Isaiah Okoth v Africa Biosystems Limited
The bottom line
#A Kenyan court ruled a CEO resigned voluntarily, not constructively dismissed, but his employer must still pay admitted pension dues of USD 41,590.56.
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.Whether the reliefs sought by the Claimant are deserved.
Key legal issues
#Whether the Claimant was constructively dismissed
No; the Claimant resigned voluntarily by giving six months' notice as per his contract.
The court applied the Coca Cola Ligaga test: the employer's conduct must be heinous and without reasonable or proper cause, likely to destroy or seriously damage the employment relationship. The Respondent merely issued a show cause letter and invited the Claimant to a disciplinary hearing with rights of accompaniment, conforming to Section 41 of the Employment Act. The Claimant resigned before the hearing without demonstrating intolerable working conditions.
Whether the pension contribution of USD 41,590.56 was payable
Yes; awarded as admitted by the Respondent in pleadings and evidence.
The Respondent admitted the pension claim both in its pleadings and through RW-1, who confirmed the Respondent agreed to pay the pension contribution inclusive of both employer and employee portions as at 1st March 2023. The court awarded the admitted sum and exempted it from statutory deductions under Section 49(2) of the Employment Act.
Whether the Respondent's counter-claim survived
The counter-claim was withdrawn with costs at the lower scale before trial judgment.
The Respondent sought to withdraw its counter-claim on 29th September 2025, seeking injunctions and declarations regarding non-compete and confidentiality clauses. The court marked it withdrawn with costs at the lower scale, payable after the outcome of the main suit. The court confirmed that position in the final orders.
Legal principles established
#- Issuance of a show cause letter and invitation to a disciplinary hearing in conformity with Section 41 of the Employment Act does not amount to constructive dismissal.
- An employee who initiates and partly participates in disciplinary proceedings before resigning weakens a claim of constructive dismissal.
- A claim for underpayment of leave days is special damages that must be specifically pleaded and strictly proved.
Court orders
#- 1.Judgment entered for the Claimant against the Respondent for USD 41,590.56 being pension contribution.
- 2.The awarded sum shall not be subjected to statutory deductions pursuant to Section 49(2) of the Employment Act.
- 3.Interest on the awarded sum at Court rates from the date of filing suit until payment in full.
- 4.Costs of the suit to the Claimant, to be taxed on the higher scale.
- 5.Costs of the withdrawn counter-claim to the Claimant, to be agreed or taxed at the lower scale, as previously ordered on 29th September 2025.
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 and Labour Relations Court Act over employment disputes (Employment Act claims)
Relief refused
#USD 249,996 being 12 months' compensation for constructive termination
Claimant did not demonstrate constructive dismissal
USD 1,488.10 underpayment of leave days
Not specifically pleaded and strictly proved as special damages
USD 900,680 payment for remainder of contract term
Not a relief provided for under Section 49(1) of the Employment Act
General damages
No breach of the employment contract established
Costs
Claimant awarded costs of the suit to be taxed on the higher scale; costs of the withdrawn counter-claim to be agreed or taxed at the lower scale (as ordered 29th September 2025).
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.
Issuance of a show cause letter by an employer to an employee requiring the employee to show cause why disciplinary action should not be taken against him or her for alleged misconduct or poor performance cannot be equated with creation of working conditions that leave an employee with little or no choice but to resign.
Waiting for commencement of disciplinary proceedings and partly participating in them before resigning removes the legal sting from any accrued right to resign and to plead constructive dismissal.
In sum, and having considered written submissions filed on behalf of both parties, Judgment is hereby entered for the Claimant against the Respondent for USD 41,590.56.
The Claimant is awarded interest on the awarded sum at Court rates, to be calculated from the date of filing suit until payment in full.
The Claimant is awarded costs of the suit, to be taxed on the higher scale.
Issues in the judgment
#Resignation date inconsistency between pleadings and testimony
Director's name spelled 'Alexis Claude' in pleadings but 'Alexis Caude' in quoted letters
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Isaiah Okoth v Africa Biosystems Limited", Case Analysis (2026). Cause No. E739 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2697/eng@2026-09-25
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.