Munialo v Muindi t/a Kageni Resort Development and Farm (Cause E040 of 2024) [2025] KEELRC 2424 (KLR)
The bottom line
#A Kenyan court ruled a farm manager's dismissal unfair because the employer skipped the mandatory show-cause letter and hearing, awarding her Kshs.432,704 despite proven misconduct.
What this practically means
#Executive summary
#Key legal issues
#Procedural fairness of the termination
The termination was procedurally unfair because the claimant was neither issued a show cause letter nor accorded a disciplinary hearing, contrary to section 41 of the Employment Act.
The respondent admitted under oath that he never issued a show cause letter or accorded the claimant a disciplinary hearing. Section 41 of the Employment Act mandates that an employer explain the reasons for termination and hear the employee's representations before dismissal. The admission under oath rendered the termination procedurally unfair notwithstanding the validity of the reasons.
Validity of the reason for termination
The respondent proved a valid reason for termination based on the claimant's negligence and improper performance of duty.
The claimant admitted spending Kshs.48,000 on fuel of which only Kshs.3,000 was supported by ETR receipts, and admitted making a wrong spreadsheet entry regarding Kshs.2,400 paid to workers. These admissions, contrary to her contractual duty to maintain accurate financial records, amounted to wilful neglect and careless performance under section 44(4)(c) of the Employment Act.
Compensation and reliefs
The claimant was awarded two months' gross salary as compensation, one month's notice pay, March salary, pro-rata leave, housing allowance and 7 months' pension, totalling Kshs.432,704.84.
Compensation was limited to two months' gross salary because the claimant served less than a year and her misconduct contributed to the termination. Notice pay followed section 35(1)(c). March salary was payable because no law permits unilateral unpaid leave. Leave was computed pro-rata under section 28, and housing allowance at 15% of basic pay under section 31.
Legal principles established
#- For a termination to be fair, the employer must prove both a valid reason and adherence to fair procedure, including notifying the employee of the charges and affording an opportunity to respond.
- There is no legal basis for an employer to unilaterally place an employee on unpaid leave.
- Housing allowance is a statutory right where the employer neither provides housing nor pays an allowance.
Court orders
#- 1.Declaration that the termination of the claimant's employment was unfair and unlawful.
- 2.The respondent to pay the claimant: Notice Kshs.84,000.00; Compensation Kshs.168,000.00; Salary for March Kshs.43,354.84; Leave Kshs.22,050.00; Housing allowance Kshs.24,300.00; Pension Kshs.91,000.00; Total Kshs.432,704.84.
- 3.The award is subject to statutory deductions.
- 4.The claimant is awarded costs of the suit plus interest at court rates from the date of this judgment.
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act (first-instance employment claim)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Munialo v Muindi t/a Kageni Resort Development and Farm (Cause E040 of 2024) [2025] KEELRC 2424 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2424/eng@2025-09-12
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.