Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedAppeal No E045 of 2024· [2025] KEELRC 3730 (KLR)

Onyango v Mijengo Investments Limited (Appeal E045 of 2024) [2025] KEELRC 3730 (KLR)

Employment and Labour Relations Court
19 December 2025
1,051 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~4 min to read original · ~4 min brief

The bottom line

#

A Kenyan court ruled a sawmill's immediate 'redundancy' dismissal unlawful, awarding the worker seven months' salary because the employer skipped proper notice and consultation.

What this practically means

#

Executive summary

#
The Appellant, a former sawmill sawyer employed from February 2016 until 7th July 2022, appealed against the decision of the Trial Court which had found his termination on account of redundancy fair and his terminal dues paid. He advanced 13 grounds, collapsed into four complaints: that the Trial Court disregarded his evidence on unfair termination, erred in denying compensation under Section 49 of the Employment Act, erred in denying terminal benefits, and erred in finding terminal benefits were paid in full. The appeal was canvassed by written submissions pursuant to a consensual procedural order of 8th July 2025. Applying the Court of Appeal decision in The German School Society & Another v. Ohany & Another [2023] KECA 894 [KLR], the ELRC held that the notice of termination issued on 7th July 2022, which took immediate effect on the same day it referenced consultations, breached Section 40 of the Employment Act: there was no proper notification of redundancy, no notice, no genuine consultations, and no involvement of the Labour Office. The signed termination letter was not a discharge agreement, the Appellant having signed only in acknowledgment of receipt. The Court declared the termination unfair and unlawful and awarded the equivalent of 7 months' salary, Kshs. 99,400, in compensation, considering his 6 years and 5 months of service, monthly salary of Kshs. 14,200, and the no-fault nature of redundancy. However, claims for additional terminal benefits (underpayment, overtime, public holidays and further severance) failed, the Trial Court having correctly found these were not articulated and that notice, leave and severance had been paid. The appeal was allowed only on the ground of unfair termination; there was no order on costs.

Key legal issues

#
01

Procedural compliance with Section 40 of the Employment Act in redundancy

Holding

Termination violated Section 40: there was no proper notification of redundancy, no notice period, no real consultations and no involvement of the Labour Office, rendering the termination unfair and unlawful

Reasoning

The letter of termination dated 7th July 2022 took immediate effect the same day it referenced consultations held that day. There was no notification of redundancy, no notice of termination effective immediately, no consultation, and no involvement of the Labour Office. Applying the German School Society decision, notice and genuine consultation are mandatory under Section 40. Immediate termination rendered the procedure a blatant violation and the termination unfair.

p. 2
02

Whether the signed termination letter discharged the employer from further claims

Holding

The Appellant signed the letter only in acknowledgment of receipt; it was not a discharge agreement

Reasoning

The Court found that execution of the termination letter did not amount to a discharge agreement absolving the Respondent from further claims, since the Appellant signed it in acknowledgment of receipt only. Consequently, the payment recorded in the letter did not bar the unfair termination claim.

p. 3
03

Entitlement to compensation and terminal benefits

Holding

Compensation of 7 months' salary was merited for the unfair termination; claims for additional terminal benefits failed as they were unsubstantiated and already paid

Reasoning

The Appellant worked 6 years and 5 months earning Kshs. 14,200 monthly, on a no-fault redundancy. He was paid Kshs. 105,444 in terminal benefits including severance of Kshs. 14,200 against a claim of Kshs. 11,433, notice and leave. Claims of underpayment, overtime and public holidays were not articulated. Compensation of 7 months' salary (Kshs. 99,400) was granted.

p. 3

Legal principles established

#
  • The purpose of redundancy notice under Section 40(1)(a) and (b) of the Employment Act, as reflected in ILO Convention 158, is to give the parties an opportunity to consider measures to avert or minimize termination and its effects
  • Consultations preceding redundancy must be real, not a charade, and notice to the Employee, Trade Union and the Labour Office paves way for consultations
  • A letter of termination signed by an employee in acknowledgment of receipt only does not constitute a discharge agreement absolving the employer from further claims

Court orders

#
  1. 1.The Appeal is allowed on the ground that termination was unfair and unlawful
  2. 2.The Respondent shall pay the Appellant the equivalent of 7 months' salary in compensation for unfair and unlawful termination, at Kshs. 99,400
  3. 3.No costs on the Appeal

Authorities

#

Legislation

  • Employment ActSection 40; Section 40(1)(a) and (b); Section 49
  • ILO Convention 158 - Termination of Employment Convention 158 [1992]
  • E&LRC [Procedure] Rules, 2024Rule 68[5]

Cases cited (1)

  • The German School Society & Another v. Ohany & Another [2023] KECA 894 [KLR]
    [2023] KECA 894 [KLR]
On appeal from
Trial Court (ELRC subordinate court, not named in judgment)
Not stated
Jurisdiction invoked
First appellate jurisdiction over an employment claim decided by the Trial Court; appeal via Memorandum of Appeal dated 4th June 2024, disposed of by consensual order of 8th July 2025 on the strength of the record and submissions

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Onyango v Mijengo Investments Limited (Appeal E045 of 2024) [2025] KEELRC 3730 (KLR)", Case Analysis (2025). Appeal No E045 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/3730/eng@2025-12-19

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