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ELRCPartially AllowedStatement of claim dated 29th January 2024

King’ori v Nawiri DT Sacco Limited (Cause E002 of 2024) [2025] KEELRC 2109 (KLR)

Employment and Labour Relations Court
17 July 2025
2,547 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~10 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled a Sacco unfairly fired an ill employee without a hearing, but awarded far less money than he claimed.

What this practically means

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Executive summary

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The claimant, employed as Operations Manager from 1st February 2023 on a gross monthly salary of Kshs.130,000 with a six-month probation, was terminated by letter dated 25th August 2023 for absenting himself from duty on several dates without permission, the respondent invoking its HR policy on absence without leave. He sued for declarations and reliefs including 12 months' compensation, damages for lost contract salary, notice pay, general damages, certificate of service and costs. The respondent maintained he was still on probation and had squandered his chance to be heard by failing to respond to a show cause letter. The court framed three issues: whether the termination occurred during probation, whether it was unfair and unlawful, and whether the reliefs were merited. It held the six-month probation ended on 31st July 2023, so the termination fell outside probation. On substance, unrebutted evidence showed the claimant was genuinely ill, hospitalised, communicated his illness via SMS, was visited by managers sent by the CEO and presented medical evidence; hence the employer failed to prove a valid and fair reason. Procedurally, no hearing was accorded as required by section 41 of the Employment Act, and the claimant's assertion that he responded to the show cause letter was unrebutted. The court declared the termination unfair and unlawful, awarding one month's notice and one month's compensation (Kshs.260,000 total, subject to statutory deductions), a certificate of service, and costs with interest, but declined the claims for 12 months' compensation, lost contract earnings and general damages as not founded on law or contract.

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 occurred during probation period.
  2. 2.Whether the termination was unlawful and unfair.
  3. 3.Whether the reliefs sought are merited.

Key legal issues

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01

Whether the termination occurred during probation

Holding

The six-month probation ended on 31st July 2023, so the 28th August 2023 termination occurred after probation

Reasoning

The claimant began work on 1st February 2023 on a six-month probation, which therefore ended on 31st July 2023. The termination letter was dated 25th August 2023 and received on 28th August 2023, hence outside probation.

p. 4
02

Whether there was a valid and fair reason for termination

Holding

No valid reason; the absence was due to illness and was communicated

Reasoning

The court found unrebutted evidence that the claimant fell ill, notified the CEO via SMS, was visited by managers sent by the CEO, was hospitalised and presented medical evidence. His absence was thus not deliberate and the employer failed to prove a valid and fair reason under section 45.

p. 5
03

Whether a fair procedure was followed

Holding

No hearing was accorded; the procedure was unfair contrary to section 41

Reasoning

The claimant was neither heard before termination nor allowed to make representations. His claim that he responded to the show cause letter was unrebutted since the CEO's secretary was not called and the CEO did not deny being away. Section 41 requires explanation and hearing before termination for misconduct.

p. 5

Legal principles established

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  • For a termination to pass muster it must rest on a valid reason and be effected through a fair procedure
  • A hearing is mandatory before separation even where an employer declines to confirm an employee in a sensitive position
  • An employee who is genuinely ill and communicates his illness to the employer has lawful cause for absence

Court orders

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  1. 1.Declaration that the claimant's employment was unfairly and unlawfully terminated
  2. 2.Notice pay of Kshs.130,000.00
  3. 3.Compensation of one month's salary of Kshs.130,000.00
  4. 4.Award subject to statutory deductions
  5. 5.Certificate of service
  6. 6.Costs of the suit plus interest from the date of judgment

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007

Relief refused

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12 months' salary compensation (Kshs.1,560,000.00)

Awarded only one month's salary given service of less than seven months and history of absenteeism

p. 5

Damages for breach of contract (Kshs.3,770,000.00) for lost salary for 29 months

Claim not founded on law or contract of service

p. 6

General damages (Kshs.1,000,000.00)

Declined as not founded on law or contract of service

p. 6

Costs

The claimant will have costs plus interest from the date of this judgment.

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.

Consequently, I find that the termination of the claimant’s employment was not done during his probation period.
p. 4Probation period
I must hold that the claimant had a lawful cause for absenting himself from work and as such the employer has not proved a valid and fair reason for terminating his employment.
p. 5Valid reason
Even if the respondent had good reason not to confirm the claimant in the position of Operations Manager, which I agree is very sensitive in a financial institution, a hearing was mandatory before deciding on the separation.
p. 5Right to be heard
I enter judgment for him as follows: a. Notice .... Kshs.130,000.00 b. Compensation ..... Kshs.130,000.00 Kshs.260,000.00
p. 6Final orders

Issues in the judgment

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minor

Judgment refers to claimant reporting to work on '15th August 2025' where 2023 is evidently meant

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, "King’ori v Nawiri DT Sacco Limited (Cause E002 of 2024) [2025] KEELRC 2109 (KLR)", Case Analysis (2025). Statement of claim dated 29th January 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2109/eng@2025-07-17

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