Hamadi v Abbas Traders Limited (Appeal E126 of 2024) [2025] KEELRC 392 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Whether an employer-employee relationship existed between the appellant and the respondent
No such relationship was established; the appellant was employed by the gang leader who recruited, controlled and paid him under the Memorandum of Agreement.
The respondent produced a Memorandum of Agreement with gang leaders to provide contract workers; the appellant was listed among persons sourced under the agreement. The gang leader admitted engaging the appellant on piece-rate work, and this admission was not challenged. Outsourcing of labour is lawful under Kenyan practice, and where the third party employs and controls the worker, no direct employment relationship with the principal arises.
The standard of interference by a first appellate court
The court, being a first appeal, must re-evaluate the evidence but is reluctant to disturb findings that turn on witness credibility.
The court applied the settled principle that on a first appeal the court re-evaluates the material on record while bearing in mind that it had no opportunity to see or hear the witnesses, and thus will not lightly upset the trial court's assessment of credibility. Finding no compelling ground, the court deferred to the trial court's analysis.
Whether the job identity card and payment of medical bills proved employment with the respondent
They did not; the job card was issued only for access during the COVID-19 period and medical payment did not evidence an employment relationship.
The respondent's witness explained that the job identity card was issued to enable access to the office during the COVID-19 period and was never intended as evidence of employment. The respondent also settled the medical bill owing to its relationship with gang leaders. The court accepted these explanations, so the documents relied on did not discharge the appellant's burden of proving the employment relationship.
Legal principles established
#- On a first appeal the court re-evaluates the material on record but is reluctant to upset the trial court's findings on credibility of witnesses absent compelling grounds.
- Labour outsourcing through gang leaders is an accepted business practice in Kenya and is not illegal provided fair labour practices are followed.
Court orders
#- 1.The appeal is dismissed
- 2.Costs to the respondent
- On appeal from
- Magistrates' Court (ELRC), Mombasa
- CMELRC E257 of 2022
- Jurisdiction invoked
- First appeal from the magistrates' court under the Employment Act / ELRC Act (not expressly quoted in the judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Hamadi v Abbas Traders Limited (Appeal E126 of 2024) [2025] KEELRC 392 (KLR)", Case Analysis (2025). Mombasa ELRC Appeal arising from Mombasa CMELRC E257 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/392/eng@2025-02-07
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.