Lydia Limbe v Akili Dada [2022] KEELRC 951 (KLR)
The bottom line
#Kenya's Employment Court ruled a 'consultant' was really an employee, awarding her Kshs.600,000 after her employer failed to prove fair, lawful termination.
What this practically means
#Executive summary
#Key legal issues
#Whether the Claimant was an employee or a consultant
She was an employee despite the contract being styled a consultancy agreement
Applying the control and integration tests, the court noted the Claimant reported daily to the office, used the Respondent's equipment and email system, attended staff meetings and activities, was introduced as 'our newest staff member', worked specified hours under the Executive Director's supervision and was issued a staff exit questionnaire. Her communications role was integral and critical to the Respondent's business. Withholding tax treatment was not determinative.
Whether the termination was substantively fair
It was not; the Respondent failed to prove poor performance or incompatibility
The employer led no evidence of any performance appraisal system or evaluation against deliverables, and the complaints about interpersonal skills were not evidenced, quantified or shown to have been raised with the Claimant for remedial action. Incompatibility requires persistent and irrational inability to work with workmates, which was not established. The burden under Section 43(1) was not discharged.
Whether the termination was procedurally fair
It was not; no hearing was accorded
There was no notice to show cause, no prior evaluation shared with the Claimant, no minutes of any hearing, and no opportunity to be accompanied or to make representations. The Claimant's uncontroverted evidence was that she was simply handed a termination letter at a meeting without prior notice of its agenda.
Whether declaring the contract one of employment would uphold an illegality
No; the Respondent did not plead or demonstrate that the contract was illegal as formed or performed
The illegality argument based on 5% withholding tax and non-remittance of statutory deductions was not elucidated. The Kenya Airways v Satwant Singh Flora principles were distinguished because the Respondent never pleaded illegality of the contract nor demonstrated under what law it was illegal.
Legal principles established
#- In determining whether an employment relationship exists, the court is not bound by the parties' labels or the title of the contract but by the totality of the evidence, including control and integration tests
- Payment of withholding tax rather than PAYE does not by itself make a worker an independent contractor
- The employer bears the burden of proving valid and fair reasons for termination under Section 43(1) and fair procedure under Sections 41 and 45(2) of the Employment Act
Court orders
#- 1.The declaration that the Respondent's conduct, acts and/or omissions are unlawful, illegal and/or unfair is disallowed
- 2.Compensation for unfair termination equivalent of three months' salary, Kshs.450,000/-
- 3.One month's salary in lieu of notice, Kshs.150,000/-
- 4.Claim for house allowance of Kshs.270,000/- disallowed
- 5.Respondent to issue certificate of service to the Claimant within 30 days of the judgment
- 6.Judgment entered in favour of the Claimant for the sum of Kshs.600,000/- with costs and interest at Court rates from the date of judgment till payment in full
- Jurisdiction invoked
- Employment and Labour Relations Court established under Article 162(2) of the Constitution; Employment Act, 2007
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (2)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Mukopi & 9 others v Nairobi County Government & 2 others[2026] KEELRC 2481 (KLR)22 Sept 2026
- Githinju v Elsamere Conservation Centre (Employment and Labour Relations Appeal E032 of 2023) [2024] KEELRC 979 (KLR)[2024] KEELRC 979 (KLR)30 Apr 2024
Cite this brief
#Cite this brief
Caselaw, "Lydia Limbe v Akili Dada [2022] KEELRC 951 (KLR)", Case Analysis (2022). Cause No. 305 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/951/eng@2022-01-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.