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ELRCDismissedEmployment and Labour Relations Claim dated 10th December 2021 (Statement of Claim)· [2025] KEELRC 693 (KLR)

Kirimi (Sued as the legal representative of the Estate of Kirimi M’Muna) v Nairobi Hospital (Cause E1048 of 2021) [2025] KEELRC 693 (KLR)

Employment and Labour Relations Court
28 February 2025
6,914 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~28 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court confirmed that a Nairobi Hospital supervisor could be lawfully dismissed after fraud occurred in her section due to poor supervision.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent (The Nairobi Hospital) from 5th March 1987 and promoted to Supervisor - Front Office/Admissions, Discharge and Transfer (ADT), was summarily dismissed on 15th March 2021 over fraudulent insurance transactions worth approximately Kshs. 3,859,317 detected in her section. She sued claiming a certificate of service, service pay, unpaid provident fund contributions, reinstatement, compensation for the unexpired term of contract, and 12 months' compensation for unlawful termination. The Respondent maintained that the dismissal was substantively justified and procedurally fair, following complaints from patients and CIC Insurance, an internal investigation, a show cause letter, a disciplinary hearing, and an appeal which upheld the dismissal. The court framed two issues: whether the termination was unfair, and whether the Claimant was entitled to relief. Applying sections 41, 43, 44(4), 45 and 47 of the Employment Act and the standard of proof in Kenya Revenue Authority v Reuwel Waithaka Gitahi, the court held that the Claimant, as supervisor, bore responsibility for failures of supervision that allowed fraud in her docket; negligence in performing duties constituted gross misconduct, and the Respondent genuinely believed reasons existed for dismissal. Procedurally, the show cause letter, hearing and appeal satisfied section 41; a disciplinary process need not be as strict as a court of law. The claim was dismissed with costs, with all heads of relief refused.

Key legal issues

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01

Whether the Respondent had valid and fair reasons to summarily dismiss the Claimant

Holding

Yes. Fraud occurred in the Claimant's docket and she failed to properly supervise her staff and detect anomalies, constituting gross misconduct under section 44(4) of the Employment Act.

Reasoning

The court applied sections 43 and 44(4) of the Employment Act and the standard in KRA v Reuwel Waithaka Gitahi that the employer need only prove reasons it genuinely believed to exist on a balance of probability. The Claimant, as Supervisor of the ADT section, was responsible for ensuring proper documentation and escalating anomalies. Fraudulent insurance transactions went unchecked in her docket; supervision could not detect fraud was held untenable. The employer's loss of trust in a supervisor whose negligence enabled fraud justified summary dismissal.

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02

Whether the disciplinary process was procedurally fair

Holding

Yes. The Claimant was issued a show cause letter, responded, attended a disciplinary hearing, was informed of her right to appeal and exercised it, and the appeal upheld the dismissal.

Reasoning

The court held that section 41 requirements were met: notification of charges, a hearing before a constituted panel, and a right of appeal which was exercised. Objections that patients were not called as witnesses and that she lacked the disciplinary manual were rejected - calling discharged patients was impractical and unnecessary, and the manual was available on the intranet. The disciplinary process, being administrative, need not be as strict as a court of law.

p. 12
03

Whether the Claimant was entitled to the reliefs sought

Holding

No. Having been fairly terminated, she was not entitled to compensation under section 49, service pay, reinstatement, or payment for the unexpired term of contract.

Reasoning

Because the dismissal was substantively and procedurally fair, damages under section 49 were unavailable. Service pay was excluded because her NSSF contributions were remitted. Reinstatement was impracticable given the breakdown of the relationship and lapse of the statutory three-year period. Compensation for the remainder of the contract was refused as the law does not provide for anticipatory income.

p. 13

Legal principles established

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  • An employer need only prove the reasons it genuinely believed to exist, on a balance of probability, not beyond reasonable doubt, before terminating employment
  • Failure to perform duties or performing them negligently amounts to gross misconduct under section 44(4) of the Employment Act
  • A supervisor who fails to supervise her staff properly, allowing fraud to occur in her docket, bears the blame and may be lawfully summarily dismissed
  • A disciplinary process is an administrative process and need not be as strict as a court of law, provided the employee is given a hearing
  • The law does not provide for anticipatory income; payment for salaries for the unexpired period of a contract is not due

Court orders

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  1. 1.The Claimant's claim is dismissed
  2. 2.Costs of the suit awarded to the Respondent
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 and the Employment and Labour Relations Court Act

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, "Kirimi (Sued as the legal representative of the Estate of Kirimi M’Muna) v Nairobi Hospital (Cause E1048 of 2021) [2025] KEELRC 693 (KLR)", Case Analysis (2025). Employment and Labour Relations Claim dated 10th December 2021 (Statement of Claim). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/693/eng@2025-02-28

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