Otara v Amiran Kenya Limited (Cause 406 of 2019) [2025] KEELRC 445 (KLR)
The bottom line
#Kenya's Employment Court awarded a sales manager nearly Kshs 1.9 million after finding her dismissal unfair because her employer proved neither a valid reason nor a fair hearing.
What this practically means
#Executive summary
#Key legal issues
#Whether the Respondent established a valid reason for the dismissal
The Respondent failed to establish a valid reason under Section 43 of the Employment Act
The Claimant denied authorising release of goods using an old LPO, stating that LPOs were outside her docket. The Respondent's own witnesses confirmed that LPO approval fell within the Accounts Department. The old LPO was not produced in court, and the employees alleged to have been influenced, as well as the client, were not called as witnesses. The Court therefore found no evidence linking the Claimant to the allegations.
Whether the procedure adopted met the requirements of Section 41 of the Employment Act
The procedure was procedurally unfair; the meeting of 23rd April 2019 did not constitute a lawful disciplinary hearing
The Claimant was not issued with a show cause letter or invitation to a disciplinary hearing. The minutes indicated the disciplinary hearing took place in her absence, and she was only called in afterwards because she had been adversely mentioned. She was not allowed to meet her accusers, and the Respondent's officers acted as investigators, contrary to the mandatory procedure in Section 41.
What remedies flow from the unfair termination
Twelve months' salary in compensation and one month's salary in lieu of notice awarded; gratuity and damages disallowed
In fixing compensation, the Court considered the Claimant's long service of about 16 years, her non-contribution to the dismissal, and the Respondent's blatant violation of due process. Notice pay followed from the termination without notice. The gratuity and general damages claims lacked evidentiary support and were disallowed.
Legal principles established
#- The employer bears the burden of proving valid reasons for termination; failure renders the termination unfair
- The Court applies the reasonable responses test and must not substitute its own view for that of the employer
- A valid termination requires both substantive justification and procedural fairness
Court orders
#- 1.Award of 12 months' salary in compensation of Kshs. 1,738,800
- 2.Award of 1 month's salary in lieu of notice of Kshs. 144,900
- 3.Total judgment of Kshs. 1,883,700 subject to statutory deductions
- 4.Interest at court rates from the date of judgment until payment in full
- 5.Costs of the case awarded to the Claimant
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act over a claim of unlawful and unfair termination of employment
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Otara v Amiran Kenya Limited (Cause 406 of 2019) [2025] KEELRC 445 (KLR)", Case Analysis (2025). Cause No 406 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/445/eng@2025-02-20
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.