Dungani v West Kenya Sugar Company Limited (Employment and Labour Relations Appeal 12 of 2023) [2024] KEELRC 172 (KLR)
The bottom line
#Kenya's Employment Court upheld a fuel-theft dismissal, confirming employees must first prove unfair termination and can't raise new issues on appeal.
What this practically means
#Executive summary
#Key legal issues
#Burden and standard of proof in unfair termination claims
The burden of proving unfair termination lies on the employee, discharged by a prima facie case, whereupon the employer must justify the reasons; the standard is balance of probabilities, not beyond reasonable doubt
Section 47(5) of the Employment Act allocates the burden: the employee must prove unfair termination occurred, while the employer justifies the grounds under sections 43 and 45. The employee discharges the initial burden by establishing a prima facie case outside the four corners of section 45. The court adopted Josephine M. Ndungu and its own earlier decision, holding employment claims are civil so the criminal standard does not apply even to fuel-siphoning allegations.
Procedural fairness under section 41 of the Employment Act
The dismissal complied with section 41: reasons were given in writing in a language the appellant understood, he responded in writing to the show cause letter, was informed of his right to representation and witnesses, and a disciplinary hearing was held
The court confined itself to the pleadings at trial, which alleged only that reasons were not explained in a language the claimant understood and that section 41 procedures were not applied. The documents produced - suspension/show cause letter, written response, hearing notice, minutes and dismissal letter - showed compliance, confirmed at cross-examination. Issues like the FLS system's faultiness and choice of union representatives were unpleaded and could not be raised on appeal.
Substantive fairness - validity of the reason for dismissal (fuel siphoning established by Fuel Level Sensor)
The FLS-based reason was valid and fair; being an accomplice to fuel siphoning was gross misconduct under section 44(4), and a reasonable employer could dismiss on those facts
The fuel siphoning was never denied and the FLS functionality was never challenged in the pleadings. The respondent produced FLS graphs and explained the system, satisfying the Kyula threshold of verifying misconduct through internal systems. The court applied the British Leyland band-of-reasonableness test: the appellant, a winch helper on duty when fuel was siphoned, damaged the trust, and summary dismissal was reasonable, the lack of written warning not affecting summary dismissal for suspected criminal offence against the employer's property.
Entitlement to reliefs sought at trial
Having upheld the dismissal as lawful and fair, the court rejected all pecuniary reliefs; the certificate of service was not an issue on appeal
Section 49 remedies depend on a finding of unfair dismissal, which failed. Leave pay was shown paid; housing allowance and underpayment failed on the consolidated salary against the wage order; overtime was paid monthly; the rest days claim lacked evidence; the certificate of service had been dealt with by the trial magistrate and was not a live appellate issue.
Legal principles established
#- In a complaint of unfair termination, the burden of proving that unfair termination occurred rests on the employee, while the burden of justifying the grounds for termination rests on the employer
- The employee's burden is discharged by establishing a prima facie case; thereafter the employer assumes the burden under sections 43(1), 45(2) and 47(5) to justify the reason and prove fair procedure
- Employment claims are civil and the standard of proof is on a balance of probabilities, not beyond reasonable doubt, even where criminal-type misconduct is alleged
- A party who failed to plead an issue at the lower court cannot raise the unpleaded issue as a ground of appeal
- Grounds of appeal must flow from the pleadings and evidence before the trial court; parties on appeal are bound by their pleadings below
- The reasonableness test for dismissal (band of reasonableness) applies in assessing substantive fairness
Court orders
#- 1.The appeal is dismissed as without merit
- 2.The judgment and decree of Hon. Z.J. Nyakundi (SPM) delivered on 23rd February 2023 in Butali CMELRC No. 4 of 2020 is upheld
- 3.Each party to bear own costs in the appeal
- On appeal from
- Butali Chief Magistrate's Court (CMELRC)
- CMELRC No. 4 of 2020
- Jurisdiction invoked
- First appellate jurisdiction over the subordinate court under the Employment and Labour Relations Court Act (appeal from Butali CMELRC No. 4 of 2020)
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (10)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Rupa Mills Limited v Hillary Kaverenge Chogo[2026] KEELRC 2719 (KLR)1 Oct 2026followed
- Andrew Odongo Omondi v Coca Cola Equator Bottlers Ltd[2026] KECA 1949 (KLR)25 Sept 2026
- Yegon William Kemboi v Cherangani Hills Limited[2026] KEELRC 2695 (KLR)24 Sept 2026
- Baru v Kiara (Employment and Labour Relations Appeal E033 of 2024) [2025] KEELRC 2381 (KLR)[2025] KEELRC 2381 (KLR)14 Aug 2025
- H Young & Co. (EA) Ltd v Kilungya (Employment and Labour Relations Appeal E022 of 2024) [2025] KEELRC 2223 (KLR)[2025] KEELRC 2223 (KLR)23 Jul 2025applied
- Kenya Union of Entertainment & Music Industry Employees v Bomas of Kenya Limited (Cause 1516 of 2018) [2025] KEELRC 1987 (KLR)[2025] KEELRC 1987 (KLR)4 Jul 2025
- Kenya Union of Entertainment & Music Industry Employees v Bomas of Kenya Limited (Cause 1516 of 2018) [2025] KEELRC 1987 (KLR)[2025] KEELRC 1987 (KLR)4 Jul 2025
- Rupra Construction Company Limited v Makomere (Civil Appeal E221 of 2023) [2025] KEELRC 1376 (KLR)[2025] KEELRC 1376 (KLR)9 May 2025applied
- Ndung’u v Ministry of Agriculture, Livestock and Fisheries & 2 others (Cause 1285 of 2018) [2025] KEELRC 1148 (KLR)[2025] KEELRC 1148 (KLR)9 Apr 2025
- Omondi v Unilever Kenya Limited (Cause 794 of 2019) [2024] KEELRC 2012 (KLR)[2024] KEELRC 2012 (KLR)25 Jul 2024applied
Cite this brief
#Cite this brief
Caselaw, "Dungani v West Kenya Sugar Company Limited (Employment and Labour Relations Appeal 12 of 2023) [2024] KEELRC 172 (KLR)", Case Analysis (2024). ELRC Appeal (Kakamega), appeal from Butali CMELRC No. 4 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/172/eng@2024-02-08
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.