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ELRCPartially AllowedMemorandum of Claim dated 26th March 2019 (number not stated in judgment)· [2025] KEELRC 2530 (KLR)

Onchwati v Karen Blixen Coffee Garden & Cottages Limited (Cause 185 of 2019) [2025] KEELRC 2530 (KLR)

Employment and Labour Relations Court
26 September 2025
6,594 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~26 min to read original · ~4 min brief

The bottom line

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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

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Executive summary

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The claimant, employed by the respondent from 2004/2006 until termination, sued for unlawful and unfair termination following his accrual and taking of 12 months' accumulated leave from May 2017. He alleged that on expiry of the leave he was told by the Acting Human Resources Manager, on the Director's instructions, not to resume duty, and that on 1st November 2018 he was informed by telephone that his employment was terminated. The respondent contended he absconded after the leave ended on 2nd June 2018 and was terminated after a show-cause notice and a disciplinary hearing he failed to attend. The court found no termination letter was produced, no proof of delivery of the show-cause notice, and that controverted SMS exchanges showed the claimant's boss, acting under the Director's instruction, stopped him from resuming work. The court held the termination was without valid reason and without procedural fairness, awarding maximum compensation of 12 months' gross salary (Kshs. 1,837,339.20) and one month's notice pay (Kshs. 153,111.60). The court also found the respondent deducted loan installments under a check-off arrangement and failed to remit them to NIC Bank, awarding Kshs. 651,754/-, but declined general damages for the resulting CRB listing for failure to mitigate. Severance pay, leave allowance, salary arrears, medical deductions and legitimate expectation damages were all disallowed. Costs and interest were awarded to the claimant, with a 30-day stay.

Key legal issues

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01

Whether the termination was lawful and fair

Holding

Termination was unlawful and unfair - no valid reason and no procedural fairness

Reasoning

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.

p. 10
02

Whether the claimant was entitled to compensation for unfair termination

Holding

Maximum compensation of 12 months' gross salary awarded under section 49

Reasoning

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.

p. 10
03

Whether the respondent deducted loan installments and failed to remit them to NIC Bank

Holding

Claim proved; Kshs. 651,754/- awarded

Reasoning

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.

p. 11
04

Entitlement to severance/service pay

Holding

Disallowed

Reasoning

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.

p. 11

Legal principles established

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  • 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

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  1. 1.Declaration that the termination was unlawful and unfair
  2. 2.Notice pay of 1 month salary in lieu of Kshs. 153,111.60
  3. 3.Compensation for unlawful and unfair termination equivalent of 12 months' salary Kshs. 1,837,339.20
  4. 4.Unremitted deductions for loan with interest as at 30th October 2018 - Kshs. 651,754/-
  5. 5.Costs of the suit to the claimant
  6. 6.Interest on the decretal sums at court rates from date of judgment
  7. 7.Stay of 30 days granted

Authorities

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Legislation

  • Constitution of KenyaArticle 41(1)
  • Constitution of KenyaArticle 47(1) and (2)
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 45(2)
  • Employment Act, 2007Section 47(5)
  • Employment Act, 2007Section 49
  • Employment Act, 2007Section 49(4)
  • Employment Act, 2007Section 50
  • Employment Act, 2007Section 35(5) and (6)

Cases cited (9)

  • CMC Aviation Limited v Mohammed Noor
    [2015] eKLR
  • Monica Wanza Mbavu v Roofspec & Allied Works Co Ltd
    [2021] eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    [2013] eKLR
  • Samuel Kyulu Ndunda v Delmonte [k] Limited
    [2018] eKLR
  • Boniface Mwangi v B.O.M. Iyego Secondary School
    [2019] eKLR
  • Simon Mbithi Mbane v Inter Security Services Limited
    [2018] eKLR
  • Joseph Nzioka v Smart Coatings Limited
    [2017] eKLR
  • Stanley Omwoyo Onchweri v Board of Management Nakuru YMCA Secondary School
    [supra]
  • Felistas Acheha Ikatwa v Charles Peter Otieno
    [2018] eKLR
Jurisdiction invoked
Employment Act, 2007 (employment and labour relations dispute)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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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.