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ELRCDismissedAppeal No. E364 of 2025· [2026] KEELRC 2549 (KLR)

Suffix Investment Limited v Ibrahim Okonda Nyangweso

Employment and Labour Relations Court of Kenya
22 September 2026
7,490 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employer who claimed a worker absconded lost its appeal and must pay over Ksh. 340,000 because it had no records or proof.

What this practically means

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Executive summary

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The Employment and Labour Relations Court, Appeals Division (Abuodha Jorum Nelson, J) dismissed Suffix Investment Limited's appeal against the judgment of Hon. Electer Riany, PM in MCELRC No. E285 of 2023, which had awarded Ibrahim Okonda Nyangweso notice pay of Ksh. 26,700, ten months' compensation for unfair termination, salary arrears, accrued leave of Ksh. 53,700, a certificate of service, interest and costs. The appeal, disposed of by written submissions, condensed twelve grounds into three issues: employment status, unfair termination, and reliefs. On employment status, the court held the oral engagement offended sections 8, 9 and 10 of the Employment Act, placing the burden of disproving alleged terms on the employer under section 10(7); the employer produced only attendance registers and no payroll, and NSSF/NHIF remittances from January 2018 to October 2021 established that the Respondent was a term employee, converted under section 37, employed as a plant operator. On termination, the court found no evidence of absconding, no efforts to trace the Respondent, no notice to him or the labour office, and no disciplinary process under section 41; the employer was deemed to have terminated the services and failed to justify the grounds under sections 43 and 45, rendering the termination both substantively and procedurally unfair. On reliefs, the court upheld the compensation, notice pay, salary arrears and leave awards, but confirmed the trial court's disallowance of house allowance as the Respondent was paid above the minimum wage. The appeal was dismissed with costs to the Respondent.

Key legal issues

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01

Whether the Respondent was a casual employee or a term employee

Holding

The Respondent was a term employee, having converted under section 37 of the Employment Act; he was employed in fact as a plant operator.

Reasoning

The employment was oral, offending sections 8, 9 and 10 of the Employment Act, so section 10(7) placed the burden of disproving alleged terms on the employer. The employer produced only attendance registers, not payrolls. NSSF and NHIF remittances from January 2018 to October 2021, coupled with attendance registers, showed weekly payment and continuous engagement, converting any casual engagement to a term contract under section 37.

p. 25
02

Whether the termination was unfair

Holding

The Appellant was deemed to have terminated the Respondent's services and failed to justify the grounds of absconding; the termination was both substantively and procedurally unfair.

Reasoning

The employer, as custodian of records under section 74, had to prove absconding but produced no material. It made no efforts to trace the Respondent, issued no notice to him or the labour office, and commenced no disciplinary process under section 41. Desertion requires intention not to return, demonstrated by absence of communication, duration of absence and nature of duties, none of which was established. The burden under section 47(5) to justify the grounds of termination was not discharged.

p. 32
03

Whether the reliefs awarded by the trial court were justified

Holding

The 10 months' compensation, notice pay, salary arrears and accrued leave were upheld; the house allowance claim failed as the Respondent was paid above the minimum wage.

Reasoning

Compensation under section 49 is discretionary and guided by section 49(4); the Respondent's over three years of service and employment-related health challenges justified 10 months. Notice pay followed from termination without notice under section 36. Leave and house allowance are continuous injuries claimable within 12 months under section 90, and the claim was filed within time. The employer produced no leave records, so the leave award could not be disturbed. Salary arrears were properly awarded.

p. 34

Legal principles established

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  • Section 10(7) of the Employment Act places the burden of proving or disproving an alleged term of an oral contract on the employer where no written contract is produced
  • Casual employment converts to term contract where the employee works for periods aggregating the equivalent of not less than one month under section 37(1) of the Employment Act
  • In the absence of evidence of absconding, or of efforts by the employer to trace the employee, the employer is deemed to have terminated the employee's services
  • Dismissal on account of absconding must be preceded by evidence of reasonable attempts to contact the employee and a show cause letter
  • Section 41 of the Employment Act is mandatory; failure to follow it renders the outcome of any termination process unfair
  • An appellate court will not interfere with the trial court's exercise of discretion on compensation unless the judge misdirected himself and arrived at a wrong decision

Court orders

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  1. 1.Appeal dismissed with costs to the Respondent
  2. 2.Trial court's judgment of 30th September 2025 upheld (notice pay Ksh. 26,700, 10 months' compensation Ksh. 260,700, salary arrears, accrued leave Ksh. 53,700, certificate of service, interest and costs)
On appeal from
Milimani Chief Magistrates Court
MCELRC No. E285 of 2023
Jurisdiction invoked
First appellate jurisdiction over the subordinate court's employment judgment (Employment and Labour Relations Court, Appeals Division)

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, "Suffix Investment Limited v Ibrahim Okonda Nyangweso", Case Analysis (2026). Appeal No. E364 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2549/eng@2026-09-22

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