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ELRCDismissednot stated in the judgment as provided· [2025] KEELRC 1648 (KLR)

Ahmed v Fafi Intergrated Development Association (Cause E003 of 2025) [2025] KEELRC 1648 (KLR)

Employment and Labour Relations Court
4 June 2025
2,492 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court declined to reinstate a fixed-term employee before trial, holding his salary loss could be compensated with money damages instead.

What this practically means

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Executive summary

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The Claimant, formerly employed by the Respondent under fixed-term contracts last renewed on 1st January 2025 for eleven months, challenged the termination of his contract effective 31st March 2025, which the Respondent attributed to a cut in humanitarian donor funding following the United States government's suspension of support for humanitarian programmes. By an application dated 18th March 2025, the Claimant sought interim reliefs including a mandatory injunction reinstating him, injunctions restraining termination and advertisement of his position, an order that the Respondent deposit Ksh. 1,163,412.00 (the salary for the balance of the term) in court, and a restraint on the Respondent's use of those funds. Applying the Giella v Cassman Brown conditions, the court found the Claimant had established a prima facie case: the Respondent's justification amounted in substance to redundancy, and the preliminary material did not show compliance with the section 40 Employment Act redundancy procedure, including one month's notice, communication of reasons and extent, selection procedure and terminal dues. However, the court held that the Claimant's potential loss was quantifiable and compensable by damages, and there was no conclusive evidence the donor-funded Respondent could not pay; the second Giella condition therefore failed. The court also declined reinstatement, holding that mandatory injunctions and the interim remedy of reinstatement should seldom issue before trial, and refused the deposit and restraint orders as presupposing findings of illegality reserved for trial. The application was declined with costs abiding the outcome of the suit.

Key legal issues

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01

Prima facie case on validity of termination

Holding

The Claimant established a prima facie case that the termination procedure may have been flawed because the section 40 redundancy procedure was not evidently followed

Reasoning

The Respondent's justification of donor-funding cuts points to redundancy. Redundancy is lawful but requires one month's notice, reasons and extent of redundancy, selection procedure and terminal dues under section 40 of the Employment Act. The preliminary material does not show adherence, so the process prima facie appears flawed, though cogent grounds remain a matter for trial.

p. 3
02

Irreparable harm / adequacy of damages

Holding

The Claimant failed the second Giella condition because his loss was quantifiable and compensable in damages

Reasoning

The contract was a fixed-term of eleven months with nine months remaining at a fixed monthly salary of Ksh. 129,268, yielding a quantifiable claim of Ksh. 1,163,412. There was no conclusive evidence that the donor-funded Respondent could not pay should compensation be awarded at trial.

p. 4
03

Mandatory injunction for reinstatement at interlocutory stage

Holding

Refused; such relief should await full trial except in special circumstances and the clearest of cases

Reasoning

Following Court of Appeal authority, mandatory injunctions at interlocutory stage issue only in special circumstances where the dispute can be decided summarily. Here the Respondent has advanced preliminary material explaining the termination, and the impact of the donor-funding cuts on its capacity to retain the Claimant requires full trial.

p. 4
04

Deposit of anticipated salary / restraint on Respondent's funds

Holding

Refused because the reliefs presuppose findings of illegality and entitlement only sustainable after trial

Reasoning

The sought orders would imply culpability against the Respondent without a full trial, since they assume the termination was unlawful and that the Claimant is entitled to the balance of the contractual term. Such determinations must await trial evidence.

p. 5

Legal principles established

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  • Redundancy is a legitimate reason to terminate employment but must follow the procedure in section 40 of the Employment Act
  • Mandatory injunctions, including reinstatement, should seldom issue at the interlocutory stage and only in the clearest of cases

Court orders

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  1. 1.The application for interim reliefs dated 18th March 2025 is declined
  2. 2.Costs of the application shall abide the outcome of the suit

Authorities

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Legislation

  • Employment Actsection 40
  • ELRC Procedure RulesRule 28(3)

Cases cited (10)

  • Giella v Cassman Brown and Co Ltd
    [1973] EA 358
  • Joseph Kaloki t/a Royal Family Assembly Vs Nancy Atieno Ouma
    [2020] eKLR
  • Kenya Breweries Limited & another Vs Washington O. Okeyo
    [2002] eKLR
  • Shariff Abdi Hassan Vs Nadhif Jama Adan
    [2006] eKLR
  • Kenya Tea Growers Association & another v Kenya Plantation and Agricultural Workers Union
    [2018] eKLR
  • Lindah Anyona Saleh v Co-operative Bank of Kenya Limited
    [2022] eKLR
  • Jacinta Sekoh Ochieng v Kenya Pipeline Limited
    [2017] eKLR
  • Gladys Boss Shollei v Judicial Service Commission
    (Petition 39 of 2013) [2013] KEIC 1 (KLR)
  • Keter v Family Bank Limited
    (Cause E009 of 2022) [2022] KEELRC 12844 (KLR)
  • Norah Okoth v Kenya Pipeline Company Limited
    [2017] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction (ELRC Procedure Rules referenced); not expressly cited

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, "Ahmed v Fafi Intergrated Development Association (Cause E003 of 2025) [2025] KEELRC 1648 (KLR)", Case Analysis (2025). not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1648/eng@2025-06-04

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