Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
MagistratePartially AllowedNot stated in the judgment (ELRC cause, Machakos Law Courts)· [2023] KEMC 257 (KLR)

Munyoki v Grainden Millers Ltd (Cause E026 of 2021) [2023] KEMC 257 (KLR)

Magistrates' Court (employment and labour relations jurisdiction), Machakos Law Courts
23 March 2023
15,557 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~62 min to read original · ~4 min brief

The bottom line

#

A Kenyan court enforced a termination agreement signed by a company's General Manager and awarded the former HR Manager Kshs. 160,000, rejecting her constructive dismissal claim.

What this practically means

#

Executive summary

#
The Claimant, employed as a Human Resource Manager by the Respondent at a monthly salary of Kshs. 80,000 with effect from 5th August 2020, claimed she was constructively dismissed. She resigned on 1st February 2021 and on 9th February 2021 was handed an Employment Termination Agreement executed by the Respondent's General Manager, providing for her terminal dues. She sought withheld February salary, one month's pay in lieu of notice, twelve months' compensation for unlawful termination, unpaid leave and a certificate of service. The Respondent denied the claim, contending the Claimant had resigned voluntarily, that the General Manager lacked authority to execute the termination agreement, and counterclaimed Kshs. 170,000 for loss allegedly occasioned by the Claimant issuing goods to drivers. The Court first established its jurisdiction under section 9(b) of the Magistrates' Courts Act, 2015, section 29 of the Employment and Labour Relations Court Act and Gazette Notice 6024 of 10th June 2018, the Claimant's pay falling within the Kshs. 80,000 pecuniary limit. It held the claim was filed within time. It rejected the constructive dismissal claim: the alleged frustrations were neither pleaded with particulars nor corroborated, and the resignation letter was silent on grievances. However, applying the rule in Turquand's case, the Court found the Claimant was entitled to assume the General Manager had authority, absent facts compelling inquiry, and that the alleged collusion was unparticularized; the Termination Agreement therefore bound the Respondent. The counterclaim failed for want of particulars of the alleged loss. The Claimant was awarded Kshs. 160,000 in terminal benefits under the Agreement, a certificate of service, costs of both the suit and counterclaim, and interest at court rates from 9th February 2021.

Key legal issues

#
01

Jurisdiction of the Magistrates' Court over employment disputes

Holding

The Court has jurisdiction: it is presided over by a Principal Magistrate within the ranks designated in Gazette Notice 6024, and the Claimant's gross monthly pay of Kshs. 80,000 falls within the pecuniary limit

Reasoning

The Court traced the jurisdictional foundation from Articles 162(4) and 169(1)(a) and (2) of the Constitution to sections 6-10 of the Magistrates' Courts Act, 2015, particularly section 9(b), read with section 29 of the Employment and Labour Relations Court Act. It noted the successful challenge in Malindi Law Society and its reversal on appeal, and the failed challenge in Watson Burugu. The Gazette Notice of 10th June 2018 designated Senior Resident Magistrates and above to hear employment disputes where gross monthly pay does not exceed Kshs. 80,000.

p. 12
02

Maintainability of the claim despite the 13-month service requirement in section 45(3) of the Employment Act

Holding

The claim is maintainable: the Claimant brought herself within section 35(4)(a) and Article 41 of the Constitution, and the claim was filed within the three-year limitation period

Reasoning

Section 45(3) limits the right to complain of unfair termination to employees with at least thirteen months' continuous service, but Lenaola, J. in Samuel G. Momanyi declared that provision inconsistent with Article 41 and invalid. The Court applied that holding. The Claimant claimed constructive dismissal on 9th February 2021 and filed on 15th June 2021, well within the three-year period under section 90 of the Employment Act.

p. 13
03

Whether the Claimant was constructively dismissed

Holding

No - the Claimant failed to discharge the burden of proving constructive dismissal

Reasoning

The Court set out the ingredients of constructive dismissal from Maria Kagai Ligaga (as approved by the Court of Appeal): breach of contract, repudiatory/fundamental breach, resignation in response to the breach, and no delay. The Claimant neither pleaded nor adduced particulars of the alleged persistent frustration; her resignation letter was silent on any grievances, and no corroborative evidence was tendered. Her word stood alone against the Respondent's and failed on a preponderance of probabilities.

p. 18
04

Validity and binding effect of the Employment Termination Agreement executed by the General Manager

