022-03-31

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