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ELRCPartially AllowedCause No 1120 of 2018· [2025] KEELRC 1555 (KLR)

Gachanja v Synresins Limited (Cause 1120 of 2018) [2025] KEELRC 1555 (KLR)

Employment and Labour Relations Court
29 May 2025
3,303 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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Even where an employee's misconduct justifies dismissal, Kenyan employers must still follow a fair hearing process or pay compensation.

What this practically means

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Executive summary

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The claimant, formerly Sales Support In-charge of the respondent on a two-year contract from 1st November 2016, was terminated summarily by letter dated 3rd August 2017 referencing an ongoing investigation into sales transaction irregularities and declining performance. She claimed the termination was procedurally and substantively unfair, seeking a declaration, damages, notice pay, leave pay, exemplary damages, interest, a certificate of service and costs. The respondent contended that an audit and forensic investigation revealed fraudulent malpractices - falsified deposit slips, misrepresentation of cash collections, payments to personal mobile numbers and unbanked cheques - implicating the claimant with others, resulting in a loss of approximately Kshs. 30 million, and that she and others were charged in Criminal Case No. 928 of 2018. The court framed two issues: whether the termination was unfair and whether the reliefs were due. It held the termination procedurally flawed and unlawful because no disciplinary hearing was contemplated and the claimant was never heard, fair process being both a statutory and constitutional imperative. However, applying the range of reasonable responses test, it found the reasons valid: on cross-examination the claimant admitted unbanked cheques, a text message traced to her phone soliciting client payments to personal numbers, and unexplained falsified deposit slips, and she ran a competing business with former employees while still employed. The termination was therefore substantively fair. Because unfairness lay only in procedure, the court awarded one month's salary (Kshs. 95,000) as compensation and ordered issuance of a certificate of service within 14 days, with each party bearing their own costs.

Key legal issues

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01

Procedural fairness of the termination

Holding

The termination was procedurally flawed, unfair and unlawful because no disciplinary process was contemplated and the claimant was not heard

Reasoning

The termination letter took effect immediately with no indication of a disciplinary process. Relying on Section 41 of the Employment Act and the cited authorities, the court held that even where summary dismissal for gross misconduct is alleged, the employer must notify and hear the employee. The right to fair process is also a constitutional imperative that cannot be avoided by invoking Section 44.

p. 5
02

Substantive justification for the termination

Holding

The termination was substantively fair because the claimant admitted the financial irregularities and a reasonable employer could have dismissed

Reasoning

Applying the range of reasonable responses test from British Leyland v Swift and Charles Musungu Odana, the court found the claimant admitted keeping unbanked cheques, a text from her phone soliciting client payments to personal numbers, and deposit slips falsified as to date and depositor. She also ran a competing business with former employees while in service. The court therefore held the employer acted reasonably and responsibly in terminating her.

p. 7
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Remedies

Holding

One month's salary as compensation and a certificate of service; other reliefs refused

Reasoning

Because the unfairness was only procedural while the reasons were valid, the court awarded one month's salary (Kshs. 95,000) as sufficient compensation, ordered a certificate of service within 14 days, and directed each party to bear their own costs. Notice pay, leave pay and exemplary damages were not granted.

p. 7

Legal principles established

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  • For a termination to pass the fairness test there must be both substantive justification and procedural fairness
  • Fair process is a constitutional imperative; an employee must be accorded fair process irrespective of the grounds for termination
  • The court applies the range of reasonable responses test and does not substitute its own view for that of the employer

Court orders

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  1. 1.A declaration that the termination was unfair on account of procedure
  2. 2.An award of one month's salary as compensation for the unfair termination at Kshs. 95,000/-
  3. 3.That the Respondent issues the Claimant a certificate of service within 14 days of the order
  4. 4.Parties shall bear their own costs of the suit

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 43
  • Employment ActSection 44

Cases cited (8)

  • Walter Ogal Anuro v Teachers Service Commission
    [2013] eKLR
  • Hosea Akunga Ombwori v Bidco Oil Refineries Limited
    [2017] eKLR
  • Mary Mutanu Mwendwa v Ayuda
    [2013] eKLR
  • British Leyland UK Ltd v. Swift
    [1981] IRLR 91
  • Cooperative Bank of Kenya Limited v Banking Insurance & Finance Union
    [2017] eKLR
  • Charles Musungu Odana v Kenya Ports Authority
    [2019] eKLR
  • Reuben Ikatwa & 17 Others v Commanding Officer British Army Training Unit Kenya & Another
    [2017] eKLR
  • Republic v Samuel Matasi & 2 Others
    Criminal Case No. 928 of 2018
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment and labour relations claims (Employment Act, 2007); no specific constitutional provision invoked

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, "Gachanja v Synresins Limited (Cause 1120 of 2018) [2025] KEELRC 1555 (KLR)", Case Analysis (2025). Cause No 1120 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1555/eng@2025-05-29

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