Holding

The Agreement binds the Respondent under the rule in Turquand's case; the Claimant was entitled to assume the GM had authority

Reasoning

The Respondent alleged the GM executed the agreement by collusion with the Claimant and without authority. The Court reviewed the alter ego/directing mind principle (Lennard's Carrying Co.), Salomon, and the indoor management rule (Royal British Bank v. Turquand; Mahony v. East Holyford Mining). The Claimant's contract provided she reported directly to the GM, and no facts compelled her to inquire into the GM's authority. The alleged collusion was not pleaded with particulars. Accordingly the Agreement bound the Respondent.

p. 21
05

Respondent's counterclaim for Kshs. 170,000 loss

Holding

The counterclaim fails - the Respondent did not plead or prove particulars of the alleged financial loss

Reasoning

The Court held that an averment and evidence of financial loss, like constructive dismissal, must be characterized by specificity, exactitude, precision and clarity. Neither the Statement of Response and Counter-Claim nor the witness statement of the sole defence witness pleaded particulars of the alleged loss of Kshs. 170,000 arising from goods issued to drivers. The Respondent's word stood alone, without corroboration, and the Court could not conclude on a balance of probabilities that the losses occurred.

p. 21

Legal principles established

#
  • A person dealing in utmost good faith with an oficer of a company acting with ostensible authority is entitled to assume the company has complied with its internal procedures (the rule in Turquand's case), and is under no obligation to inquire into internal authorisation
  • The burden to prove the ingredients of constructive dismissal rests on the employee, who must show the employer introduced the intolerable condition and that resignation was the only recourse
  • Pleadings and evidence of constructive dismissal, collusion or financial loss must be pleaded with specificity, exactitude, precision and clarity; generalized, imprecise averments fail
  • A magistrate's jurisdiction in employment matters is limited by appointment by the Chief Justice, the pecuniary limit set by the Chief Justice (gross monthly pay not exceeding Kshs. 80,000), and the limitation period under section 90 of the Employment Act

Court orders

#
  1. 1.A declaration that the Claimant is entitled to payment of the terminal benefits as more particularly set out under Clauses 2 and 3 of the Employment Termination Agreement dated 9th February 2021
  2. 2.The Respondent shall pay the Claimant Kshs. 160,000 in terminal benefits, comprising full salary of January 2021 in the sum of Kshs. 80,000 and one month's salary (for the month of February) in lieu of notice in the sum of Kshs. 80,000
  3. 3.The terminal benefits are subject to statutory deductions in accord with section 49(2) of the Employment Act, 2007
  4. 4.The Respondent shall issue the Claimant with a Certificate of Service within a period of 60 days
  5. 5.The Respondent shall shoulder the costs of the Suit and Counter-Claim
  6. 6.The sums awarded shall attract interest, at Court rates, from 9th February 2021 until payment in full

Authorities

#

Legislation

  • Constitution of Kenya, 2010Articles 2(2), 23(2), 41(1), 47(1) & (2), 162(4), 169(1)(a) & (2)
  • Employment Act, 2007sections 28, 35(1)(c), 35(4), 36, 41, 43, 45, 46, 47(5), 49(1)(c), 49(2), 49(4)(e), 51, 90
  • Magistrates' Courts Act, 2015sections 6, 7, 8, 9(b), 10
  • Employment and Labour Relations Court Actsection 29
  • Evidence Actsections 107, 108, 109, 143
  • Civil Procedure Actsections 26, 27
  • Judicature Actsection 3
  • Limitation of Actions Actsection 4(1)
  • Regulation of Wages (General) (Amendment) Order 2013
  • Labour Relations Act, 2007
  • Work Injury Benefits Act, 2007
  • Labour Institutions Act, 2007
  • Occupational Safety and Health Act, 2007
  • Industrial Court Act, 2011section 29

Cases cited (86)

