Akumu v Bidcoro Africa Limited (Employment and Labour Relations Cause 298 of 2019) [2023] KEELRC 3305 (KLR)
The bottom line
#A Kenyan court awarded an employee nearly KShs 2 million because his employer skipped the mandatory one-month notice steps for redundancy under section 40 of the Employment Act.
What this practically means
#Executive summary
#Key legal issues
#Validity of reason for redundancy
The respondent had a valid reason to reduce its employees but gave no reasons why it targeted the claimant in particular.
RW1 testified that the company's performance was reviewed and found wanting, prompting a redundancy. The court accepted the economic rationale as valid but noted the respondent provided no reasons for selecting the claimant, a matter requiring discussion during the notice period under section 40(1)(c). The failure was procedural rather than going to the validity of the redundancy itself.
Fairness of procedure under section 40 Employment Act
The procedure was unfair: no one month's personal written notice, notice to the Ministry expired before termination, and notice pay was short-paid.
The claimant was personally notified of termination on 15th October 2018, the same day he received the termination letter, breaching section 40(1)(b). The Ministry of Labour notice given on 1st October 2018 would expire on 30th October 2018, yet termination was implemented earlier. Notice pay of Kshs. 154,000/= fell short of one month's gross salary of Kshs. 420,000/= without explanation.
Remedies for unlawful and unfair redundancy termination
Compensation of four months' gross salary (Kshs. 1,680,000/=) plus the balance of one month's salary in lieu of notice (Kshs. 280,000/=).
The claimant served nine months of a two-year fixed term contract and had a legitimate expectation to serve the full term. He lost his job and income without notice and was not adequately compensated. Having regard to cited authorities and circumstances, the court awarded four months' salary and topped up the deficient notice pay.
Legal principles established
#- An employer must notify an employee not in a trade union personally in writing of intended redundancy not less than one month before the termination date, as required by section 40(1)(b) of the Employment Act.
- Termination on grounds of redundancy implemented before expiry of the one-month notice period given to the Ministry of Labour is unlawful and unprocedural.
Court orders
#- 1.Kshs. 1,680,000/= in compensation for unlawful and unfair termination
- 2.Kshs. 280,000/= in lieu of notice
- 3.Total amount Kshs. 1,960,000/=
- 4.Interest at court rates from date of judgment till payment in full
- 5.Costs of the suit to the claimant
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (first-instance employment claim)
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Kenya Engineering Workers Union v Sheer Logics Management Consultants Limited (Cause E085 of 2024) [2025] KEELRC 202 (KLR)[2025] KEELRC 202 (KLR)30 Jan 2025
Cite this brief
#Cite this brief
Caselaw, "Akumu v Bidcoro Africa Limited (Employment and Labour Relations Cause 298 of 2019) [2023] KEELRC 3305 (KLR)", Case Analysis (2023). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3305/eng@2023-12-20
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.