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ELRCPartially AllowedCause heard on 12 February 2025 (number not stated in judgment)· [2025] KEELRC 976 (KLR)

Njeru v New Kenya Co-operative Creameries Limited (Cause 10 of 2018) [2025] KEELRC 976 (KLR)

Employment and Labour Relations Court
27 March 2025
1,025 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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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

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Executive summary

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The Claimant, a former employee of New Kenya Co-Operatives Creameries Ltd, sued for unfair breach of contract, alleging unpaid half salaries during suspension (9 January 2017 to December 2017), accrued leave for five years, and overtime. Although the Memorandum of Claim did not plead unfair termination, the Court examined that question because the Respondent maintained that the Claimant's employment was terminated by letter dated 10 August 2017 after a disciplinary process. On procedural fairness, the Court found substantive compliance with sections 35(1) and 41 of the Employment Act: the Claimant was issued a show cause, suspended with an opportunity to respond, and accorded a disciplinary hearing attended by shop stewards where he made representations. On substantive fairness, sections 43 and 45 place the burden on the employer; the Respondent produced an investigation report showing fewer crates of mala milk were delivered than invoiced, and the Claimant owned up during interviews. The Court held the Respondent proved valid and fair reasons for termination. On the breach of contract heads, the half-salary claim failed because the Collective Bargaining Agreement clause relied on was not produced and no pay slips were tendered. The overtime claim failed for want of evidence. On leave, the Court applied section 28(4), limiting consideration to the last 18 months before separation, and awarded the equivalent of one and a half basic salary (Kshs 68,623/-) as commuted leave pay. All other claims were dismissed. The Claimant having succeeded partly, each party was ordered to bear its own costs. Judgment was delivered virtually in Naivasha on 27 March 2025 by Radido Stephen, Judge.

Key legal issues

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01

Procedural fairness of the termination

Holding

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

Reasoning

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.

p. 2
02

Substantive fairness of the termination

Holding

The Respondent proved valid and fair reasons - the Claimant's involvement in defrauding the employer of 2 crates of mala milk

Reasoning

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.

p. 2
03

Whether unfair termination was properly before the Court

Holding

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

Reasoning

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.

p. 2
04

Claim for half salaries during suspension

Holding

Not proved - the CBA clause relied on was not produced and no pay slips were tendered

Reasoning

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.

p. 3
05

Commuted leave pay

Holding

Awarded the equivalent of one and a half basic salary as commuted leave pay (Kshs 68,623/-, basic salary Kshs 45,749/-)

Reasoning

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.

p. 3
06

Overtime claim

Holding

Not proved - no details or evidential basis of overtime worked were given

Reasoning

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.

p. 3

Legal principles established

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  • 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

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  1. 1.Commuted leave awarded at Kshs 68,623/-
  2. 2.All the other claims dismissed
  3. 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

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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, "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.