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ELRCDismissedMemorandum of claim dated 9th September 2024

Otengo v Bidco Africa Limited (Cause E073 of 2024) [2025] KEELRC 2938 (KLR)

Employment and Labour Relations Court
29 October 2025
2,848 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The Claimant, employed as the Respondent's Regional Head of Distribution in February 2023 at a gross monthly salary of Kshs. 450,000/-, sued for constructive dismissal. She alleged the Respondent withheld her December 2023 salary on grounds of delayed distributor payments, mixed near-expiry products with longer-shelf-life stock, failed to reimburse her for fuel and for purchases of expired products, failed to service company vehicles, and harassed and intimidated her, forcing her resignation. She sought a declaration of constructive dismissal, 12 months' compensation of Kshs. 5,400,000/-, notice pay, unpaid December 2023 salary, refunds of Kshs. 74,000/- for fuel and Kshs. 263,000/- for expired products, a certificate of service, costs and interest. The Respondent admitted the employment but maintained she voluntarily resigned after failing to account for goods and monies, including an unaccounted IOU of Kshs. 84,200/-. Each party called one witness and filed submissions. Applying the constructive dismissal test in Maria Kagai Ligaga v Coca Cola East & Central Africa Limited, the court found the Claimant had continued working and served her notice period, and had not proved the Respondent's conduct was so heinous or intolerable, or a repudiatory breach showing the employer no longer intended to be bound by the contract. The monetary claims also failed: notice pay and December 2023 salary were paid (less the Kshs. 84,200/- deduction), no formal refund requests or documentary proof such as receipts or certified M-Pesa statements were produced, and the vehicle-sale claim was unsupported. The suit was dismissed with each party bearing their own costs, the Respondent not being 'a paragon of virtue'.

Questions the Court framed

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

  1. 1.Whether constructive dismissal has been proven
  2. 2.Whether the Claimant is entitled to the reliefs sought

Key legal issues

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01

Whether the Claimant proved constructive dismissal

Holding

The claim failed; the Claimant served her notice period and did not demonstrate that the Respondent's conduct amounted to a repudiatory breach or showed the employer no longer intended to be bound by the contract

Reasoning

Applying the test in Maria Kagai Ligaga v Coca Cola East & Central Africa Limited, the court held the employee must show the employer, without reasonable or proper cause, conducted itself in a manner likely to destroy or seriously damage the employment relationship. The Claimant continued to work and served her notice period, and no such conduct was demonstrated.

p. 5
02

Whether the monetary claims were proved

Holding

The monetary claims failed for want of documentary proof and formal refund requests; the vehicle-sale claim was not pleaded and not proved

Reasoning

The court found the Claimant produced no receipts, certified M-Pesa statements or repair invoices; the December 2023 salary and notice pay had been paid; the vehicle sale ownership details pointed to a third party; and belatedly raising the surcharge claims raised doubts about their provenance rather than satisfying the requirements for relief.

p. 6

Legal principles established

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  • Constructive dismissal is a repudiatory breach by the employer of the contract of employment; the employer's conduct must be so heinous and intolerable that it made it considerably difficult for the employee to continue working, and the employer must have without reasonable or proper cause conducted itself in a manner likely to destroy or seriously damage the employment relationship

Court orders

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  1. 1.The suit is dismissed
  2. 2.Each party shall bear their own 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 the Employment and Labour Relations Court Act (first-instance employment claim)

Relief refused

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Declaration of constructive dismissal

The Claimant continued working and served her notice period and did not prove the Respondent's conduct was intolerable or a repudiatory breach

p. 5

12 months' salary compensation of Kshs. 5,400,000/-

Constructive dismissal not proven

p. 6

Kshs. 74,000/- fuel refund and Kshs. 263,000/- for expired products

No formal refund requests and no documentary proof such as receipts or certified M-Pesa statements

p. 6

Notice pay and December 2023 salary

The Claimant was paid one month's salary in lieu of notice and the December 2023 salary, less a deduction of Kshs. 84,200/- as unaccounted IOU

p. 6

Costs

Each party shall bear their own 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.

In sum, the Claimant has failed to prove her case on a balance of probability and the suit is dismissed. Each party shall bear their own costs as the Respondent itself was not a paragon of virtue.
p. 6Final orders and dismissal
The Claimant did not prove that the Respondent’s behaviour was so heinous, so intolerable, that it made it considerably dificult for her to continue working for the Respondent.
p. 5Constructive dismissal threshold not met
Resignation is regarded as constructive dismissal if the employer’s conduct is a significant breach of the contract of employment and that the conduct shows the employer is no longer interested in being bound by the terms of the contract.
p. 5Definition of constructive dismissal
The Claimant did not produce documentary proof such as receipts or certified M-Pesa statements.
p. 6Proof of monetary claims

Issues in the judgment

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minor

The Respondent's submissions refer to claims of Kshs. 400,000/- for vehicle sale and Kshs. 300,000/- for mental anguish which were not part of the reliefs sought in the memorandum of claim, and the Respondent itself concedes this

minor

The same Court of Appeal authority is cited with slightly different case names ('Kagai Ligaga' versus 'Maria Ligaga')

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, "Otengo v Bidco Africa Limited (Cause E073 of 2024) [2025] KEELRC 2938 (KLR)", Case Analysis (2025). Memorandum of claim dated 9th September 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2938/eng@2025-10-29

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