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ELRCDismissedELRC Appeal No. E154 of 2025· [2026] KEELRC 2435 (KLR)

Keya v Crescent Tech Ltd (Appeal E154 of 2025) [2026] KEELRC 2435 (KLR)

Employment and Labour Relations Court
31 August 2026
2,024 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~8 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court confirmed a COVID-19 redundancy was lawful because the employer gave proper notice, and claims like discrimination must be backed by real evidence.

What this practically means

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Executive summary

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This is a first appeal to the Employment and Labour Relations Court at Nairobi from the judgment of 22 April 2025 in Nairobi MCELRC E1241 of 2022, which had dismissed the appellant's claim save for an order for a certificate of service. The appellant, employed on 5 August 2016 as a Service Desk Coordinator at Kshs. 50,389 per month, contended that the respondent imposed a 50% pay cut without consent during the COVID-19 pandemic, recalled other employees while leaving her out, and terminated her through a flawed redundancy without complying with section 40 of the Employment Act. She sought maximum compensation, house allowance, damages for discrimination and a certificate of service. The respondent maintained that the redundancy occasioned by COVID-19 was procedural, with notice to the labour officer and consultation. The appellant relied on Thomas De La Rue, Lavington Security Guards, Cargill and Jubilee Hardware; the respondent filed no submissions. Applying the first-appeal standard from Top Tank, the court found that due process in redundancy was followed: the 27 April 2020 notice was issued, the labour officer was notified, and the appellant received both written and oral notice, relying on Africa Nazarene University. The discrimination claim failed for want of particulars and proof, per Barclays Bank v Gladys Muthoni. Compensation was not due under sections 45 and 49 because the redundancy was justified and procedural, and the consolidated salary precluded a house allowance claim under section 31. The appeal was dismissed with each party bearing its own costs.

Key legal issues

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01

Validity and procedure of the redundancy

Holding

Due process in redundancy was followed: notice dated 27 April 2020 was issued, notice was given to the labour officer, and the appellant was invited to a meeting of 14 August 2020 with both written and oral notice

Reasoning

The court found the notice dated 27 April 2020 communicated the intention to declare redundancy due to COVID-19's impact on the business; notice went to the labour officer; the appellant received emails and attended a meeting explaining the extent and purpose of the redundancy. Reliance on Cargill and Africa Nazarene University supported that notice may be oral or written. The magistrate's findings were therefore correct.

p. 6
02

Alleged discrimination in recall of other employees

Holding

Claim failed for lack of particulars and proof

Reasoning

The appellant did not identify the employees recalled or address her personal circumstances as the only employee singled out for redundancy. Citing Barclays Bank v Gladys Muthoni, the court held that discrimination, though prohibited, must be proved by evidence. Since she admitted receiving the redundancy notice and dues, her claim of discrimination was unproven.

p. 6
03

House allowance claim

Holding

Rejected because the salary was consolidated as permitted by section 31 of the Employment Act

Reasoning

Clause 6.1 of the 5 August 2016 contract provided a consolidated salary of Ksh. 50,389. The court held a consolidated salary is permissible under section 31, and that a Service Desk Coordinator's salary was not a basic wage to which Wage Order house allowance provisions would apply. The magistrate correctly applied the law on this head.

p. 7

Legal principles established

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  • On a first appeal the court re-evaluates the material on record and reaches its own conclusions, but must have regard to the trial court's advantage in assessing witness demeanour
  • Discrimination must be proved by evidence; mere assertion is insufficient
  • Notice of redundancy to the affected employee may be oral or in writing

Court orders

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  1. 1.The appeal is dismissed
  2. 2.Each party to bear its own costs
On appeal from
Magistrates' Court (Nairobi MCELRC)
E1241 of 2022
Jurisdiction invoked
First appeal to the Employment and Labour Relations Court from the magistrate's judgment of 22 April 2025

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, "Keya v Crescent Tech Ltd (Appeal E154 of 2025) [2026] KEELRC 2435 (KLR)", Case Analysis (2026). ELRC Appeal No. E154 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2435/eng@2026-08-31

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