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ELRCPartially AllowedCause No E952 of 2021· [2023] KEELRC 875 (KLR)

Sapayia & another (Both suing as personal representatives of the Estate of Daniel Munei Sapayia - Deceased) v Registered Trustees of Africa Inland Church Kenya & another (Cause E952 of 2021) [2023] KEELRC 875 (KLR)

Employment and Labour Relations Court
14 April 2023
5,338 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that withheld salary alone didn't prove constructive dismissal, but the employer must still pay missing pension contributions from 1981 to 1987.

What this practically means

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Executive summary

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The claimants, personal representatives of Daniel Munei Sapayia (deceased), sued the 1st and 2nd respondents alleging that the deceased, employed from January 1981 and latterly Project Director of AIC Kajiado Child Care Centre, was constructively dismissed when his salary was withheld from September to December 2020 amid alleged financial impropriety and Covid-19 hardship, prompting his notice of retirement on November 9, 2020. They sought declarations of constructive dismissal and non-payment of terminal dues and pension, terminal dues of Kshs 19,574,077/=, costs and interest. The 1st respondent denied involvement in the 2nd respondent's employment affairs; the 2nd respondent counterclaimed, asserting the deceased voluntarily retired, admitted misappropriation of Kshs 828,510/=, apologised in writing and paid Kshs 364,000/=, and that all pension dues were fully remitted. The court framed three issues: constructive dismissal, pension dues, and reliefs. Applying the Coca Cola case principles, it held the claimants failed to prove causation since the retirement notice was cordial and gave no reasons, and the apology letter and post-retirement payment showed acceptance of responsibility for the lost funds. On pensions, the statements and P9 forms showed remittances made in arrears and a 100% benefit payout on transfer to Britam; however, the 2nd respondent admitted NSSF contributions began only in 1987. The claim partially succeeded: the court ordered NSSF remittances for 1981 to 1987 and dismissed the remainder with no orders as to costs. Judgment was delivered by Stella Rutto, J, at Nairobi on April 14, 2023.

Key legal issues

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01

Whether the deceased was constructively dismissed

Holding

No constructive dismissal established

Reasoning

The notice of retirement was cordial and gave no reasons citing unpaid salary despite two months of withheld salary, breaking causation. The deceased's apology letter of November 13, 2020 and his deposit of Kshs 364,000 into the 2nd respondent's account after his retirement had been accepted showed acceptance of responsibility for the loss of funds, undermining the claim that salary withholding amounted to a repudiatory breach. The claimants failed to prove the claim on a balance of probabilities.

p. 8
02

Whether all pension dues were paid

Holding

Pension dues substantially proved paid; only NSSF remittances for 1981-1987 ordered

Reasoning

There was no evidence of pension deductions before 2007; the Liberty statements showed arrears paid in later months rather than non-remittance; the P9 forms showed full remittances; and the deceased claimed 100% of benefits when the scheme transferred to Britam. However, the 2nd respondent admitted it only began NSSF contributions from 1987 when the deceased was registered, so it must remit for 1981 to 1987.

p. 11
03

Reliefs available

Holding

Only the order for NSSF remittances 1981-1987; balance of claim and counterclaim not granted

Reasoning

The claim partially succeeded only on the NSSF point. The court ordered remittances for 1981-1987 and dismissed the rest without costs. The 2nd respondent's counterclaim declarations and general damages were not granted in the orders.

p. 11

Legal principles established

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  • Constructive dismissal requires a fundamental/repudiatory breach of the employment contract and proof of causation between the employer's conduct and the employee's exit; the burden lies on the employee.
  • Submissions cannot take the place of evidence.
  • Not every involuntary resignation amounts to constructive dismissal; a direct causal link with intolerable employer conduct is required.

Court orders

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  1. 1.The 2nd respondent is ordered to make the NSSF remittances in favour of the deceased from 1981 to 1987 to the NSSF.
  2. 2.The rest of the claims are dismissed with no orders as to costs.

Authorities

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Legislation

  • Civil Procedure RulesOrder 21 Rule 1
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure Act (Chapter 21, Laws of Kenya)Section 1B

Cases cited (10)

  • Fredrick Saundu Amolo vs Principal Namanga Mixed Secondary School & 2 others
    (2014) eKLR
  • Kenneth Kimani Mburu vs Kibe Muigai Holdings Limited
    (2014) eKLR
  • Coca Cola East & Central Africa Limited vs Maria Kagai Ligaga
    (2015) eKLR
  • Board of Trustees, Kenya Broadcasting Corporation (KBC) Staff Retirement Benefits Scheme (Suing on Behalf of the Scheme) vs Kenya Broadcasting Corporation
  • Abednego Ndolo Mulinge vs Kenya Institute of Management
    (2022) eKLR
  • Mwende Nzabu vs Trustees and Office Bearers of Anglican Church of Kenya
    (2018) eKLR
  • Western Excavating (ECC) Ltd. -v- Sharp
    [1978] ICR 222 or [1978] QB 761
  • Nottingham County Council -v- Meikle
    (2005) ICR 1
  • Daniel Toroitich Arap Moi vs Mwangi Stephen Muriithi & another
    [2014] eKLR
  • Stella W. Muraguri vs Edward Kamau Muriu & 4 others
    Cause 2027 of 2015
Jurisdiction invoked
Original employment and labour relations jurisdiction of the 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, "Sapayia & another (Both suing as personal representatives of the Estate of Daniel Munei Sapayia - Deceased) v Registered Trustees of Africa Inland Church Kenya & another (Cause E952 of 2021) [2023] KEELRC 875 (KLR)", Case Analysis (2023). Cause No E952 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/875/eng@2023-04-14

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