Ojiambo v Islamic University of Kenya (Cause E187 of 2023) [2025] KEELRC 2267 (KLR)
The bottom line
#Kenya's Employment Court ruled that cutting an employee's salary without consultation forced her resignation, awarding her over Kshs. 3 million.
What this practically means
#Executive summary
#Key legal issues
#Constructive dismissal
Constructive dismissal proved. The Respondent unilaterally reduced the Claimant's salary twice, failed to pay arrears, did not consult her, and failed to issue a written contract or payslips. The employee resigned because of the employer's repudiatory conduct, satisfying the Coca Cola v Ligaga principles, including the objective test and causation.
The court applied the Coca Cola East & Central Africa Ltd v Maria Kagai Ligaga principles and Western Excavating v Sharp. It found it undisputed that the salary was reduced by Kshs. 9,887 (2019) and Kshs. 47,347 (2020-2022), with no consultation and no restoration despite promises. The Respondent's own letter of 7th July 2022 acknowledged owing arrears. The absence of consultation on significant salary cuts and the lack of a written contract and payslips rendered the relationship untenable, making it a classic constructive dismissal case.
Remedies for constructive dismissal
Claimant awarded 8 months' salary as compensation (Kshs. 1,200,000), one month's salary in lieu of notice (Kshs. 150,000), uncontested salary arrears (Kshs. 1,395,734) and leave pay for 3 years (Kshs. 315,000), with interest and costs.
The court took into account the Claimant's length of service and the fact she was pushed out by the Respondent's prolonged failure to pay agreed salary. Salary arrears were uncontested and allowed. Leave pay succeeded in the absence of leave records to the contrary. Acting DVC allowance and extra load claims failed for want of evidence.
Legal principles established
#- Unilateral variation of employment terms without consultation amounts to repudiation of the employment contract and offends the right to fair labour practices
- Failure to pay agreed salary over a prolonged period without consultation constitutes conduct sufficient to establish constructive dismissal
Court orders
#- 1.Judgment entered in favour of the Claimant: 8 months' salary in compensation of Kshs. 1,200,000
- 2.1 month's salary in lieu of notice of Kshs. 150,000
- 3.Salary arrears of Kshs. 1,395,734
- 4.Leave pay for 3 years of Kshs. 315,000
- 5.Total award of Kshs. 3,060,734
- 6.Interest at court rates from the date of judgment until payment in full
- 7.Claimant awarded costs of the case
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment disputes (Article 41 of the Constitution referenced; contract of employment claim)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ojiambo v Islamic University of Kenya (Cause E187 of 2023) [2025] KEELRC 2267 (KLR)", Case Analysis (2025). Not stated in the judgment text provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2267/eng@2025-07-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.