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ELRCPartially AllowedStatement of Claim dated 5th November, 2019 (Cause)· [2025] KEELRC 3029 (KLR)

Terra v Cathorlic Unversity of Eastern Africa (Appeal 744 of 2019) [2025] KEELRC 3029 (KLR)

Employment and Labour Relations Court
22 October 2025
4,911 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court ruled CUEA unlawfully sacked an accountant by ignoring its own HR disciplinary rules, awarding him notice pay, eight months' salary and costs.

What this practically means

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Executive summary

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This first-instance judgment of the Employment and Labour Relations Court by D. K. Njagi Marete, J. concerned a Statement of Claim dated 5th November 2019 by a former employee of the Catholic University of Eastern Africa (CUEA) claiming non-payment of terminal benefits and damages for unlawful and unfair summary dismissal. The claimant, engaged from 2009 and serving variously as Accountant and Administrative Officer, was dismissed on 30th August 2019 over alleged anomalies in the part-time lecturers' account on grounds of failing to uphold core values, knowingly giving false or misleading information, and exposing the university to unwarranted losses. The Respondent denied the claim, contending the dismissal was justified under its Human Resources Policies and Procedures Manual and the Employment Act, and that internal appeal mechanisms had since confirmed the dismissal. The court deemed the Respondent's issues on jurisdiction, prematurity and contract expiry spent for lack of pleading and timeliness. On the merits, the court found the disciplinary process fatally defective: the show cause letter was authored by a Special Advisor contrary to clauses 14.3.6-14.3.8 of the HR Manual; no investigation report was produced; the implicated lecturers were not called to testify; and committee members Njiiri and Nyangaresi were conflicted, breaching natural justice. The alleged loss was unproved, the burden resting on the Respondent. The court declared the termination wrongful, unfair and unlawful, awarded one month's notice pay of Kshs.104,413.00 and eight months' compensation of Kshs.835,304.00 with interest, and ordered the Respondent to bear the costs. The claim thus partially succeeded, with the higher compensation and other heads of relief sought not awarded.

Key legal issues

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01

Whether termination was wrongful, unfair and unlawful

Holding

Yes - the disciplinary process transgressed clauses 14.3.6, 14.3.7 and 14.3.8 of the Respondent's HR Manual, the show cause letter was authored by a Special Advisor rather than the Vice Chancellor, there was no investigation report, and the disciplinary committee composition breached natural justice

Reasoning

The court found procedural defects throughout the disciplinary process. The show cause letter was issued by James Theuri, Special Advisor to the Vice Chancellor, contrary to the mandatory 'shall' in clause 14.3.8 requiring the Vice Chancellor to issue it. No Head of Department letter to the Vice Chancellor existed, no investigation report was produced, and implicated witnesses were not called. Committee members Njiiri and Nyangaresi had prior involvement and altercations with the claimant, creating bias, and only six of fifteen attendees signed the minutes weeks later.

p. 8
02

Whether the employer proved loss justifying summary dismissal under section 44(4)(g) of the Employment Act

Holding

No - the alleged loss from the part-time lecturers' overpayments was not proved; no audit report was adduced and the burden lay on the Respondent

Reasoning

The claimant was dismissed for exposing the university to unwarranted losses through alleged overpayment of part-time lecturers. No audit report or testimony from the two lecturers was produced. Relying on sections 107 and 109 of the Evidence Act, the court held the burden of proving loss rested on the Respondent, and the failure to tender the investigation report and witness testimony entitled the court to draw an adverse inference against the Respondent.

p. 8
03

Whether the Respondent's issues on jurisdiction, prematurity and contract expiry (raised only in submissions) were properly before the court

Holding

No - they were not pleaded or raised as timely preliminary objections and were deemed spent

Reasoning

The court noted that the first three issues arose solely from the Respondent's written submissions dated 26th June 2023 and formed no part of the pleadings. The claimant never addressed them. Since they were not clearly raised as preliminary objections at the opportune moment, the court treated them as mere appendices to the termination defence and declined to consider them.

p. 4
04

Whether the claimant is entitled to the relief sought

Holding

Yes, partially - a declaration of wrongful termination, one month's notice pay and eight months' compensation were awarded

Reasoning

Having found unlawful termination, the court held the claimant entitled to relief. It made the two declarations sought, awarded one month's salary in lieu of notice at Kshs.104,413 and eight months' salary as compensation for unfair termination totalling Kshs.835,304, with interest at court rates, instead of the 12 months' compensation and other heads claimed.

p. 9

Legal principles established

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  • An employer is bound by its own Human Resource Policies and Procedures Manual in the same way employees are bound by it
  • Where the disciplinary procedure prescribed in the HR manual is not followed, the termination is procedurally unfair
  • A party with custody of evidence who fails to produce it attracts an adverse inference
  • An employee cannot be victimized for raising issues at the workplace

Court orders

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  1. 1.A declaration that the reasons and procedure for termination of the claimant's employment were wrongful, unfair and unlawful
  2. 2.A declaration that the Respondent's action of withholding failure and/or refusal to pay the claimant's terminal benefits and other dues is unlawful and untenable
  3. 3.One (1) month's salary in lieu of notice of Kshs.104,413.00
  4. 4.Eight (8) months' salary as compensation for unlawful termination of employment of Kshs.835,304.00
  5. 5.Interest on the notice pay and compensation at court rates from the date of judgment till payment in full
  6. 6.Costs of the cause borne by the Respondent
Jurisdiction invoked
Employment and labour relations jurisdiction under Article 162(2)(a) of the Constitution (ELRC first-instance claim under the Employment Act, 2007)

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, "Terra v Cathorlic Unversity of Eastern Africa (Appeal 744 of 2019) [2025] KEELRC 3029 (KLR)", Case Analysis (2025). Statement of Claim dated 5th November, 2019 (Cause). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/3029/eng@2025-10-22

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