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ELRCPartially Allowednull (not stated in the judgment as provided)· [2025] KEELRC 1454 (KLR)

Macharia v Registered Trustees of the Sisters of Mercy (Kenya) Mater Misericordiae Hospital (Cause 650 of 2020) [2025] KEELRC 1454 (KLR)

Employment and Labour Relations Court of Kenya
16 May 2025
5,911 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~24 min to read original · ~4 min brief

The bottom line

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A Kenyan court found an employee's 'redundancy' dismissal was a disguised disciplinary sacking and awarded him over Kshs. 8.3 million.

What this practically means

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Executive summary

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This first-instance judgment of the Employment and Labour Relations Court at Nairobi, delivered by James Rika, J on 16th May 2025, concerned Dr. Gachie, formerly Deputy CEO and Director of Operations and Administrative Services of the Registered Trustees of the Sisters of Mercy [Kenya], whose 5-year contract was terminated on 29th September 2020 on account of redundancy after a contested disciplinary process over the Kinetic Building handover and a contentious e-mail alleging governance failures including sodomy at the hospital. The Court framed the dispute around Section 40 of the Employment Act and held that the redundancy was a colourable exercise: Sister Mary Gitau's evidence showed the position was declared redundant because the Claimant was rude and refused to take responsibility, a fault-based ground inconsistent with the no-fault statutory definition of redundancy. The alleged overlap with the CEO's role was ingrained in the contract authored by the Respondent since 2018. There was no consultation, no prior notice of intended redundancy, and no redundancy benefits paid before termination; the Claimant was presented with a fait accompli while on Covid-19 leave. Reinstatement was refused as impracticable after over four years, and gratuity was not established. The Court declared the termination unfair, unlawful and unconstitutional and awarded notice of Kshs. 1,050,000, severance of Kshs. 1,050,000, leave of Kshs. 980,000 and five months' compensation of Kshs. 5,250,000, totalling Kshs. 8,330,000, plus a certificate of service, costs to the Claimant and interest at court rate from judgment until payment in full. The Court also directed a clean-up of the disorderly court file, which contained pleadings from unrelated causes.

Key legal issues

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01

Whether there was a genuine redundancy situation

Holding

No - the alleged overlap of roles was ingrained in the contract authored by the Respondent, and redundancy was declared because of the Claimant's alleged rudeness, indicating an ulterior purpose

Reasoning

Sister Mary Gitau's evidence showed the position was declared redundant because the Claimant was found rude and refused to take responsibility - a fault-based ground inconsistent with the statutory definition of redundancy. The alleged duplication of the Claimant's role with the CEO's was inherent in the contract drafted by the Respondent itself since 2018, and other holders of the position had preceded him without redundancy. The Court concluded the redundancy was a colourable exercise arising from a failed disciplinary process.

p. 9
02

Whether the Respondent complied with the procedural demands of Section 40 of the Employment Act

Holding

No - there was no consultation, no prior notice of intended redundancy, and no redundancy benefits paid before termination

Reasoning

The Claimant went on leave unaware of any redundancy plan and was presented with a fait accompli decision made by the Trustees in his absence. There was no record of consultations on redundancy despite his senior rank as principal assistant to the CEO. No redundancy benefits were paid before termination. The Court applied the German School Society and Mugford authorities on genuine consultation and found the exercise fell far short of Section 40.

p. 11
03

Whether the Claimant's e-mail of 8th July 2020 on governance issues was relevant to the termination

Holding

No - the Claimant was not disciplined over the e-mail and the termination was on the sole ground of redundancy

Reasoning

Although the Court found the Claimant went overboard in copying allegations of misgovernance and immorality to Sisters in Ireland with no supervisory role, the dispute revolved around Section 40 of the Employment Act. The Respondent's own case was that termination was on account of redundancy, not disciplinary issues. The e-mail therefore had no bearing on the reason justifying termination and the Cause did not stand or fall on it.

p. 9
04

Quantum of remedies for the unfair termination

Holding

One month's notice, 15 days' severance per year for 2 complete years, outstanding 28 days' leave, and 5 months' salary in compensation; reinstatement and gratuity refused

Reasoning

The Respondent had offered but never paid notice pay and severance. The Claimant worked 2 ½ years and did not contribute to the termination; he had mitigated loss through temporary teaching engagements and had already been awarded severance, notice and leave, so compensation was limited to the equivalent of 5 months' salary. Reinstatement was not practicable after over 4 years, and gratuity was not separately justified.

p. 12

Legal principles established

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  • Redundancy is a no-fault mode of termination; an employee cannot be declared redundant on account of fault such as rudeness or refusal to take responsibility
  • Redundancy declared for a collateral purpose of getting rid of an employee is a colourable exercise
  • Consultation on redundancy must be genuine and must precede the decision; a fait accompli notice does not satisfy Section 40 of the Employment Act

Court orders

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  1. 1.It is declared that termination of the Claimant's contract by the Respondent was unfair, unlawful and unconstitutional
  2. 2.The Respondent shall pay to the Claimant notice at Kshs. 1,050,000; severance at Kshs. 1,050,000; leave at Kshs. 980,000; and compensation for unfair termination equivalent of 5 months' salary at Kshs. 5,250,000 - total Kshs. 8,330,000
  3. 3.Certificate of Service to issue
  4. 4.Costs to the Claimant
  5. 5.Interest allowed at court rate, from the date of Judgment, till payment is made in full
  6. 6.The Deputy-Registrar is directed to oversee a clean-up of the file, as soon as it is reverted to the Court in Nairobi
Jurisdiction invoked
First-instance employment and labour relations dispute under the Employment Act 2007 (Article 47 of the Constitution and the Fair Administrative Action Act cited on consultation)

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, "Macharia v Registered Trustees of the Sisters of Mercy (Kenya) Mater Misericordiae Hospital (Cause 650 of 2020) [2025] KEELRC 1454 (KLR)", Case Analysis (2025). null (not stated in the judgment as provided). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1454/eng@2025-05-16

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