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ELRCPartially AllowedNot stated in the extract provided

Kihara v Ekaterra Tea Kenya Plc (Cause E007 of 2024) [2025] KEELRC 2537 (KLR)

Employment and Labour Relations Court
26 September 2025
2,441 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 manager who quit citing lack of appreciation lost his constructive dismissal claim and must pay his former employer over KShs. 624,000.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent on 1st January 2021 as a Plant Manager at the Mabroukie tea factory in Limuru, claimed he was constructively dismissed after being placed on a performance improvement plan (PIP) in 2023, and alleged a hostile work environment orchestrated by the Respondent's Business Integrity Officer, including discrimination. He sought a declaration of constructive dismissal, 12 months' salary in damages, two months' notice pay, pending leave, a certificate of service, costs and interest. The Respondent denied constructive dismissal, contending the PIP was a legitimate, non-punitive performance measure, that the Claimant resigned voluntarily on 22nd December 2023 — the same day he replied to a notice to show cause and before receiving the Respondent's response — and counterclaimed two months' salary in lieu of notice for the Claimant's abrupt resignation without the contractual two months' notice. The court, per James Rika J, held that constructive dismissal requires repudiation of fundamental contract terms leaving the employee no alternative but to resign, applying the Court of Appeal's decision in Coca Cola East and Central Africa Ltd v Maria Kagai Ligaga. It found nothing hostile in the PIP; the resignation letter cited only lack of appreciation, which employers are not legally obliged to give. All prayers were declined, including leave for want of evidence. The Counterclaim succeeded: the Claimant breached his contractual notice obligation and was ordered to pay Kshs. 624,926 with interest from judgment. No order on costs.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the Claimant was constructively dismissed by the Respondent
  2. 2.Whether the Claimant merits the prayers sought in the Claim
  3. 3.Whether the Respondent's Counterclaim is merited

Key legal issues

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01

Whether the Claimant was constructively dismissed

Holding

Constructive dismissal not established; resignation was voluntary

Reasoning

The court applied the principles in Coca Cola East and Central Africa Ltd v Maria Kagai Ligaga: the employee must show repudiation of fundamental contract terms leaving no alternative but to resign. The Claimant resigned the same day he replied to the show-cause letter, before receiving the Respondent's response, thereby circumventing the process. The PIP was an ordinary performance-management measure; his resignation letter did not mention PIP, discrimination or compulsion, only lack of appreciation, which is not an enforceable contractual obligation.

p. 5
02

Whether the Claimant merits the prayers sought

Holding

All prayers declined

Reasoning

With constructive dismissal not made out, the declaration, damages, notice pay, costs and interest fell away. The annual leave prayer failed for want of evidence. A certificate of service had already been issued per the Respondent, so no order for reissue was necessary.

p. 6
03

Whether the Respondent's Counterclaim is merited

Holding

Counterclaim allowed at Kshs. 624,926

Reasoning

The contract required either party to give 2 months' notice of termination or pay 2 months' salary in lieu. The Claimant resigned abruptly on 22nd December 2023 without notice or payment in lieu, and his explanation of lack of time was rejected. The court entered judgment for the Respondent with interest from the date of judgment.

p. 6

Legal principles established

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  • Constructive dismissal requires breach/repudiation of fundamental terms of the employment contract leaving the employee no alternative but to resign
  • Lack of appreciation, recognition and reward does not in itself constitute a hostile work environment
  • An employee who resigns immediately upon replying to a show-cause letter, before the employer responds, circumvents the disciplinary process and cannot claim constructive dismissal

Court orders

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  1. 1.The Claim is declined
  2. 2.The Counterclaim is allowed at Kshs. 624,926
  3. 3.Interest allowed on the Counterclaim, from the date of Judgment, till payment is made in full
  4. 4.No order on the costs

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 and E&LRC (Procedure) Rules, 2025 (Rule 68(5) relied on for electronic delivery)

Relief refused

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Declaration of constructive dismissal

Claimant failed to establish a hostile work environment or breach of fundamental contract terms

p. 5

Damages for unfair constructive dismissal (12 months' salary)

Constructive dismissal not established

p. 6

2 months' salary in lieu of notice

Resignation was voluntary and abrupt

p. 6

22 days pending annual leave

No evidence adduced

p. 6

Certificate of Service

Respondent pleads it was issued; court saw no need to order reissue

p. 6

Costs

No order on costs

p. 6

Costs

No order on the costs.

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.

There was nothing hostile about the PIP. It was an ordinary process in which the Employer raised concerns about the performance of its Manufacturing Manager, the Claimant herein.
p. 5Performance improvement plan not hostile conduct
Employers are not legally obliged to appreciate and value their Employees. Lack of appreciation, recognition and reward do not in themselves, constitute a hostile work environment.
p. 5Elements of hostile work environment
Constructive dismissal involves breach of fundamental terms of the contract of employment. The Employee must demonstrate that the Employer has acted in repudiation of fundamental terms of the contract of employment.
p. 5Test for constructive dismissal
The Claimant did not issue notice or pay to the Respondent 2 months' salary in lieu of notice, as contracted.
p. 6Breach of contractual notice on resignation
a. The Claim is declined. b. The Counterclaim is allowed at Kshs. 624,926. c. Interest allowed on the Counterclaim, from the date of Judgment, till payment is made in full. d. No order on the costs.
p. 6Final orders

Issues in the judgment

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minor

The Respondent's name does not appear in the body of the extract provided; the parties are referred to only as Claimant and Respondent

minor

The case number and neutral citation are not printed in the extract provided

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, "Kihara v Ekaterra Tea Kenya Plc (Cause E007 of 2024) [2025] KEELRC 2537 (KLR)", Case Analysis (2025). Not stated in the extract provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2537/eng@2025-09-26

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