Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
Caselaw
AI-generated case brief
Case Brief · caselaw.co.ke
IndustrialPartially AllowedNot stated in judgment· [2014] KEIC 103 (KLR)

Mangare v Nation Media Group Limited (Cause 926 of 2012) [2014] KEIC 103 (KLR)

Industrial Court (Employment and Labour Relations Court)
7 July 2014
NMNzioki Wa Makau
1,548 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

#

A Kenyan court awarded a dismissed driver only unpaid house allowance, ruling his dismissal was fair but his employer had failed to pay housing benefits.

What this practically means

#

Executive summary

#
The Claimant, a former driver, sued the Respondent for unlawful termination and refusal to pay accumulated house allowance and terminal benefits amounting to Kshs. 1,346,346/-, plus twelve months' salary as compensation for wrongful termination. He was dismissed on 7th November 2011 following an incident of 16th October 2011 in which the Respondent's Head of Security found him with two unauthorised passengers at an unapproved stoppage point along the Nairobi-Nakuru-Eldoret highway. The Respondent maintained that the Claimant was on temporary terms, was paid overtime as shown by payslips, and was dismissed for misconduct after a disciplinary hearing. The court found the termination letter to be clear evidence that a disciplinary process was undertaken, with the Claimant, HR and a union shopsteward present, and disbelieved the Claimant's assertions that he was not accorded a hearing and that the security officer was drunk. The Claimant failed to prove entitlement to overtime, public holidays or weekly rest day pay, and being summarily dismissed for just cause was not entitled to notice. However, under Section 9 of the repealed Employment Act cap 226, the Respondent was liable for house allowance for the period between 2007 and 2008, assessed at 15% of basic pay of Kshs. 15,000/-, yielding Kshs. 27,000/-. Judgment was entered for the Claimant for Kshs. 27,000/-, with each party to bear their own costs.

Key legal issues

#
01

Fairness of termination

Holding

The termination was lawful: a disciplinary hearing was held and the Claimant was dismissed for just cause

Reasoning

The termination letter showed a disciplinary process was undertaken with the Claimant, HR, and a union shopsteward present. The Claimant's testimony that he was not accorded a hearing and that the security officer was drunk was disbelieved; the officer was a teetotaller accompanied by police. The Claimant refused to record a statement or identify the passengers.

p. 3
02

House allowance

Holding

The Respondent was liable for house allowance for the period between 2007 and 2008 under the repealed Employment Act cap 226, assessed at 15% of basic pay, totalling Kshs. 27,000/-

Reasoning

Section 9 of the repealed Employment Act cap 226 required employers to provide reasonable housing accommodation or pay a sufficient rent sum. The Respondent did not avail the Claimant of this for the period between 2007 and 2008. No rate was prescribed, so the court applied 15% of the basic pay of Kshs. 15,000/-, giving Kshs. 27,000/-.

p. 3

Legal principles established

#
  • Where the applicable statute does not prescribe a rate for house allowance, the court may apply a reasonable rate such as 15% of basic pay

Court orders

#
  1. 1.Judgment entered for the Claimant against the Respondent for Kshs. 27,000/-
  2. 2.Each party to bear their own costs

Authorities

#

Legislation

  • Employment Act 2007Section 31
  • Employment Act cap 226 (repealed)Section 9
Jurisdiction invoked
Not expressly stated; first-instance employment dispute under the Employment Act 2007

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Mangare v Nation Media Group Limited (Cause 926 of 2012) [2014] KEIC 103 (KLR)", Case Analysis (2014). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keic/2014/103/eng@2014-07-07

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