On employee protections under Kenyan employment law: The Case of Maxton Duke Kibira v Twiga Foods Limited

Maxton Duke Kibira v Twiga Foods Limited Cause No.: 463 of 2019 [2025] KEELRC 2751 (KLR)

Facts of the Case:

• The Claimant, Maxton Duke Kibira, was employed by the Respondent, Twiga Foods Limited, from either February 2015 (as per the Claimant) or May 2016 (as per the Respondent), until his termination on 13 December 2018.
• The Respondent cited poor performance as the reason for termination, alleging:
• Revenue target shortfall (85% vs target of 92%)
• Excessive returns (23% vs acceptable 5%)
• Unbanked revenue exceeding KShs 30,000
• The Claimant disputed the termination, arguing it was unfair and unlawful, and further claimed the employer made arbitrary salary deductions totaling KShs 426,000.
• He sought compensation for unfair dismissal, refund of unlawful deductions, and other remedies.

 

Issues for Determination:

1. Whether the Claimant’s termination was lawful and fair.
2. Whether the Claimant was entitled to compensation and reimbursement of salary deductions.

Holding:

1. The termination was both substantively and procedurally unfair.
2. The Claimant was entitled to compensation and refund of the deducted salary.

 

Court’s Reasoning:

• The Respondent failed to provide:
• A clear job description or performance targets
• Evidence of a performance improvement plan or evaluations
• Notice or hearing as required under Section 41 of the Employment Act
• The alleged salary deductions were unsubstantiated, lacked documentation, and were done without the Claimant’s consent, rendering them unlawful.
• The employer did not meet the legal burden under Sections 43 and 45 to justify the dismissal.

 

Court's Holding:

The Court awarded the Claimant:

• KShs 600,000 – compensation for unfair termination (equivalent to 6 months’ salary)
• KShs 426,000 – refund of unlawful salary deductions
• Interest at court rates from date of judgment until payment in full
• Costs of the suit
• Claims for notice pay and overtime were dismissed for lack of proof

 

Legal Principles Applied:

• Section 41, 43 & 45 – Employment Act (Kenya): Procedural and substantive fairness in termination
• Burden of proof lies on the employer to justify reasons for termination and deductions
• Salary deductions must be lawful, consensual, and properly documented

 

Significance:

• The case reinforces employee protections under Kenyan employment law, especially in cases of alleged poor performance.
• Highlights the necessity for employers to maintain proper documentation, provide fair process, and refrain from unilateral salary deductions.
• Serves as a precedent on what constitutes unfair termination and unlawful deductions.