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MagistratePartially AllowedMemorandum of Claim dated 02nd August, 2024· [2026] KEMC 43 (KLR)

Eafula v Menengai Oil Refineries Limited (Employment and Labour Relations Cause E233 of 2024) [2026] KEMC 43 (KLR)

Employment and Labour Relations Court (magistrates' court) at Nakuru
24 February 2026
3,527 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that ending a worker's contract without notice or reason was unlawful, and awarded him overtime and holiday pay.

What this practically means

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Executive summary

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The Claimant, a Security Officer employed by the Respondent from around 01/03/2017 on a series of short fixed term contracts (3 or 6 months) that were renewed erratically, was terminated by a Contract Termination Letter dated 20/05/2024 effective 01/06/2024, with no reason given and no reference to expiry of a contract. The Respondent contended the last contract expired on 31/05/2024 but did not produce it. The court framed two issues: whether the termination was unfair, and whether the remedies sought were deserved. Holding that the Claimant was on a renewable fixed term contract, the court found the termination premature, unprocedural and unlawful as it breached Clause 7 of the contract requiring one month's notice or payment in lieu. The court awarded one month's pay as compensation under Section 49(1)(c) (Kshs. 23,230/-) and one month's pay in lieu of notice (Kshs. 20,200/-). Relying on the Respondent's failure to produce the Muster Roll and biometric register it admitted keeping, and applying Paul Wafula v Century Feeds Ltd, the court awarded normal overtime (Kshs. 1,213,507.69) and public holiday pay (Kshs. 185,840/-) as claimed, holding these were continuing claims not statute-barred. Severance pay was refused as there was no redundancy, and the court noted obiter that NSSF membership barred service pay. The claim was allowed with costs and interest. Judgment delivered by Senior Principal Magistrate Aloyce Peter Ndege at Nakuru on 24th February, 2026.

Key legal issues

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01

Nature of the Claimant's employment and whether termination was unfair

Holding

The Claimant was on a renewable fixed term contract; termination on 20/05/2024 effective 01/06/2024, without reason or the one month notice required by Clause 7, was premature, unprocedural and unlawful.

Reasoning

The Respondent failed to produce the last contract allegedly expiring 31/05/2024. The court deemed the Claimant to be on a renewable fixed term contract based on the contracts produced, rejecting indefinite employment. The termination letter gave no reason and made no reference to expiry of a contract, and was issued only 11 days before termination, contrary to Clause 7's requirement of one month's notice or payment in lieu.

p. 5
02

Overtime and public holiday pay

Holding

Claimant worked 12-hour shifts without overtime or public holiday pay; awarded as claimed since the Respondent failed to produce employment records.

Reasoning

RW1 admitted the Respondent kept a Muster Roll and Biometric Clock in/out Register which were not produced. Relying on Paul Wafula v Century Feeds Ltd, the court presumed the withheld records were adverse to the Respondent. The claims were held to be continuing claims filed within time, defeating the limitation objection.

p. 6
03

Severance pay and compensation quantum

Holding

Severance pay refused as there was no redundancy; compensation limited to one month's pay.

Reasoning

Severance pay is compensation for redundancy under Section 40, which was not the mode of termination. On quantum under Section 49, the court took into account that the contract was bound to expire one month later and awarded one month's pay of Kshs. 23,230/- rather than the 12 months sought.

p. 6

Legal principles established

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  • Fairness of termination is assessed on both procedure and substantive justification.
  • An employer who admits keeping employment records but fails to produce them in court risks a presumption that the records would have been adverse to its case.
  • An NSSF member evidenced by payslips is not entitled to service pay.

Court orders

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  1. 1.A declaration that the termination of the Claimant's employment on 01/06/2024 vide the Contract Termination Letter dated 20/05/2024 was unfair and unlawful
  2. 2.Compensation for unfair and unlawful termination under Section 49(1)(c) of the Employment Act, 2007 of Kshs. 23,230/-
  3. 3.1 month's salary in lieu of notice of Kshs. 20,200/-
  4. 4.Normal overtime of Kshs. 1,213,507.69
  5. 5.Public holidays pay of Kshs. 185,840/-
  6. 6.Costs and interest of the suit
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007; Employment and Labour Relations Court Act)

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, "Eafula v Menengai Oil Refineries Limited (Employment and Labour Relations Cause E233 of 2024) [2026] KEMC 43 (KLR)", Case Analysis (2026). Memorandum of Claim dated 02nd August, 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2026/43/eng@2026-02-24

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