Nyamota v Kariobangi Owners Sacoo Limited (Employment and Labour Relations Cause E700 of 2022) [2025] KEELRC 1541 (KLR)
The bottom line
#A Kenyan SACCO fired a cashier without a hearing, failed to prove he stole money, and was ordered to pay him Kshs. 312,000 plus costs.
What this practically means
#Executive summary
#Key legal issues
#Whether the dismissal was lawful and procedurally fair
The dismissal was unfair and unjustified; the Respondent failed to subject the Claimant to any disciplinary process and failed to prove the loss of funds was attributable to him
RW1 confirmed a disciplinary procedure existed but was not followed, and the power to sack lay with the Board. The audit was conducted after the alleged dismissal, the bank slips were filled by another employee, and the office file was not in the Claimant's custody. The Respondent also failed to show efforts to trace the Claimant, having reported him to police and knowing his whereabouts. The audit report did not find the Claimant culpable.
Whether the Respondent proved desertion
The desertion claim failed; the Respondent did not demonstrate measures taken to find and trace the Claimant, and their police report showed they knew where he was
The Respondent reported the matter to police and the Claimant was arrested, showing they knew his location, contradicting the desertion narrative. No evidence of attempts to reach the Claimant was adduced beyond bare assertion, and the disciplinary process contemplated was never carried out.
Whether the Respondent established the counterclaim for Kshs. 731,650
The counterclaim failed; the Respondent failed to prove the alleged loss was stolen by the Claimant, as the audit report did not find him culpable
The forensic auditor testified he was instructed to audit monies not accounted for and reviewed daily collections summaries, bank slips and bank statements, but was not checking who banked. The bank slips were filled by Reinhard, not the Claimant. The figures were unsubstantiated and the bank statements relied on were not produced in court. The discrepancies in figures pleaded (Kshs. 900,000 in the police report, Kshs. 600,000 in the demand letter, Kshs. 731,650 in the counterclaim) undermined credibility.
What remedies are due to the Claimant
Notice pay of one month, 10 months' compensation for unfair dismissal, one year's leave not taken, and a certificate of service were awarded
Given the dismissal without any hearing, the court exercised discretion under Sections 41 and 45 of the Employment Act to award compensation. Salary arrears were refused as they are attendant to reinstatement which was not sought. Service pay was refused for want of pleading and proof of non-membership of NSSF.
Legal principles established
#- An employer must, before terminating employment on grounds of misconduct, explain the reasons to the employee and hear and consider any representations, per Section 41 of the Employment Act
- Termination is unfair where the employer fails to prove a valid and fair reason and that fair procedure was followed, per Section 45(2) of the Employment Act
- An employer alleging desertion must show efforts made towards reaching out to the employee and putting them on notice of contemplated termination
Court orders
#- 1.One month salary in lieu of notice of Kshs. 26,000
- 2.Ten months' compensation for unfair dismissal being 10 x Kshs. 26,000 = Kshs. 260,000
- 3.One year's leave not taken granted as leave equal to Kshs. 26,000
- 4.Total award of Kshs. 312,000 less statutory deductions
- 5.The Respondent to issue the Claimant with a certificate of service
- 6.The Respondent to pay costs of the suit plus interest at court rates from the date of judgment
- 7.The Claimant's claim for salary arrears and general damages not granted; the Counterclaim dismissed
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act 2007 (employment dispute)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Nyamota v Kariobangi Owners Sacoo Limited (Employment and Labour Relations Cause E700 of 2022) [2025] KEELRC 1541 (KLR)", Case Analysis (2025). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1541/eng@2025-05-28
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.