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ELRCPartially AllowedELRC Appeal No. E023 of 2024· [2026] KEELRC 2483 (KLR)

Krystalline Salt Limited (Gongoni) v Paul Nyandiko Nyakioga

Employment and Labour Relations Court
21 September 2026
8,554 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~34 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court upheld a guard's unfair dismissal award but cut his compensation in half, ruling employers must stick to one clear dismissal reason.

What this practically means

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Executive summary

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Krystalline Salt Limited appealed against the whole of a Senior Principal Magistrate's judgment which found the summary dismissal of its security guard, Paul Nyandiko Nyakioga, substantively and procedurally unfair and awarded him Kshs. 502,593/= with costs and interest. The Employment and Labour Relations Court at Malindi, sitting as a first appellate court under the retrial standard, upheld the findings of unfairness. On substantive fairness, the Court held the reason for dismissal to be a 'moving target': across the defence, show cause letter, disciplinary minutes and trial testimony the employer variously alleged theft, suspicion of watching theft, failure to protect property, collusion, and, at trial, 'poor performance' — a formulation unsupported by any pre-suit document. That shifting characterisation alone defeated validity under sections 43 and 45 of the Employment Act. Independently, the reason was unproved: the respondent had been guarding a stalled lorry away from the excavators, and the supervisor who actually witnessed the theft was never called. Procedural unfairness was established by the respondent's unchallenged custody during the material period, an internally contradictory show cause letter, minutes recording attendance he could not have given, and the employer's witness concessions. On reliefs, notice pay (Kshs. 16,144/=), the award for eighteen days worked in October 2018 (Kshs. 11,178/=), underpayment (Kshs. 23,975/=) and the certificate of service were upheld; twelve months' compensation was reduced to six months (Kshs. 96,864/=); the overtime award of Kshs. 225,280/= was set aside for want of particulars; and unpaid leave was reduced to the conceded Kshs. 2,650/=. Each party was ordered to bear its own costs of the appeal.

Key legal issues

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01

Whether the reason for dismissal was a valid and fair reason, given its shifting characterisations

Holding

The reason was not valid. Five mutually irreconcilable formulations were advanced across the disciplinary record and trial — theft, passive complicity, failure to protect property, collusion, and 'poor performance' conjured at trial — which alone disposed of substantive fairness against the employer.

Reasoning

Sections 43 and 45(2)(a) and (b) of the Employment Act require an employer to prove a reason that is both valid and fair. Validity presupposes a fixed and ascertainable proposition capable of being tested. Across the Memorandum of Defence, the show cause letter, the disciplinary minutes and trial testimony, the appellant advanced five mutually irreconcilable formulations, including 'poor performance' conjured at trial and unsupported by any pre-suit document. Permitting such shifting characterisations lets the employer evade its statutory burden; the reason accordingly loses validity and fairness.

p. 26
02

Whether the reason for dismissal was proved on the evidence

Holding

Even on its own documents, the reason was not proved: the respondent was guarding a stalled lorry away from the excavators, and the supervisor who actually witnessed the theft was never called to testify.

Reasoning

The disciplinary documents established at their highest only that the respondent was on duty in the vicinity, guarding a stalled lorry some distance from the excavators. The supervisor who actually witnessed the theft — indispensable to both theories of culpability — was never called at the disciplinary hearing, at trial, or by application to this Court. The trial court rightly drew an adverse inference from that absence. The reason for dismissal therefore failed to meet the proof standard demanded by sections 43 and 45(2).

p. 29
03

Whether the dismissal was procedurally fair under section 41 of the Employment Act

Holding

The dismissal was procedurally unfair: the show cause letter could not have been served as recorded, the disciplinary minutes recorded attendance the respondent could not have given while in custody, and no fair hearing took place.

Reasoning

The respondent's arrest on 18 October 2018 and seven-day remand after plea were unchallenged; DW1 conceded she had no evidence of his attendance and that leaving custody and returning was impossible. The show cause letter simultaneously recorded refusal to acknowledge receipt and a signature dated while he remained detained; the minutes recorded detailed participation yet a signature deferred pending legal advice. The documents bore the hallmarks of an afterthought, corroborated only by the appellant's own employees. No fair hearing was afforded.

p. 35
04

Whether an employee whose summary dismissal is invalid is entitled to salary in lieu of notice

Holding

Yes. The award of one month's notice pay was upheld because a failing summary dismissal cannot yield the exemption from notice.

