Njeru v New Kenya Co-operative Creameries Limited (Cause 10 of 2018) [2025] KEELRC 976 (KLR)
The bottom line
#A Kenyan court upheld an employee's dismissal over milk theft but awarded him leave pay because his employer couldn't produce leave records.
What this practically means
#Executive summary
#Key legal issues
#Procedural fairness of the termination
The Respondent complied with sections 35(1) and 41 of the Employment Act through show cause, suspension, and a disciplinary hearing attended by the Claimant with shop stewards
The Claimant received a show cause dated 20 December 2016, was suspended on 9 January 2017 with an opportunity to explain, and attended a disciplinary hearing on 30 March 2017 where he made representations with shop stewards present. The Court found substantive compliance with the procedural fairness requirements of sections 35(1) and 41 of the Employment Act.
Substantive fairness of the termination
The Respondent proved valid and fair reasons - the Claimant's involvement in defrauding the employer of 2 crates of mala milk
Sections 43 and 45 place the burden of proving reasons for termination on the employer. The Respondent produced an investigation report showing fewer crates of mala were delivered than invoiced, and the Claimant owned up during the investigations interview. On this evidence the Court found the reasons valid and fair.
Whether unfair termination was properly before the Court
The Claimant did not plead unfair termination in the Memorandum of Claim, but the Court examined it since the Respondent's case was termination after a disciplinary process
The gravamen of the claim was breach of contract (suspension without salary, accrued leave, overtime, failure to furnish the Disciplinary Committee decision). Unfair termination was raised only in submissions. The Court nonetheless examined it because the Respondent asserted termination followed a disciplinary process.
Claim for half salaries during suspension
Not proved - the CBA clause relied on was not produced and no pay slips were tendered
The suspension letter relied on clause 24(ii) of a Collective Bargaining Agreement, but a copy of the Agreement was not placed before the Court. The Claimant also did not produce pay slips for the material period to establish his earnings. The claim therefore failed on the burden of proof.
Commuted leave pay
Awarded the equivalent of one and a half basic salary as commuted leave pay (Kshs 68,623/-, basic salary Kshs 45,749/-)
Under section 28(4) of the Employment Act only leave for the last 18 months before separation can be considered. The Respondent did not produce the Claimant's leave records despite them being in the list of documents, so the Court awarded commuted leave at one and a half basic salary.
Overtime claim
Not proved - no details or evidential basis of overtime worked were given
The Claimant sought Kshs 480,705/- as overtime pay but gave no details of the overtime worked and no evidential or legal basis was advanced. The head of claim therefore failed.
Legal principles established
#- Sections 43 and 45 of the Employment Act place the burden on the employer to prove the validity and fairness of the reasons for termination
- Leave carried forward is limited to 18 months before separation under section 28(4) of the Employment Act
Court orders
#- 1.Commuted leave awarded at Kshs 68,623/-
- 2.All the other claims dismissed
- 3.Each party to bear own costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act); judgment does not cite a specific constitutional provision
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Njeru v New Kenya Co-operative Creameries Limited (Cause 10 of 2018) [2025] KEELRC 976 (KLR)", Case Analysis (2025). Cause heard on 12 February 2025 (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/976/eng@2025-03-27
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.