Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
Caselaw
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedEldoret CMEL No. 154A of 2021 (Appeal, Memorandum of Appeal dated 14th September 2023)· [2025] KEELRC 848 (KLR)

Ken Knit (Kenya) Limited v Sarara (Employment and Labour Relations Appeal E025 of 2023) [2025] KEELRC 848 (KLR)

Employment and Labour Relations Court
14 March 2025
MOMAUREEN ONYANGO
2,462 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~10 min to read original · ~4 min brief

The bottom line

#

Kenya's Employment Court confirmed a Kshs 497,100 overtime award but threw out a severance award because records showed the worker had already been paid.

What this practically means

#

Executive summary

#
This is a first appeal from the trial court in Eldoret CMEL No. 154A of 2021, in which the Respondent had claimed terminal dues for alleged unfair termination on account of redundancy. The trial court, by judgment delivered on 16th August 2023, found the redundancy lawful but awarded the Respondent severance pay of Kshs. 144,198 and overtime dues of Kshs. 479,100. The Appellant appealed, contending that the Respondent had not proved his case, that severance pay and overtime had been paid, and that the burden of proof had been shifted wrongly. The appeal was disposed of by written submissions. The court condensed the six grounds into one issue: whether the Respondent was entitled to the awards granted by the trial court. On severance pay, the court calculated the entitlement at 15 days' pay per completed year over 18 years (Kshs. 144,198), but noting the Respondent had acknowledged receipt of Kshs. 117,000 and taking judicial notice of income tax deductions from terminal dues, presumed the difference comprised lawful statutory deductions, and set aside the severance award as erroneous. On overtime, the Respondent's motor vehicle logs showed he routinely worked beyond normal hours including weekends; the Appellant produced no rebuttal evidence and its HR manager admitted no proof of overtime payment was availed. The overtime award of Kshs. 497,100 was confirmed, payable with interest at court rates from the date of the trial judgment. Each party was to bear its own costs of appeal, with the lower court costs award sustained. The appeal thus partially succeeded.

Key legal issues

#
01

Whether the Respondent was entitled to severance pay despite acknowledging receipt of terminal dues

Holding

The award of severance pay by the trial court was set aside; the court presumed that the difference between the tabulated entitlement and the amount received constituted lawful statutory deductions.

Reasoning

The Respondent acknowledged receipt of severance pay at Kshs. 117,000. The court calculated the entitlement at 15 days pay per year of service over 18 years, totalling Kshs. 144,198. Although the Appellant did not explain the tabulation of terminal dues, the court took judicial notice that income tax was deductible from terminal dues and presumed the difference comprised lawful statutory deductions. It therefore found that severance pay had been paid and the trial court's award was in error.

p. 5
02

Whether the Respondent proved entitlement to overtime payment

Holding

The award of overtime payment of Kshs. 497,100 was confirmed.

Reasoning

The Respondent produced motor vehicle logs showing he routinely left the premises around 10 am and returned after 10 pm, including on weekends. The court observed that his claim at 27 hours per week was an understatement of actual hours worked. The Appellant adduced no rebuttal evidence; its muster roll did not indicate hours worked and was not filed, and RW1 admitted the Appellant had not availed proof of payment of overtime.

p. 6

Legal principles established

#
  • An employer declaring redundancy must pay severance pay at the rate of not less than fifteen days pay for each completed year of service under section 40(1)(g).
  • A first appellate court must re-evaluate the evidence and reach its own conclusions while making allowance for not having seen or heard the witnesses.

Court orders

#
  1. 1.The award of severance pay in the sum of Kshs. 144,198 is set aside.
  2. 2.The award of overtime payment of Kshs. 497,100 is confirmed.
  3. 3.The total award to the Respondent is payable with interest at Court rates from the date of judgment in the trial court.
  4. 4.Each party to bear its cost of appeal.
  5. 5.The award of costs in the lower court is sustained.

Authorities

#

Legislation

  • Employment ActSection 40(1)(g)

Cases cited (2)

  • Moses Odhiambo Muruka & another v Stephen Wambembe Kwatenge & another
    [2018] eKLR
  • Stephen Kathenya v Keroche Breweries Limited
    [2019] eKLR
On appeal from
Trial Court (Eldoret CMEL No. 154A of 2021)
CMEL No. 154A of 2021
Jurisdiction invoked
First appellate jurisdiction over the Employment and Labour Relations Court subordinate court (Eldoret CMEL No. 154A of 2021)

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Ken Knit (Kenya) Limited v Sarara (Employment and Labour Relations Appeal E025 of 2023) [2025] KEELRC 848 (KLR)", Case Analysis (2025). Eldoret CMEL No. 154A of 2021 (Appeal, Memorandum of Appeal dated 14th September 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/848/eng@2025-03-14

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