Kiogora v Ndarawetta Tea Factory Ltd (Cause E006 of 2025) [2026] KEELRC 2446 (KLR)
The bottom line
#Kenya's Employment Court ruled that cutting an employee's salary without consent is constructive dismissal, awarding a finance manager Kshs.2.1 million.
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 was constructively dismissed by the Respondent
- 2.If (a) above is in the affirmative, whether the Claimant is entitled to the reliefs sought
- 3.Who should bear the costs
Key legal issues
#Whether the 50% salary reduction and related deductions amounted to a repudiatory breach justifying a finding of constructive dismissal
Yes - the salary was slashed without the Claimant's consent, express or implied; his written objections and subsequent resignation established constructive dismissal
Applying the Coca Cola tests, the court found the unilateral salary reduction went to the root of the contract. Unlike a comparable employee who signed minutes and said nothing, this Claimant wrote two letters demanding reinstatement of his salary and later, through counsel, demanded settlement for unlawful termination, negating waiver, acquiescence or estoppel and establishing the causal link between the breach and his resignation.
Whether the Claimant resigned voluntarily
No - although the resignation letter did not state reasons, the surrounding correspondence showed the resignation was not voluntary
The resignation letter stated the decision was not easy and did not cite the pay cut, but the Claimant had earlier written letters dated 23rd July 2024 and 6th August 2024 demanding salary reinstatement, and his advocate's letter of 14th November 2024 demanded settlement for unlawful termination. The court treated the pay cut as the effective reason for his exit.
Legal principles established
#- Unilateral changes to employment contracts without the employee's consent are unlawful
- A resignation is not voluntary where the employee promptly objected to the employer's breach and the resignation followed the breach
Court orders
#- 1.Judgment entered in favour of the Claimant on constructive dismissal
- 2.Compensation for unlawful termination of six months' salary equivalent to Kshs.2,100,000 with interest at 14% per annum from the date of judgment until full payment
- 3.Costs awarded to the Claimant
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Employment and Labour Relations Court original jurisdiction under the Employment Act and Labour Relations Court Act (not expressly cited in the judgment)
Relief refused
#Restitution to original position with full salary
Court instead awarded compensation for unlawful termination rather than restitution
Full dues as computed by Respondent's HR amounting to Kshs.2,881,877 (gratuity and additional leave days claims)
Claimant did not prove entitlement to gratuity or the additional leave days claimed; court awarded only six months' compensation
Costs
Costs will also be awarded to the Claimant.
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 court finds the Claimant did not resign voluntarily and his resignation was due to the prevailing circumstances of the employer slashing his salary.
The court finds a case of constructive dismissal is proved and so holds that the Claimant was wrongfully and unfitly dismissed. Judgment is entered in his favour.
the court proceeds to award him the following compensation for unlawful termination which will be six(6) months equivalent of his salary amounting to Kshs.2,100,000/= and interest at 14% per annum from today’s date till full payment.
Costs will also be awarded to the Claimant.
Issues in the judgment
#Judgment dated 23rd July 2026 but Respondent's witness statement dated 29th October 2025 and a cited authority (Pride Kings Security Service v Araka) carries a 2026 citation - dates appear internally consistent only if delivery is in 2026; the Claim's cause number year (2025) and a resignation dated August 2024 are consistent. Note also the anomalous phrase 'wrongfully and unfitly dismissed'.
Court awards compensation but does not expressly dispose of the Claimant's heads of claim for leave days, service pay/gratuity and the tabulated dues of Kshs.2,881,877, which appear neither granted nor refused in terms.
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kiogora v Ndarawetta Tea Factory Ltd (Cause E006 of 2025) [2026] KEELRC 2446 (KLR)", Case Analysis (2026). KRC ELRC CAUSE NO. E006 OF 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2446/eng@2026-07-23
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.