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ELRCPartially AllowedNot stated in the excerpt provided· [2025] KEELRC 2874 (KLR)

Kiprotich v Agile Business Solutions Limited (Cause E989 of 2024) [2025] KEELRC 2874 (KLR)

Employment and Labour Relations Court
21 October 2025
3,317 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 rejected a constructive dismissal claim because the resignation letter thanked the employer, but still awarded the employee Kshs 3.7 million in promised gratuity and dividends.

What this practically means

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Executive summary

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The Claimant, employed as Chief Officer, Technology Department – Proprietary Software from late 2018 without a written contract, resigned on 28th August 2024 and claimed constructive dismissal, alleging the Respondent's directors had falsely accused him of business sabotage, toxicity, holding the company hostage, and colluding to tarnish its reputation, creating an intolerable work environment. He sought declarations, notice pay, gratuity, dividends, and 12 months' damages. The Respondent maintained the resignation was voluntary, that the employment handbook governed his terms, and that the acceptance-of-resignation letter of 31st August 2024 had no binding effect. The Court framed two issues: constructive dismissal and entitlement to reliefs. Applying the Coca-Cola v Ligaga test, it held constructive dismissal requires proof of a causal link between the employer's conduct and the resignation. The Claimant's resignation letter gave no reason for leaving and thanked the employer for leadership and mentorship, so he failed to prove causation; the constructive dismissal claim and the related notice pay and damages claims failed. However, the Court found that RW1, the Respondent's Managing Director, had expressly committed in the acceptance letter to pay gratuity of Kshs. 3,427,200.00 in five instalments and dividends of Kshs. 822,241.02 (with Kshs. 500,000 already paid), and admitted in cross-examination that no gratuity had been paid. Relying on estoppel under Section 120 of the Evidence Act, the Court held the Respondent estopped from denying these obligations. Judgment was entered for the Claimant for Kshs. 322,241.02 in unpaid dividends and Kshs. 3,427,200.00 in gratuity, with interest at court rates from the date of judgment, and the Respondent to bear the costs.

Key legal issues

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01

Whether the Claimant was constructively dismissed

Holding

No - constructive dismissal was not proved because the resignation letter gave no reason and there was no causal link to the alleged hostile environment.

Reasoning

Applying the Coca-Cola test, the employee must show entitlement to leave without notice because of the employer's conduct, proving either unreasonableness or repudiatory breach, plus causation. The Claimant's resignation letter was silent on the alleged hostility and thanked the employer. The Court therefore found no causal connection between the alleged conduct and the resignation, and the claim to the required standard failed.

p. 6
02

Entitlement to gratuity and unpaid dividends under the acceptance-of-resignation letter

Holding

Yes - the Respondent, having expressly committed in writing to pay gratuity of Kshs. 3,427,200.00 and dividends of Kshs. 822,241.02 (with Kshs. 500,000 paid), was estopped from denying liability.

Reasoning

RW1 admitted authoring the letter and that no gratuity instalment was paid. The Court found a mutual understanding encompassing the agreed payments, transfer of vehicle KCW 249W, and waiver of notice. Invoking estoppel under Section 120 of the Evidence Act and the Serah Njeri Warobi principle, the Respondent was precluded from resiling from the position the Claimant had acted upon.

p. 7

Legal principles established

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  • Constructive dismissal requires proof of a causal link between the employer's conduct and the employee's resignation.
  • A resignation letter that gives no reason for leaving and expresses gratitude undermines a subsequent claim of constructive dismissal.
  • An employer who expressly undertakes in an acceptance-of-resignation letter to pay gratuity and dividends, and partially performs, is estopped from denying that obligation.

Court orders

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  1. 1.Judgment entered for the Claimant for Kshs. 322,241.02 being unpaid dividends
  2. 2.Judgment entered for the Claimant for Kshs. 3,427,200.00 being gratuity
  3. 3.Interest on the above sums at court rates from the date of judgment until payment in full
  4. 4.The Respondent shall bear the costs of the Claim

Authorities

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Legislation

  • Employment Actnot specified
  • Evidence ActSection 120
  • Civil Procedure ActSection 1B
  • Civil Procedure RulesOrder 21 Rule 1
  • Constitution of KenyaArticles 159(2)(d) and 48

Cases cited (10)

  • Micah Kangogo Chelang’a v Kenya Farmers Association Limited
    [2022]
  • Coca Cola East and Central Africa Limited v Maria Kagai Ligaga
    [2015] eKLR
  • Kenya Ports Authority v Munyao & 4 Others
    [2023] KESC 112 (KLR)
  • Elizabeth Washeke & 62 Others v Airtel Networks (K) Ltd & Another
    [2013] eKLR
  • KUDHEIHA v Aga Khan Hospital
    [2020] eKLR
  • Milton M. Isanya v Aga Khan Hospital Kisumu
    [2017] eKLR
  • Edwin Beiti Kipchumba v National Bank of Kenya Limited
    Cause No. 824 of 2016
  • Muikamba v Radio Africa Group Limited
    [2023] KEELRC 1251 (KLR)
  • Wakasiaka v Textbook Centre Limited
    Cause No. 882 of 2019
  • Serah Njeri Warobi v John Kimani Njoroge
    [2013] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act; claim for constructive dismissal)

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, "Kiprotich v Agile Business Solutions Limited (Cause E989 of 2024) [2025] KEELRC 2874 (KLR)", Case Analysis (2025). Not stated in the excerpt provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2874/eng@2025-10-21

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