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ELRCPartially AllowedMombasa CMELRC No. E035 of 2024 (Appeal)· [2025] KEELRC 1954 (KLR)

Hakika Transport Services Limited v Juma (Appeal E268 of 2024) [2025] KEELRC 1954 (KLR)

Employment and Labour Relations Court
30 June 2025
1,875 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This is a first appeal against the judgment of the trial court in Mombasa CMELRC No. E035 of 2024, delivered on 25 November 2024, in which the learned magistrate found unfair termination of the respondent's employment as a Tyreman and awarded notice pay, leave pay, compensation and house allowance. The appellant employer contended that the trial court shifted the burden of proof onto it, failed to give reasons for the awards, and used an incorrect salary of Ksh.30,789 contrary to the contractual wage of Ksh.18,000. The court, hearing the appeal as a first appeal, reaffirmed that under section 47(5) of the Employment Act the employee must first establish a prima facie case, after which the employer must justify the termination. The appellant's response had consisted solely of denials and it offered no evidence beyond the written contract. The respondent's absence on the night of the tyre theft was justified by illness, supported by unchallenged medical notes, and the appellant knew the actual thief was his colleague Bakari Kombo. There were therefore no valid reasons for termination. On quantum, the court upheld the salary figure based on unchallenged pay slips, confirmed the 7-month compensation award (not 12 as the appellant claimed), reduced leave pay to 33 days (Ksh.33,867.90) applying the 18-month accumulation rule, set aside the house allowance as unjust enrichment, and ordered a certificate of service under section 51. The appeal partially succeeded; the claims for overtime and service/gratuity remained declined. Costs of the suit were awarded to the respondent in the trial court, with each party bearing its own costs of the appeal.

Key legal issues

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01

Burden of proof in unfair termination claims

Holding

The trial court did not err; the respondent established a prima facie case, shifting the burden to the appellant, who merely denied the claim

Reasoning

Under section 47(5) of the Employment Act, the employee must establish a prima facie case of unfair termination; once fulfilled, the employer must justify the reasons. The appellant's response consisted solely of denials with no substantive evidence beyond the written contract, so it failed to discharge the burden that fell upon it.

p. 3
02

Validity of reasons for termination

Holding

There were no valid, reasonable or genuine reasons; the absence was justified by illness evidenced by unchallenged medical notes, and the appellant knew who stole the tyre

Reasoning

Theft at work and unauthorised absence can justify summary dismissal under section 44, but section 30 permits absence due to illness with a medical certificate on return. The respondent's medical notes and certificate were unchallenged, and the appellant knew Bakari Kombo had stolen the tyre. The magistrate's findings could not be faulted.

p. 4
03

Notice pay and applicable salary figure

Holding

The trial court correctly used Ksh.30,789 from the pay slips, which were unchallenged, over the contract figure of Ksh.18,000

Reasoning

The respondent testified he earned Ksh.30,789 and filed pay slips. The appellant never challenged them. Although a contract dated 5 May 2017 was filed, it was denied and never issued to the respondent; the pay slips were correct from that date until 16 January 2024, so the trial court used the correct figures.

p. 4
04

Leave pay

Holding

Entitlement reduced to 33 leave days at Ksh.33,867.90 since leave cannot accumulate beyond 18 months absent employer approval

Reasoning

The right to annual leave is secured under section 28 of the Act, but accumulation beyond 18 months requires employer approval under section 28(4). The appellant filed no work records showing leave taken, so the respondent was entitled to only 33 leave days, reducing the award from the trial court's figure.

p. 4
05

House allowance

Holding

Refused; the wage paid exceeded the general minimum wage for Mombasa, so claiming house allowance would be unjust enrichment

Reasoning

The respondent's wage of Ksh.30,789 was not regulated under the Wage Orders and applying the general minimum wage for Mombasa placed him above it. Claiming house allowance on top of the generous wage paid would amount to unjust enrichment, so the trial court's award was set aside.

p. 4
06

Quantum of compensation

Holding

The trial court awarded 7 months, not 12, and that award was upheld

Reasoning

The appellant argued the 12-month award was excessive without reasons, citing Kenya Broadcasting Corporation v Geofirey Wakio. The court agreed 12 months should arise only in rare cases with reasons stated, but found the magistrate had in fact awarded 7 months, which stood.

p. 4

Legal principles established

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  • Under section 47(5) of the Employment Act, the employee claiming unfair termination must first establish a prima facie case, after which the employer must justify the reasons for termination
  • An employee absent due to illness may notify a third party, attend to the illness and provide a medical certificate on return under section 30 of the Employment Act
  • An award of 12 months' compensation should arise only in rare cases and reasons for the highest award must be stated
  • Leave days should not accumulate beyond 18 months unless the employer approves, under section 28(4) of the Employment Act
  • Mere denials in a response deprive the other party of a fair chance to challenge, and documents filed without foundation in the response lose probative value

Court orders

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  1. 1.Notice pay Ksh.30,780
  2. 2.Leave pay Ksh.33,867.90
  3. 3.Compensation Ksh.215,460
  4. 4.Certificate of service to be issued
  5. 5.Costs of the suit for the trial court
  6. 6.Each party bears its own costs for the appeal

Authorities

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Legislation

  • Employment Actsection 43(2)
  • Employment Actsection 47(5)
  • Employment Actsection 44
  • Employment Actsection 30
  • Employment Actsection 43
  • Employment Actsection 28
  • Employment Actsection 28(4)
  • Employment Actsection 51
  • Wage Ordersgeneral minimum wage (Mombasa)

Cases cited (4)

  • Reuben Ikatwa & 17 Others v Commanding Officer British Training Unit Kenya & Another
    [2017] eKLR
  • Kenya Broadcasting Corporation v Geofirey Wakio
    [2019] eKLR
  • Peter Otabong Ekisa v County Government of Busia
    [2017] eKLR
  • Godfrey Anjere v Unique Suppliers Limited
    [2015] eKLR
On appeal from
Magistrates' Court (ELRC), Mombasa
Mombasa CMELRC No. E035 of 2024
Jurisdiction invoked
First appeal from the trial court in employment and labour relations matter

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, "Hakika Transport Services Limited v Juma (Appeal E268 of 2024) [2025] KEELRC 1954 (KLR)", Case Analysis (2025). Mombasa CMELRC No. E035 of 2024 (Appeal). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1954/eng@2025-06-30

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