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ELRCPartially AllowedNot stated in the judgment as provided· [2025] KEELRC 1185 (KLR)

Ouma v MP Shah Hospital (Cause E169 of 2022) [2025] KEELRC 1185 (KLR)

Employment and Labour Relations Court
28 April 2025
2,627 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled Nairobi Hospital unfairly dismissed an employee for merely befriending and supporting a colleague, awarding him nearly Kshs. 1 million.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent Hospital as a Phlebotomist from 3rd November 2012 and promoted to Laboratory Technologist in February 2013, was summarily dismissed on 4th March 2021 on grounds of gross misconduct arising from allegations of involvement in illegal removal of blood samples and forgery of a medical report and fake invoices. He claimed declaration that termination was unfair and unlawful, one month's salary in lieu of notice, and 12 months' salary as compensation. The Respondent admitted the employment relationship and justified the dismissal on loss of trust and confidence, citing the Claimant's association with Ezekiel Lihanda, who was caught removing blood, and with employees implicated in forgery, and his interceding for Lihanda's pardon. The Respondent also raised a discharge voucher and unexercised right of appeal. The Court found the Respondent's own witness exonerated the Claimant of both blood removal and forgery on cross-examination, and that association with colleagues and delivering a resignation letter could not constitute gross misconduct. The show-cause letter's 7 items centred on the same baseless allegations. While procedure arguably met the bare requirements of sections 41 and 45 of the Employment Act, termination lacked valid reasons under sections 43 and 45. Considering his 9 years of service, unblemished record and mitigation, the Court awarded 9 months' gross salary (Kshs. 997,830), declared the termination unfair and unlawful, and granted costs and interest at court rate from the date of judgment. The notice claim failed as notice had been paid, and the request for reissue/authentication of the certificate of service was refused.

Key legal issues

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01

Valid reason for termination

Holding

No valid reason was established; the Respondent's own witness exonerated the Claimant of blood removal and forgery

Reasoning

The Respondent's Chief Human Resource Officer conceded on cross-examination that the Claimant was not involved in removal of blood or in the forgery incident, and that it was not illegal to make friends at the workplace. The allegations reduced to association with colleagues and delivery of a resignation letter, which cannot amount to gross misconduct. Termination was therefore not anchored on valid reasons under sections 43 and 45 of the Employment Act.

p. 4
02

Fair procedure

Holding

Procedure may have met the bare requirements of sections 41 and 45, but the disciplinary process itself lacked a coherent basis

Reasoning

The Claimant conceded he was issued a show-cause letter and answered the allegations before a disciplinary hearing. However, the Court found it never clear why he was subjected to the process at all, given that the 7 items in the show-cause letter revolved around the same blood-removal and forgery allegations of which he was exonerated. Item 7, a catch-all accusation, was unanswerable.

p. 4
03

Quantum of compensation

Holding

Nine months' gross salary awarded, taking into account length of service, unblemished record and mitigation

Reasoning

The Claimant worked about 9 years with an unblemished record; the 2018 warning letter was outside its validity period and unrelated. He mitigated his loss through locum work and had a US job opportunity, and received Kshs. 97,875 in terminal benefits. These factors justified an award of 9 months' gross salary at Kshs. 997,830 rather than the 12 months sought.

p. 5

Legal principles established

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  • Communication with colleagues under investigation, and interceding for a colleague's pardon, do not constitute gross misconduct justifying dismissal
  • Termination must be founded on valid reason under sections 43 and 45 of the Employment Act

Court orders

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  1. 1.Declaration that termination was not based on valid reasons, and was unfair and unlawful
  2. 2.Respondent to pay the Claimant equivalent of 9 months' gross salary in compensation for unfair and unlawful termination, at Kshs. 997,830
  3. 3.Costs to the Claimant
  4. 4.Interest at court rate from the date of Judgment
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (sections 41, 43 and 45 applied)

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, "Ouma v MP Shah Hospital (Cause E169 of 2022) [2025] KEELRC 1185 (KLR)", Case Analysis (2025). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1185/eng@2025-04-28

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