Wanyama v United Nations Sacco Society (UN SACCO) Limited (Cause E581 of 2022) [2025] KEELRC 899 (KLR)
The bottom line
#A Kenyan court ruled that even valid business reasons for ending a job are not enough — employers must formally warn and hear the employee first, or pay compensation.
What this practically means
#Executive summary
#Key legal issues
#Whether the Claimant was validly appointed Head of Credit Management
No; the HR Consultant lacked mandate to appoint and the Claimant never held the position previously
The email of 5 March 2021 came from the Human Resource Consultant whose terms of engagement did not include making appointments, a role reserved to the Board. Re-appointment signifies appointment to a position previously held, and the Claimant had not held the Head of Credit Management position. The Consultant was not called as a witness. The Court answered the question in the negative.
Whether the re-advertisement of the position was justified
Yes; it was within the employer's managerial prerogative
The re-advertisement corrected an omission of the Certified Credit Professional qualification in the initial advert. The Court held it could not micromanage the employer, and re-advertising fell within the Respondent's managerial prerogative in pursuit of its restructuring objectives. The Claimant nevertheless participated in the new interview process.
Whether the termination was procedurally fair
No; the procedure failed the section 45(2)(c) test
Although the termination was for operational reasons under section 45(2)(b)(ii), the Respondent never formally and unambiguously told the Claimant it intended to terminate her existing contract if she declined the offered Finance Officer position, nor invited her representations. The Court therefore found the termination procedurally unfair despite valid reasons.
Whether there were valid and fair reasons for termination
Yes; the Claimant declined the offered Finance Officer position
The Claimant's substantive position was Finance Officer; she was offered the same position at higher remuneration under the new structure, declined, and did not apply for lower positions. Since the contract was for personal services, the Respondent could not coerce her to serve. The Court found valid and fair reasons proved for the restructuring-based separation.
What remedies were due
4 months' gross salary compensation, pay in lieu of notice, accrued leave and leave allowance; certificate of service
Weighing 12 years of service against the Respondent's failure to follow fair procedure, the Court awarded the equivalent of 4 months' gross salary as compensation under section 49, allowed pay in lieu of notice admitted by the Respondent, and the leave allowances offered. A certificate of service is a statutory entitlement. Post-termination claims (salary, allowances, pension) were rejected.
Legal principles established
#- An employer relying on operational reasons/restructuring must show valid and fair reasons and a fair procedure under section 45 of the Employment Act, 2007
- Fair procedure in restructuring-based termination requires formal notification of intended termination on operational grounds and an opportunity to make representations
- The Court will not micromanage an employer's managerial prerogative to re-advertise positions in a restructuring
- A contract for personal services cannot be specifically enforced against an employee who declines an offer
Court orders
#- 1.Declaration that the termination of the Claimant's employment was procedurally unfair
- 2.Award of compensation equivalent to 4 months' gross salary of Kshs 1,687,084/-
- 3.Award of accrued leave of Kshs 222,117/-
- 4.Award of leave allowance of Kshs 27,147/-
- 5.Award of pay in lieu of notice of Kshs 346,344/-
- 6.Total award of Kshs 2,282,692/79 with interest at court rates from date of judgment
- 7.Respondent to issue the Claimant with a certificate of service
- 8.Claimant to have costs of the Cause
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007; Employment and Labour Relations Court Act)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Wanyama v United Nations Sacco Society (UN SACCO) Limited (Cause E581 of 2022) [2025] KEELRC 899 (KLR)", Case Analysis (2025). Not stated in judgment (Cause filed 19 August 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/899/eng@2025-03-20
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.