Sana Industries Limited v Muchiri (Appeal E133 of 2025) [2025] KEELRC 3177 (KLR) (13 November 2025) (Judgment)

Summary at a glance

Facts

The Appellant, Sana Industries Limited, filed a Memorandum of Appeal against the judgment and decree of the Hon. D. Orago (SRM) dated 8th April 2025, which found that the Respondent, Tabitha Muthonie Muchiri, had converted her employment to permanent and was unfairly terminated.

Issues

• Whether the trial Magistrate erred in finding that the Respondent's employment had converted to permanent.
• Whether the trial Magistrate erred in finding that the Respondent's employment was unfairly terminated.
• Whether the trial Magistrate erred in awarding one month's salary in lieu of notice and Kshs. 110,880.00 as compensation.
• Whether the trial Magistrate erred in awarding Kshs. 63,360/- as service pay.
• Whether the trial Magistrate erred in awarding Kshs. 95,040.00 as unpaid leave.
• Whether the trial Magistrate erred in awarding Kshs. 95,040.00 as severance pay.

Reasoning

The court found that the trial court erred in finding that the employment had converted to permanent and in awarding severance pay. The court upheld the unfair termination finding but reduced the compensation awarded.

Outcome

The appeal was partially successful, and the trial court's judgment and decree were set aside in part.

Orders

• Interest
• Certificate of service be issued to the claimant.
• Each party to bear its own costs on appeal.
• Stay of 30 days.

Remedies

• Service pay under sections 35(5) and 36 of the Employment Act.
• Salary in lieu of notice awarded for lack of procedural fairness.

Authorities cited