Kinyanjui v HF Insurance Agency Limited (Cause 263 of 2020) [2024] KEELRC 2112 (KLR)
The bottom line
#Kenya's Employment Court upheld an employer's right to fire a poorly performing executive who missed agreed targets despite a fair performance improvement process.
What this practically means
#Executive summary
#Key legal issues
#Justifiable cause for termination on grounds of poor performance
Respondent proved justified cause; performance targets were objective, figure-based, and Claimant consistently fell below target including after PIP
Sections 43 and 45(2)(a) and (b) of the Employment Act required the employer to prove valid reasons. The Claimant had agreed performance targets of Kshs 163,139,880/= in gross premiums; his actual achievement of Kshs 50,072,867/= at mid-year and Kshs 55,538,704/= after the four-month PIP translated to Below Target ratings. His complaint that targets were unrealistic was raised late and never communicated to supervisors beforehand.
Fair procedure under Section 41 of the Employment Act
Procedure was fair; Claimant received a show cause notice, responded, and was heard by a disciplinary panel
Section 41 requires notification of reasons, opportunity to make representations and accompaniment by a colleague or union representative. The Claimant was issued a show cause letter, responded to it, attended the disciplinary hearing of 9th March 2020 and ventilated his case, with responses captured in minutes. His assertion that the hearing was a sham was unsupported by particulars. An internal appeal was also heard and dismissed.
Legal principles established
#- An employer must prove a valid and fair reason related to conduct, capacity, compatibility or operational requirements to justify termination
- An employer must show the employee was notified of allegations and given an opportunity to be heard before termination
Court orders
#- 1.Dismissal of the Claim in its entirety
- 2.Each party to bear their own costs
- Jurisdiction invoked
- Employment and labour relations jurisdiction (Employment Act, Sections 41, 43 and 45)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kinyanjui v HF Insurance Agency Limited (Cause 263 of 2020) [2024] KEELRC 2112 (KLR)", Case Analysis (2024). Cause No 263 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2112/eng@2024-07-26
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.