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ELRCDismissedNot stated in judgment· [2024] KEELRC 1138 (KLR)

Kariuki v Nakuru Water & Sanitation Co Ltd (Employment and Labour Relations Cause E021 of 2023) [2024] KEELRC 1138 (KLR)

Employment and Labour Relations Court
2 May 2024
HWHellen Wasilwa
4,571 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~18 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court upheld the dismissal of an administration officer who approved fuel for grounded vehicles, ruling the employer followed fair procedure.

What this practically means

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Executive summary

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The claimant, employed by the Respondent from 2004 as an administration officer, was summarily dismissed on 26th April 2021 following an internal audit into excessive fuel consumption between September and November 2020, which quantified a loss of Kshs. 3,219,256. He was accused of approving fraudulent fuel requests in the ERP fleet management system. He sued for declarations and reliefs including notice pay, pro-rata leave, terminal dues to retirement and compensation under section 49(1)(c) of the Employment Act, contending he was condemned unheard on the basis of a flawed, unsigned audit report, that the audit was targeted and discriminatory (a driver implicated in the fuel draw, Paul Gitonga, was retired with full dues while he was dismissed), and that the loss was not proved as no vouchers, invoices or finance department input were produced. The Respondent maintained the dismissal was substantively and procedurally justified: show cause was issued, a disciplinary hearing was conducted with a representative of his choice, and an appeal was dismissed. Relying on the standard that an employer need only genuinely believe the reasons for termination existed, the court held there were valid reasons for dismissal - the claimant approved fuel for grounded vehicles and out-of-use machines while responsible for checking mileage - and that due process was followed. The claim was dismissed in its entirety on 2nd May 2024. The judgment does not record an express costs order or the suit's case number.

Key legal issues

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01

Whether there were valid and fair reasons for the claimant's summary dismissal

Holding

The court found valid reasons existed - the claimant approved fuel for vehicles not in use and failed to monitor consumption

Reasoning

The court found the claimant was the officer approving fuel use and checking mileage, so he knew or ought to have known which vehicles were in use. Vehicles in the garage and out-of-use machines were approved for fuel. Either he failed to check or fraudulently approved fuel for vehicles not in use, making him culpable and justifying dismissal.

p. 8
02

Whether the termination procedure was fair and lawful

Holding

Due process was followed - show cause letter, suspension, response considered, disciplinary hearing with representation, dismissal and appeal

Reasoning

The claimant was issued a show cause letter dated 27th January 2021, responded, was invited to a disciplinary hearing on 19th April 2021 with all evidence supplied, was accompanied by a representative of his choice, and was granted an appeal which the Board considered and dismissed. Minutes were produced in court. The court held the respondent followed due process.

p. 9

Legal principles established

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  • An employer need only establish valid reasons for termination on a genuine belief / reasonable basis standard, not conclusive proof
  • Compliance with a disciplinary procedure (show cause, hearing, appeal) constitutes due process under the Employment Act

Court orders

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  1. 1.Dismissal of the claimant's case in its entirety
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (unfair termination claim under sections 43, 44, 45 and 49)

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, "Kariuki v Nakuru Water & Sanitation Co Ltd (Employment and Labour Relations Cause E021 of 2023) [2024] KEELRC 1138 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1138/eng@2024-05-02

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