United Millers Limited v Mugo (Appeal E078 of 2024) [2025] KEELRC 1883 (KLR)
The bottom line
#A Kenyan employer scaling down operations must still consult employees and apply selection criteria before declaring redundancies, or face compensation.
What this practically means
#Executive summary
#Key legal issues
#Whether closure of the workplace exempts an employer from the selection criteria under Section 40(1)(c) of the Employment Act
The Appellant did not establish that its plant was shut down altogether; scaledown implies continued operations, so selection criteria and consultation remained mandatory
The Court relied on its decision in the companion Appeal No. E076 of 2024 and adopted it wholesale. It found the Trial Court correctly applied Section 40(1)(c); the Appellant led no evidence of actual plant closure. Scaling down of operations from August 2021 suggested a skeleton manpower remained, and operations were not shown to have closed when redundancy notices issued in October 2021. The process was unilateral, violating the redundancy consultation principle.
Legal principles established
#- Where an employer scales down operations rather than closing them altogether, the selection criteria and consultation requirements under Section 40(1)(c) of the Employment Act still apply
- An employer is obliged to consult employees throughout the redundancy process and may not simply communicate unilateral decisions
Court orders
#- 1.The Appeal is declined on the same grounds given by the Court in Appeal No. E076 of 2024
- 2.Costs to the Respondent
- On appeal from
- Trial Court (Employment and Labour Relations Claim) - subordinate court not named in the judgment
- null
- Jurisdiction invoked
- Appeal against the decision of the Trial Court in an employment claim (statutory appellate jurisdiction of the Employment and Labour Relations Court; provision not stated in the judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "United Millers Limited v Mugo (Appeal E078 of 2024) [2025] KEELRC 1883 (KLR)", Case Analysis (2025). Nakuru Employment and Labour Relations Court Appeal (number not stated in the judgment extract). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1883/eng@2025-06-27
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.