Owino v Gems and Industrial Minerals Limited (Cause E017 of 2023) [2024] KEELRC 2521 (KLR)
The bottom line
#A Kenyan court awarded an employee nearly Kshs 1 million in unpaid dues, but cut his claim because he stopped showing up to work.
What this practically means
#Executive summary
#Key legal issues
#Unpaid salary claim
Claimant entitled to unpaid salary only up to September 2022 (Kshs 664,188); salary from October 2022 declined because he absconded
The court compared the parties' payment schedules and found a prima facie case for the salary claim up to September 2022. However, the respondent proved on a balance of probability that the claimant absconded from October 2022, evidenced by a 12-day break in August, sporadic attendance in September and cessation of attendance in October. The claimed reason was a toxic work environment after a new officer took over his roles.
House allowance
Claim declined; gross salary contract and provision of housing discharged any duty
Clause 5 of the contract provided a gross monthly salary of Kshs 150,000. The claimant admitted being allocated a house but left due to discomfort. Section 31 of the Employment Act obliges the employer to provide reasonable housing or pay house allowance; paying a gross salary covering allowances satisfied this duty. The house was a gratuitous benefit.
Service pay and annual leave
Service pay granted for one year only (Kshs 75,000); leave granted pro rata (Kshs 123,750)
The claimant served 21 months, not two complete years, so service pay was limited to 15 days' pay for one year. Leave was computed at 1.75 days per month under section 28 of the Employment Act, totaling 36.75 days less the 12 days taken in August 2022, leaving 24.75 days payable.
Car hire claim
Partially allowed; Kshs 135,000 awarded for three months only
There was no enforceable agreement for hire of the claimant's own car at Kshs 45,000 per month; the rate was unilaterally fixed and the ownership undisclosed. However, the respondent consented to and paid car hire for February–May 2022, so only June, July and September 2022 were valid claims.
Counter-claim for failed production projections and borehole
Counter-claim dismissed entirely
The court found the claimant was not solely to blame for failing to meet the 5000 metric ton target; the respondent failed to fund the project adequately and to implement geological assessment reports. There was no evidence of an agreement to refund capital. The borehole allegations (denied community access, marriage to landowner's daughter, short depth) lacked proof, and the drilling contract was with Simba Drilling Company, not the claimant.
Legal principles established
#- A gross or consolidated salary includes basic salary and house allowance, and an employer paying gross salary is not separately liable for house allowance
- Annual leave accrues at 1.75 days per month under section 28 of the Employment Act
- An employee who absconds work forfeits salary for the period of absence
Court orders
#- 1.Unpaid salary of Kshs 664,188.00 awarded to the claimant
- 2.Leave of Kshs 123,750.00 awarded to the claimant
- 3.Car hire of Kshs 135,000.00 awarded to the claimant
- 4.Service pay of Kshs 75,000.00 awarded to the claimant (total Kshs 997,938.00, less statutory deductions)
- 5.Costs of the suit plus interest at court rates from the date of filing suit awarded to the claimant
- 6.Certificate of service awarded to the claimant
- 7.Counter-claim dismissed in its entirety
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007; ELRC Procedure Rules)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Owino v Gems and Industrial Minerals Limited (Cause E017 of 2023) [2024] KEELRC 2521 (KLR)", Case Analysis (2024). Memorandum of Claim dated 4th July 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2521/eng@2024-10-18
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.