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ELRCPartially AllowedNot stated in the judgment as provided· [2025] KEELRC 2288 (KLR)

Onyango v Bridge International Academies (Employment and Labour Relations Cause 1458 of 2018) [2025] KEELRC 2288 (KLR)

Employment and Labour Relations Court
31 July 2025
6,606 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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What this practically means

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Executive summary

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The Claimant, formerly the Respondent's Finance Director, East Africa, sued challenging the termination of his employment on 23rd August 2018 following an alleged payroll fraud scheme, contending the termination was procedurally unfair, that he was a scapegoat, and that responsibility for payroll oversight lay with the People Department. The Respondent maintained the Claimant neglected his duty to supervise the payroll, detect variances and prevent fraud, and that it accorded him fair procedure. The court framed two issues: whether the termination was lawful and whether the Claimant was entitled to the reliefs sought. On substance, the court found that the Claimant's Job Description placed responsibility for fraud-prevention systems on him, that he was aware of flagged payroll variances, and that the KPMG report attributed the loss to weaknesses in the finance team under his supervision; the Respondent therefore had a valid reason for termination on a balance of probabilities. On procedure, the court found the Respondent substantially complied with section 41 of the Employment Act - notice, opportunity to respond, and accommodation of the Claimant's scheduling difficulties - but erred in refusing him the unredacted KPMG report and access to data on his surrendered work laptop, contrary to section 4 of the Fair Administrative Action Act, rendering the disciplinary process procedurally unfair. Following Mutwol v Moi University, the compulsory leave was lawful. The court declined notice pay (gross misconduct) and future-income damages (not contemplated by section 49), but awarded Ksh. 623,333 as salary for 22 days, Ksh. 396,666 for 14 accrued leave days, Ksh. 850,000 compensation for procedural unfairness, interest, release of personal effects upon clearance, and half costs.

Key legal issues

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01

Whether there was valid reason to terminate the Claimant's employment

Holding

Yes - the Respondent had valid reasons to entertain a genuine belief that the financial loss was due to the Claimant's negligence as Finance Director.

Reasoning

The Claimant's Job Description, which he conceded in cross-examination covered fraud-prevention responsibilities, required him to put systems in place to obviate fraud. Email correspondence showed he was aware of flagged payroll variances, including a Ksh. 14,000,000 variance. The KPMG report attributed the loss of Ksh. 63,736,660 to lack of monitoring, oversight and reconciliation in the finance team under his supervision. Applying the balance of probabilities standard, the Respondent discharged its burden.

p. 7
02

Whether the disciplinary process was fair

Holding

Partially - although notice and opportunity to be heard were substantially accorded, the Respondent's failure to provide the unredacted KPMG report and access to the work laptop data rendered the process procedurally unfair.

Reasoning

Section 41 of the Employment Act and section 4 of the Fair Administrative Action Act require the employer to notify the employee of the charges, allow a response, and provide the materials it will rely on. The Claimant requested the complete KPMG report but the Respondent ignored the request without justifying the redactions, and denied him access to data on his surrendered work laptop, compromising his right to prepare his defense.

p. 10
03

Whether compulsory leave without contractual basis was lawful

Holding

Yes - following Mutwol v Moi University, absence of a contractual or handbook provision for compulsory leave does not render it illegal.

Reasoning

Neither the contract nor the Employee Handbook provided for compulsory leave, but the Court of Appeal in Mutwol held that no law prohibits placing an employee on compulsory leave and no contractual provision is required. That decision binds this court, so the Respondent could lawfully remove the Claimant from the workplace pending the disciplinary process.

p. 10
04

Entitlement to reliefs

Holding

The Claimant was awarded salary for 22 days of August 2018, pay in lieu of 14 accrued leave days, one month's salary as compensation for the procedural unfairness, interest, release of personal effects, and half costs; notice pay and future income were refused.

Reasoning

Because the termination was substantively justified and only procedurally flawed, the court granted modest redress: salary for days actually worked up to 22nd August 2018 (at Ksh. 850,000 monthly salary, not the pleaded Ksh. 892,500), admitted accrued leave, and compensation equivalent to one month's salary under section 49 for the procedural flaws, plus interest and half costs given partial success.

p. 11

Legal principles established

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  • The standard of proof in employment termination is on a balance of probabilities; the employer need only show grounds for a genuine belief that the employee committed the infraction.
  • An employer is not obliged to consider an employee's written response to a show cause letter before inviting him to a disciplinary hearing, so long as the employee is given an opportunity to respond before a decision on his fate.
  • An employee is under a duty to remain available to the employer and to attend disciplinary hearings when directed; he cannot attend only at his option and time.
  • There need be no contractual provision for compulsory leave before an employee can be placed on such leave.
  • Under section 4 of the Fair Administrative Action Act, an employer must provide the employee with the information, materials and evidence it will rely on to make its decision.

Court orders

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  1. 1.Declared that the Respondent's decision to terminate the Claimant's employment was procedurally flawed and unfair on this account.
  2. 2.Declared that the Respondent's decision to send the Claimant on compulsory leave was lawful.
  3. 3.Declined the prayer for pay in lieu of notice.
  4. 4.Awarded salary for twenty-two (22) days of service in August 2018 in the sum of Ksh. 623,333.00.
  5. 5.Awarded pay in lieu of accrued leave for fourteen (14) days in the sum of Ksh. 396,666.00.
  6. 6.Ordered the Respondent to release the Claimant's personal effects once he undertakes the clearance process.
  7. 7.Awarded compensation for the unfair termination in the sum of Ksh. 850,000.00 (one month's salary).
  8. 8.Declined the prayer for compensation for loss of future income for five (5) years.
  9. 9.Awarded interest at court rates from the date of judgment.
  10. 10.Awarded the Claimant half costs of the suit.

Authorities

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Legislation

  • Employment Actsection 41
  • Employment Actsection 44(4)(c)
  • Employment Actsection 44(1)
  • Employment Actsection 49
  • Fair Administrative Action Actsection 4
  • Employment and Labour Relations Court (Procedure) RulesRule 28(3)

Cases cited (3)

  • Kenya Revenue Authority v Reuwel Waithaka Gitahi & 2 others
    [2019] eKLR
  • Issak v Independent Electoral and Boundaries Commission
    [2024] KEELRC 2517 (KLR)
  • Mutwol v Moi University
    [2022] KECA 537 (KLR)
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (first-instance employment claim)

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, "Onyango v Bridge International Academies (Employment and Labour Relations Cause 1458 of 2018) [2025] KEELRC 2288 (KLR)", Case Analysis (2025). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2288/eng@2025-07-31

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