In a major win for employee rights in Kenya, the Employment and Labour Relations Court has ordered Safaricom PLC to pay KSh 55 million to 17 former Area Sales Managers for unfair, unprocedural, and discriminatory termination. The judgment, delivered by Justice Stella Rutto, arose from consolidated cases Cause No. 1565 of 2018 and Cause No. 70 of 2019, filed by the employees between November 29, 2018 and February 5, 2019.
The claimants had accused the telecommunications giant of breaching multiple employment laws and constitutional provisions in the manner in which their contracts were terminated. The court found in their favor and ordered full compensation, including interest and costs of the suit.
Background: The Case Against Safaricom
The 17 claimants were employed by Safaricom as Area Sales Managers under the Consumer Business Unit, responsible for various territories across Kenya. Each had signed individual employment contracts, which included a one-month notice of termination or one month’s salary in lieu thereof.
In October 2016, Safaricom piloted a project known as the Electronic Subscriber Registration Project, intended to enhance Know Your Customer (KYC) compliance using Huawei Y3 II devices. The claimants participated in this project and shared ongoing feedback with the company. However, not long after the pilot and roll-out, the claimants were summarily dismissed from their roles—without notice, disciplinary hearing, or justification.
Claims Against Safaricom
The claimants brought suit against Safaricom seeking the following reliefs:
A declaration that the termination was unlawful, unfair, and discriminatory;
- Compensation for breach of employment contract;
- Damages for violation of rights under:
- Sections 31, 35, 41, 44, and 45 of the Employment Act, 2007
- Articles 10, 27(5), 28, 41, and 50 of the Constitution of Kenya 2010
- One-month salary in lieu of notice and additionally;
- House allowance, per diem, and general damages;
- Exemplary damages for inhuman and oppressive treatment;
- Loss of future earnings;
- Interest and costs.
The suit was verified and supported by Anthony Opiyo (12th claimant), who swore affidavits on behalf of the group. James Omondi Onyango, the 4th claimant, testified under oath for all the claimants using filed witness statements dated November 29, 2018.
Court’s Findings: Procedural & Substantive Breach
In delivering her verdict, Justice Stella Rutto after examining the evidence, ruled that Safaricom had violated both procedural and substantive fairness. The judge held that:
- The dismissals were done without valid reasons;
- The employer failed to issue formal termination notices;
- There was no opportunity for the employees to defend themselves;
- Safaricom violated the rules of natural justice and the Employment Act.
Consequently, the court awarded compensation equivalent to ten to twelve months’ salary, one-month salary in lieu of notice, and court interest to all 17 claimants.
“Termination of employment must be both procedurally and substantively fair. Safaricom failed to demonstrate any of these in the dismissal of the 17 sales managers.”
As a result, the court awarded the former employees KSh 55 million in total, covering damages for wrongful dismissal, lost income, and emotional distress.
Full Breakdown of Compensation
Claimant | Compensation (KSh) | Notice Pay (KSh) | Total (KSh) |
|---|---|---|---|
1. Johnson Ngugi Kangiri | 2,124,225.50 | 212,422.55 | 2,336,648.05 |
2. Richard Alenga Inyumuli | 3,914,183.40 | 326,181.95 | 4,240,365.35 |
3. Martin Mutuma Miriti | 2,741,740.00 | 274,174.00 | 3,015,914.00 |
4. James Omondi Onyango | 1,200,000.00 | 120,000.00 | 1,320,000.00 |
5. James Nguthu Musyoka | 1,200,000.00 | 120,000.00 | 1,320,000.00 |
6. Hellen Wambui Mburu | 1,200,000.00 | 120,000.00 | 1,320,000.00 |
7. Hawa Wanjiku Ali | 2,741,740.00 | 274,174.00 | 3,015,914.00 |
8. George Kariuki Njeru | 1,990,000.00 | 199,000.00 | 2,189,000.00 |
9. Erick Mwenda Mutuma | 2,741,740.00 | 274,174.00 | 3,015,914.00 |
10. Crispus Gachuhi Wachira | 2,469,940.00 | 246,994.00 | 2,716,934.00 |
11. Bismark Shimuli Litiema | 1,990,000.00 | 199,000.00 | 2,189,000.00 |
12. Anthony Opiyo | 3,800,000.00 | 380,000.00 | 4,180,000.00 |
13. Anjela Sanja Sirengo | 1,990,000.00 | 199,000.00 | 2,189,000.00 |
14. Paul Keeru Gakinya | 850,000.00 | 85,000.00 | 935,000.00 |
15. Benard Kibet Ronoh | 2,770,000.00 | 277,000.00 | 3,047,000.00 |
16. Chris Muasya Muvaka | 1,200,000.00 | 120,000.00 | 1,320,000.00 |
17. Harun Kithinji Mbae | 1,990,000.00 | 199,000.00 | 2,189,000.00 |
Grand Total Awarded: Approximately KSh 55 Million
In addition to the monetary awards, the court ordered that interest be applied at the prevailing court rates until full payment is made, along with the costs of the suit.
What This Means for Employers in Kenya
This ruling sends a strong message to both local and multinational employers operating in Kenya: employee termination must follow the law. The court ruling highlights several lessons:
- Follow Due Process: Terminations must follow documented and lawful procedures, including disciplinary hearings and written notices.
- Document Everything: Employers should maintain proper employment records, warning letters, and meeting minutes to justify any disciplinary action.
- Compensate Fairly: If terminating employment, ensure that all dues—including notice pay, leave days, and severance—are paid promptly.
- Employee Rights Matter: Failure to uphold the legal rights of employees can lead to expensive litigation and public backlash.
Read Also: Safaricom Ordered to Suspend Paybill and Till Numbers
Legal & Corporate Implications
This case is a cautionary tale for employers in Kenya. The judgment reinforces several legal principles:
- Employers must comply with Sections 35, 41, 44, and 45 of the Employment Act before terminating any employee.
- A dismissal without notice, hearing, or just cause constitutes unlawful termination.
- Even multinational corporations are not above the law.
Corporate HR departments must ensure policies align with Kenyan labor law to avoid costly and reputationally damaging lawsuits.
Final Thoughts
The court’s decision in this case sets a transformative precedent for how dismissals are handled in Kenya’s corporate sector. It reiterates that labor rights are enshrined in law, and violations—regardless of the employer’s size or status—will not go unpunished.
Safaricom, as a leader in the telecom industry, has an opportunity to lead by example. The way it responds in the coming days will not only affect its corporate image but also influence how other employers view and apply employment law in Kenya.
This is more than just a legal victory for 17 individuals—it’s a bold reminder that fairness in the workplace is not optional, but mandatory.
