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Case Brief · caselaw.co.ke
ELRCPartially AllowedELRC at Mombasa (number not stated in judgment)

Nyanguda v Kenya Power & Lighting Co. Limited (Cause 39 of 2022) [2025] KEELRC 2187 (KLR)

Employment and Labour Relations Court
24 July 2025
5,297 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled Kenya Power unfairly dismissed a clerk because it accused her with suspicion, not evidence, and awarded her compensation.

What this practically means

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Executive summary

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The claimant, employed by the respondent from December 2006 and last serving as a clerical clerk in the business development section at Electricity House, Mombasa, was summarily dismissed on 4 February 2020 following an internal audit into irregular complementary rebilling and unprocedural meter changes in the Coast region, which alleged a revenue loss of Ksh. 41,139,766. She was accused of being part of a network collecting money from customers, having received Ksh. 22,500 from three private electricians via M-Pesa. She claimed unlawful and unfair termination, discrimination, and sought reinstatement with back salaries or, alternatively, terminal dues, general and exemplary damages and costs. The respondent maintained that due process under Sections 40, 41, 43 and 45 of the Employment Act was followed and that dismissal was justified under Section 44. The court found that although the claimant received the M-Pesa payments, the respondent never established a link between those payments and any specific rebilling, meter change or retrofit, nor to the alleged revenue loss; the allegations rested on conjecture rather than cogent evidence. It preferred the claimant's explanation of fish selling and church fundraising and found the charges lacked validity and particulars for an effective response. The dismissal was held to be unlawful and unfair. Reinstatement was refused as out of time under Section 12(3) of the ELRC Court Act and impractical given the hostile work environment. The court awarded a declaration of unfair termination, compensation of Ksh. 342,490.77 (three months' gross salary), notice pay of Ksh. 114,163.59, and 50% of costs. General, exemplary and punitive damages were refused as the compensation award sufficed. Judgment delivered at Mombasa on 24 July 2025 by M. Mbarū, J.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the respondent had valid and fair reasons to summarily dismiss the claimant
  2. 2.Whether the disciplinary and dismissal process accorded with fair procedure under Sections 41 and 45 of the Employment Act
  3. 3.Whether the claims of discrimination and constitutional violation were proved
  4. 4.Whether reinstatement was available as a remedy
  5. 5.What alternative remedies (compensation, notice pay, damages, costs) were due

Key legal issues

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01

Whether the respondent proved valid reasons for the summary dismissal

Holding

The respondent failed to substantiate the charges; the link between the claimant's M-Pesa receipts and any rebilling or meter change was not established, so the dismissal was substantively unfair

Reasoning

The court found the audit established only M-Pesa transactions between the claimant and private electricians, but never traced those payments to specific rebillings, meter changes or retrofits, nor to the alleged Ksh.41 million revenue loss. The claimant's explanation of fish selling and church fundraising was credible. The charge that she was part of a network was conjecture, not evidence.

p. 10
02

Whether procedure under Sections 41 and 45 was fair

Holding

Although show cause, hearing and appeal were given, the missing particulars of the alleged rebillings prevented an effective response, rendering the process unfair

Reasoning

The claimant was issued a show cause notice, invited to a disciplinary hearing with representation, and appealed. However, the charges were an omnibus of 'rebilling and unprocedural meter change' without details of which rebillings or meter changes she affected, denying her a fair opportunity to respond. The absence of particulars invalidated the allegations.

p. 9
03

Whether reinstatement should issue

Holding

Reinstatement refused as out of time and impractical

Reasoning

Section 12(3) of the ELRC Act bars reinstatement orders after three years from dismissal. Additionally, given the hostile work environment surrounding the dismissal, reinstatement would not foster peaceful industrial relations.

p. 10

Legal principles established

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  • An employer's belief in an employee's misconduct must be founded on cogent evidence on a balance of probabilities, not conjecture
  • Procedural compliance alone is insufficient; the employer must also prove valid and fair reasons for termination under Sections 43 and 45 of the Employment Act

Court orders

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  1. 1.A declaration that the claimant's employment was terminated unfairly
  2. 2.Compensation of Ksh. 342,490.77 (three months' gross salary)
  3. 3.Notice pay of Ksh. 114,163.59
  4. 4.The claimant awarded 50% of the costs of the suit

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act, Section 12 (reinstatement and remedies under Sections 41, 43, 44, 45 and 49 of the Employment Act)

Relief refused

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Reinstatement with back salaries from 10 February 2020

Reinstatement was barred by time under Section 12(3) of the Employment and Labour Relations Court Act and the hostile work environment made return inappropriate

p. 10

General, exemplary and punitive damages

The compensation award for unfair termination was held to suffice

p. 10

Terminal dues for salary to retirement (Ksh. 16,896,211.32)

Not granted; only statutory compensation and notice pay were awarded

Costs

The claimant is entitled to 50% of her costs; judgment awarded '50% of costs' to the claimant

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

An employer cannot rely on a genuine belief that the employee has committed workplace misconduct or gross misconduct. This belief must be founded on cogent evidence which, on a balance of probabilities, points to the employee’s culpability. It cannot be founded on conjecture.
p. 9standard of proof for employer's belief in misconduct
In the premises, the court finds the respondent did not substantiate the charges it levelled against the Claimant. As such, the respondent has failed to demonstrate that it had substantive grounds to terminate the Claimant’s employment through summary dismissal.
p. 10failure to substantiate charges
This resulted in unlawful and unfair termination of employment.
p. 10conclusion on termination
Given the finding of unfair termination through summary dismissal, the claimant had diligently worked without any poor record from December 2006 to 4 February 2020.
p. 10basis for compensation
Accordingly, judgment is hereby entered for the claimant against the respondent in the following terms: a. a declaration that employment terminated unfairly, b. Compensation Ksh. 342,490.77. c. notice pay Ksh. 114,163.59, d. 50% of costs.
p. 10final orders

Issues in the judgment

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minor

The amounts received from each electrician are inconsistently attributed across the judgment (e.g. K. Were Ksh.15,700 vs Ksh.2,300 in paragraph 29; compensation computed as Ksh. 343,490.77 in reasoning but ordered as Ksh. 342,490.77)

minor

Final compensation figure in the orders (Ksh. 342,490.77) does not match the computed figure of Ksh. 343,490.77

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, "Nyanguda v Kenya Power & Lighting Co. Limited (Cause 39 of 2022) [2025] KEELRC 2187 (KLR)", Case Analysis (2025). ELRC at Mombasa (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2187/eng@2025-07-24

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