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ELRCPartially Allowednot_stated_in_judgment· [2025] KEELRC 2207 (KLR)

Awadh v Mukawa (Hotels) Holdings Limited t/a Nairobi Safari Club (Cause 2185 of 2024) [2025] KEELRC 2207 (KLR)

Employment and Labour Relations Court
23 July 2025
DMD. K. Njagi Marete
1,270 words in judgment
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The bottom line

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A Kenyan court awarded a dismissed HR manager over Kshs 1 million because his employer fired him without notice, a hearing, or evidence of poor performance.

What this practically means

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Executive summary

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This first-instance judgment of the Employment and Labour Relations Court, delivered by D. K. Njagi Marete J on 23rd July 2025, concerned a Statement of Claim filed on 10th October 2012 by a former Human Resource Manager employed on a two-year contract from 1st February 2013 at a monthly salary of Kshs.120,000. His employment was terminated with immediate effect by letter dated 21st January 2014. He sought a declaration that the dismissal was unlawful, unfair and/or malicious, compensation of 12 months' salary, Kshs.1,565,506 in tabulated dues, and costs. He alleged breach of Sections 41 and 42 of the Employment Act, absence of notice or hearing, lack of lawful cause, and retaliation linked to an immigration incident involving an expatriate employee working without a valid permit, for which the Finance Director allegedly blamed him. The Respondent admitted the employment but justified the termination on poor performance, negligence and mishandling of the immigration incident, contending that the Claimant signed a clearance form waiving further claims, and that unexpired-contract claims are untenable. The court found the termination procedurally unfair and substantively unjustified, holding that the Respondent produced no evidence of warnings, appraisals or disciplinary proceedings, and violated Sections 41, 43 and 45 of the Employment Act. The claim was partially allowed: a declaration of wrongful, unfair and unlawful termination; 8 months' salary as compensation (Kshs.960,000); 9 days' unpaid salary for January 2014 (Kshs.34,838.70); and 30 days' untaken leave (Kshs.90,000), totalling Kshs.1,084,838.70. The claim for the unexpired contract period was refused as unsustainable where not expressly stipulated in the contract. Costs were awarded to the Claimant against the Respondent.

Key legal issues

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01

Procedural fairness under Section 41 of the Employment Act

Holding

The termination was procedurally unfair as no notice, hearing or opportunity to respond was accorded and no evidence of warnings, appraisals or disciplinary proceedings was produced

Reasoning

Section 41 mandates notification and hearing before termination on grounds of misconduct, poor performance or incapacity. The Respondent produced no evidence of prior warnings, performance appraisals or disciplinary proceedings. The termination letter merely cited 'non-performance' without particulars, so the Claimant was denied a fair hearing.

p. 3
02

Validity of reasons for termination under Sections 43 and 45

Holding

The Respondent failed to prove valid reasons; allegations of poor performance and negligence were unsupported and appeared retaliatory

Reasoning

Section 45(2) requires the employer to prove the reason for termination was valid and fair. The Respondent's assertions of poor performance and negligence were vague and unsupported by tangible evidence, and appeared linked to the immigration incident rather than genuine performance concerns, rendering the termination substantively unjustified.

p. 3
03

Remedies under Section 49

Holding

Compensation awarded at 8 months' salary; claim for unexpired contract period refused as not expressly stipulated in the contract

Reasoning

Section 49 provides remedies including compensation capped at 12 months' salary. The court found the claim for 12 months justified but awarded 8 months. The unexpired contract claim was unsustainable per the cited authority, as such claims are only permissible where expressly provided in the contract.

p. 3

Legal principles established

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  • An employer must notify and hear an employee before termination on grounds of misconduct, poor performance or incapacity; failure to comply renders termination procedurally unfair
  • The employer bears the burden of proving valid reasons for termination; vague assertions without evidence do not discharge this burden
  • Claims for remuneration for the unexpired period of a fixed-term contract are only permissible if expressly stipulated in the contract

Court orders

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  1. 1.A declaration that the termination of the employment of the claimant by the Respondent was wrongful, unfair and unlawful
  2. 2.Eight (8) months salary as compensation for unlawful termination of employment, Kshs.120,000.00 x 8 months, totalling Kshs.960,000.00
  3. 3.Unpaid salary for 9 days in January 2014, Kshs.34,838.70
  4. 4.Untaken leave for 30 days, Kshs.90,000.00
  5. 5.Total award of Kshs.1,084,838.70
  6. 6.Costs of the claim to be borne by the Respondent

Authorities

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Legislation

  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 42
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 45 and 45(2)
  • Employment Act, 2007Section 49 and 49(1)(c)

Cases cited (5)

  • George Okello Munyolo v Unilever Kenya Limited
    [2019] eKLR
  • Kenya Kazi Services Ltd v Dickson Oniwaya Wasike & 42 Others
    [2021] eKLR
  • Mary Mutanu Mwendwa v Ayuda Ninos De Africa-Kenya
    [2013] eKLR
  • Kennedy Maina Mirera v Barclays Bank of Kenya Limited
    [2018] eKLR
  • Jamil Bora Bank Limited v Minnie Mbue
    [2021] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes under the Employment Act, 2007

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, "Awadh v Mukawa (Hotels) Holdings Limited t/a Nairobi Safari Club (Cause 2185 of 2024) [2025] KEELRC 2207 (KLR)", Case Analysis (2025). not_stated_in_judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2207/eng@2025-07-23

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