King v Meditest Diagnostic Services Limited (Cause E1070 of 2023) [2025] KEELRC 2305 (KLR)
The bottom line
#Kenya's ELRC dismissed a director's Sh41 million employment claim because invoicing through his own company proved he was a contractor, not an employee.
What this practically means
#Executive summary
#Key legal issues
#Existence of an employment relationship
The Claimant did not prove a contract of service; the arrangement evidenced was a contract for service
The appointment letter was made under the Companies Act as a Director appointment and lacked hallmark employment clauses such as remuneration, place of work, hours of work and leave. Payment was effected through invoices raised by the Claimant's own company, Attain Enterprises Ltd, including VAT, which is inconsistent with employment under the Employment Act where PAYE is deducted via payroll.
Burden of proof
The party alleging employment must prove it; employer's statutory duties do not relieve the claimant of this burden where the relationship is disputed
Applying Sections 107 and 108 of the Evidence Act, the court held that the Claimant, whose employment was denied from the outset, had to adduce evidence establishing the relationship. The employer's record-keeping obligations under Sections 10(6), (7) and 74 of the Employment Act only apply once an employment relationship is established or undisputed.
Unfair termination and reliefs
Not determined, as the foundational employment relationship was not proved
Since the existence of an employment relationship was the foundation for a claim of unfair termination, the failure to prove it meant the claims for unfair termination, notice pay, unpaid salary, sitting allowance and declaratory relief could not logically be determined.
Legal principles established
#- Where a person must raise an invoice to be paid, the arrangement points to a contract for service rather than a contract of service
- The employer's statutory record-keeping burden under Sections 10(6), (7) and 74 of the Employment Act arises only where an employment relationship is undisputed or established; the claimant still bears the primary burden of proof
Court orders
#- 1.The Claim is dismissed
- 2.Each party shall bear its own costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment and labour relations claims (referenced through the Employment Act and ELRC cause practice)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "King v Meditest Diagnostic Services Limited (Cause E1070 of 2023) [2025] KEELRC 2305 (KLR)", Case Analysis (2025). Memorandum of Claim dated 19th December 2023 (ELRC, Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2305/eng@2025-07-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.