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ELRCPartially AllowedCause No. 1565 of 2018 (consolidated with Cause No. 70 of 2019)· [2025] KEELRC 1521 (KLR)

Ngugi & 16 others v Safaricom PLC (Employment and Labour Relations Cause 1565 of 2018 & Cause 70 of 2019 (Consolidated)) [2025] KEELRC 1521 (KLR)

Employment and Labour Relations Court
26 May 2025
7,730 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~31 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court found Safaricom unfairly dismissed 17 sales managers and ordered it to pay each up to a year's salary in compensation.

What this practically means

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Executive summary

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Seventeen former Area Sales Managers of Safaricom PLC sued for unfair, wrongful, unprocedural and discriminatory summary dismissal after all 39 ASMs involved in an Electronic Subscriber Registration Project were dismissed on 28th June 2018 for failure to ensure proper distribution, activation and monitoring of approximately 90,000 Huawei Y311 devices. The Claimants testified that they had reported systemic deficiencies during the pilot phase, that the Respondent ignored the feedback and rolled out a deficient project, and that they lacked any electronic means to monitor device usage. The Respondent alleged negligence, inability to account for devices, a financial loss of about Kshs. 6.7 million, and maintained that fair disciplinary and appeal procedures were followed. The court framed four issues: valid reason, constitutional/statutory violations, fair procedure, and entitlement to reliefs. It found the Respondent failed to discharge its burden under sections 43(1) and (2) as read with 47(5) of the Employment Act to prove a valid reason, holding that the ASMs were set up to fail by a project riddled with loopholes and lacking monitoring tools, and that the Respondent's abandonment of the project after dismissal corroborated this. No fair procedure was followed; no show cause letters were issued and the disciplinary hearings offended natural justice and section 41. However, the discrimination and constitutional violation claims failed for lack of evidence. The court awarded each Claimant one month's salary in lieu of notice and compensation of ten months' gross salary (twelve months for the 2nd Claimant), relying on section 49 and the Kenfreight decision. Claims for house allowance, per diem, future earnings and aggravated damages were dismissed for want of proof. Interest at court rates and costs of the suit were granted to the Claimants.

Key legal issues

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01

Whether there was a valid reason for summary dismissal

Holding

The Respondent failed to prove a valid reason; the Claimants were set up to fail by being required to implement a deficient project without monitoring tools

Reasoning

The Claimants reported systemic deficiencies during the pilot phase, which the Respondent ignored before a national roll out of 90,000 devices. No efficient electronic monitoring mechanism was given to ASMs, only the HQ compliance team had such capacity, and no appraisal or remedial measures preceded dismissal. All 39 ASMs failed equally, indicating the project was unimplementable. RW1 could not rebut the evidence. The Respondent discontinued the project upon dismissing the Claimants, corroborating that they were set up to fail.

p. 12
02

Whether a fair procedure was followed

Holding

No fair procedure was followed; the dismissal violated section 41 of the Employment Act and the rules of natural justice

Reasoning

No show cause letters were issued; Claimants were only invited to hearings to account for devices. They were not given adequate time to trace devices across wide areas without monitoring tools, some had been transferred mid-roll-out, and no evidence was adduced before the disciplinary panels showing how each Claimant failed. No witness testified before the panels on guilt. Placing the Claimants on their defence for matters the Respondent had not enabled them to account for offended natural justice.

p. 12
03

Whether constitutional rights were violated / discrimination proved

Holding

No discrimination or constitutional violation was proved

Reasoning

All 39 ASMs were dismissed under the same conditions and only 5 were reinstated after appeals. There was insufficient evidence that the reinstatement was discriminatory as defined under section 5 of the Employment Act read with Article 27 of the Constitution, so general damages were not available.

p. 13
04

Entitlement to reliefs

Holding

Claimants entitled to notice pay and compensation of ten months' salary (twelve months for the 2nd Claimant); house allowance, per diem, future earnings and aggravated damages dismissed

Reasoning

Having found the dismissal unlawful and unfair, the court exercised discretion under section 49(1)(c) and (4) of the Employment Act guided by the Kenfreight decision, considering among other factors that most Claimants had not obtained alternative employment, that the Respondent did not prove contribution, and that no notice pay or time to prepare was given.

p. 15

Legal principles established

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  • The employer bears the burden of proving a valid reason for summary dismissal under sections 43(1) and (2) of the Employment Act
  • Where a court finds unlawful termination, the appropriate remedy is that provided under section 49 of the Employment Act, exercised judiciously and guided by section 49(4)
  • Reasonableness in an employer's dismissal decision entails fairness, transparency, consideration of all factors, justifiability, clear communication and proportionality

Court orders

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  1. 1.Compensation for unlawful and unfair summary dismissal equivalent to ten (10) months' gross salary for most Claimants and twelve (12) months' salary for the 2nd Claimant Richard Alenga Inyumuli, with specific awards computed per Claimant at their respective gross monthly salaries
  2. 2.One month salary in lieu of notice to each of the 17 Claimants at their respective monthly salaries
  3. 3.Interest at court rates from the date of judgment till payment in full
  4. 4.Costs of the suit to the Claimants

Authorities

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Legislation

  • Employment Act, 2007section 31
  • Employment Act, 2007section 35
  • Employment Act, 2007section 41
  • Employment Act, 2007section 44
  • Employment Act, 2007section 45
  • Employment Act, 2007section 43(1) and (2)
  • Employment Act, 2007section 47(5)
  • Employment Act, 2007section 36
  • Employment Act, 2007section 5
  • Employment Act, 2007section 49(1)(c) and (4)
  • Constitution of Kenya, 2010Article 10
  • Constitution of Kenya, 2010Article 27(5)
  • Constitution of Kenya, 2010Article 28
  • Constitution of Kenya, 2010Article 41
  • Constitution of Kenya, 2010Article 50
  • Constitution of Kenya, 2010Article 27
  • Evidence Act, Cap 80sections 107 and 108

Cases cited (5)

  • Charles Mwema Munuve and Mary Roco versus Safaricom PLC
    [2021] KEELRC 1013 (KCRI)
  • Kenya Revenue Authority versus Reiwel Waithaka Gitahi and 2 others
    [2019] e-KLR
  • Michael Thuo versus Safaricom PLC
    [2022] KEELRC 180 (KLR)
  • Jonah Mwaura Ngugi versus Safaricom Plc
    2019 (KLR) KEELRC 615 KLR
  • Kenfreight (E.A) Limited v Benson K. Nguti
    [2019] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 and the Constitution of Kenya 2010 (Articles 10, 27, 41 and 50 invoked in the claim)

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, "Ngugi & 16 others v Safaricom PLC (Employment and Labour Relations Cause 1565 of 2018 & Cause 70 of 2019 (Consolidated)) [2025] KEELRC 1521 (KLR)", Case Analysis (2025). Cause No. 1565 of 2018 (consolidated with Cause No. 70 of 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1521/eng@2025-05-26

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