Mwani v Rupia Micro Credit Limited (Employment and Labour Relations Cause E749 of 2022) [2025] KEELRC 2516 (KLR)
The bottom line
#A Kenyan court ruled an employee's same-day suspension and firing without a hearing was unfair, awarding him eight months' salary plus notice pay and costs.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.Whether the Claimant's employment was unfairly terminated
- 2.Whether the Claimant is entitled to the compensation sought
- 3.Who bears the costs of the suit
Key legal issues
#Whether the termination of the Claimant's employment was unfair and unjustified
The termination was unfair and unjustified as the Claimant was condemned unheard and no valid reason for the termination was established
The Respondent admitted issuing both the suspension and termination letters on the same day without affording the Claimant an opportunity to be heard. No disciplinary hearing was convened. The allegation that the Claimant forged sick-leave documents was not proved because no hospital witness was called. Section 41 required an explanation and hearing, and Section 45(2) required proof of valid reason and fair procedure, neither of which was met.
Whether the Respondent proved forgery of the medical documents
The allegation of forgery failed as mere allegation unsupported by evidence
The Respondent asserted that the sick sheet from Kakamega County General Teaching and Referral Hospital was a forgery, but called no witness from the hospital to confirm this, even though the hospital had allegedly denied the Claimant was a patient. Without such evidence the forgery claim remained unproved.
Whether the Claimant was entitled to the reliefs claimed
The Claimant was awarded one month's salary in lieu of notice, unpaid August 2022 salary, eight months' salary as compensation for unfair termination, and a certificate of service
Having found the termination unfair, the court granted the equivalent of eight months' salary as compensation rather than the twelve months claimed, together with notice pay and unpaid salary, and a certificate of service as of right. Exemplary damages were not awarded.
Legal principles established
#- An employer must, before terminating employment on grounds of misconduct, poor performance or physical incapacity, explain the reasons to the employee and afford them a hearing as required by Section 41 of the Employment Act
- A termination is unfair where the employer fails to prove a valid and fair reason and a fair procedure under Section 45(2) of the Employment Act
Court orders
#- 1.One month's salary in lieu of notice of Kshs. 22,650/-
- 2.Unpaid August 2022 salary of Kshs. 22,650/-
- 3.Compensation for unfair termination equivalent to 8 months' salary, Kshs. 181,200/- (total Kshs. 226,500/- less statutory deductions)
- 4.Issuance of a certificate of service to the Claimant
- 5.Respondent to pay costs of the suit plus interest at court rates with effect from the date of judgment
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, No. 11 of 2007 (claim for unfair and wrongful termination under Sections 41, 43, 45 and 46 and Articles 28, 41(1), 47, 48 and 50(1) of the Constitution of Kenya, 2010)
Relief refused
#Twelve months' salary as compensation for unlawful termination (Kshs. 271,800/-)
Court awarded only eight months' salary as compensation for unfair termination
Exemplary damages for breach of constitutional rights
Not granted in the final orders; no award of exemplary or aggravated damages made
Costs
Respondent to pay costs of the suit plus interest at court rates with effect from the date of this judgment
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
The claimant having been terminated without any fair hearing and without establishing the validity of reasons leading to his termination, it is my finding that his termination was unfair and unjustified and I decree so.
There was however, no witness called from the hospital to confirm that the documents were a forgery. The allegation of the claimant forging documents therefore remain as just mere allegations.
Compensation for unfair termination equivalent to 8 months' salary = 8x 22,650= kshs181,200/Total kshs 226,500/- less statutory deductions
Respondent to pay cost of this suit plus interest at court rates with efiect from date of this judgment.
Issues in the judgment
#Judgment text contains typographical errors, e.g. 'efiect' and 'fioor'
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Mwani v Rupia Micro Credit Limited (Employment and Labour Relations Cause E749 of 2022) [2025] KEELRC 2516 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2516/eng@2025-09-25
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.