Onchwati v Karen Blixen Coffee Garden & Cottages Limited (Cause 185 of 2019) [2025] KEELRC 2530 (KLR)
The bottom line
#A Kenyan employer that couldn't prove its 'absconding' story was ordered to pay a long-serving employee 12 months' salary, notice pay, and withheld loan deductions.
What this practically means
#Executive summary
#Key legal issues
#Whether the termination was lawful and fair
Termination was unlawful and unfair - no valid reason and no procedural fairness
The court found on the evidence that the claimant's boss (the MD) instructed him not to resume duty, so he did not abscond. No termination letter was produced and there was no evidence of delivery of the notice to show cause. RW1 admitted relying on the MD for her testimony, and the text messages were not controverted. On balance of probabilities the respondent failed to prove a valid reason or fair procedure.
Whether the claimant was entitled to compensation for unfair termination
Maximum compensation of 12 months' gross salary awarded under section 49
The court applied section 49(4) factors: 14 years of service, clean disciplinary record, no employer evidence of employee contribution to termination, minimal social security, and the employer's contemptuous conduct in leaving the claimant in limbo and distress. These merited the statutory maximum of 12 months' gross salary.
Whether the respondent deducted loan installments and failed to remit them to NIC Bank
Claim proved; Kshs. 651,754/- awarded
The respondent admitted deducting monthly installments under a check-off arrangement. Bank statements showed salary paid to Equity Bank was less than net pay, the difference corresponding to loan deductions. Deductions continued even after the salary account changed, and the respondent retained the money instead of remitting it. General damages were declined for failure to mitigate.
Entitlement to severance/service pay
Disallowed
Severance pay is only payable on redundancy termination, which was not this case. The court refused to recast the claim as service pay in submissions. Further, under section 35(5) and (6) of the Employment Act, service pay is unavailable to an employee registered under the NSSF, and the claimant produced no NSSF statement showing non-remittance.
Legal principles established
#- To pass the fairness test, termination must satisfy both substantive and procedural fairness under sections 43 and 41 of the Employment Act
- The burden of justifying the grounds for termination rests on the employer
- Where an employer alleges absconding, it must demonstrate reasonable efforts to ascertain the employee's whereabouts, and a notice to show cause and termination letter ought to follow
- It is an unfair labour practice to deduct an employee's salary under check-off and fail to remit it to the bank
Court orders
#- 1.Declaration that the termination was unlawful and unfair
- 2.Notice pay of 1 month salary in lieu of Kshs. 153,111.60
- 3.Compensation for unlawful and unfair termination equivalent of 12 months' salary Kshs. 1,837,339.20
- 4.Unremitted deductions for loan with interest as at 30th October 2018 - Kshs. 651,754/-
- 5.Costs of the suit to the claimant
- 6.Interest on the decretal sums at court rates from date of judgment
- 7.Stay of 30 days granted
- Jurisdiction invoked
- Employment Act, 2007 (employment and labour relations dispute)
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Charles Onchwati v Karen Blixen Coffee Garden & Cottages Limited[2026] KEELRC 2702 (KLR)25 Sept 2026followed
Cite this brief
#Cite this brief
Caselaw, "Onchwati v Karen Blixen Coffee Garden & Cottages Limited (Cause 185 of 2019) [2025] KEELRC 2530 (KLR)", Case Analysis (2025). Memorandum of Claim dated 26th March 2019 (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2530/eng@2025-09-26
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.