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ELRCPartially AllowedCause No 2206 of 2015· [2025] KEELRC 2987 (KLR)

Orora v Ola Energy Kenya Limited (Formerly Libya Oil Kenya Limited) (Cause 2206 of 2015) [2025] KEELRC 2987 (KLR)

Employment and Labour Relations Court
30 October 2025
3,482 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled Ola Energy unfairly dismissed its manager because the charges were vague and unproven, awarding only one month's notice pay.

What this practically means

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Executive summary

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The Claimant, employed since 1990 by Esso Kenya Limited (later Libya Oil Kenya Limited, then Ola Energy Kenya Limited), rose to Special Projects Manager. Following stock variances at the Nairobi Terminal (averaging almost 3 million litres a year between 2012 and 2014), internal investigations and a Deloitte forensic audit were conducted, and the Claimant was summarily dismissed by letter dated 15th October 2015 on grounds of careless and improper performance of his duties, failure to follow written policies and procedures, and the resulting product loss. He claimed reinstatement or, in the alternative, anticipatory salaries and benefits to retirement age, notice pay, severance pay, general damages and costs. The court framed two issues: whether the dismissal was lawful and fair, and the entitlement to remedies. Applying Sections 41 and 43 of the Employment Act and the 'range of reasonable responses test', the court found the charges generic, with no evidence of the exact loss and no specific wrong assigned to the Claimant, compromising procedural fairness. The Respondent also departed from its own Disciplinary Committee's recommendations without justification or hearing the Claimant. The dismissal was held wrongful and unfair. On remedies, reinstatement was refused due to lapse of time; anticipatory benefits were rejected as speculative and unpleaded under Section 49; severance pay was unavailable absent redundancy; and general damages are not awardable for wrongful termination. The court awarded only one month's salary in lieu of notice (Kshs. 1,013,116) with interest at court rates, with each party bearing its own costs.

Key legal issues

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01

Whether the reasons for summary dismissal were valid and proved

Holding

The reasons (careless performance, breach of policies, resulting product loss) were generic and not proved; no specific wrong was assigned to the Claimant and no evidence of the exact volume or value of loss was adduced

Reasoning

The dismissal letter indicted the Claimant for careless and improper performance and failure to follow policies. However, the court found no evidence of the exact volume or value of loss and no specific wrong assigned to the Claimant. The charges were generic in nature with no specific details, meaning the employer failed to discharge the burden under Section 43 of the Employment Act.

p. 7
02

Whether the dismissal procedure was fair under Section 41

Holding

Procedural fairness was compromised because the charges were generic, and the Respondent departed from its own Disciplinary Committee's recommendations without justifying or hearing the Claimant on the alteration

Reasoning

The court found that generic charges compromised the Claimant's right to procedural fairness under Section 41. Additionally, the Respondent failed to justify departing from its Disciplinary Committee's recommendations and the Claimant was not heard on the alteration, rendering the process procedurally unfair under Article 41 of the Constitution and Section 41 of the Employment Act.

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What remedies flow from the wrongful and unfair dismissal

Holding

Only one month's pay in lieu of notice (Kshs. 1,013,116) with interest was awarded; reinstatement, anticipatory benefits, severance and general damages were refused

Reasoning

Reinstatement was inappropriate given the lapse of time. The Claimant pleaded only notice pay among the Section 49 remedies, thereby waiving the rest. Anticipatory salaries were rejected as unfair and unreasonable, severance pay is reserved for redundancy, and general damages are not awardable for wrongful termination per the Court of Appeal in Kenya Broadcasting Corporation v Geoffrey Wakio.

p. 8

Legal principles established

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  • The employer bears the burden of proving the reasons for termination; failure renders the termination unfair
  • Procedural fairness under Section 41 requires clear charges, sufficient time, documents, and the right to be heard
  • An employer may not alter a Disciplinary Committee's recommendations without hearing the employee on the alteration
  • The 'range of reasonable responses test' governs review of an employer's dismissal decision

Court orders

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  1. 1.Award of Kshs. 1,013,116 being one month's salary in lieu of notice to the Claimant
  2. 2.Interest on the awarded amount at court rates from the date of judgment until payment in full
  3. 3.Each party to bear their own costs

Authorities

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Legislation

  • Employment ActSection 43
  • Employment ActSection 41
  • Employment ActSection 45
  • Employment ActSection 49
  • Employment ActSection 42(1)
  • Employment ActSection 44(3) and (4)
  • Constitution of KenyaArticle 41

Cases cited (10)

  • British Leyland UK Ltd v Swift
    [1989] I.R.L.R
  • Iyego Farmers' Cooperative Society v Kenya Union of Commercial Food and Allied Workers Union
    [2015] eKLR
  • Nampak Corrugated Wadeville v Khoza
    (JA 14/98) [1998] ZALAC 24
  • Rebecca Ann Maina & 2 others v Jomo Kenyatta University of Agriculture and Technology
    [2014] eKLR
  • Mathew Kipkemboi Kitai v Postal Corporation of Kenya
    [2016] eKLR
  • South Africa Revenue Service v CCMA & Ors
    (2014) 1BLLR 44
  • South Africa Revenue Service v CCMA & Ors
    (2015) ZALCCT 14
  • Express Connections Limited v Ezekiel Kiarie Kamande
    [2016] KECA 535
  • D.K Njagi Marete v Teachers Service Commission
    [2020] KECA 840 (KLR)
  • Kenya Broadcasting Corporation v Geoffrey Wakio
    [2019] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (Sections 41, 43, 45, 49) and Article 41 of the Constitution as applied in the judgment

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, "Orora v Ola Energy Kenya Limited (Formerly Libya Oil Kenya Limited) (Cause 2206 of 2015) [2025] KEELRC 2987 (KLR)", Case Analysis (2025). Cause No 2206 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2987/eng@2025-10-30

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