Reasoning

The authorities relied on by the appellant concerned dismissals whose validity was upheld; they cannot assist an employer whose summary dismissal rests on no valid reason and unfair process. Since gross misconduct under section 44 is the foundation for dispensing with notice, a failed summary dismissal cannot simultaneously yield the benefit of exemption from notice. The award of one month's salary, Kshs. 16,144/=, was therefore upheld.

p. 37
05

Whether twelve months' compensation under section 49(1)(c) was appropriate

Holding

No. The statutory maximum is reserved for the clearest cases; six months' gross pay (Kshs. 96,864/=) was substituted for the twelve-month award.

Reasoning

Section 49(4) requires regard to length of service, manner of termination, contribution and practicability of reinstatement. The maximum award is reserved for the clearest, most egregious cases. The respondent served some two years and eight months, was not a stranger to the events, and the comparator authorities involved substantial reductions. The malicious prosecution characterisation was neither pleaded nor proved. Six months' gross pay, Kshs. 96,864/=, was substituted for the twelve-month award.

p. 39
06

Whether the overtime award of Kshs. 225,280/= could stand

Holding

No. The claim was not particularised and had no contemporaneous substantiation; the award was set aside in its entirety.

Reasoning

The claim applied a notional daily overtime rate across twenty-six days for thirty-two months without specifying dates, hours, or any contemporaneous record such as a clock-in register or duty roster. Following Nandi v Super Bargains Glass & Hardware, overtime like special damages must be specifically pleaded and strictly proved. The court deprecated the practice of presenting arithmetic formulas as substitutes for evidentiary work and set the award aside entirely.

p. 41
07

Whether the payslip proved payment of the eighteen days worked in October 2018

Holding

No. A payslip standing alone, being a retrospective printout, did not discharge the employer's burden; the award of Kshs. 11,178/= was upheld.

Reasoning

A payslip is a unilateral internal record of what the employer says it paid, not proof of receipt, particularly where payment is disputed. The payslips bore a print date of 29 November 2021, three years after the events and shortly after suit, marking them as retrospective litigation printouts. The appellant declined to produce bank transfer advices, M-Pesa statements, signed vouchers or cheque records uniquely within its control. The award of Kshs. 11,178/= was upheld.

p. 42
08

Whether the respondent ever proceeded on leave, and the proper leave award

Holding

The respondent did proceed on leave; the award of Kshs. 32,288/= was set aside and replaced with the conceded Kshs. 2,650/= encashment.

Reasoning

Three leave application forms for 2016, 2017 and 2018 bore the respondent's employee number, dates and supervisors' signatures and were put to him in cross-examination. His response shifted from denying the forms' existence to asserting a declined application, unaccompanied by any handwriting challenge or impeachment of the signatories. On a balance of probabilities, documentary evidence of this kind displaces a bare, internally inconsistent denial. The trial award was set aside and replaced with the conceded Kshs. 2,650/= encashment.

p. 45
09

Whether the underpayment award of Kshs. 23,975/= should be disturbed

Holding

No. The appellant advanced no particulars of error in the Minimum Wage Order computation; the award was upheld.

Reasoning

The appellant challenged the underpayment award only by asserting that the payslips showed a basic salary and house allowance. That assertion did not engage the trial court's comparison of actual wages against the 2018 Minimum Wage Order or demonstrate any computational flaw. With no particulars of error advanced on Ground 4, the appellate court declined to disturb the award of Kshs. 23,975/=.

p. 46

Legal principles established

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  • An employer must identify the reason for dismissal with reasonable precision and adhere to it consistently; a shifting, opportunistic characterisation of the alleged misconduct defeats validity and fairness under sections 43 and 45 of the Employment Act.
  • Where summary dismissal fails for want of proven gross misconduct, the employer loses the exemption from notice and notice pay remains payable.
  • Twelve months' compensation, the statutory maximum under section 49(1)(c), is reserved for the clearest and most egregious cases and must not be awarded as a matter of course.
  • Overtime, like special damages, must be specifically pleaded and strictly proved; a bare arithmetic formula unsupported by particulars and contemporaneous records cannot found an award.
  • A payslip, particularly a retrospective printout generated after suit, is not proof of actual payment of disputed wages where the more cogent evidence of disbursement lies within the employer's control.
  • Documentary evidence produced against a party prevails over a bare and internally inconsistent denial on a balance of probabilities.
  • On a first appeal the court must re-evaluate the evidence afresh and reach its own conclusions while allowing for its not having seen or heard the witnesses.

