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Court of AppealPartially AllowedEmployment and Labour Relations Court Appeal from ELRC Cause No. 1133 of 2013 (Nairobi)

Easy Coach v Njogu (Civil Appeal 516 of 2019) [2026] KECA 559 (KLR)

Court of Appeal of Kenya
13 March 2026
5,406 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~22 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed a bus inspector's dismissal was unfair because the employer relied on hearsay evidence, but cut his compensation from twelve months' salary to three.

What this practically means

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Executive summary

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The Court of Appeal dismissed an employer's challenge to a finding of unfair termination but interfered with the quantum of compensation. The respondent, a bus inspector employed from April 2011 until his summary dismissal on 22 March 2013, alleged that he was dismissed after an excess passenger was found on a bus travelling from Homabay to Nairobi, without a fair hearing. The ELRC (Wasilwa, J.) found the dismissal unfair because the employer's case rested on hearsay - the passenger who allegedly paid Kshs. 800/= was never called, and his statement did not identify the respondent - and awarded the maximum twelve months' salary as compensation. On appeal, the Court reaffirmed that the standard of proof in employment disputes is a balance of probabilities, but that even under that standard the employer must have credible material connecting the employee to the misconduct. It also held that procedural fairness under section 41 of the Employment Act requires more than holding a hearing: the employee must know the allegations, have access to the evidence relied upon, and be able to confront it. The Court accepted that internal disciplinary proceedings are not bound by the strict rules of evidence, but found the evidence here rested on inference. On remedies, applying CMC Aviation and Ol Pejeta, it held that the maximum award under section 49(1)(c) requires sound judicial reasoning anchored in section 49(4); given the respondent's short service of about two years, the twelve-month award was set aside and substituted with three months' gross salary (Kshs. 42,214.59). The appeal succeeded only to that extent; each party was ordered to bear its own costs.

Questions the Court framed

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

  1. 1.Whether the trial court erred by holding that the appellant did not have a valid and fair reason to terminate the respondent's employment within the meaning of sections 43 and 45 of the Employment Act
  2. 2.Whether the respondent's disciplinary process met the requirements of procedural fairness under section 41 of the Employment Act
  3. 3.Whether the trial court properly exercised its discretion in awarding the respondent twelve months' salary as compensation for unfair termination

Key legal issues

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01

Whether the appellant had a valid and fair reason for dismissal under sections 43 and 45

Holding

The dismissal lacked a valid and fair reason because the appellant's case rested on hearsay: the passenger was not called and his statement did not identify the respondent as the person who received the fare.

Reasoning

Section 43 places the burden on the employer to prove reasons for termination, and section 45 requires that those reasons be valid and fair. The appellant relied mainly on written statements of the passenger, Simon Mbajah, and its chief inspector, but the passenger never testified and his statement did not clearly identify the respondent. On a balance of probabilities the employer must have credible material linking the employee to the misconduct; inference alone was insufficient. The trial court's finding was therefore upheld.

p. 8
02

Whether the disciplinary process satisfied section 41 procedural fairness

Holding

The process was unfair because the respondent was denied access to the evidence relied upon and had no opportunity to confront the accusations.

Reasoning

Section 41 requires the employer to explain the reasons for termination and give the employee an opportunity to respond. The Court, following Kenfreight and Postal Corporation v Tanui, held that fairness requires notifying the employee of specific allegations, providing access to the evidence, and a meaningful opportunity to challenge it. The respondent denied being furnished with the passenger's or inspector's statements, and the makers were not available for questioning, undermining his ability to challenge the allegations.

p. 8
03

Whether the trial court properly exercised its discretion in awarding twelve months' compensation

Holding

The discretion was not properly exercised; the maximum award was substituted with three months' gross salary given the respondent's short service of about two years and the absence of reasons justifying the maximum.

Reasoning

Section 49(1)(c) caps compensation at twelve months' salary, while section 49(4) requires consideration of factors including length of service and the employee's contribution to the dismissal. Following CMC Aviation and Ol Pejeta, the Court reiterated that the maximum award must not be routine and requires explanation. The judge awarded the maximum without justification despite the respondent's short service, warranting appellate interference and substitution with three months' salary.

p. 9

Legal principles established

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  • In employment disputes the standard of proof is on a balance of probabilities, and even under section 43(2) the employer must have credible material connecting the employee to the alleged wrongdoing
  • Procedural fairness under section 41 requires more than holding a hearing: the employee must be informed of the allegations, given access to the evidence relied upon, and afforded a meaningful opportunity to challenge that evidence
  • Internal disciplinary proceedings are not subject to the strict rules of evidence, but the material relied upon by an employer must be sufficiently credible to justify disciplinary action
  • The maximum award of twelve months' salary under section 49(1)(c) must not be granted as a matter of course and must be supported by sound judicial reasoning anchored in the considerations set out in section 49(4)
  • A first appeal proceeds by way of rehearing; the appellate court must reconsider and independently evaluate the evidence while making allowance for not having seen or heard the witnesses

Court orders

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  1. 1.The award of twelve months' salary as compensation for unfair termination is set aside and substituted with an award of three months' gross salary (Kshs. 14,071.53 x 3 = Kshs. 42,214.59)
  2. 2.The remainder of the trial court's judgment (notice pay, unpaid leave, March 2013 salary, rest days pay, certificate of service) is upheld
  3. 3.Each party to bear its own costs

The bench

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

majority
majority
majority
On appeal from
Employment and Labour Relations Court at Nairobi
ELRC Cause No. 1133 of 2013
Jurisdiction invoked
First appellate jurisdiction over the Employment and Labour Relations Court (first appeal by way of rehearing)

Relief refused

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Setting aside of the entire trial judgment and dismissal of the respondent's claim with costs as sought by the appellant

The Court upheld the finding that there was no valid and fair reason for termination and that procedural fairness was breached; the appeal succeeded only on the quantum of compensation

p. 9

Costs

Each party to bear its own costs

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.

even under the said standard, there must be credible material connecting the employee to the alleged wrongdoing
p. 7standard of proof in employment dismissals
Procedural fairness in employment disputes requires more than the mere holding of a disciplinary hearing.
p. 8section 41 procedural fairness
the maximum award under section 49(1)(c) should not be granted as a matter of course and must be supported by sound judicial reasoning anchored in the considerations set out in section 49(4)
p. 9compensation under section 49(1)(c)
an award equivalent to three months’ salary would, in our view, constitute fair and reasonable compensation for the unfair termination. We, therefore, interfere with the award to the extent that the award of twelve months’ salary is set aside and substituted with an award of three months’ gross salary; Kshs. 14,071.53 x 3 =Kshs. 42,214.59. The appeal succeeds only to that extent and is otherwise dismissed. Given the circumstances of this appeal, we direct that each party bears its own costs.
p. 9final orders and disposition

Issues in the judgment

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minor

The coram lists D. K. Musinga as 'JUDGE OF APPEAL' and 'PRESIDENT', consistent with the Court of Appeal, but the judgment is dated 13 March 2026, which post-dates the period in which Musinga JA held that rank; the discrepancy is on the face of the copy provided.

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, "Easy Coach v Njogu (Civil Appeal 516 of 2019) [2026] KECA 559 (KLR)", Case Analysis (2026). Employment and Labour Relations Court Appeal from ELRC Cause No. 1133 of 2013 (Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2026/559/eng@2026-03-13

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