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Case Brief · caselaw.co.ke
ELRCPartially AllowedELRC Cause No. E023 of 2025

Kenya Union of Commercial Food and Allied Workers v Equatorial Nut Processors Limited

Employment and Labour Relations Court
25 September 2026
5,283 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

The bottom line

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A Kenyan court awarded six workers over Kshs 1.8 million because their employer could not prove its 'redundancy' was genuine or legally followed.

What this practically means

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Executive summary

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The Kenya Union of Commercial Food and Allied Workers sued Equatorial Nut Processors Limited on behalf of six grievants placed on indefinite unpaid leave on 18th November 2023, contending this amounted to unfair and unlawful termination. The Union sought declarations of unfair termination and reinstatement, or in the alternative notice pay, accrued leave, underpaid wages and compensation. The Respondent denied the Union's locus standi and the Court's pecuniary jurisdiction, denied employing the grievants, and asserted they had been served with redundancy notices dated 24th August 2023. At trial, all six grievants testified, relying on payslips and NSSF statements; the Respondent's Human Resource Officer testified on wage scales. The Respondent's written submissions were not traceable on the record. The Court found payslips issued by the Respondent and RW1's detailed testimony on remuneration established an employment relationship. On termination, the Court applied Section 40 of the Employment Act and the Kenya Airways decision, holding the Respondent failed both to substantively justify the redundancy and to comply with its procedural requirements: the alleged notices were not exhibited, there was no notice to the labour officer, no selection criteria, and no proof of statutory payments. Termination was therefore unfair and unlawful. The Court awarded each grievant one month's notice pay, eight months' salary compensation, and quantified underpayments against the applicable Legal Notices, declining service gratuity and periods lacking payslips. Interest at court rates was awarded from 30 days after judgment, certificates of service were ordered within 14 days, and the Respondent was ordered to bear the costs.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether an employment relationship existed between the Respondent and the grievants
  2. 2.Whether the termination of the grievants' employment was unfair and unlawful
  3. 3.Whether the grievants are entitled to the reliefs sought in the Memorandum of Claim

Key legal issues

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01

Existence of employment relationship

Holding

Payslips issued by the Respondent and RW1's testimony on remuneration established that the grievants were employees.

Reasoning

The Respondent denied the employment relationship and argued no employment letters were produced. However, the grievants produced payslips issued by the Respondent, and RW1 testified in detail on each grievant's employment dates, promotions and salaries. The Court found the denial contradicted by the Respondent's own evidence of remuneration.

p. 13
02

Substantive justification for redundancy

Holding

The Respondent failed to prove valid and fair reasons based on operational requirements.

Reasoning

The Respondent pleaded redundancy but adduced no evidence of operational requirements justifying it. Citing Kenya Airways v Aviation & Allied Workers Union, the Court held that underlying causes such as reorganisation do not suffice; the employer must show the termination is attributable to the redundancy under Section 45(2)(b)(ii) of the Employment Act.

p. 14
03

Procedural fairness in redundancy

Holding

The Respondent failed to comply with the mandatory notice, selection and payment requirements of Section 40(1) of the Employment Act.

Reasoning

Despite pleading notices of redundancy dated 24th August 2023, the Respondent did not exhibit them; there was no evidence of notice to the County Labour Officer, no selection criteria, and no proof of payment of accrued leave, one month's notice or severance pay of 15 days per completed year. The termination was therefore procedurally unfair.

p. 16
04

Underpayment claims

Holding

Several grievants were underpaid relative to the applicable minimum wage orders, quantified per grievant against the Legal Notices in force.

Reasoning

The Court reviewed the applicable Legal Notices (General Wage Orders) against each grievant's payslips and position classifications. It quantified underpayments for grievants 1 to 6, declining periods where payslips were absent. Where the Respondent's evidence showed pay above the applicable minimum, no underpayment was found for those periods.

05

Locus standi of the Claimant union

Holding

Not determined as a separate issue despite being raised; the claim succeeded on the merits.

