Mutugi & another v Career Readiness Social Initiative Ltd (Cause 646 of 2019 & E525 of 2021 (Consolidated)) [2025] KEELRC 2002 (KLR)
The bottom line
#A Kenyan court awarded two former employees over Kshs 2 million because their employer fired them without completing investigations or holding fair hearings.
What this practically means
#Executive summary
#Key legal issues
#Whether there were valid reasons to warrant the claimants' dismissal
No valid reasons were established. The Respondent's own investigation report was dated 7 August 2019, after the 1st Claimant's disciplinary hearing of 26 July 2019, showing she was dismissed before investigations were completed, and no evidence was presented against her at the hearing.
The court examined the chronology: notice to show cause dated 25 July 2019, hearing on 26 July 2019, but the investigation report relied upon was dated 7 August 2019. The Respondent called no witnesses at the disciplinary hearing, and witnesses who later implicated the claimants never testified at the hearing. Minutes did not record any evidence adduced. Under section 43 of the Employment Act, the employer failed to prove the reasons for termination.
Whether the claimants were subjected to a proper disciplinary process
The process was improper. The 1st Claimant was given only 24 hours to respond and no evidence was presented at her hearing; the 2nd Claimant was never subjected to any disciplinary hearing at all.
Section 41 of the Employment Act requires that an employee be informed of the allegations, afforded an opportunity to respond, and heard. The 2nd Claimant received no show cause letter and no hearing. The 1st Claimant's hearing produced no recorded evidence and the Respondent called no witnesses. The 2nd Claimant's position that she resigned was rejected because no valid process preceded the events and the court found she was condemned unheard.
Whether the claimants are entitled to the remedies sought
Partly. Each claimant was awarded 8 months' salary as compensation for unfair termination plus one month's salary in lieu of notice, a certificate of service, and costs.
Having found the terminations lacked valid reasons and proper process, the court awarded compensation. It settled on 8 months' salary as adequate for claimants terminated without due process, rather than the 12 months claimed. It awarded one month rather than three months' notice pay and ordered issuance of certificates of service and costs.
Legal principles established
#- An employer must prove valid reasons for termination; failure to do so renders the termination unfair
- Termination is unfair where the employer fails to prove a valid and fair reason and that fair procedure was followed
- An employee condemned without any disciplinary hearing is unfairly terminated
Court orders
#- 1.Damages for unfair termination equivalent to 8 months' salary: Kshs 1,142,844 to the 1st Claimant and Kshs 774,992 to the 2nd Claimant
- 2.One month's salary in lieu of notice: Kshs 190,474 to the 1st Claimant and Kshs 96,874 to the 2nd Claimant
- 3.Total awards of Kshs 1,333,318 for the 1st Claimant and Kshs 871,866 for the 2nd Claimant, each less statutory deductions
- 4.The Respondent to issue each Claimant with a certificate of service
- 5.The Respondent to pay costs of the suit plus interest at court rates with effect from the date of judgment
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 over claims of unfair and unlawful termination of employment
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Mutugi & another v Career Readiness Social Initiative Ltd (Cause 646 of 2019 & E525 of 2021 (Consolidated)) [2025] KEELRC 2002 (KLR)", Case Analysis (2025). ELRC Cause No. 646 of 2019 (lead file, consolidated with ELRC Cause E525 of 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2002/eng@2025-07-08
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.