Mijengo Investments Limited v Kemunto (Employment and Labour Relations Appeal E040 of 2024) [2025] KEELRC 387 (KLR)
The bottom line
#A Kenyan court ruled that an employer's redundancy was unfair because it skipped the mandatory one-month written notice to the labour office and the employee.
What this practically means
#Executive summary
#Key legal issues
#Compliance with the redundancy procedure under Section 40 of the Employment Act
The Appellant did not comply with Section 40; there was no evidence of notice to the County Labour Office one month prior or personal written notice, and the termination was immediate
The court re-evaluated the evidence as a first appellate court and found no proof that the Appellant notified the County Labour Office or the Respondent of the intended redundancy at least one month before its taking effect. The letter of 7th July 2022 merely informed the Respondent of immediate termination on grounds of the COVID-19 pandemic. Following Freight In Time Limited v Rosebell Wambui Munene, non-compliance with Section 40(1)(b), (c) and (g) and Section 45 renders the termination unfair and unprocedural.
Whether the employment was terminated by mutual agreement
No evidence of a mutual agreement was produced; the alleged meetings and consent were not proved
The Appellant alleged that meetings held in April, May and June 2022 led to a negotiated separation evidenced by a letter and cheque dated 7th July 2022. However, there were no minutes or other documentary proof of such meetings, and the alleged mutual agreement was not pleaded or proved at trial. Applying Sections 107 and 108 of the Evidence Act, the party alleging the agreement bore the burden of proving it and failed to discharge that burden.
First appellate court's mandate on re-evaluation of evidence
A first appellate court must re-evaluate the evidence and arrive at its own independent conclusions while making allowance for not having seen or heard the witnesses
Relying on the classic statement in Selle & Another v Associated Motor Boat Co. Ltd. & Others (1968) EA 123, the court restated that an appeal by way of retrial requires the appellate court to reconsider and evaluate the evidence itself and draw its own conclusions, though it is not bound to follow the trial judge's findings of fact where those findings failed to account for particular circumstances or probabilities or are inconsistent with the evidence generally.
Quantum of reliefs for unfair termination by redundancy
The court substituted its own awards: one month's notice pay, 6 months' compensation, enhanced severance at 15 days per year for 6 years, and set aside underpayment, overtime and public holiday awards for lack of specifics
Although the appeal was dismissed, the court found the trial court's awards on underpayment, overtime and public holidays unsupported by specifics and set them aside. It substituted one month's salary in lieu of notice (Kshs.8,000), compensation equivalent to 6 months' salary (Kshs.48,000), and enhanced severance pay to the statutory minimum of 15 days' pay per completed year of service for the 6 years worked (Kshs.24,000), totaling Kshs.80,000 with interest at 14% per annum.
Legal principles established
#- An employer terminating on account of redundancy must strictly comply with all conditions in Section 40(1) of the Employment Act, including at least one month's notice to the labour officer or the employee personally in writing, and failure to comply renders the termination unfair
- A party alleging a mutual agreement to terminate employment bears the burden of proving it
Court orders
#- 1.Appeal dismissed for lack of merit
- 2.One month salary in lieu of notice awarded at Kshs.8,000/=
- 3.Compensation for unlawful termination at 6 months' salary awarded at Kshs.48,000/=
- 4.Award of underpayment, overtime and public holidays set aside as there are no specifics
- 5.Severance pay enhanced to 15 days for the 6 years worked at Kshs.24,000/=; total awarded Kshs.80,000/=
- 6.Total award to attract interest at 14% per annum from date of judgment till full payment
- 7.Respondent awarded costs of both the lower court proceedings and the appeal based on this award
- On appeal from
- Principal Magistrate's Court
- Not stated in the judgment
- Jurisdiction invoked
- First appellate jurisdiction over the trial magistrate's judgment (statutory appeal; no specific provision cited in the judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Mijengo Investments Limited v Kemunto (Employment and Labour Relations Appeal E040 of 2024) [2025] KEELRC 387 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/387/eng@2025-02-14
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.