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ELRCPartially AllowedNot stated in judgment· [2025] KEELRC 48 (KLR)

Kentonda Company Limited v Wafula (Appeal E055 of 2024) [2025] KEELRC 48 (KLR)

Employment and Labour Relations Court
23 January 2025
1,674 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenyan courts will believe an employee's account when an employer cannot produce legally required work records, but vague overtime claims fail.

What this practically means

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Executive summary

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This first appeal arose from the ELRC trial court's judgment of 29 February 2024 in Mombasa CMELRC Cause No. E029 of 2022, which found the respondent had been unfairly terminated as a general labourer and awarded him the full reliefs claimed plus costs and interest. The appellant, his employer, challenged the existence of an employment relationship and the termination finding, contending the respondent was a casual labourer engaged only when work was available and paid daily. On appeal, M. Mbarũ J found the employer's admission of casual employment triggered its statutory duty under Sections 10(6), (7) and 74 of the Employment Act to produce work records; failing that, the court was bound to believe the employee's particulars. The respondent was therefore a protected employee under Section 37, entitled to notice under Section 35 and to termination for valid reasons. The trial court's finding of unfair termination was upheld, but the general award of the maximum 12 months' compensation as pleaded was set aside for want of reasons and reduced to two months' gross wage (Ksh.31,217.40) given the under-one-year service period. The court awarded notice pay of Ksh.15,608.70, underpaid house allowance of Ksh.10,956.60, and service pay of Ksh.7,500. The overtime claim failed for want of particulars, as the burden of establishing excess hours rests with the employee, and the NHIF claim failed. The appeal was accordingly partially successful; lower court costs stood as awarded, with 50% of appeal costs to the respondent. Judgment delivered at Mombasa on 23 January 2025.

Key legal issues

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01

Employment relationship and casual employment

Holding

The admission of casual employment placed the employer under a duty to produce work records; absent records, the employee's account prevails and Section 37 protections apply

Reasoning

The appellant admitted engaging the respondent casually when work was available. Under Sections 10(6) and (7) read with Section 74 of the Employment Act, the employer must file work records with the claim. Without records the employer fails its legal duty, and the court is bound to believe the employee. The respondent was thus a protected employee entitled to statutory benefits.

p. 3
02

Unfair termination and due process

Holding

Termination without notice, hearing and valid reasons under Sections 35, 45 and 49 of the Employment Act was unfair; compensation must be awarded with reasons, not a general award as pleaded

Reasoning

Section 37 entitled the respondent to notice under Section 35, a hearing, and valid and justified reasons. The appellant did not address these mandatory provisions. The trial court correctly found unfair termination but made a general award of the maximum 12 months' compensation without justification; judicial discretion requires stated reasons, and two months' gross wage was appropriate for under a year of service.

p. 3
03

Overtime claim

Holding

The overtime claim failed for want of particulars; the employee must establish excess hours

Reasoning

The respondent pleaded overtime generally without stating when work started or ended. The employer's duty to produce records does not arise where the employee gives no particulars. Establishing hours served beyond the legal maximum rests with the employee, per Rogoli Ole Manadiegi and Patrick Lumumba Kimuyu. The global figure claimed was not justified.

p. 4

Legal principles established

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  • Where an employer fails to produce work records required under Sections 10(6), (7) and 74 of the Employment Act, the court is bound to believe the employee's particulars of claim
  • Casual employees admitted by the employer fall under the protective provisions of Section 37 of the Employment Act
  • An employer who does not justify termination reasons suffers an adverse finding of unfair termination
  • The burden of establishing overtime hours rests with the employee, not by default of the employer's records

Court orders

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  1. 1.Compensation of Ksh.31,217.40
  2. 2.Notice pay of Ksh.15,608.70
  3. 3.Underpaid house allowance of Ksh.10,956.60
  4. 4.Service pay of Ksh.7,500
  5. 5.Costs of the lower court as awarded
  6. 6.Respondent awarded 50% of costs of the appeal
On appeal from
Mombasa CMELRC Cause No. E029 of 2022
E029 of 2022
Jurisdiction invoked
First appeal to the Employment and Labour Relations Court from the trial court's judgment

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, "Kentonda Company Limited v Wafula (Appeal E055 of 2024) [2025] KEELRC 48 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/48/eng@2025-01-23

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