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ELRCDismissedNot stated in judgment· [2025] KEELRC 2171 (KLR)

Shinaka v Kenya Power & Lighting Company Limited (Cause E050 of 2022) [2025] KEELRC 2171 (KLR)

Employment and Labour Relations Court
24 July 2025
3,219 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court upheld a utility worker's summary dismissal, ruling that admitted negligence in verifying meter readings was gross misconduct that cost him reinstatement and compensation.

What this practically means

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Executive summary

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The claimant, employed by the respondent since 1996 and rising to Field Artisan 2 in the Coast region, was summarily dismissed on 4 February 2020 on four allegations: irregular rebilling of Ksh. 11.8 million in credits and Ksh. 6.5 million in debits under the complimentary method; collusion with other staff to retrofit illegally rebilled accounts; receiving Ksh. 15,000 from Tyson Mbugua via M-Pesa and rebilling account 22993301 for Rukiya Mohammed Ali; and irregularly reducing Kenneth Maina Kobia's account by 520 units, giving an irregular credit of Ksh. 14,937. He sought reinstatement with back pay or, in the alternative, compensation of up to 124 months' salary, general, aggravated and exemplary damages and costs. The respondent justified the dismissal under sections 41, 43 and 45 of the Employment Act, led audit evidence through John Tollah and HR officer Jaspher Muriithi Kabutu, and pointed to the claimant's poor disciplinary record and outstanding liability of Ksh. 167,729.19. The court found the first two charges bare for lack of particulars, but held the claimant's admitted failure to verify customer meter readings, which caused revenue loss, amounted to gross misconduct under section 44. The Kobia charge also stood despite the colleague's mere surcharge. Summary dismissal was held justified and lawful; reinstatement and compensation were unavailable. The claim was dismissed with each party bearing its own costs.

Key legal issues

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01

Whether the rebilling allegations of Ksh.11.8 million/6.5 million were proved

Holding

The allegation failed for lack of particulars and breakdown

Reasoning

The audit report gave only global figures; the respondent did not provide a breakdown, translate the Ksh.100,000 local rebilling limit against the global figures, or examine the rebilled accounts. Bare assertions could not sustain the charge.

p. 6
02

Whether acting on unverified customer meter readings constituted gross misconduct

Holding

Yes - negligence justifying summary dismissal under section 44

Reasoning

The claimant admitted rebilling account 22993301 based on customer-supplied readings without sending a meter reader to verify, causing revenue loss. Under section 44(4)(g) and section 44(3), performing duties without due care is a fundamental breach justifying summary dismissal.

p. 6
03

Whether the Kobia account charge was answered by the colleague's mere surcharge

Holding

No - the fact Kobia was only surcharged did not excuse the claimant's admitted conduct

Reasoning

The claimant did not deny reducing the reading by 520 units. The sanction chosen against a colleague has a bearing but does not absolve him; a surcharge is a permitted sanction and each employee must account for their own conduct.

p. 7
04

Whether the dismissal process was fair

Holding

The respondent complied with sections 41, 43 and 45; show cause, hearing and appeal were afforded

Reasoning

The claimant was issued a notice to show cause, responded, attended a disciplinary hearing, made representations and exercised a right of appeal. The respondent acted under sections 41, 43 and 45 of the Employment Act, satisfying the statutory process.

p. 3

Legal principles established

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  • An employer must prove reasons for dismissal, that they are valid and fair, and follow the mandatory process under section 41
  • Lawfulness of a dismissal does not equate to fairness; natural justice requires fairness
  • An employee who performs duties without due care and attention commits gross misconduct justifying summary dismissal under section 44(4)(g)

Court orders

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  1. 1.Claim dismissed
  2. 2.Each party to bear its own costs

Authorities

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Legislation

  • Employment Actsection 41
  • Employment Actsection 43
  • Employment Actsection 44
  • Employment Actsection 44(3)
  • Employment Actsection 44(4) and 44(4)(g)
  • Employment Actsection 45
  • Employment Actsection 47(5)

Cases cited (3)

  • Pius Machafu Isindu v Lavington Security Guards Limited
    [2017] eKLR
  • Alfred Ogenche Nchore v Kenya Kazi Services Limited
    [2022] KEELRC 830 (KLR)
  • Francis Ndirangu v Nakumatt Holdings Limited
    [2016] KEELRC 1599 (KLR)
Jurisdiction invoked
First-instance employment claim under the Employment Act (sections 41, 43, 44 and 45)

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, "Shinaka v Kenya Power & Lighting Company Limited (Cause E050 of 2022) [2025] KEELRC 2171 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2171/eng@2025-07-24

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