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ELRCDismissedNot stated in the judgment extract· [2025] KEELRC 563 (KLR)

Ogechi v Almasi Beverages Limited (Cause 1441 of 2018) [2025] KEELRC 563 (KLR)

Employment and Labour Relations Court
27 February 2025
5,168 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~21 min to read original · ~4 min brief

The bottom line

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A Kenyan court upheld Coca-Cola's dismissal of a finance manager for poor performance because the employer documented problems, offered improvement plans, and followed procedure.

What this practically means

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Executive summary

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The Claimant, formerly a Finance Manager at Kisii Bottlers Limited and deployed in March 2015 as Group Financial Accountant at the Respondent's Nairobi headquarters, sued over her termination on 20th August 2018 on grounds of consistent poor performance. She sought a declaration that the termination was unlawful, general and exemplary damages, special damages equivalent to ten years' salary at Kshs 450,985 per month, reinstatement, and costs. She attacked the Performance Improvement Programme as malicious, improperly managed by the Group Financial Controller outside her reporting line, and as putting the cart before the horse. The Respondent maintained the Claimant's performance was appraised annually (scoring 53%, 61% and 60.5% between 2015 and 2017), that she was placed on a three-month PIP and later a further PIP, that she never appealed the appraisal results despite an available mechanism, and that she was given a show cause letter and a disciplinary hearing. The court framed two issues: whether the termination was unfair, and whether the Claimant was entitled to the reliefs sought. Applying Sections 41, 43(2) and 45(2) of the Employment Act, the court held the employer discharged its burden: standards were set, the employee was monitored over three years and twice placed on PIP, and procedure was followed. The termination was found both procedurally and substantively fair and lawful, and the entire claim was dismissed with no orders on costs given the Claimant's unemployment. Judgment was delivered on 27th February 2025 by C. N. Baari, J.

Key legal issues

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01

Whether the termination of the Claimant for poor performance was procedurally fair

Holding

The termination was procedurally fair - the Claimant was issued a show cause letter, responded to it, and appeared before a disciplinary committee

Reasoning

The court found the Claimant was placed on a PIP founded on an existing appraisal, was twice placed on PIP, was appraised for three consecutive years with no improvement, and never appealed the appraisal results despite an appeal mechanism existing in the HR Manual. She was issued a show cause letter, responded, and attended a disciplinary hearing where she was advised she could bring a representative but chose not to. The court therefore could not fault the procedure.

p. 10
02

Whether the termination was substantively fair and justified

Holding

The termination was substantively fair - continued poor performance over three years, measured through appraisals and two PIPs, was reasonable ground to dismiss

Reasoning

Applying the reasonableness test from British Leyland UK Ltd v Swift and the principles in Jane Samba Mukala v Ol Tukai Lodge, the court held the Respondent discharged its burden under Sections 43 and 45(2) of the Employment Act. The employer had put in place a performance policy, set expectations through appraisals, allowed three years for improvement, and gave the Claimant every opportunity to improve, which she did not take.

p. 10
03

Whether the PIP was improperly initiated without the involvement of the Claimant's immediate supervisor

Holding

The court found no basis to conclude the PIP was unfounded, since there was already a previous appraisal on which a PIP could be founded

Reasoning

The Claimant argued the PIP was flawed because her line manager (the CFO) was not involved and that the PIP preceded the appraisal. The court noted the Claimant admitted she was evaluated in July and December 2015, so a prior appraisal existed on which the PIP could rest. The PIP not yielding improvement led to a further PIP in April 2016. The Claimant also never used the appeal mechanism for appraisal results.

p. 9
04

Whether the Claimant was entitled to the reliefs sought

Holding

Having found the termination fair and lawful, the Claimant was not entitled to any of the reliefs sought

Reasoning

All the reliefs - declaration, damages, special damages for ten years' salary, reinstatement and costs - depended on a finding of unfair termination. Since the court found the termination both procedurally and substantively fair, the claim was dismissed in its entirety.

p. 10

Legal principles established

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  • Poor performance is a valid ground for termination but the employer must first put in place corrective mechanisms, set clear and achievable standards, and give the employee a reasonable opportunity to improve
  • The burden of proving that poor performance was a fair reason for dismissal rests on the employer
  • The reasonableness of a dismissal for poor performance is judged within a band of reasonableness

Court orders

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  1. 1.The Claimant's Statement of claim dated 16th October, 2018 is dismissed
  2. 2.No orders on costs, the Claimant being currently unemployed
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007)

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, "Ogechi v Almasi Beverages Limited (Cause 1441 of 2018) [2025] KEELRC 563 (KLR)", Case Analysis (2025). Not stated in the judgment extract. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/563/eng@2025-02-27

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