Okello v Judicial Service Commission (Cause E807 of 2023) [2025] KEELRC 2513 (KLR)
The bottom line
#A Kenyan court ruled a judiciary accountant was rightly fired for financial lapses, but his suspension and appeal process were flawed, earning him compensation.
What this practically means
#Executive summary
#Key legal issues
#Lawfulness of the suspension
The suspension was unlawful because it was made and communicated by an unauthorised officer.
Regulation 15 of the Third Schedule to the Judicial Service Act delegates the power of interdiction and suspension to the Honourable Chief Justice, and Regulation 17 reserves suspension to the Chief Justice in defined circumstances. Section D.7.5.2 of the Human Resource Policies and Procedures Manual likewise reserves the power to the Chief Justice. The suspension was not under the hand of the Chief Justice, and the Respondent produced no decision or resolution authorising it. The two authorities the Respondent relied on were declined.
Procedural fairness in termination
The dismissal process was procedurally unfair, chiefly because the Claimant's appeal was not heard and determined.
A show-cause notice was issued, the Claimant responded, and he was granted an oral hearing before a Sub-Committee of the Human Resource Management Advisory Committee with the right to be accompanied and bring witnesses. However, s 45(5)(a) of the Employment Act requires the Court to assess how the employer handled any appeal. Despite asserting the appeal was determined, the Respondent produced no evidence of that, and its own witness admitted the appeal had not been determined.
Valid and fair reasons for dismissal
The Respondent proved valid and fair reasons for the termination.
The audit report showed failure to surrender revenue of Kshs 6,938,467/-, under-banking of Kshs 10,305,963/- and Kshs 1,741,144/-, failure to account for deposits of Kshs 5,000,000/-, and unaccounted receipt books. As Accountant-In-Charge, the Claimant supervised cashiers, prepared daily revenue and banking reports and had a duty to verify revenue documents. That he was not the actual receiver of the revenue or that actual loss was not individually proved did not matter, as he failed to perform his specified control roles.
Reinstatement
Reinstatement was refused.
Reinstatement is an exceptional remedy requiring demonstration of exceptional circumstances. None were shown, and three years had elapsed since termination, making reinstatement inappropriate.
Compensation for unfair process
Three months' gross salary (Kshs 312,900/-) was awarded as compensation.
Although valid and fair reasons were proved, aspects of procedural fairness were not followed, notably the unprocessed appeal. Considering these factors, the Court found the equivalent of three months' gross salary appropriate, the monthly gross salary being Kshs 104,300/-.
Legal principles established
#- The power to suspend judicial staff under the Judicial Service Act is reserved to the Honourable Chief Justice, and a suspension made or communicated by an unauthorised officer is unlawful
- An employer's failure to hear and determine an employee's appeal renders the dismissal inequitable under s 45(5)(a) of the Employment Act
- An employer must prove valid and fair reasons for dismissal under ss 43 and 45 of the Employment Act
Court orders
#- 1.Declaration that the Respondent proved valid and fair reasons to terminate the Claimant's contract, but the process was not fair
- 2.Award of compensation equivalent to 3 months' gross salary of Kshs 312,900/-
- 3.Payment of full salaries accrued during the suspension
- 4.Interest on the award at court rates from the date of judgment
- 5.Costs to the Claimant on a half-scale
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (referring to s 43, 45 and s 45(5)(a))
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Okello v Judicial Service Commission (Cause E807 of 2023) [2025] KEELRC 2513 (KLR)", Case Analysis (2025). Cause not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2513/eng@2025-09-25
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.