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ELRCPartially AllowedMombasa ELRC Appeal (arising from Mombasa CMELRC No. E418 of 2023)· [2025] KEELRC 2683 (KLR)

SGA Security Solutions Ltd v Kasanya (Appeal E079 of 2025) [2025] KEELRC 2683 (KLR)

Employment and Labour Relations Court
2 October 2025
MMM. Mbarũ
1,497 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenyan private-sector employers cannot retire staff early unless a contract or policy clearly states a retirement age.

What this practically means

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Executive summary

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This is a first appeal to the Employment and Labour Relations Court at Mombasa against the judgment of the trial magistrate in Mombasa CMELRC No. E418 of 2023 delivered on 10 April 2025. The respondent, a night security guard employed from 1 March 1997 at Ksh. 25,704.10 per month, was retired effective 30 December 2020 by a notice issued in mid-2020, before he attained 55 years on 15 July 2021. The trial court found unfair termination and awarded 6 months' salary compensation of Ksh. 154,224.60, gratuity of Ksh. 174,716.28, costs and interest. On appeal, the appellant contended that retirement was lawful under the Pensions Act, company policy and the Regulation of Wages (Protective Security Services) Order, and that gratuity had already been paid. The court held there is no mandatory retirement age in the private sector; absent an express contractual or policy provision, the retirement notice was premature and unfair, and the 6 months' compensation was justified. Claims for 24 years' overtime and public holiday allowances were unparticularised, exaggerated and time-barred as continuing injuries under section 90 of the Employment Act. Gratuity was computed at 15 days' pay per full year for 23 years at Ksh. 174,133, offset against terminal dues of Ksh. 204,942 already paid. The trial judgment was confirmed in part; on the appeal each party bears its own costs.

Key legal issues

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01

Whether early retirement before attaining 55 years was unfair termination

Holding

Retiring the respondent six months before he attained 55 years was premature; where no contract or policy fixes a retirement age, the employee cannot be retired early, and the award of 6 months' pay was justified.

Reasoning

The court held there is no statutory mandatory retirement age in the private sector; the applicable Regulation of Wages Order allowed retirement at 55, and the respondent would turn 55 only on 15 July 2021. The appellant produced no employment contract or company policy fixing retirement age for night guards, so the retirement notice was premature and unfair.

p. 3
02

Overtime and public holiday claims

Holding

Claims declined for lack of particulars and for being time-barred as continuing injuries under section 90.

Reasoning

The court found the 24-year overtime claim unparticularised and exaggerated, and held that claims accruing daily, weekly or monthly are continuing injuries under section 90 of the Employment Act, which are defeated by limitation if not claimed within the statutory period.

p. 3
03

Gratuity

Holding

Gratuity in the protective security industry is at 15 days' pay per full year worked; the respondent earned Ksh. 174,133 for 23 years, subject to deduction of terminal dues already paid.

Reasoning

Applying the Regulation of Wages (Protective Security Services) Order, the court applied 15 days' pay per full year of service, computing 23 full years at the last gross wage of Ksh. 15,142, and offset the admitted payment of Ksh. 204,942 already received.

p. 3

Legal principles established

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  • Kenyan employment law does not fix a mandatory retirement age for private-sector employees; any retirement age must be express in the contract/HR manual or implied from conduct.
  • Claims accruing daily, weekly or monthly, such as overtime and public holiday allowances, are continuing injuries under section 90 of the Employment Act and become time-barred if not claimed within the limitation period.
  • Exaggerated or unparticularised claims by employees should be declined.

Court orders

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  1. 1.Judgment in Mombasa CMELRC No. E418 of 2023 confirmed to the extent that 6 months' pay in compensation of Ksh. 154,244.60 is upheld
  2. 2.Gratuity pay fixed at Ksh. 174,133
  3. 3.The compensation and gratuity payments to be paid less what was already received at Ksh. 204,942
  4. 4.Costs as awarded by the trial court; for the appeal, each party to bear its costs
On appeal from
Magistrates' Court (ELRC), Mombasa
Mombasa CMELRC No. E418 of 2023
Jurisdiction invoked
First appellate jurisdiction over the subordinate court's ELRC judgment (appellate jurisdiction of the ELRC under the Employment and Labour Relations Court Act)

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, "SGA Security Solutions Ltd v Kasanya (Appeal E079 of 2025) [2025] KEELRC 2683 (KLR)", Case Analysis (2025). Mombasa ELRC Appeal (arising from Mombasa CMELRC No. E418 of 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2683/eng@2025-10-02

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