Transmara Sugar Company Limited & another v Omwamba (Civil Appeal E017 of 2022) [2024] KEELRC 2249 (KLR)
The bottom line
#A Kenyan court confirmed a football coach's dismissal was unfair but cut his payout, ruling you cannot get both contract balance and maximum compensation.
What this practically means
#Executive summary
#Key legal issues
#Whether the termination of the respondent's employment was unfair and unlawful
The termination was unfair and unlawful for lack of both substantive and procedural fairness; the trial court's finding was correct.
The contract provided for one month's notice or termination without notice for gross misconduct. The appellants terminated with immediate effect by letter dated 1st August 2019, gave no reasons and held no disciplinary process, which was admitted by DW1. The law does not permit whimsical or capricious termination of employment, so the dismissal failed both substantive and procedural fairness tests.
Whether the award of 12 months' compensation in addition to salary for the remainder of the contract was lawful
The award of Kshs396,000/- as 12 months' compensation was set aside as double/over-compensation.
The court reasoned that an employee wrongfully terminated from a fixed-term contract loses only the earnings for the unexpired contract period; awarding both the balance of the contract salary and the maximum statutory compensation enriches the employee beyond their loss unless other violations like discrimination are specifically pleaded and proved. Authorities cited by the appellant on this point persuaded the court.
Whether the other awards (notice pay, pro-rata leave, salary arrears, bonuses, house allowance, remainder-of-contract salary) should be disturbed
The court found no lawful reasons to interfere with these awards as they were proved at trial.
The court critically examined the award and found it in accord with applicable law except for the 12 months' compensation. The contract provided for a monthly salary of Kshs33,000 plus match bonuses, and the trial court had exercised its discretion correctly, including on costs of the trial.
Legal principles established
#- A first appellate court must evaluate the evidence and arrive at its own conclusions while bearing in mind it did not hear the witnesses.
- Compensation for unfair termination in addition to payment for the remainder of a fixed-term contract amounts to double compensation/over-compensation.
- Termination without reasons, without a disciplinary process and with immediate effect is unfair and unlawful for lack of substantive and procedural fairness.
Court orders
#- 1.The appeal succeeds to the extent that the award of Kshs396,000/- in compensation be and is hereby set aside.
- 2.In substitution for the judgment of Kshs749,050/= a judgment entered in favour of the respondent in the sum of Kshs353,050/= plus interest from 21st July, 2022 till payment in full.
- 3.The other awards remain undisturbed and a fresh decree shall issue accordingly.
- 4.The amount deposited in court in the sum of Kshs374,525/= shall be released to the respondent's counsel in satisfaction of the decretal sum plus interest and costs for the trial, and the appellants shall make good any shortfall.
- 5.Each party shall meet own costs for this appeal.
- On appeal from
- Senior Principal Magistrate's Court, Kilgoris
- Not stated in judgment
- Jurisdiction invoked
- First appellate jurisdiction over an appeal from the Senior Principal Magistrate's Court in an employment claim (Employment and Labour Relations Court)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Transmara Sugar Company Limited & another v Omwamba (Civil Appeal E017 of 2022) [2024] KEELRC 2249 (KLR)", Case Analysis (2024). Civil Appeal No E017 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2249/eng@2024-09-19
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.