Felix O Siata v Kenya Revenue Authority [2022] KEELRC 256 (KLR)
The bottom line
#Kenya's Employment Court ruled KRA unfairly retired an employee without valid reasons or fair procedure, awarding five months' salary, costs and interest.
What this practically means
#Executive summary
#Key legal issues
#Valid reason for termination
The reasons given by the Respondent were shallow and unsubstantiated; the evidence did not connect the Claimant to the alleged tax evasion and loss of Kshs.762 million
The court found the investigation evidence wanting: no export documents, no statements from clearing agents or the drivers involved, and no proof that the Claimant employed the person at the gate. The Respondent's second witness could not recall the procedures applicable at the time. Evidence of that calibre could not sustain the very serious allegations levelled against the Claimant.
Fair procedure under Sections 41 and 45 of the Employment Act
The disciplinary process was procedurally flawed: the Claimant was not informed of the specific charges, not supplied with documents, and not told he could bring a fellow employee or union representative
The invitation letters did not disclose the specific charges nor were documents availed. The Claimant was never informed of his right to be accompanied by an employee or shop union representative as required by Section 41. Documents he requested for his appeal were not availed, and his appeal went unanswered until 2018. This fell short of the hearing contemplated by Sections 41 and 45.
Termination by notice or payment in lieu
Payment of notice cannot cure absence of valid reason and fair procedure
The Respondent argued that payment of three months' notice in lieu aligned with Section 36 of the Employment Act. The court, citing Kenfreight E.A. Limited v Benson K. Nguti, held that termination by notice or payment in lieu is not enough; valid reasons and fair procedure must still be demonstrated. The notice payment therefore did not legitimise the retirement.
Legal principles established
#- An employer must furnish documents relied on in disciplinary proceedings to the employee and allow him to defend himself in the presence of a witness of his choice
- Termination by notice or payment in lieu of notice is insufficient; there must be valid reasons and fair procedure
Court orders
#- 1.Prayer for reinstatement declined as termination was over 3 years old
- 2.Damages for wrongful and unlawful termination awarded at an equivalent of 5 months' salary, with the Claimant to produce a payslip of his last salary to compute the award
- 3.The damages award held to amply compensate for time lost out of employment and other general damages
- 4.Costs of the suit awarded to the Claimant
- 5.Interest at court's rates from date of award till full payment
- 6.Mention on 3rd May 2022 to confirm the award
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over unfair termination claims under the Employment Act, 2007
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Felix O Siata v Kenya Revenue Authority [2022] KEELRC 256 (KLR)", Case Analysis (2022). Cause No. 1034 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/256/eng@2022-03-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.