Mwangangi v H Young & Company Ltd Estate Africa Limited (Appeal E409 of 2025) [2026] KEELRC 2444 (KLR)
The bottom line
#Kenyan employers cannot end project-based jobs with just notice pay; they must follow the full redundancy process or pay compensation for unfair termination.
What this practically means
#Executive summary
#Key legal issues
#Validity of the reason for termination where employment ends with a project
The completion of the project was not a valid, reasonable or fair justification under section 43; the correct route was section 40 redundancy with due process
The respondent terminated employment because the Gatundu road project had ended. The court held that where services are no longer required regardless of fault, section 40 of the Employment Act applies and requires due process. Relying on a contractual notice-pay clause to bypass section 40 constitutes an unfair labour practice under article 41 of the Constitution, rendering the termination unfair under section 45 as held in Irangi v Teachers Service Commission.
Effect of the contractual notice clause (clause 13) and section 35
Notice pay entitlement under section 35 existed, but notice-pay claim failed because terminal dues already included it
The contract allowed termination on one month's notice or payment in lieu. The termination letter did not factor notice pay, but the October 2022 payment statement did. Hence the employee received what was due under section 35, and the claim for notice pay was unjustified. The terminal dues offer (notice pay, leave, gratuity) was described as generous.
Assessment of compensation under sections 45(5) and 49
One month's gross pay awarded as compensation, taking into account the employee's poor work record and warning letters
In assessing compensation the court considered the employee's conduct, poor work record including numerous warning letters and a last warning, and the employer's procedures. Although the warnings were not the reason for termination, they informed the quantum, resulting in an award of one month's gross wage of Ksh. 60,444 instead of the 12 months claimed.
Competence of the appeal and certification of the record
The respondent's objection based on uncertified records (citing Salat v IEBC) did not result in dismissal; the appeal was partly addressed on its merits
The respondent submitted the records were uncertified, rendering the appeal fatal per Salat v IEBC. The court did not uphold this objection and proceeded to determine the appeal on the merits, varying the trial judgment rather than striking it out.
Legal principles established
#- A notice clause in a written contract does not displace the employee's statutory entitlement to notice, reasons and justification for termination; the employer must demonstrate both substantive and procedural fairness.
- Terminating an employee on grounds of completion of a project without following section 40 redundancy process, under the guise of notice pay, amounts to unfair termination and an unfair labour practice.
- Matters not pleaded before the trial court cannot be introduced on appeal.
Court orders
#- 1.Judgment in Gatundu CMELRC No. E009 of 2023 reviewed with an award of Ksh. 60,444 in compensation for unfair termination of employment
- 2.Each party to bear its own costs of the appeal and the trial court proceedings
- On appeal from
- Magistrates' Court (Gatundu), Employment and Labour Relations
- Gatundu MCELRC Case No. E009 of 2023
- Jurisdiction invoked
- First appeal from the magistrates' court in employment and labour relations matters (ELRC appellate jurisdiction over subordinate courts' employment disputes)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Mwangangi v H Young & Company Ltd Estate Africa Limited (Appeal E409 of 2025) [2026] KEELRC 2444 (KLR)", Case Analysis (2026). ELRC Nairobi Judgment Appeal No. E409 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2444/eng@2026-08-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.