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ELRCPartially AllowedEmployment and Labour Relations Court Claim (memorandum of claim dated 23rd November 2022)· [2024] KEELRC 467 (KLR)

Odhiambo v Kenya Revenue Authority (Employment and Labour Relations Cause E893 of 2022) [2024] KEELRC 467 (KLR)

Employment and Labour Relations Court
1 March 2024
AMAnna Ngibuini Mwaure
1,916 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The claimant, formerly employed in the respondent's (Kenya Revenue Authority) customs department, was summarily dismissed on 27th August 2021 for allegedly unprocedurally clearing two trucks through direct assessment, causing revenue loss of Kshs 608,212, and for soliciting a bribe. He sought a declaration that his termination was illegal and null and void, plus general damages or reinstatement with costs. The respondent maintained the dismissal was procedural and lawful, having followed show-cause letters, a disciplinary committee and an appeal. The respondent's own witnesses admitted that the Customs and Border Control department had recommended the claimant's exoneration and that Said Juma, who conducted the faulty verification, be disciplined, yet HR terminated the claimant instead and Juma remained employed. The court held that although the claimant was taken through a procedurally fair disciplinary process under section 41 of the Employment Act, the respondent proved no valid reason for summary dismissal under sections 43(1) and 45(1); the allegations were unsubstantiated and the treatment of the claimant, contrasted with Juma, raised red flags. Relying on Catherine Muthoni Wairimu v Walter REIF, the court found the dismissal unfair and wrongful. It awarded compensation of 11 months' basic salary (Kshs 1,650,000) plus costs and interest, but declined reinstatement as compensation had been granted. Judgment delivered virtually in Nairobi on 1st March 2024 by Anna Ngibuini Mwaure, Judge.

Key legal issues

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01

Whether the termination of the claimant was illegal and wrongful

Holding

The claimant was unfairly and wrongfully dismissed

Reasoning

Although the claimant went through a disciplinary process compliant with section 41 of the Employment Act, the respondent failed to substantiate valid reasons for summary dismissal. The customs department recommended that the claimant be exonerated and that Said Juma, who did the verification, be disciplined, yet the HR department terminated the claimant instead. Allegations of conspiracy and negligence were unsubstantiated.

p. 4
02

Whether the claimant is entitled to the reliefs sought

Holding

Entitled to compensation of 11 months' basic salary (Kshs 1,650,000) but not reinstatement

Reasoning

The court awarded compensation equivalent to 11 months of the claimant's basic salary at the date of termination, plus costs and interest. Reinstatement was refused because compensation had been granted, making reinstatement unnecessary.

p. 4

Legal principles established

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  • An employer must prove valid reasons for termination under sections 43(1) and 45(1) of the Employment Act; a fair procedure alone does not justify dismissal without substantiated reasons

Court orders

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  1. 1.General damages/compensation for unlawful termination equivalent to 11 months of basic salary at date of termination, amounting to Kshs 1,650,000
  2. 2.Costs of the suit to the claimant
  3. 3.Interest at court rates from date of judgment till full payment
  4. 4.Reinstatement declined

Authorities

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Legislation

  • Employment Actsection 45(1)
  • Employment Actsection 43(1)
  • Employment Actsection 41
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure ActSection 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (1)

  • Catherine Muthoni Wairimu v Walter REIF (The National Association of Pub Owners & Others
    Cause No 458 of 2014
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (sections 41, 43(1), 45(1))

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, "Odhiambo v Kenya Revenue Authority (Employment and Labour Relations Cause E893 of 2022) [2024] KEELRC 467 (KLR)", Case Analysis (2024). Employment and Labour Relations Court Claim (memorandum of claim dated 23rd November 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/467/eng@2024-03-01

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