  • Elizabeth Washeke and 62 Others vs. Airtel Networks (K) Ltd & another
    [2013] eKLR
  • Amos Kitavi Kivite vs. Kenya Revenue Authority
    [2020] eKLR
  • Walter Ogal Anoro vs. Teachers Service Commission
    (2013) eKLR
  • Peter Wangai vs. Egerton University
    [2019] eKLR
  • Kenya Plantation & Agricultural Workers Union vs. Sotik Tea Kenya Ltd
    [2017] eKLR
  • Justus Mutahi Ihaji vs. Kenya Airways Limited
    [2018] eKLR
  • Kenya Power & Lighting Company Limited vs. Aggrey Lukorito Wasike
    [2017] eKLR
  • Max Masoud Roshankar & another vs. Sky Aero Limited
    [2015] eKLR
  • Milton M Isanya vs. Aga Khan Hospital Kisumu
    [2017] eKLR
  • Kenneth Kimani Mburu & Another vs. Kibe Muigai Holdings Limited, Nairobi ELRC Cause No. 339 of 2011
    [2014] eKLR
  • Coca Cola East and Central Africa Limited vs. Maria Kagai Ligaga
    [2015] eKLR
  • Edwin Beiti Kipchumba vs. National Bank of Kenya Limited
    [2018] eKLR
  • Lottering vs. Stellenbosch Municipality
    (2010) 31 ILJ 2923 (LC)
  • Anthony Mkala Chitavi vs. Malindi Water & Sewerage Company Ltd
    [2013] eKLR
  • Peter Kamau Mwaura & another vs. National Bank of Kenya
    [2020] eKLR
  • Nathan Ogada Atiagaga vs. David Engineering Limited
    (2015) eKLR
  • Jackson Murithi Kiura vs. Family Bank Limited
    [2022] eKLR
  • Josephine M. Ndungu & others v Plan International Inc
    [2019] eKLR
  • Kenneth Onialo v Majlis Resort Lamu t/a Majlis Lamu Ltd
    [2022] eKLR
  • Kenya Broadcasting Corporation vs. Geofirey Wakio
    [2019] eKLR
  • Kenfreight (E.A) Limited vs. Benson K. Nguti
    [2019] eKLR
  • Lakhamshi vs. Attorney-General
    (1971) 1 EA 118
  • Ferdinand Nd ung'u Waititu vs. Independent Electoral & Boundaries Commission (IEBC) & 8 Others
    (2014) eKLR
  • Abbay Abubakar Haji vs. Marain Agencies Company & Another
    (1984) 4 KCA 53
  • Nickson Muthoka Mutavi vs. Kenya Agricultural Research Institute
    (2016) eKLR
  • Evans Nyakwana vs. Cleophas Bwana Ongaro
    (2015) eKLR
  • Vincent Okello vs. Attorney General Gulu HCCS No. 4 of 1992
    (1995) III KALR 129
  • Treadsetters Tyres Ltd vs. John Wekesa Wepukhulu
    (2010) eKLR
  • Henderson vs. Henry E Jenkins and Sons
    (1970) AC 232
  • Henry Hidaya Ilanga vs. Manyema Manyoka
    (1961) EA 705
  • Miller vs. Minister of Pensions
    (1947) 2 ALL ER 372
  • Re H and Others (Minors)
    (1996) AC 563
  • William Kabogo Gitau vs. George Thuo & 2 Others
    (2010) 1 KLR 526
  • Palace Investment Ltd vs. Geofirey Kariuki Mwenda & Another
    (2015) eKLR
  • Siraj Din vs. Ali Mohamed Khan
    (1957) EA 25
  • Owners of Motor Vessel "Lillian S" vs. Caltex Oil (K) Ltd
    [1989] KLR 1
  • Samuel Kamau Macharia vs. Kenya Commercial Bank Ltd & 2 Others
    [2012] eKLR
  • In the Matter of Interim Independent Electoral Commission
    [2011] eKLR
  • Geofirey K. Sang vs. Director of Public Prosecutions & 4 others
    [2020] eKLR
  • Chogley vs. The East African Bakery
    [1953] 26 KLR 31
  • Re: Hebtulla Properties Ltd.
    [1979] KLR 96; [1976-80] 1 KLR 1195
  • Warburton vs. Loveland
    [1831] 2 DOW & CL. (HL) 489
  • Lall vs. Jeypee Investments Ltd
    [1972] EA 512
  • Attorney General vs. Prince Augustus of Hanover
    [1957] AC 436
  • Republic vs. Kenya Revenue Authority Ex Parte Aberdare Freight Services Ltd & 2 Others
    [2004] 2 KLR 530
  • Re Hardial Singh and Others
    [1979] KLR 18; [1976-80] 1 KLR 1090
  • Malindi Law Society vs. Attorney General & 4 others
    [2016] eKLR
