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ELRCPartially AllowedNot stated in the judgment· [2025] KEELRC 181 (KLR)

Ndung’u v Safaricom Kenya PLC Limited (Cause E6492 of 2020) [2025] KEELRC 181 (KLR)

Employment and Labour Relations Court of Kenya
31 January 2025
4,610 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~18 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that medically retiring an employee was justified, but the employer must pay compensation because it denied her a fair hearing.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent Telco as a customer care representative from 9th August 2010, developed acoustic shock syndrome and rhinosinusitis from prolonged headset use at the call centre. After medical certification that she was unfit for call centre work, she was temporarily redeployed to the marketing development department for 90 days from 6th November 2017, during which her health did not improve and she did not secure a permanent alternative position. By letter dated 2nd February 2018, the Respondent retired her on medical ground; her appeal was declined on 7th March 2018. She claimed unfair and unlawful termination, unfair labour practices, discrimination, and settlement of her outstanding NCBA loan, total Kshs. 4,513,317. The Court held that the medical ground for retirement was valid and well documented, but the procedure was flawed: the Respondent failed to meet the minimum standards of a fair hearing under Sections 41 and 45 of the Employment Act - no agenda communicated, no right to be accompanied explained, no minutes of any hearing, and the appeal dismissed without addressing her grounds. No constitutional violation of fair labour practices or freedom from discrimination was established, the Claimant producing no comparators; the Court applied the Supreme Court's decision in Gichuru v. Package Insurance Brokers on the comparator requirement. The discharge voucher was not an unequivocal discharge, as the Claimant signed with reservations. The loan claim failed under the medical retirement policy. The Court declared the retirement valid in substance but flawed in procedure, awarded 5 ½ months' gross salary (Kshs. 492,272) as compensation for unfair termination, made no order on costs, and allowed interest at court rate from the date of Judgment.

Key legal issues

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01

Was retirement on medical ground based on valid reason?

Holding

Yes - the medical incapacity to work at the call centre was well documented and undisputed

Reasoning

The Court found common evidence that the Claimant sustained acoustic shock syndrome and rhinosinusitis, confirmed by multiple physicians, and was documented among nine call centre employees declared medically unfit for headset duties. The Respondent followed its redeployment policy (90-day temporary redeployment) and then its medical retirement policy, both grounded on medical reports. There was no material to contradict the validity of the ground for medical retirement.

p. 6
02

Was the retirement procedurally fair?

Holding

No - the process failed the minimum statutory standards of a fair hearing under Sections 41 and 45 of the Employment Act

Reasoning

Although the Respondent complied with its internal redeployment and medical retirement policies, there was no record of the Claimant being invited to a meeting with a communicated agenda, advised of her right to be accompanied, or of minutes recording any hearing. The retirement letter referred to consent and meetings but no consent or hearing record was exhibited, and the appeal was dismissed by a letter that did not address any specific ground or disclose any hearing on appeal.

p. 7
03

Were the Claimant's constitutional rights to fair labour practices and non-discrimination violated?

Holding

No - though the termination was procedurally flawed, no constitutional violation was shown

Reasoning

The Claimant produced no comparators showing colleagues similarly injured received more favourable treatment or were granted redeployment she was denied. The redeployment and medical retirement policies were not shown to be contrary to the law or the Constitution. The Court held the procedural flaw was adequately remedied under the Employment Act without engaging constitutional jurisdiction.

p. 7
04

Was the discharge voucher a bar to the Claim?

Holding

No - it was not an unequivocal discharge, as the Claimant signed with handwritten reservations without prejudice

Reasoning

The Court distinguished Coastal Bottlers v Kimathi Mithika: while post-termination discharge vouchers can be binding, they must be voluntary and unequivocal. Here the Claimant wrote her reservations on the document before execution, indicated she signed without prejudice to seeking legal intervention, and did not sign immediately but returned later with reservations. The Respondent's witness conceded these facts.

p. 9
05

Is the Respondent liable for the Claimant's NCBA loan?

Holding

No - the medical retirement policy expressly excludes Respondent liability for outstanding loans

Reasoning

The policy provides that an employee on negotiated loan schemes must liaise directly with the loan provider on recovery of outstanding amounts, and that the employer will not be liable for outstanding loan amounts or penalties. The Respondent's sole obligation is to notify the loan provider of the medical retirement. The prayer for immediate settlement was therefore unsupported by the policy.

p. 9
06

What compensation is merited for unfair termination?

Holding

Equivalent of 5 ½ months' gross salary, Kshs. 492,272

Reasoning

The Claimant worked about 8 years; the circumstances of her retirement were not created by her and she did not contribute to her work injury or illness. She was otherwise healthy and able to work elsewhere. Weighing these factors against the valid substantive ground and the procedurally flawed execution, the Court awarded 5 ½ months' gross salary rather than the 12 months sought.

p. 9

Legal principles established

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  • Retirement on medical ground requires a valid medical ground plus a fair hearing under Sections 41 and 45 of the Employment Act, including notice of agenda, the right to be accompanied, and recorded minutes
  • A discharge voucher is only binding if voluntarily made and unequivocal; reservations noted by the employee defeat it
  • Discrimination requires evidence of comparators

Court orders

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  1. 1.It is declared that the Claimant was retired by the Respondent on valid ground, but through a flawed procedure
  2. 2.The Respondent shall pay to the Claimant, equivalent of 5 ½ months' salary in compensation for unfair termination at Kshs. 492,272
  3. 3.No order on the costs
  4. 4.Interest allowed at court rate, from the date of Judgment, till payment is made in full
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over unfair termination and fair labour practices under the Employment Act, 2007

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Ndung’u v Safaricom Kenya PLC Limited (Cause E6492 of 2020) [2025] KEELRC 181 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/181/eng@2025-01-31

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