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ELRCPartially AllowedNot stated in the judgment· [2025] KEELRC 2723 (KLR)

Nyabala v Special Olympics Kenya (Cause E534 of 2023) [2025] KEELRC 2723 (KLR)

Employment and Labour Relations Court
3 October 2025
4,142 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court found Special Olympics Kenya's redundancy was fake and unfair, awarding the sacked CEO Kshs. 1.5 million plus costs.

What this practically means

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Executive summary

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The Claimant, employed as National Director/Chief Executive Officer of Special Olympics Kenya under a five-year fixed-term contract running from 1st August 2020 to 31st July 2025, sued after his employment was terminated on 15th March 2023 on grounds of redundancy. He sought Kshs. 13,003,846 comprising notice pay, salary for the unexpired contract term, accrued leave and compensation for unlawful termination, plus a declaration that the termination was unlawful. The Respondent maintained that the redundancy was genuine, arising from a January 2023 reorganization, and that it complied with Section 40 of the Employment Act. The Court framed two issues: whether the termination was unfair and unlawful, and entitlement to remedies. On substance, the Court found the redundancy was not genuine: the minutes of the 20th January 2023 meeting were disputed and conflicting, the Claimant continued performing his role and corresponding with UNICEF as National Director after the alleged abolition, a July 2024 advertisement for a Chief Executive Officer position was unconvincingly denied, and RW1 never refuted the Claimant's contemporaneous email alleging an ultimatum to resign. Procedurally, the Court doubted service of the 13th February 2023 redundancy notice and found no pre-redundancy consultations, contrary to Section 40(1) and ILO Convention No. 158, though terminal dues were paid. The Court declared the termination unfair and unlawful and awarded compensatory damages of Kshs. 1,500,000 (five months' gross salary) with interest and costs. Claims for accrued leave and salary for the unexpired contract term were declined.

Key legal issues

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01

Substantive justification of the redundancy

Holding

The redundancy was not genuine; the Respondent failed to establish a valid and fair reason based on operational requirements

Reasoning

The Court found conflicting minutes of the 20th January 2023 meeting, noted the Claimant continued to act as National Director and correspond with UNICEF after the alleged abolition of his position, and found a July 2024 advertisement for a Chief Executive Officer position equivalent to his role. RW1 did not refute the Claimant's email alleging an ultimatum to resign. These inconsistencies undermined the claim that the office was genuinely abolished.

p. 6
02

Procedural fairness under Section 40(1) of the Employment Act

Holding

The Respondent did not comply with the mandatory notice and consultation requirements, rendering the termination procedurally unfair

Reasoning

The Court doubted that the Claimant was served with the 13th February 2023 redundancy notice since there was no acknowledgment of receipt and the Claimant continued working. No evidence of pre-redundancy consultations was adduced, contrary to Section 40(1) and Article 13 of ILO Convention No. 158, though terminal dues under Section 40(1)(e), (f) and (g) were paid.

p. 8
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Remedies

Holding

Compensatory damages of five months' gross salary awarded; accrued leave and unexpired-contract salary refused

Reasoning

Having found both substantive and procedural unfairness, the Court exercised discretion to award five months' gross salary as compensation, considering the duration of employment and circumstances of termination. The leave claim failed because it had been settled, and the unexpired-term salary claim was refused as anticipatory.

p. 8

Legal principles established

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  • Termination on grounds of redundancy must be both substantively justified and procedurally fair
  • The employer bears the burden of proving that a redundancy termination was valid, fair and grounded on operational requirements
  • Failure to follow the Section 40 procedure renders a redundancy termination unprocedural and unfair

Court orders

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  1. 1.A declaration is issued that the termination of the Claimant's employment was unfair and unlawful
  2. 2.The Claimant is awarded compensatory damages in the sum of Kshs. 1,500,000.00, being the equivalent of five (5) months of his last salary
  3. 3.The sum shall attract interest at court rates from the date of judgment until payment in full
  4. 4.The Claimant is awarded the costs of the suit
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (Section 45) and 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, "Nyabala v Special Olympics Kenya (Cause E534 of 2023) [2025] KEELRC 2723 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2723/eng@2025-10-03

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