Reasoning

The Respondent contested the Union's locus standi for want of a recognition agreement and proof of membership. The Court framed no issue on this and did not resolve it expressly, proceeding instead to find an employment relationship and unfair termination, with the grievants testifying personally.

p. 5

Legal principles established

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  • Termination on account of redundancy must be both substantively justified and procedurally fair.
  • The employer bears the evidential burden of justifying redundancy as the reason for termination under Section 45(2)(b)(ii).
  • Compliance with the notice, selection and payment requirements of Section 40(1) of the Employment Act must be demonstrated by evidence.

Court orders

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  1. 1.Award to 1st grievant (Jacinta Muthoni Mwangi): Kshs 556,234.84 (notice Kshs 18,000; 8 months' compensation Kshs 144,000; underpaid salary Kshs 394,234.84)
  2. 2.Award to 2nd grievant (Peninah Wambura Muriuki): Kshs 371,356.65 (notice Kshs 18,000; 8 months' compensation Kshs 144,000; underpaid salary Kshs 209,356.65)
  3. 3.Award to 3rd grievant (Hellen Kabura Irungu): Kshs 356,054.40 (notice Kshs 18,000; 8 months' compensation Kshs 144,000; underpaid salary Kshs 194,054.40)
  4. 4.Award to 4th grievant (Zuhura Wanjiku Hadi): Kshs 199,887.60 (notice Kshs 19,800; 8 months' compensation Kshs 158,400; underpaid salary Kshs 21,687.60)
  5. 5.Award to 5th grievant (Elizabeth Mwende): Kshs 143,639.00 (notice Kshs 14,944.54; 8 months' compensation Kshs 119,556.32; underpaid salary Kshs 9,138.14)
  6. 6.Award to 6th grievant (Joyce Wanjiru Irungu): Kshs 200,590.00 (notice Kshs 18,000; 8 months' compensation Kshs 144,000; underpaid salary Kshs 38,590.00)
  7. 7.Interest on the respective total sums at court rates from 30 days after the date of judgment until payment in full
  8. 8.Respondent to issue each grievant with a certificate of service within 14 days
  9. 9.Respondent to bear the costs of the suit

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Referral under Section 69 of the Labour Relations Act following conciliation of a trade dispute reported to the Ministry of Labour and Social Protection

Relief refused

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Claim for service gratuity

No contractual or statutory basis established for its payment

p. 19

Reinstatement (not expressly granted though sought)

The Court instead awarded notice pay, compensation and underpaid salary per grievant

p. 18

Underpayment claims for periods lacking documentary proof

Underpayment cannot be ascertained for periods without payslips (e.g. 2nd grievant January 2004 to December 2012)

p. 20

Costs

The Respondent shall bear the costs of the suit.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

It is well settled that termination on account of redundancy must be both substantively justified and procedurally fair.
p. 13Redundancy - dual requirement of substantive and procedural fairness
no evidence was placed before the Court to establish or justify the alleged redundancy as the reason for the termination of the grievants' employment.
p. 14Employer's evidential burden on redundancy
Indeed, the record is devoid of evidence that the Respondent paid the grievants their statutory entitlements under Sections 40(1)(e), (f) and (g) of the Employment Act.
p. 18Statutory redundancy payments
In the final analysis, the Claim succeeds, and the Court makes the following awards in favour of the grievants:
p. 25Disposition
Interest shall accrue on the respective total sums at court rates with effect from 30 days after the date of this judgment until payment in full.
p. 27Interest - final orders
The Respondent shall issue each of the grievants with a certificate of service within 14 days from the date of this Judgment.
p. 27Certificate of service - final orders
The Respondent shall bear the costs of the suit.
p. 28Costs - final orders

Issues in the judgment

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minor

Transcription error in RW1's testimony on the 1st grievant flagged with (sic) in the judgment itself

minor

Typographical error in a monetary figure in the 1st grievant's underpayment table

minor

COVID-19 video-conferencing order appended to a 2026 judgment despite the pandemic-era directions of 2020

material

2nd grievant's salary per RW1 (16,515 from 2013) is inconsistent with the underpayment table (11,015 for 2013-2014)

material

3rd grievant's employment history conflicts between RW1's testimony and the judgment's analysis

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, "Kenya Union of Commercial Food and Allied Workers v Equatorial Nut Processors Limited", Case Analysis (2026). ELRC Cause No. E023 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2640/eng@2026-09-25

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