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ELRCPartially AllowedNot stated in the judgment as provided· [2025] KEELRC 2413 (KLR)

Kamau v Chuna Sacco Society Ltd (Cause 1043 of 2021) [2025] KEELRC 2413 (KLR)

Employment and Labour Relations Court of Kenya
17 July 2025
3,637 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled an accountant's dismissal unfair because the employer withheld key documents, gave too little preparation time, and couldn't prove its reasons.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent SACCO from 5th July 2011 as an Accounts Assistant and later promoted to Accountant, was interdicted on 18th December 2020 following a forensic audit into unaccounted funds of approximately Kshs. 670 million. He was served with allegations on 29th March 2021, appeared before a disciplinary committee, and was summarily dismissed on 15th April 2021. He challenged the dismissal, seeking a declaration of unfairness, compensation, unpaid interdiction salary, notice pay, general damages for defamation and a certificate of service. The Court framed two issues: whether the summary dismissal was unfair, and entitlement to reliefs. On procedure, it found that the Respondent denied the Claimant an adjournment without any timetable in its Human Resource Manual or CBA justifying the refusal, failed to provide the forensic audit report and system access needed for his defence, and gave him inadequate time after documents were emailed on 8th April 2021 for a hearing on 10th April 2021. The dismissal was therefore procedurally unfair. On substance, the Respondent produced only extracts of the forensic audit report - the full report being withheld - and the final report was dated after the dismissal and prepared in anticipation of litigation. With no job description linking the Claimant to the impugned transactions, the Respondent failed to discharge its burden under sections 43 and 45(2) of the Employment Act; an adverse inference was drawn against it. The Court awarded five months' gross salary (KShs. 587,120) as compensation under section 49(1)(c), KShs. 293,660 in unpaid interdiction salary, three months' notice pay (KShs. 352,272), a certificate of service, interest and costs. General damages for defamation were declined for want of evidence.

Key legal issues

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01

Procedural fairness of the summary dismissal

Holding

The dismissal was procedurally unfair: the Respondent denied an adjournment without any timetable basis in its HR Manual or CBA, refused access to the forensic audit report and the accounts system, and gave inadequate time to prepare.

Reasoning

The employer invoked HR Manual and CBA deadlines to refuse an adjournment but did not produce the Manual or identify any clause imposing timelines. The disciplinary committee resolved to consider the Claimant's requests for system access and the forensic audit report but never reverted. The gravity and complexity of the accusations required access to statements and the audit report; supervised access was feasible even for sensitive documents. Documents emailed at 6pm on 8th April left one day before the 10th April hearing, which the Court held was inadequate preparation.

p. 5
02

Substantive fairness - burden of proving reasons under ss. 43 and 45(2)

Holding

The summary dismissal was substantively unfair because the Respondent failed to prove the reasons, tendering only incomplete audit extracts and no job description linking the Claimant to the impugned transactions.

Reasoning

Section 43 places the duty of proving the reason on the employer; section 45(2) requires that the reasons be fair and valid. The Claimant had no job description and could be assigned duties day-to-day, so the Respondent had to show on a balance of probabilities that the accused omissions were his responsibility. The excerpts of the forensic audit report did not establish guilt. The final report was dated 13th July 2022, after the dismissal, and was prepared in anticipation of litigation. An adverse inference was drawn from the withheld full report.

p. 7
03

Entitlement to reliefs

Holding

The Claimant was awarded five months' gross salary as compensation for unfair dismissal, unpaid interdiction-period salary, three months' notice pay and a certificate of service; defamation damages were refused.

Reasoning

Compensation under section 49(1)(c) is discretionary; the Court considered the Respondent's non-compliance with procedural and substantive fairness obligations, its selective production of evidence, and the Claimant's six-and-a-half years of service in awarding five months' gross salary. Notice pay followed the three months' notice entitlement in the CBA, the dismissal having been without notice. Unpaid interdiction salary was awarded because the Respondent was still calling the Claimant for his dues as late as 8th May 2023. Defamation failed for want of evidence.

p. 7

Legal principles established

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  • An employer seeking to dismiss must accord the employee an adequate opportunity to prepare, including access to relevant documents; a reasonable employer could allow supervised access to sensitive material.
  • Where a party withholds a relevant document, the court may draw an adverse inference that its production would have been prejudicial to that party.
  • It is not enough for an employer to state a reason for termination; the employer must demonstrate on a balance of probabilities that the reason existed and was fair and valid.

Court orders

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  1. 1.A declaration that the summary dismissal against the Claimant was unfair
  2. 2.Compensation pursuant to Section 49(1)(c) of the Employment Act, five months' gross salary, KShs. 587,120
  3. 3.Unpaid salary during the time the Claimant was under interdiction, KShs. 293,660
  4. 4.Notice pay, three months' salary, KShs. 352,272
  5. 5.A certificate of service to issue in the Claimant's favour
  6. 6.Interest on the sums awarded at court rates from the date of judgment till full payment
  7. 7.Costs of the suit to the Claimant

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 43
  • Employment ActSection 45(2)
  • Employment ActSection 49(1)(c)

Cases cited (2)

  • Walter Ogal Anuro v Teachers Service Commission
    [2013] eKLR
  • Pius Machafu Isundu vs Lavington Security Guards Limited
    [2017] eKLR
Jurisdiction invoked
Employment Act, 2007 (ss. 41, 43, 45(2), 49(1)(c)); first-instance employment claim under the Court's employment and labour relations jurisdiction

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, "Kamau v Chuna Sacco Society Ltd (Cause 1043 of 2021) [2025] KEELRC 2413 (KLR)", Case Analysis (2025). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2413/eng@2025-07-17

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