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ELRCPartially AllowedNot stated in judgment

Public Transport Operators Union v North East Coaches Travellers Sacco (Cause E498 of 2024) [2025] KEELRC 2976 (KLR)

Employment and Labour Relations Court
30 October 2025
1,722 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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A Nairobi court awarded a bus driver Kshs. 534,000 after his employer failed to prove his firing was fair or that he was ever heard.

What this practically means

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Executive summary

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The Claimant, a trade union, sued on behalf of its member, John Muturi Ngare, a bus driver employed by the Respondent from January 2010 until December 2022, seeking terminal dues and compensation of Kshs. 2,971,663, costs, interest, and a certificate of service. It alleged unfair termination without compliance with sections 41 and 43 of the Employment Act, non-remittance of NSSF and NHIF contributions, salary underpayment, and unpaid leave, off days and salary. The Respondent never entered appearance, so the claim proceeded by formal proof, with the grievant's and the union Secretary General's statements adopted as evidence. The court framed two issues: whether the termination was unfair/unlawful and whether the reliefs were merited. Finding the Respondent's evidence uncontroverted, it held the termination was unfair - without valid reason and in breach of the mandatory hearing procedure in section 41 - applying Pius Machafu Isindu v Lavington Security Guards and George Musamali v G4S. On reliefs, it awarded compensation of 10 months' gross salary (Kshs. 200,000), one month's notice pay (Kshs. 20,000), leave of Kshs. 154,000 computed across both salary levels, unpaid salary of Kshs. 40,000 for October and November 2021, and service pay of Kshs. 120,000 for 12 years, since no NSSF contributions were proved. The underpayment claim failed for lack of evidence, and the certificate of service prayer was not addressed. Judgment of Kshs. 534,000 was entered for the Claimant, subject to statutory deductions, with costs and interest at court rates from the date of judgment.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the grievant's employment was unfairly/unlawfully terminated by the Respondent
  2. 2.Whether the reliefs sought are merited

Key legal issues

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01

Whether the grievant's termination was unfair and unlawful

Holding

Termination was unfair - no valid reason and no compliance with section 41 procedure; the uncontroverted evidence of the Claimant stood proved.

Reasoning

The Respondent did not enter appearance or controvert the Claimant's pleadings and evidence. The court found the grievant was employed and terminated without valid reason and without the notification and hearing mandated by section 41. It applied the Court of Appeal's holding in Pius Machafu Isindu that employers bear heavy statutory obligations to prove reasons and follow the mandatory hearing process before termination.

p. 3
02

Compensation for unfair termination

Holding

Awarded 10 months' gross salary (Kshs. 200,000) under sections 49 and 50 of the Employment Act, given 13 years of service and no contributory misconduct.

Reasoning

Having found unfair termination, the court exercised its discretion under sections 49 and 50. It considered the grievant's 13 years of service and that he never contributed to the termination through misconduct, fixing compensation at 10 months of the Kshs. 20,000 gross salary, plus one month's salary in lieu of notice under section 35(1)(c).

p. 4
03

Leave, unpaid salary and service pay

Holding

Leave awarded at Kshs. 154,000 computed across both salary levels; unpaid salary for October and November 2021 awarded at Kshs. 40,000; service pay of Kshs. 120,000 awarded for 12 years.

Reasoning

The leave claim was scaled down because the salary varied over the years. The unpaid salary claim was unrebutted. Service pay was granted because there was evidence that no NSSF contributions were made, engaging section 35(6), computed at 15 days' salary per year of service over 12 years.

p. 4
04

Claim for underpayment

Holding

Dismissed for want of proof.

Reasoning

Although pleaded that the grievant was underpaid relative to the classification of a 51-seater bus as a Heavy Commercial Vehicle under the General Wages Order, no evidence was adduced to substantiate the differential; the claim therefore failed.

p. 4

Legal principles established

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  • An employer bears the burden of proving that the reason for termination is valid and fair and that a fair procedure under section 41 of the Employment Act was followed; failure to do so renders the termination unfair.
  • An employee is entitled to service pay under section 35(6) of the Employment Act unless the employer proves the employee was a beneficiary of an NSSF pension or gratuity scheme.

Court orders

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  1. 1.Judgment entered for the Claimant against the Respondent for Kshs. 534,000 comprising: compensation Kshs. 200,000; notice Kshs. 20,000; leave Kshs. 154,000; unpaid salary Kshs. 40,000; service pay Kshs. 120,000
  2. 2.The award is subject to statutory deductions
  3. 3.Costs of the suit to the Claimant
  4. 4.Interest at court rates from the date of the judgment

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
First-instance employment and labour relations dispute under the Employment Act, 2007 (court's jurisdiction under the Employment and Labour Relations Court Act not expressly cited)

Relief refused

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Claim for salary underpayment (for driving a 51-seater bus classified as a Heavy Commercial Vehicle under the General Wages Order)

Not proved by evidence

p. 4

Portion of the leave claim as pleaded (which was exaggerated by basing it on the last salary throughout)

Leave computed at the two differing salary levels rather than the final salary

p. 4

Issuance of the Certificate of Service under section 51 of the Employment Act

Not addressed in the court's analysis or final orders

Costs

Costs of the suit awarded to the Claimant, plus interest at court rates from the date of the judgment

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

The court finds that the Respondent unfairly terminated the grievant's employment without any valid reason and without following the mandatory procedure set out under section 41 of the Employment Act.
p. 3Unfair termination - valid reason and fair procedure
A mandatory and elaborate process is then set up under Section 41 requiring notification and hearing before termination.
p. 3Employer's statutory obligations (quoting Pius Machafu Isindu)
Consequently I enter judgment for the Claimant as against the Respondent for payment of the following
p. 4Final orders - judgment entered
The above award is subject to statutory deductions but in addition to costs and interest at court rates from the date of the judgment.
p. 5Final orders - deductions, costs and interest
Section 35(6) of the Employment entitles an employee to service pay unless there is proof that he/she was a beneficiary of National Social Security Fund pension or gratuity scheme.
p. 4Service pay entitlement

Issues in the judgment

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minor

Internal chronological inconsistency: the grievant is said to have resumed work in January 2023 yet the termination is pleaded as December 2022, and paragraph 5 states he worked until June 2021 when shot while in Mandera despite the claim in paragraph 1 that termination occurred in December 2022.

minor

Date inconsistency in the record: submissions are stated to have been filed on 7th October 2025 upon instruction on 14th October 2025, an impossible sequence.

minor

Service pay computed over 12 years although compensation was based on 13 years of service; also relief (a) refers to 'Kshs. 2,971,663.00' as claimed but judgment awards Kshs. 534,000 total, with no reasoning reconciling the figures.

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, "Public Transport Operators Union v North East Coaches Travellers Sacco (Cause E498 of 2024) [2025] KEELRC 2976 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2976/eng@2025-10-30

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