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Court of AppealPartially Allowed

Ecobank Kenya Ltd v Ngina (Civil Appeal 4 of 2020) [2026] KECA 1128 (KLR)

Court of Appeal
12 June 2026
4,914 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~20 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that employers must give employees proper one-month redundancy notices, though it trimmed the employee's notice pay award.

What this practically means

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Executive summary

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This was a first appeal by Ecobank Kenya Limited against an Employment and Labour Relations Court judgment awarding Ndombi Georgina Ngina compensation for an unprocedural redundancy. The respondent, employed in 2007 as a Customer Service Resolution Officer, was declared redundant on 9th May 2014 following a restructuring in which her role was absorbed into a higher-qualified Customer Experience Management function. The trial court found the redundancy substantively justified but procedurally defective under section 40 of the Employment Act and awarded five months' salary compensation, two months' notice pay, unpaid allowances, a certificate of service, interest, and costs to the respondent. The Court of Appeal, in a unanimous judgment of Karanja, Achode and Muchelule JJA, framed two issues: the lawfulness and procedural fairness of the redundancy, and the propriety of the remedies. It held that compliance with section 40 is mandatory; that general internal restructuring emails did not constitute the personalized notice required by section 40(1)(b); and that the letter to the labour officer, received after the respondent's termination, offended the requirement of at least one month's prior notice. Following its prior decisions in Kenya Airways and Africa Nazarene University, it affirmed that reasons and one month's notice are required whether or not the employee is a union member. The five months' compensation award was left undisturbed under the Mrao principles on appellate interference with discretion. However, the appeal partially succeeded on notice pay: the respondent's signed 2008 letter providing for one month's notice superseded the 2007 offer letter, so the notice award was reduced to one month's salary. 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 termination of the respondent's employment on account of redundancy was lawful and procedurally fair
  2. 2.Whether the remedies awarded by the trial court were justified and ought to be upheld

Key legal issues

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01

Whether the redundancy complied with the procedural requirements of section 40 of the Employment Act

Holding

The redundancy was substantively justified but procedurally unfair: no personalized notice was issued to the respondent and the notice to the labour officer was issued after termination

Reasoning

The court re-evaluated the evidence as a first appeal. The email of 6th September 2013 concerned reorganisation and redeployment, did not mention redundancy, and was not addressed to the respondent. The letter to the County Labour Office dated 24th May 2014 was received on 11th June 2014, after the respondent had been terminated, contrary to the requirement of at least one month's prior notice under section 40(1).

p. 7
02

The content and period of redundancy notices under section 40(1)(a) and (b)

Holding

Both kinds of notices require the reasons for, and extent of, the intended redundancy and not less than one month's notice

Reasoning

Adopting Thomas De La Rue and its own prior decision in Africa Nazarene University, the court held that the phrase requiring reasons, extent and one month's notice is common to unionised and non-unionised employees; there is no rational basis for a shorter notice for non-union members.

p. 8
03

Whether the award of five months' salary as compensation should be disturbed

Holding

The award stands; the appellant failed to establish any ground for appellate interference with discretion

Reasoning

Remedies under section 49 lie in the trial court's discretion. Applying Mrao Ltd v First American Bank, interference is warranted only on misdirection, irrelevant or ignored considerations, or a plainly wrong result. None was shown despite the appellant's reliance on cases awarding two to three months.

p. 9
04

The applicable notice period: one month under the 2008 letter or three months under the 2007 offer and Group HR Policies

Holding

The signed letter of 13th December 2008 superseded the 30th May 2007 offer letter, so only one month's salary in lieu of notice was payable

Reasoning

The respondent signed and accepted the 2008 'New Grading And Salary Increment' letter containing a one-month termination clause. By her signature she accepted to be bound by it, and it superseded the earlier document. The trial Judge therefore erred in awarding two months' notice pay on a three-month contractual basis.

p. 9
05

The duty of a first appellate court

Holding

The Court is obliged to re-evaluate and re-analyse the evidence and draw its own conclusions, while making allowance for not having seen or heard the witnesses

Reasoning

Citing Gitobu Imanyara & 2 others v Attorney General, the court restated that an appeal from a trial by the High Court is by way of retrial, with the well-settled caveat that the appellate court neither saw nor heard the witnesses.

p. 5

Legal principles established

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  • Compliance with section 40 of the Employment Act is mandatory and an employer who fails to issue the prescribed notices effects an unfair redundancy
  • Both subsections 40(1)(a) and 40(1)(b) of the Employment Act require notice of the reasons for, and extent of, the intended redundancy at least one month prior to termination, whether or not the employee is a union member
  • Notification to the labour officer after redundancy has already taken effect contravenes the statutory requirement of at least one month's prior notice
  • An appellate court will only interfere with a trial court's discretion under section 49 of the Employment Act where the trial court misdirected itself, considered irrelevant matters, ignored relevant ones, or reached a plainly wrong decision

Court orders

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  1. 1.Appeal allowed partially only to the extent that the award of two months' salary in lieu of notice is reduced to one month's salary in lieu of notice
  2. 2.Each party to bear its own costs
  3. 3.It is so ordered

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
Jurisdiction invoked
First appeal to the Court of Appeal under the applicable appellate framework; the judgment expressly treats it as a first appeal on facts and law

Relief refused

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Appellant's challenge to the five months' salary compensation award

The appellant failed to demonstrate any misdirection, irrelevant consideration, or plainly wrong decision by the trial court

p. 9

Appellant's contention that general internal emails on restructuring constituted valid redundancy notice

The emails did not speak to redundancy and were not addressed to the respondent

p. 7

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.

It is firmly settled by this Court that compliance with section 40 of the Employment Act is mandatory.
p. 7Mandatory nature of section 40 redundancy procedure
We, therefore, find that no personalized notice of redundancy was issued to the respondent as required by section 40(1) (b) of the Employment Act, and that the communication relied upon by the appellant consisted of general internal emails on restructuring.
p. 7General restructuring emails are not redundancy notices
So that, whether an employee belongs to a trade union or not, the reasons and period of notice should be spelt out.
p. 8Common notice requirements under section 40(1)(a) and (b)
It is common ground that the notice to the Labour Oficer was issued post facto. The redundancy had already taken efiect. This runs afoul of the statutory requirement that such notice be given at least one month prior to termination.
p. 8Post facto notice to labour officer is statutorily defective
For the foregoing reasons, this appeal partially succeeds only to the extent that the award of two months’ salary in lieu of notice is reduced to one month’s salary in lieu of notice. Each party to bear its own costs.
p. 10Final orders and disposition

Issues in the judgment

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minor

The judgment quotes two differently cited versions of the same Kenya Airways decision with different citations ([2014] eKLR as submitted by the respondent and [2014] KECA 404 (KLR) as quoted by the court), which are recorded as separate entries

minor

The memorandum of appeal is dated 6th January 2020 but the judgment does not state the appeal number or the ELRC case number of the originating claim

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, "Ecobank Kenya Ltd v Ngina (Civil Appeal 4 of 2020) [2026] KECA 1128 (KLR)", Case Analysis (2026). . Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2026/1128/eng@2026-06-12

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