REPUBLIC OF KENYA
IN THE EMPLOYMENT & LABOUR RELATIONS
COURT OF KENYA AT KISUMU
CAUSE NO. E089 OF 2023
DR. CHARLES OKECH
ODHIAMBO.......................................CLAIMANT
VERSUS
DR. OBADIAH KISANG.……………….………………1ST
RESPONDENT
MS. DORRIS MWARREY……………..………………..2ND
RESPONDENT
MR. GILBERT KAMANGA…………….………………3RD
RESPONDENT
WORLD VISION KENYA……………….……………...4TH
RESPONDENT
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JUDGMENT
1. The Claimant initiated this action against the Respondents
through a Memorandum of Claim filed on 2 nd December
2023, citing wrongful termination and withholding of his dues
as the primary issues in dispute. He sought the following
remedies:
(a) Declaration that he was and is still an employee of
the 4th Respondent up to the 30th November 2023.
(b) A declaration that the withholding of his dues is
illegal and unfair.
(c) The Respondent be ordered to pay him his statutory
entitlements and dues totalling Kshs 2,939,166.20 with
interest at 30% with effect from the date of filing suit till
the date of the judgment.
(d) General damages for defamation of character.
(e) Aggravated damages.
(f) Interest on (a), (b), (c), (d) and (e) from the date of
filing suit until the date of the judgment.
(g) Costs of the suit be borne by the Respondent.
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2. The Claimant asserted that he first joined the 4 th Respondent
in January 2005 as a Food Security Coordinator in Turkana.
He stated that due to his outstanding performance, he was
promoted and transferred to Migori in October 2005 as a
Programme Coordinator, overseeing water sanitation, child
sponsorship, education, and food security. He further averred
that in October 2007, he was transferred to Winam Area
Development Programme in Kisumu East to address
mismanagement issues that had eroded donor confidence.
He contended that after two years, he was promoted to the
position of Lake Region Livelihood Resilience Officer, Kisumu,
where he oversaw 13 Area Development Programmes and
mentored new officers. After this stint the, Claimant stated
that he left the 4th Respondent's employment with a spotless
record, before re-applying in 2017 and being rehired as a
Project Manager overseeing projects spanning 7 African
countries.
3. He asserted that his performance was stellar earning him a
promotion to Senior Programme Manager in February 2022.
However, from this point, he asserted that challenges soon
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began arising due to inadequate handover by his
predecessor and persistent interference from the Programme
Director, who frequently monitored and overturned his
decisions. According to the Claimant, matters further
escalated in June 2023 when, following mid-year staff
performance reviews, the Programme Director sought to
place him on a Performance Improvement Plan. He asserted
that he objected to this, arguing that the alleged poor
performance was due to systemic issues such as delayed
procurement and high staff turnover. He affirmed that he
suggested improvement measures but his suggestions were
dismissed. The Claimant averred that relations with the
Programme Director further deteriorated, and on 29 th August
2023 he was served with a baseless notice to show cause,
detailing accusations of sexual harassment, bribery and
misconduct. After responding to the show cause, he
contended that he was invited for a disciplinary hearing
which he was unable to attend due to health complications
and psychological distress. Thereafter the Claimant stated
that he submitted his resignation, which was initially not
accepted. However, he later found that his resignation had
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been accepted despite his withdrawal of it, and he was
locked out of the 4th Respondent's systems. In conclusion he
maintained that he was entitled to his outstanding dues and
an apology for the malicious accusations levelled against
him.
4. In reply the Respondents filed a Response to the
Memorandum of Claim dated 8th February 2023, generally
denying the allegations and inviting the Claimant to strict
proof. They contended that his resistance to performance
evaluation stemmed from a reluctance to be held
accountable, emphasizing that such evaluations were
standard organizational practice. The Respondents further
asserted that the Claimant voluntarily resigned, and his
resignation was duly accepted. Regarding the accusations of
sexual harassment, they maintained that the allegations
were true and that despite being given an opportunity to
respond, the Claimant refused to attend the disciplinary
hearing. With respect to the Claimant's final dues, the
Respondents asserted that they had already been computed
and disbursed.
