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ELRCPartially AllowedNot stated in the judgment· [2025] KEELRC 387 (KLR)

Mijengo Investments Limited v Kemunto (Employment and Labour Relations Appeal E040 of 2024) [2025] KEELRC 387 (KLR)

Employment and Labour Relations Court
14 February 2025
2,940 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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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

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Executive summary

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This is a first appeal from the judgment of Honourable Ruth Kefa Chebesio, Principal Magistrate, in a suit by a former employee challenging termination of her employment on grounds of redundancy. The Appellant, her former employer, advanced 15 grounds of appeal (condensed to 5) attacking the finding that the termination was unfair, unlawful and unprocedural, and sought to have the judgment set aside and the suit dismissed. It contended that it complied with Section 40 of the Employment Act by notifying the County Labour Office and issuing notices, and that the parties had mutually agreed to terminate the employment, evidenced by a letter and cheque dated 7th July 2022 following meetings in April, May and June 2022. The Respondent countered that the Labour Office was notified only one day before the redundancy took effect, that no minutes of the alleged meetings existed, and that the mutual-agreement claim was an unpleaded afterthought. As a first appellate court, guided by Selle & Another v Associated Motor Boat Co. Ltd., the court re-evaluated the evidence and found no proof of the one-month notice to the labour office or personal written notice required by Section 40(1), and no evidence of a mutual agreement. Applying Freight In Time Limited v Rosebell Wambui Munene, it held the trial magistrate did not err in entering judgment for the Respondent and dismissed the appeal. However, the court varied the reliefs: it awarded one month's notice pay (Kshs.8,000), 6 months' compensation (Kshs.48,000) and enhanced severance pay of 15 days per year for 6 years (Kshs.24,000), totalling Kshs.80,000 with interest at 14% per annum, and set aside the awards for underpayment, overtime and public holidays for lack of specifics. The Respondent was awarded costs of both the lower court and the appeal.

Key legal issues

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01

Compliance with the redundancy procedure under Section 40 of the Employment Act

Holding

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

Reasoning

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.

p. 5
02

Whether the employment was terminated by mutual agreement

Holding

No evidence of a mutual agreement was produced; the alleged meetings and consent were not proved

Reasoning

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.

p. 6
03

First appellate court's mandate on re-evaluation of evidence

Holding

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

Reasoning

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.

p. 4
04

Quantum of reliefs for unfair termination by redundancy

Holding

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

Reasoning

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.

p. 6

Legal principles established

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  • 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

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  1. 1.Appeal dismissed for lack of merit
  2. 2.One month salary in lieu of notice awarded at Kshs.8,000/=
  3. 3.Compensation for unlawful termination at 6 months' salary awarded at Kshs.48,000/=
  4. 4.Award of underpayment, overtime and public holidays set aside as there are no specifics
  5. 5.Severance pay enhanced to 15 days for the 6 years worked at Kshs.24,000/=; total awarded Kshs.80,000/=
  6. 6.Total award to attract interest at 14% per annum from date of judgment till full payment
  7. 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

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Practical implications

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Frequently asked questions

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Cite this brief

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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.