  • Law Society of Kenya Nairobi Branch vs. Malindi Law Society & 6 others
    [2017] eKLR
  • Watson Burugu vs. Attorney General & 2 others
    [2021] eKLR
  • Samuel G. Momanyi vs. Attorney General & another
    [2012] eKLR
  • Divecon vs. Samani
    [1995-1998] 1 EA 48
  • Maria Machocho vs. Total (K) Industrial Cause Number 2 of 2012
  • Beatrice Kahai Adagala vs. Postal Corporation of Kenya
    [2015] eKLR
  • Josephat Ndirangu vs. Henkel Chemicals (EA) Limited
    [2013] eKLR
  • Attorney General & Another vs. Andrew Maina Githinji & another
    [2016] eKLR
  • Peter Nyamai & 7 others vs. V.M. Clarke Limited, Cause Number 78 of 2012 (ELRC Mombasa)
  • Muiru Mwangi Muita vs. Greenpark Water Services Ltd
    [2016] eKLR
  • Samson Wanyoike Kimani vs. Bliss Flora Limited
    [2018] eKLR
  • Lennard's Carrying Co Ltd vs. Asiatic Petroleum Co Ltd
    [1915] AC 705
  • Salomon vs. Salomon
    [1897] AC 92
  • Royal British Bank vs. Turquand
    [1856] 6 E & B 327
  • Mahony vs. East Holyford Mining Co.
    (1875) LR 7 HL 869
  • Board of Trustees National Social Security Fund vs. Micheal Mwalo
    [2015] eKLR
  • Florence Wangu Mwangi & Another vs. British American Insurance Company Limited & Another
    [2010] eKLR
  • Bougainville Estate Limited vs. Kenya Deposit Insurance Corporation (sued in their capacity as Receiver Managers of Imperial Bank Limited (In Receivership) & 3 others
    [2017] eKLR
  • Elgon Road Development Co Limited vs. Centre for Development Consult Limited
    [2017] eKLR
  • East Africa Safari Air Limited vs. Anthony Ambaka Kegode & Another
    [2011] eKLR
  • Akuisi Farmers Company Limited vs. Robert Ndiritu Gitonga
    [2019] eKLR
  • Leena Apparels (EPZ) Limited vs. Ngewu Juma Ndokolani
    (2018) eKLR
  • Pamela Nelima Lutta vs. Mumias Sugar Co. Ltd
    (2017) eKLR
  • Western Excavating (ECC) Ltd vs. Sharp
    [1978] ICR 222 / 1978 QB 761
  • Sophie Muthoni Njagi vs. Rift Valley Railways (Kenya) Limited
    [2020] eKLR
  • Emmanuel Mutisya Solomon vs. Agility Logistics, Cause No.1448 of 2011 (UR)
  • Morgan Air Cargo Ltd vs. Everest Enterprises Ltd
    (2014) eKLR
  • Rose Kaume & Another vs. Stephen Gitonga Mbaabu & Another
    [2016] eKLR
  • Christopher Kiprotich vs. Daniel Gathua & 5 others
    [1976] eKLR
  • Mbogo and Another vs. Shah
    [1968] EA 93
  • Mohindra vs. Mohindra
    (1953) 20 EACA 56
  • Sharp vs. Wakefield
    [1891] 64 L.T Rep. 180 Ap. Ca.173
  • Rooke's case
    5 Rep. 99b (1598)
  • Republic vs. Public Procurement Administrative Review Board & 2 others
    [2018] eKLR
  • Cecilia Karuru Ngayu vs. Barclays Bank of Kenya & another
    [2016] eKLR
  • Dipchem East Africa Limited vs. Karutturi Limited (In Receivership)
    [2015] eKLR
  • Jasbir Singh Rai & 3 others vs. Tarcholan Singh Rai & 4 others
    (2014) eKLR
  • Joseph Oduor Anode vs. Kenya Red Cross Society
    [2012] eKLR
  • Orix Oil (Kenya) Ltd vs. Paul Kabeu & 2 Others
    (2014) eKLR
Jurisdiction invoked
Section 9(b) of the Magistrates' Courts Act, 2015 read with section 29 of the Employment and Labour Relations Court Act and Gazette Notice Number 6024 dated 10th June 2018

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Munyoki v Grainden Millers Ltd (Cause E026 of 2021) [2023] KEMC 257 (KLR)", Case Analysis (2023). Not stated in the judgment (ELRC cause, Machakos Law Courts). Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2023/257/eng@2023-03-23

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