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ELRCPartially AllowedNot stated in judgment· [2025] KEELRC 2197 (KLR)

Shikuku v Centurion Pharmacy Limited (Cause E534 of 2020) [2025] KEELRC 2197 (KLR)

Employment and Labour Relations Court
24 July 2025
1,570 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~6 min to read original · ~4 min brief

The bottom line

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A Nairobi court ruled a pharmacist's same-day dismissal for theft was unfair because the pharmacy skipped the mandatory hearing and show cause steps.

What this practically means

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Executive summary

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The Claimant, a Pharmacist employed by the Respondent under a contract dated 3rd July 2013, was summarily dismissed on 25th May 2018 on allegations of gross misconduct, namely theft of company cash, insubordination and the assault of a colleague. He sought declarations, damages, notice pay, severance, and an injunction. The Respondent admitted the dismissal but justified it, asserting prior warnings and a fair hearing. The court framed two issues: whether the dismissal was lawful and fair, and whether remedies were due. Applying Sections 41 and 44(4) of the Employment Act, and following Anthony Mkala Chitavi and Rebecca Ann Maina, the court held that the mandatory procedural steps were not followed: the Claimant was confronted and dismissed on the same day, with no show cause notice or formal invitation to a hearing, and the Respondent produced no independent evidence of the misconduct. The dismissal was therefore wrongful and unfair. The court awarded six months' salary (Kshs. 326,760) in compensation, considering length of service and the denial of an opportunity to defend himself, plus one month's salary in lieu of notice (Kshs. 54,460), with interest from the date of judgment. The Respondent's declaration that the Claimant was dismissed for insubordination and theft was set aside. Claims for salary for the remainder of service, general, aggravated and punitive damages, and severance pay were refused for lack of basis. The Claimant received costs.

Key legal issues

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01

Whether the summary dismissal was lawful and fair

Holding

The dismissal was wrongful and unfair as the Claimant was not afforded the procedural fairness mandated by Section 41 of the Employment Act

Reasoning

The Claimant was confronted with accusations of theft and assault and dismissed on the same day, with no prior show cause notice or formal invitation to a hearing. Section 41 requires the employer to explain the reasons and hear the employee's representations before dismissal. The Respondent offered no independent evidence of the alleged misconduct. Accordingly, the dismissal failed both procedurally and substantively.

p. 4
02

Whether the Claimant was entitled to the remedies sought

Holding

Awarded 6 months' salary in compensation and 1 month's salary in lieu of notice; other heads refused

Reasoning

Compensation was assessed at six months' salary considering the Claimant's length of service and the Respondent's failure to allow him to prepare and present a defence. One month's salary in lieu of notice was awarded. No basis was established for salary for the remainder of service, general, aggravated and punitive damages, or severance pay.

p. 4

Legal principles established

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  • Gross misconduct must be proved at the shop floor through compliance with the mandatory procedural steps in Section 41 of the Employment Act, including a show cause notice and opportunity to respond

Court orders

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  1. 1.Judgment entered in favour of the Claimant for 6 months' salary in compensation (Kshs. 326,760) and 1 month's salary in lieu of notice (Kshs. 54,460), totalling Kshs. 381,220
  2. 2.Interest at court rates from the date of judgment until payment in full
  3. 3.The Respondent's declaration that the Claimant was dismissed on grounds of insubordination and theft set aside
  4. 4.Claimant awarded costs of the case

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 44(4)
  • Employment ActSection 42(1)

Cases cited (3)

  • Anthony Mkala Chitavi v Malindi Water & Sewerage Company Ltd
    [2013] eKLR
  • Rebecca Ann Maina & 2 others v Jomo Kenyatta University of Agriculture and Technology
    [2014] eKLR
  • Oloo v H Young & Co (EA)
    [2022] KEELRC 3792 (KLR)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment dispute (Employment Act)

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, "Shikuku v Centurion Pharmacy Limited (Cause E534 of 2020) [2025] KEELRC 2197 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2197/eng@2025-07-24

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