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ELRCPartially AllowedCause No E043 of 2022· [2025] KEELRC 2190 (KLR)

Chege v Kenya Power & Lighting Company Limited (Cause E043 of 2022) [2025] KEELRC 2190 (KLR)

Employment and Labour Relations Court
24 July 2025
3,207 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya Power summarily dismissed a 28-year employee on vague, inconsistent allegations, and the Mombasa court held the dismissal unfair but awarded only modest compensation.

What this practically means

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Executive summary

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The claimant, employed by the respondent since June 1992 as a clerical officer in the customer service department at the Mbaraki depot, Mombasa, was summarily dismissed on 4 February 2020 on allegations that she was part of a network collecting money from customers and denying the company revenue, having received Ksh. 98,930 from private electricians said to be agents of a fellow employee, Crispus Mwaniki, and having raised work orders converting post-paid meters to prepaid without customer requests or supervisory approval. She sought reinstatement with back wages, payment to retirement, terminal dues, and general, aggravated and exemplary damages. The respondent defended the dismissal as justified under sections 41, 43 and 44 of the Employment Act, relying on a December 2019 internal audit and a disciplinary process culminating in dismissal and a dismissed appeal. The court, applying the balance-of-probability standard and reading sections 43 and 45(2) together, held that the employer's genuine belief must rest on reasonable and sufficient grounds. It found the notice to show cause generic and unparticularised, a wide variance between the charges and the audit allegations, and unparticularised work orders, concluding the dismissal was unfair contrary to section 45. Reinstatement was refused as time-barred under section 12(3) of the ELRC Act and inappropriate. The court awarded compensation of Ksh. 405,000 (three months' pay) and notice pay of Ksh. 135,000, refused aggravated and exemplary damages for lack of particulars, and ordered each party to bear its own costs. Judgment was delivered at Mombasa on 24 July 2025 by M. Mbarũ, Judge.

Key legal issues

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01

Validity and fairness of the reasons for summary dismissal

Holding

The summary dismissal was based on reasons that lacked validity and were not fair or reasonable, amounting to unfair termination contrary to section 45 of the Employment Act

Reasoning

The notice to show cause bore generic information with no particulars. The allegation that the claimant received money from private electricians as an agent of Crispus Mwaniki was at wide variance with the audit allegations, since issuing work orders was part of her duties. The work orders for conversions were not particularised and the required approval process was not established. The audit team lacked a specific mandate and conducted flawed investigations.

p. 7
02

Legal framework for proving justification of dismissal

Holding

The employer's genuine belief must be based on reasonable and sufficient grounds; sections 43 and 45(2) read together require proof of a valid and fair reason, underpinned by Article 41 of the Constitution

Reasoning

Relying on Lydia Chepkosgei Mutai, Kenya Revenue Authority v Reuwel Waithaka Gitahi, and Bamburi Cement Ltd v William Kilonzi, the court held that the partly subjective genuine-belief test must rest on reasonable and sufficient grounds, and dishonesty justifying dismissal must be assessed in context as breaching an essential condition of the employment contract, mirroring Article 41 constitutional fairness in labour relations.

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Reinstatement

Holding

Reinstatement refused as barred by time under section 12(3) of the ELRC Act and inappropriate in the circumstances

Reasoning

The claimant sought reinstatement with back wages for 28 months, but the remedy is subject to the three-year limitation in section 12(3) of the Employment and Labour Relations Court Act. Further, the court found that a return to the shop floor would be hostile and inappropriate given the passage of time, and the claimant was already engaged in her own business.

p. 7
04

Remedies

Holding

Notice pay of Ksh. 135,000 and compensation equivalent to three months' pay (Ksh. 405,000) awarded; exemplary and punitive damages refused

Reasoning

The claimant had a clean record, having worked diligently from June 1992 to February 2020, justifying the maximum-considered award of three months' gross pay as compensation under section 49. Notice pay was awarded at one month's salary. General, aggravated and exemplary damages were refused for lack of particulars and because the compensation award sufficed.

p. 7

Legal principles established

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  • An employer's genuine belief under section 43(2) must rest on reasonable and sufficient grounds, and sections 43 and 45(2) must be read together so the employer must prove a valid and fair reason for termination.
  • The standard of proof in employment termination is on a balance of probability, and the employer need only prove reasons it genuinely believed to exist.

Court orders

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  1. 1.Declaration that employment was terminated unfairly
  2. 2.Compensation of Ksh. 405,000 (3 months' pay at Ksh. 135,000)
  3. 3.Notice pay of Ksh. 135,000
  4. 4.Each party to bear its own costs

Authorities

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Legislation

  • Employment Actsections 41, 43, 43(2), 44, 45, 45(2), 47(5)
  • Employment and Labour Relations Court Actsection 12(3)
  • Constitution of KenyaArticle 41

Cases cited (3)

  • Lydia Chepkosgei Mutai v Kenya Power & Lighting Company Ltd
    [2016] KEELRC 1442 (KLR)
  • Kenya Revenue Authority v Reuwel Waithaka Gitahi & 2 others
    [2019] KECA 300 (KLR)
  • Bamburi Cement Limited v William Kilonzi
    [2016] eKLR
Jurisdiction invoked
Employment and Labour Relations Court Act, section 12 (employment and labour relations dispute); Article 41 of the Constitution

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, "Chege v Kenya Power & Lighting Company Limited (Cause E043 of 2022) [2025] KEELRC 2190 (KLR)", Case Analysis (2025). Cause No E043 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2190/eng@2025-07-24

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