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ELRCPartially AllowedCause No E839 of 2023· [2025] KEELRC 1743 (KLR)

Kenani v Britam Life Assurance Company (Kenya) Limited (Cause E839 of 2023) [2025] KEELRC 1743 (KLR)

Employment and Labour Relations Court
13 June 2025
4,138 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

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A Kenyan court awarded a dismissed manager three months' salary because his employer upgraded his disciplinary charge after the hearing, breaking its own HR rules.

What this practically means

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Executive summary

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In this first-instance employment claim, the Claimant, employed by the Respondent insurer from 2009 and dismissed on 25th July 2023, alleged unfair and unlawful termination, claiming Kshs 2,861,580.66 or reinstatement in the alternative. The Respondent justified the dismissal on grounds of gross negligence and failure to adhere to set procedures, arising from the Claimant's handling of a comprehensive motor insurance cover for vehicle KDC 2X6X issued without a valid valuation report, which was unsigned, unuploaded and made for Mayfair Insurance, allegedly exposing the Respondent to a loss of Kshs 6.4 million. The Court framed three issues: valid reason, fair procedure, and entitlement to reliefs. It found that the Respondent proved on a balance of probabilities a valid and fair reason for termination, as the Claimant breached the Underwriting Manual. On procedure, the Court held that the Claimant was not condemned unheard since the allegations remained the same throughout, but found procedural unfairness in the Respondent's escalation of the charge from procedure breach (punishable by a written warning for a first offence) to gross negligence after the disciplinary hearing, violating the Claimant's legitimate expectation that the Respondent would follow its own Human Resource Manual. The Claimant was awarded compensatory damages of Kshs 514,048.38 (three months' salary), with interest at court rates from the date of judgment and costs of the suit. The remainder of the claimed reliefs, including reinstatement and the larger sum, were not granted, the Court factoring in the Claimant's own contribution to the termination.

Key legal issues

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01

Valid and fair reason for termination

Holding

The Respondent proved on a balance of probabilities a valid and fair reason to commence termination, being the Claimant's breach of the Underwriting Manual in handling the cover for KDC 2X6X, exposing it to a potential loss of Kshs 6.4 million.

Reasoning

The Claimant did not deny issuing the annual comprehensive cover or failing to verify the valuation report, which was unsigned, unuploaded and made for Mayfair Insurance rather than the Respondent. Clause 9(a) of the Underwriting Manual required valuation for comprehensive covers. Given his designation as Branch Operations Team Leader, the Claimant was reasonably expected to be diligent; his omissions breached a fundamental procedure and rendered him liable to disciplinary action.

p. 7
02

Fair procedure - escalation of charges and legitimate expectation

Holding

Although the Claimant was heard, the termination was procedurally unfair because the Respondent escalated the charge from procedure breach (sanctioned by warning) to gross negligence (sanctioned by dismissal) after the hearing, contrary to its own Human Resource Manual.

Reasoning

Section 41 of the Employment Act was satisfied as to notice and hearing. However, the Respondent had all facts when it charged the Claimant with failure to adhere to set procedures, attracting only a written warning for a first offence. Escalating the offence to gross negligence after the hearing defeated the Claimant's reasonable or legitimate expectation in the prescribed sanctions; the Respondent shifted goal posts to his detriment.

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Alleged condemnation unheard on new allegations

Holding

Rejected; the character and nature of the allegations remained the same throughout - the issuance of the comprehensive cover for KDC 2X6X - and the anomalies in the show cause letter were the same as those covered at the hearing.

Reasoning

The court found it inaccurate for the Claimant to allege new allegations were introduced. The show cause letter, the disciplinary hearing and the dismissal letter all concerned the same conduct regarding the motor vehicle cover, so the Claimant had the opportunity to respond to the substance of the allegations.

p. 7

Legal principles established

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  • An employer who, having all the facts at its disposal, charges an employee with one offence and then escalates it to a more serious offence attracting a heavier sanction after the hearing violates the employee's legitimate expectation that its own disciplinary code will be followed.
  • Where allegations addressed at a disciplinary hearing correspond with those in the show cause letter and the reasons in the dismissal letter, an employee cannot claim new allegations were introduced.

Court orders

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  1. 1.Judgment entered in favour of the Claimant awarding compensatory damages of Kshs 514,048.38, equivalent to three (3) months of his last salary.
  2. 2.Interest on the award at court rates from the date of Judgment until payment in full.
  3. 3.The Claimant to have the costs of the suit.

Authorities

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Legislation

  • Employment ActSection 44(4)
  • Employment ActSection 45(2)(c)
  • Employment ActSection 41
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure ActSection 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (3)

  • Agnes Kavata Mbiti v Housing Finance Company Limited
    (2017) eKLR
  • Violet Kadala Shitsukane v Kenya Post Savings Bank
    (2020) eKLR
  • Bonventure Asakwa Ofutso v Jubilee Insurance Co. Ltd
    (2018) eKLR
Jurisdiction invoked
Original employment and labour relations jurisdiction; Employment Act (ss. 41, 44(4), 45(2)(c)) 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, "Kenani v Britam Life Assurance Company (Kenya) Limited (Cause E839 of 2023) [2025] KEELRC 1743 (KLR)", Case Analysis (2025). Cause No E839 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1743/eng@2025-06-13

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