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ELRCPartially AllowedCause No E044 of 2025· [2025] KEELRC 2851 (KLR)

Mabonga v Agricultural Finance Corporation (Cause E044 of 2025) [2025] KEELRC 2851 (KLR)

Employment and Labour Relations Court
21 October 2025
7,495 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled an employer's dismissal valid in substance but unlawful because its disciplinary process denied the employee a fair hearing, awarding Kshs 3.3 million.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as a Legal Officer from 8th April 2013 and later promoted to Senior Legal Officer, challenged his termination on 17th January 2025 as substantively and procedurally unfair. The Respondent justified the dismissal on grounds of professional negligence in several court matters, forgery and unauthorised signing of documents, and later alleged a conflict of interest arising from the Claimant's registration of a private law firm. The Court framed three issues: validity and fairness of the reason for termination, procedural fairness, and entitlement to reliefs. On substance, the Court found the forgery allegation unsupported, but concluded that the Claimant's lapses in handling various court matters, though individually insufficient, cumulatively constituted a valid and fair reason for termination. On procedure, however, the Court found the process flawed: an IT officer who had investigated the Claimant sat on the disciplinary committee in breach of the Human Resource Manual, and the Claimant was denied requested documents, receiving the investigation report only on the hearing date. The termination was accordingly declared procedurally flawed and unlawful. The Court awarded compensatory damages of three months' salary (Kshs 431,829.00), accrued leave for 45 days, long service award, unpaid leave allowance for 2020-2024, and non-practice allowance for 88 months, totalling Kshs 3,332,743.50 with interest and costs. Claims for salary differential and meal allowance were declined. Judgment was delivered at Nairobi on 21st October 2025 by Stella Rutto, Judge.

Key legal issues

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01

Valid and fair reason for termination

Holding

The Court found valid and fair reasons existed when the Claimant's lapses across several court matters were assessed cumulatively, although no single lapse sufficed

Reasoning

The Court examined each of the four stated grounds: the forgery allegation failed for want of evidence; but the failures in MCC E004 of 2024, SCOMM E6365 and E6363 of 2023, and the salary-overpayment matter each showed lack of diligence. Individually they fell short of gross negligence, but cumulatively they justified termination. The alleged conflict of interest was excluded as it was not among the stated grounds for termination.

p. 11
02

Procedural fairness of the disciplinary process

Holding

The process was procedurally flawed because an investigator sat on the disciplinary committee and the Claimant was denied requested documents until the hearing

Reasoning

RW3, who extracted documents from the Claimant's computer, sat on the panel in breach of Clause 12.2.6 of the Human Resource Manual, and RW1 acted in a prosecutorial role. The Claimant's requests for documents were ignored; he received the investigation report only on the hearing date, following the reasoning in Ol Pejeta. The failure materially impaired his defence preparation, rendering the termination procedurally unfair despite valid reasons.

p. 13
03

Reliefs and entitlements

Holding

Compensatory damages of three months' salary were awarded for procedural unfairness, along with accrued leave, long service award, leave allowance and non-practice allowance to July 2020

Reasoning

Because reasons were valid but procedure flawed, only three months' compensation was awarded, taking into account the length of service and the Claimant's own contribution to the termination. The Respondent conceded or did not dispute the leave allowance, long service award and accrued leave (no leave records produced under Section 74(1)(f)). Non-practice allowance was cut off at registration of the Claimant's law firm. Salary differential and meal allowance claims failed for want of basis.

p. 13

Legal principles established

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  • An employer bears the burden of proving the reason or reasons for termination; failure discharges into unfair termination under Section 45
  • Attendance at a disciplinary hearing does not of itself amount to a fair hearing; the employee must have access to the materials relied upon
  • A disciplinary committee must not include persons who participated in the investigations
  • Cumulatively assessed omissions that individually would not justify dismissal may collectively constitute a valid and fair reason for termination

Court orders

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  1. 1.A declaration that the termination of the Claimant from employment was procedurally flawed and unlawful
  2. 2.Kshs 431,829.00 awarded as compensatory damages equivalent to three months' last gross salary
  3. 3.Kshs 215,914.50 awarded for accrued leave days for a period of 45 days
  4. 4.Kshs 10,000.00 awarded as long service award
  5. 5.Kshs 35,000.00 awarded as unpaid leave allowance for 2020-2024 at Kshs 7,000.00 per year
  6. 6.Kshs 2,640,000.00 awarded as non-practice allowance for 88 months (April 2013 to July 2020) at Kshs 30,000.00 per month
  7. 7.Total award of Kshs 3,332,743.50 with interest at court rates from the date of Judgment until payment in full
  8. 8.The Claimant to have the costs of the suit

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 47
  • Constitution of Kenya, 2010Article 159(2)(d)
  • Constitution of Kenya, 2010Article 48
  • Employment ActSection 41
  • Employment ActSection 43(1)
  • Employment ActSection 45(2)(a), (b) and (c)
  • Employment ActSection 74(1)(f)
  • Fair Administrative Action Act2015
  • Public Officer Ethics ActNot specified
  • Civil Procedure ActSection 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (7)

  • David Wanjau Muhoro v Ol Pejeta Ranching Limited
    [2014]
  • Njuguna v VFS (Kenya) Limited
    [2023] KEELRC 2860 (KLR)
  • Otieno v Unilever Kenya Limited
    (Cause 1730 of 2017) [2023] KEELRC 303 (KLR) (2 February 2023)
  • Kenya Power & Lighting Co. Ltd v Aggrey Lukorito Wasike
    [2017] eKLR
  • Kenya Revenue Authority v Reuwel Waithaka Gitahi & 2 Others
    [2019] eKLR
  • CFC Stanbic Bank Limited v Danson Mwashako Mwakuwona
    [2015] eKLR
  • Ol Pejeta Ranching Limited v David Wanjau Muhoro
    [2017] eKLR
Jurisdiction invoked
Original employment and labour relations jurisdiction of the Employment and Labour Relations Court (claim for unfair termination under the Employment 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, "Mabonga v Agricultural Finance Corporation (Cause E044 of 2025) [2025] KEELRC 2851 (KLR)", Case Analysis (2025). Cause No E044 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2851/eng@2025-10-21

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