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ELRCPartially Allowed· [2023] KEELRC 1962 (KLR)

Njengi v Powerstar Supermarket Kikuyu Limited (Cause 751 of 2018) [2023] KEELRC 1962 (KLR)

Employment and Labour Relations Court
25 July 2023
2,614 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 a supermarket manager's dismissal unfair because he was never heard or told why, awarding him damages and costs.

What this practically means

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Executive summary

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The claimant sued Powerstar Supermarket Kikuyu Limited for unlawful, wrongful and unfair dismissal from employment, having been employed as a Shop Attendant in November 2014 and rising to Manager at the Kikuyu supermarket, earning Kshs. 45,000/- monthly at termination. He was suspended on March 24, 2018 after a dispute over rent payment to a Director, and informed on March 31, 2018 that he had been dismissed effective March 24, 2018. He sought declarations, notice pay, leave pay, public holiday pay, house allowance, overtime, compensation, a certificate of service, costs and interest. The respondent alleged the claimant was employed by Powerstar Supermarket Kitengela Limited and that he was lawfully dismissed for habitual drunkenness and insubordination, but closed its defence without calling evidence. The court found the claimant had sued the correct employer, relying on his NSSF statement. With the respondent's evidence unchallenged, the court held the dismissal breached the Employment Act and natural justice: no hearing was afforded and no reason for dismissal was proved. However, recovery on house allowance and leave was limited to the final year of employment as continuing wrongs, and the unparticularised overtime claim failed. Judgment was entered for the claimant with a declaration of unfair dismissal, one month's notice pay (Kshs. 45,000/-), house allowance for 12 months (Kshs. 81,000/-), leave pay of Kshs. 51,570/-, six months' compensation (Kshs. 310,500/-), a certificate of service, costs and interest from judgment until payment in full. The suit thus partially succeeded against the relief sought.

Key legal issues

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01

Whether the correct employer was sued

Holding

The claimant impleaded his employer correctly; the NSSF statement indicated Powerstar Supermarket Kikuyu Limited and the respondent attached no evidence to the contrary.

Reasoning

The respondent contended the employer was Powerstar Supermarket Kitengela Limited, but attached no evidence to its defence showing a different employer. The claimant's NSSF statement showed Powerstar Supermarket Kikuyu Limited as employer. The court therefore found the claimant had sued the correct party.

p. 4
02

Whether the dismissal was lawful and fair

Holding

The dismissal was unlawful, wrongful and unfair: the claimant was not afforded a hearing, not informed of any reason, and the respondent proved no valid reason.

Reasoning

The respondent closed its defence without calling evidence, leaving the claimant's evidence unchallenged. There was no hearing, no show-cause letter, and no reason communicated. The court held the dismissal contravened employment law and natural justice, and awarded six months' salary as compensation.

p. 4
03

Entitlement to notice pay, leave pay and house allowance

Holding

The claimant was awarded one month's notice pay, one month's pay in lieu of leave (inclusive of house allowance) and house allowance for 12 months only.

Reasoning

Non-payment of house allowance and leave was a continuing wrong acquiesced in during employment, so recovery was limited to the last year. House allowance was computed at 15% of salary given the absence of a written contract or consolidation agreement.

p. 5
04

Overtime claim

Holding

The overtime claim failed for want of particularisation.

Reasoning

The claimant did not specify on which dates he worked overtime or the average hours worked, making quantification impossible. The claim was therefore vague and not payable.

p. 5

Legal principles established

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  • An employer bears the statutory responsibility to maintain employment records under section 74 of the Employment Act, and failure to produce them weighs against the employer.
  • An unparticularised overtime claim is not payable because it cannot be ascertained.

Court orders

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  1. 1.A declaration that the dismissal of the claimant is unlawful, wrongful and unfair
  2. 2.One month's salary in lieu of notice – Kshs. 45,000/-
  3. 3.House allowance for 12 months – Kshs. 81,000/-
  4. 4.Kshs. 51,570/- being one month's salary inclusive of house allowance as payment in lieu of leave
  5. 5.Compensation for unfair and unlawful termination at 6 months – Kshs. 310,500/-
  6. 6.Certificate of service
  7. 7.Costs of the suit to the claimant
  8. 8.Interest on the sums in (b), (c), (d) and (e) at court rates from the date of judgment till payment in full

Authorities

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Legislation

  • Employment Actsection 45(1)
  • Employment Actsection 45(2)
  • Employment Actsection 43
  • Employment Actsection 41
  • Employment Actsection 35(1)
  • Employment Actsection 28(1)(a)
  • Employment Actsection 74(1)(f)
  • Employment Actsection 10(3)(a)(i)
  • Employment Actsection 31(1)
  • Employment Actsection 74(1)(i)
  • Employment Actsection 74
  • Employment Actsection 49(1)(c)
  • Employment Actsection 50
  • Employment Actsection 51(1)
  • Constitution of Kenyaarticle 41

Cases cited (6)

  • Nicholas Muasya Kyula v Farmchem Ltd
    [2012] eKLR
  • Peter Apollo Ochieng v Amedo Centre Kenya Limited
    [2016] eKLR
  • Peter Onyango Nyabongo v Citadelle Security Limited
    [2015] eKLR
  • Patrick Abuya v Institute of Certified Public Accountants of Kenya (ICPAK) & another
    [2015] eKLR
  • Lawi Wekesa Wasike v Mattan Contractors Limited
    [2016] eKLR
  • Meshack Kiio Ikulume v Prime Fuels Kenya Limited
    [2013] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act reliefs invoked; no specific constitutional article pleaded as source of jurisdiction)

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, "Njengi v Powerstar Supermarket Kikuyu Limited (Cause 751 of 2018) [2023] KEELRC 1962 (KLR)", Case Analysis (2023). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1962/eng@2023-07-25

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