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ELRCPartially AllowedCause No E762 of 2022· [2025] KEELRC 2476 (KLR)

Wambua v UAP Holdings PLC (Cause E762 of 2022) [2025] KEELRC 2476 (KLR)

Employment and Labour Relations Court
19 September 2025
4,589 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~18 min to read original · ~4 min brief

The bottom line

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A Kenyan employer cannot fire you just because you face criminal charges in court — it must first prove you actually did something wrong.

What this practically means

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Executive summary

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The Claimant, employed as a Registry Assistant from 2004 and later transferred to UAP Holdings Limited, was terminated on 9th May 2022 after being charged with conspiracy to defraud CIC Insurance Company Limited contrary to Section 317 of the Penal Code. The charges arose from an ex-employee's use of fraudulently obtained monies to repay chama loans she had advanced. Her criminal case before the Milimani Chief Magistrate's Court was still pending at the time of termination and remains undetermined. She claimed a declaration that her termination was malicious, unfair and unlawful, service pay, a certificate of service, general and punitive damages, costs and interest. The Respondent maintained that given its financial-services sector, integrity and trust were core employment conditions, that the disciplinary process followed its Industrial Relations Handbook, and that termination was substantively and procedurally fair. The Court framed three issues: justifiable reason, procedural fairness, and reliefs. It held that pending criminal charges did not automatically translate into culpability, and that the employer, without independent investigations, failed to prove valid and fair reasons under Sections 43(1) and 45(2)(a) and (b) of the Employment Act; the termination was substantively unjustified. On procedure, although the Claimant was blindsided about witnesses, she agreed to proceed unaccompanied, so Section 41 was not breached. The Court awarded compensatory damages of Kshs 1,613,549.00 (seven months' gross salary) with interest, a certificate of service within 14 days, and costs to the Claimant. Service pay was declined as the Claimant contributed to NSSF under Section 35(6). Judgment delivered at Nairobi on 19th September 2025 by Stella Rutto, Judge.

Key legal issues

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01

Whether there was a justifiable reason for termination

Holding

Termination was not substantively fair - guilt was unestablished and the employer made no independent investigations

Reasoning

The Claimant was terminated solely because of criminal charges that were still pending before the Milimani Chief Magistrate's Court. Her guilt had not been established through the criminal trial. The employer undertook no independent investigations to verify culpability or suitability. Under Sections 43(1) and 45(2)(a) and (b) of the Employment Act the employer bore the burden of proving fair and valid reasons, which it failed to discharge on a balance of probabilities.

p. 8
02

Whether the Claimant was afforded procedural fairness under Sections 41 and 45(2)(c)

Holding

Although the Claimant was blindsided about who she could bring as a witness, she agreed to proceed unaccompanied, so the Respondent could not be faulted on representation

Reasoning

The Notice to Show Cause was issued and a disciplinary hearing held. The Industrial Relations Handbook did not limit witnesses to employees, and the invitation letter was ambiguous, leaving the Claimant blindsided. However, the Claimant did not dispute that she agreed to proceed without a representative, so the Section 41 requirement on accompaniment was satisfied. Notably, the Court did not make a declaration of procedural unfairness.

p. 9
03

Entitlement to reliefs

Holding

Compensatory damages of seven months' gross salary and a certificate of service awarded; service pay declined

Reasoning

Having found the termination substantively unjustified, the Court exercised discretion under the Employment Act to award compensatory damages equivalent to seven months' gross salary, factoring in the length of the employment relationship and the circumstances of termination. The certificate of service followed from the admitted employment relationship. Service pay was excluded because the Claimant contributed to NSSF under Section 35(6).

p. 9

Legal principles established

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  • An employer cannot rely solely on pending criminal charges as a valid reason for termination without independent investigation establishing the employee's culpability or suitability
  • An employer must prove the substance of the reasons for termination over and above proving the existence of such reason
  • Where continued employment is genuinely prejudicial by pending charges, an employer may suspend pending the criminal determination rather than terminate

Court orders

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  1. 1.A declaration that the termination of the Claimant from employment was substantively unjustified
  2. 2.Compensatory damages of Kshs 1,613,549.00, equivalent to seven (7) months of the Claimant's gross salary
  3. 3.Interest on the damages at court rates from the date of Judgment until payment in full
  4. 4.The Claimant shall have the costs of the suit
  5. 5.The Respondent shall issue the Claimant with a Certificate of Service within 14 days from the date of the judgment

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 43(1)
  • Employment ActSection 45(2)(a) and (b)
  • Employment ActSection 45(2)(c)
  • Employment ActSection 35(6)
  • Penal CodeSection 317
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48

Cases cited (7)

  • Patrick Njuguna Kariuki V Del Monte (K) Limited
    [2012] eKLR
  • Evans Kamadi Misango v Barclays Bank of Kenya Limited
    [2015] eKLR
  • Khamasi v Paramount Bank Limited
    [2023]
  • Samwel Wambisah Eastern Produce Kenya Ltd
    [2021]
  • Wycliffe Elijah Nyakundi & 6 Others v Safaricom Limited
    [2019]
  • Kenya Revenue Authority v Reuwel Waithaka Gitahi & 2 others
  • Judicial Service Commission v Gladys Boss Shollei & Another
    (2014) eKLR
Jurisdiction invoked
Original employment and labour relations jurisdiction under the Employment Act, 2007 (court not stated to derive from a specific constitutional article)

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, "Wambua v UAP Holdings PLC (Cause E762 of 2022) [2025] KEELRC 2476 (KLR)", Case Analysis (2025). Cause No E762 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2476/eng@2025-09-19

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