Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
Caselaw
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedCause No E343 of 2022· [2025] KEELRC 1733 (KLR)

Okide v Power Point Systems (EA) Limited (Cause E343 of 2022) [2025] KEELRC 1733 (KLR)

Employment and Labour Relations Court
12 June 2025
JKJ. W. Keli
4,328 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

#

A Kenyan court awarded an employee over Kshs 2 million because his employer fired him without giving a reason or a chance to be heard.

What this practically means

#

Executive summary

#
The claimant, Head of Logistics employed from 1st November 2011, sued the respondent alleging unfair termination by letter dated 10th December 2021 effective 14th December 2021, and sought declarations, reinstatement, notice pay, salary deduction refunds, house allowances, leave pay, commuter, car insurance and service charges, 12 months' compensation and general damages. The respondent defended on the basis that the claimant was summarily dismissed for absconding duty from 1st to 10th December 2021 under section 44 of the Employment Act, that wages were all-inclusive, and that salary deductions in 2020 were agreed during the COVID-19 closure. The court framed two issues: lawfulness and procedural fairness of the termination, and entitlement to reliefs. It found the termination letter disclosed no reason; the defence of absenteeism was unproved and contradicted by the letter's dates, giving late-raised reasons zero probative value. No disciplinary process preceded the termination, breaching section 41 even for section 44 summary dismissal. The termination was held unlawful and procedurally unfair. Reinstatement was unavailable as over three years had lapsed. The court awarded notice pay of Kshs. 150,000, maximum compensation of 12 months' salary (Kshs. 1,800,000) applying Kenfreight and section 49(4) factors, and prorated leave pay of Kshs. 55,000, totalling Kshs. 2,005,000 with interest. Claims for salary deductions, house allowances, and vehicle/commuter expenses failed, the latter as unproved special damages. Costs and a certificate of service were awarded. Judgment delivered 12th June 2025.

Key legal issues

#
01

Whether the termination was lawful and procedurally fair

Holding

The termination was unlawful for lack of a valid reason and procedurally unfair for want of the process under section 41.

Reasoning

The termination letter gave no reason for the termination. The respondent alleged absenteeism from 1st December 2021, but produced no evidence of the claimant's absence, such as clock-in records, and the letter dated 10th December took effect on 14th December, indicating the claimant was on duty. Reasons appearing for the first time in the defence had no probative value. No disciplinary procedure was followed; even under section 44 the employee must be heard under section 41(2).

p. 6
02

Compensation for unfair termination

Holding

Maximum compensation of 12 months' gross salary (Kshs. 1,800,000) awarded under section 49 of the Employment Act.

Reasoning

Applying Kenfreight, once termination is found unfair, section 49 applies and the court may award any or all remedies. Guided by section 49(4) factors: the claimant served over ten years, had no record of misconduct, no warning letters, and being in management was unlikely to secure comparable employment. Justified the maximum award of 12 months' salary.

p. 9
03

Salary deductions during COVID-19

Holding

Claim for unlawful salary deductions dismissed.

Reasoning

The claimant was in management and had made no contemporaneous complaint about the deductions. The court took judicial notice of the global impact of the COVID-19 pandemic on businesses and found the respondent's explanation of agreed deductions during the closure believable.

p. 9

Legal principles established

#
  • The reason for termination must be disclosed in the termination letter and exist at the time of termination; reasons advanced for the first time in defence are of no probative value
  • Even in summary dismissal cases under section 44, the employer must afford procedural fairness under section 41 before dismissal
  • The 15% house allowance applies to employees earning minimum wages, not those paid above minimum wages

Court orders

#
  1. 1.Declaration that the termination was unlawful and unfair
  2. 2.Notice pay award of Kshs. 150,000
  3. 3.Compensation for unfair termination of Kshs. 1,800,000 (12 months' salary)
  4. 4.Prorated untaken leave days pay in lieu for 11 days in the sum of Kshs. 55,000/=
  5. 5.Total sum of Kshs. 2,005,000 with interest at court rates from date of judgment
  6. 6.Costs of the suit to the claimant
  7. 7.Certificate of service to issue under section 51 of the Employment Act

Authorities

#

Legislation

  • Employment Actsection 44(4), 44(3), 44(4)(a)
  • Employment Actsection 45(2)
  • Employment Actsection 41
  • Employment Actsection 43
  • Employment Actsection 47(5)
  • Employment Actsection 49, 49(4)
  • Employment Actsection 35
  • Employment Actsection 51
  • Employment and Labour Relations Court Actsection 12(3)(vii)

Cases cited (5)

  • Walter Ogal Anuro v Teachers Service Commission
    [2013] eKLR
  • Alfred J. Githinji v Mumias Sugar Company Limited
    Civil Appeal No. 194 of 1991
  • Kenfreight (E.A) Limited v Benson K. Nguti
    SC Pet. No. 37 of 2018 [2019] eKLR
  • Kenya Broadcasting Corporation v Geoffrey Wakio
  • Ol Pejeta Ranching Limited vs. David Wanjau Muhoro
    [2017] eKLR
Jurisdiction invoked
Employment and Labour Relations Court Act, sections 12(3)(vii) and 49; Employment Act

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Okide v Power Point Systems (EA) Limited (Cause E343 of 2022) [2025] KEELRC 1733 (KLR)", Case Analysis (2025). Cause No E343 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1733/eng@2025-06-12

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