Court orders

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  1. 1.The appeal succeeds in part.
  2. 2.The finding of the trial court that the respondent's summary dismissal was substantively and procedurally unfair and unlawful is upheld.
  3. 3.The award of one month's salary in lieu of notice, Kshs. 16,144/=, is upheld.
  4. 4.The award of twelve (12) months' compensation for unfair termination, Kshs. 193,728/=, is set aside and substituted with an award of six (6) months' gross pay, Kshs. 96,864/=.
  5. 5.The award of Kshs. 225,280/= for overtime is set aside in its entirety.
  6. 6.The award of Kshs. 11,178/= for the eighteen days worked in October 2018 is upheld.
  7. 7.The award of Kshs. 32,288/= for unpaid leave is set aside, and there is substituted therefor an award of Kshs. 2,650/=, being the sum the appellant admits is owing.
  8. 8.The award of Kshs. 23,975/= for underpayment is upheld.
  9. 9.The order for the issuance of a certificate of service is upheld.
  10. 10.Each party shall bear its own costs of this appeal.

Authorities

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Legislation

  • Employment Act, 2007section 41 (procedural fairness in disciplinary process)
  • Employment Act, 2007sections 43 and 45(2)(a) and (b) (proof of valid and fair reason; unfair termination)
  • Employment Act, 2007section 44(4)(c) (neglect of duty) and section 44(4)(g) (theft); summary dismissal
  • Employment Act, 2007section 47(5)
  • Employment Act, 2007sections 49(1)(c) and 49(4) (compensation and its factors)
  • Criminal Procedure Codesection 210 (acquittal)
  • Minimum Wage Order2018 Order

Cases cited (8)

  • Selle v Associated Motor Boat Co. Ltd
    [1968] EA 123

    First appeal proceeds by way of retrial; the appellate court must re-evaluate the evidence afresh and reach its own conclusions, allowing for not having seen or heard the witnesses.

  • Ngondi v Factory Guards (MBA) Limited
    [2022] KEELRC 1521 (KLR)

    Cited by the appellant for the proposition that warning letters for sleeping on duty and lateness establish a pattern of neglect justifying summary dismissal under section 44(4)(c).

  • Vincent Abuya Obunga v Mast Rental Services Limited
    [2009] eKLR; also cited as [2019] KEELRC 2382 (KLR)

    Cited for the proposition that an employee summarily dismissed is not entitled to salary in lieu of notice; distinguished because the dismissals there were not in issue or were upheld.

  • Naftal Priva Kitatu v Jitegemee Sacco Society Limited
    [2021] eKLR; also cited as [2021] KEELRC 1591 (KLR)

    Cited for the proposition that a summarily dismissed employee is not entitled to notice pay; distinguished because the dismissal there was not shown to be invalid.

  • Nandi v Super Bargains Glass & Hardware Nakuru Hardware Limited (Formerly Amattullah Glass & Hardware Limited)
    [2024] KEELRC 840 (KLR); also cited as Cause No. 216 of 2018

    An overtime claim, like special damages, must be specifically pleaded and strictly proved; bare assertions of hours worked without testable particulars will not suffice.

  • Alfred Ogenche Nchore v Kenya Kazi Services Ltd
    (2022) eKLR

    Comparator: appellate court substantially reduced an unlawful-termination compensation award notwithstanding trial findings of unfair dismissal.

  • Justus Orina Mariita v Accurate Steel Mills Limited
    (2022) eKLR

    Comparator: compensation for unfair termination substantially reduced on appeal for comparable periods of service.

  • Joseph Mwaniki Nganga v United Millers Limited
    [2022] eKLR

    Comparator: compensation for unfair termination substantially reduced on appeal for comparable periods of service.

On appeal from
Chief Magistrate's Court at Malindi
Employment and Labour Relations Cause No. E013 of 2021 (also cited on the record as ELRC No. E31 of 2021)
Jurisdiction invoked
Not expressly stated in the judgment; the Court exercised first appellate jurisdiction over an employment and labour relations cause from the Chief Magistrate's Court at Malindi.

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, "Krystalline Salt Limited (Gongoni) v Paul Nyandiko Nyakioga", Case Analysis (2026). ELRC Appeal No. E023 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2483/eng@2026-09-21

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