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ELRCDismissedNot stated in the judgment as provided· [2024] KEELRC 1121 (KLR)

Momanyi v Spedag Interfreight Limited (Cause 438 of 2019) [2024] KEELRC 1121 (KLR)

Employment and Labour Relations Court
16 May 2024
3,346 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court upheld a freely negotiated mutual separation agreement, dismissing a former manager's claims of unfair redundancy and discrimination.

What this practically means

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Executive summary

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The Claimant, a long-serving marketing and branch manager in the Respondent's group of companies, sued for wrongful, unfair and unlawful termination of employment via a mutual separation agreement dated 14th December 2018, which he said was coerced and procured in breach of redundancy procedures under the Employment Act. He further alleged racial discrimination against local Kenyan staff in favour of expatriates of Asian origin and sought declarations of constitutional violations, damages including 12 months' salary and Kshs. 7,500,000 for discrimination, costs and interest. The Respondent maintained the agreement was entered freely, negotiated, executed and fully implemented with payment of Kshs. 3,043,040/- and USD 17,504 as full and final settlement, and that the redundancy-related notice obligations did not arise given the mutual agreement. The Court compared the unsigned draft in the Claimant's bundle with the executed agreement and found improved terms, including enhanced notice pay, proving negotiation and negating coercion. The Court held the Claimant's position genuinely ceased to exist, that he failed to prove discrimination or the constitutional violations alleged, and that the claim was unproved. Distinguishing the Esther Wamaitha Waweru authority relied on by the Claimant, the Court dismissed the suit. Recognising the Claimant's pioneering role in testing labour rights under the new Constitution, the Court made no order as to costs. Judgment delivered at Nairobi on 16th May 2024 by Nzioki Wa Makau, Judge.

Key legal issues

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01

Whether the Mutual Separation Agreement was vitiated by undue influence rendering the termination unfair

Holding

The Claimant failed to prove undue influence; the evidence showed he negotiated improved terms (notice pay enhanced from Kshs. 457,600/- to Kshs. 1,372,800/-) before signing, defeating the assertion of ambush or coercion

Reasoning

The Court compared the unsigned draft in the Claimant's bundle with the signed version and found terms were made more attractive in the executed copy, proving negotiation. The Claimant did not demonstrate his position was retained; it ceased to exist as positions declared redundant do. His assertions of malice and coercion were therefore not established on a balance of probabilities.

p. 6
02

Whether the Respondent discriminated against the Claimant on grounds of race and place of origin

Holding

The discrimination claim was unproved; the Claimant did not demonstrate differential treatment, and his own elevated position could equally have been attacked as discriminatory

Reasoning

Applying the requirement that discrimination be proved in specific terms per Article 27, the Court found the Claimant, one of the few individuals of African extraction in the company, did not demonstrate he was treated differently. The Court noted his elevated supervisory position over an entire region, unlike other managers with smaller areas, could itself have been attacked as discriminatory, and absent proof of malice the Respondent's actions could not be labelled discriminatory.

p. 6
03

Whether the Respondent violated the Claimant's constitutional rights (Articles 41, 47, 48 and related provisions)

Holding

No constitutional violation was established; the claim on the alleged wanton flouting of constitutional provisions failed

Reasoning

The constitutional claims were premised on the assertions of coerced redundancy and denial of a hearing, which the Court found unproved given the negotiated and executed Mutual Separation Agreement. The Claimant not having secured findings on discrimination or vitiation, the constitutional claims fell with the main claim.

p. 6
04

Whether the termination on account of redundancy complied with section 40 of the Employment Act

Holding

The obligation to notify the labour office did not arise because the parties mutually agreed to separate rather than the employer unilaterally declaring redundancy

Reasoning

The Respondent's evidence was that clause 5.2 of the negotiated agreement reflected the parties' agreement that the labour officer would be notified for redundancies but not where there was mutual agreement. The Respondent distinguished Esther Wamaitha Waweru on the basis that there was no mutual separation agreement there, and the Claimant here occupied a unique position, whereas in that case several employees were in the same grade and the criteria and last-in-first-out principle were breached.

p. 5

Legal principles established

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  • The function of the Court is to enforce what is agreed between the parties, not what the Court thinks ought to have been fairly agreed, and the Court will not rewrite a contract freely entered into
  • A party alleging discrimination must prove in specific terms that they were treated differently on grounds such as race, health status, ethnic or social origin, belief or culture as set out in Article 27 of the Constitution
  • Negotiation of improved terms prior to execution of a mutual separation agreement disproves assertions of ambush, lack of awareness or coercion

Court orders

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  1. 1.Suit dismissed
  2. 2.No order as to costs

Authorities

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Legislation

  • Employment Actsection 40(1), 40(1)(c)
  • Employment Actsection 43
  • Employment Actsection 45, 45(4)(b)
  • Employment Actsection 49
  • Employment Actsection 5(2) and (3)
  • Employment Actsection 78
  • Constitution of KenyaArticle 27(1), (2) and (4)
  • Constitution of KenyaArticles 23, 28, 29(f), 31(c) and (d), 35(1)(a) and (b), 40, 41(1) and (2)(a), 43(1)(e), 47(1), 48, 50

Cases cited (5)

  • Esther Wamaitha Waweru v MUA Insurance (Kenya) Limited
    Cause 397 of 2019
  • Fina Bank Limited v Spares and Industries Limited
    [2002] 1 EA 52
  • Michael Opondo Were v Maths Trading Company Limited
    [2016] eKLR
  • Kennedy Omondi Omolo v Kenya School of Monetary Studies
    [2023] KEELRC 2500 [KLR]
  • Ol Pejeta Ranching Limited v David Wanjau Muhoro
    Civil Appeal 42 of 2015
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over wrongful, unfair and unlawful termination of employment and alleged constitutional violations in the employment relationship

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, "Momanyi v Spedag Interfreight Limited (Cause 438 of 2019) [2024] KEELRC 1121 (KLR)", Case Analysis (2024). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1121/eng@2024-05-16

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