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5. The matter proceeded for hearing on various dates, during
which the Claimant testified, and two witnesses provided
testimony on behalf of the Respondents. Both parties
subsequently filed written submissions.
Claimant's Submissions
6. The Claimant submits that the Respondents failed to prove
that he was accorded a fair hearing. He asserts that the
contradictions surrounding whether a disciplinary hearing
took place were significant and material. In support of this
position the Claimant maintains that no formal charges were
framed, no proper hearing was conducted, and that a board
meeting could not be repurposed into a disciplinary hearing.
He cites the case of David Wanjau Muhoro v Ol Pajeta
Ranching Limited [2014] eKLR where the essential
elements of a fair disciplinary process were outlined as
follows:
"First the right to sufficient time between the date of
service to show cause and the date of hearing to prepare
for the hearing, second the right to fully understand the
charges. General charges such as dishonesty, fraud and
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fraudulent activities are vague and offer an employee no
opportunity to respond intelligibly. Lastly, the employee
has a right to documentation. The employee must be
given the documents the employer intends to rely on at
the hearing."
7. In further impugning the disciplinary process, the Claimant
draws attention to sections 41, 43, 44, 45 and 47(5) of the
Employment Act as well as the Court of Appeal case of Pius
Machafu Isindu v Lavington Security Guards Limited
[2017] eKLR, where the obligations placed on employers by
the Employment Act in matters of summary dismissal were
to prove that; the reasons for termination were valid and fair,
the grounds were justified and there was compliance with
the mandatory procedural requirements set out in section
41. In highlighting the shortfalls of the disciplinary process,
including the Notice to Show Cause, the Claimant submits
that:
i. The Respondents failed to provide evidence to
support allegations of sexual harassment, bribery, or
the use of vulgar language.
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ii. The 1st Respondent in drafting the notice relied on
malice, innuendo, ill motive and connivance with his
supervisees.
iii. The 2nd, 3rd and 4th Respondents violated labour laws
by terminating his employment before the end of his
contract.
iv. Despite his withdrawal of resignation, the 2 nd, 3rd and
4th Respondents still accepted the resignation and
proceeded with a disciplinary hearing, suggesting a
premeditated effort to victimize him.
8. Consequently, the Claimant asserts that the Respondents
prevented him from attending the disciplinary hearings to
present his defence, and violated the 45-day period within
which accusations under the "code red" category should be
addressed. Regarding his resignation the Claimant submits
that it was improper for the Respondents to backdate a letter
accepting his resignation after he had formally withdrawn it.
He emphasizes that withdrawal of a resignation notice is
permissible under special circumstances citing the Irish
Employment Tribunal in UD 946/2007, Mcmanus v
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Brian Contractors, where an employee's letter withdrawing
resignation was deemed binding after consideration of the
context in which the resignation was offered. Moreover, he
asserts that a resignation withdrawal is valid when
communicated at the earliest opportunity or if the
resignation was made in the heat of the moment. In support
of this, he cites the case of Kwik-Fit [GB] Limited v
Lineham [1992] IRLR 156 where it was held that if an
employee resigns impulsively under pressure or humiliation,
the employer has a duty to investigate the employee's true
intentions before accepting the resignation. Reinforcing his
position, the Claimant submits that a resignation letter alone
does not constitute unequivocal evidence of an intention to
terminate employment. He cites the decision in the Canadian
Case [British Columbia [British Columbia] decision,
Templeton v RBC Dominion Securities, Inc 2005,
Carswell Nfld, 216 at Paragraph 46 where it was stated:
"It is important to distinguish between a letter of
resignation, and resignation. A resignation is the decision
to terminate the relationship, or equally, a fact or
circumstance which unequivocally reflects that decision. A
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letter of resignation is simply evidence-cogent evidence of
the Employee's decision to end the relationship. But it is
no more than that; a letter of resignation is not in itself,
the Employee's termination of employment."
9. In submitting that the Respondents were malicious, the
Claimant highlights that he was only served with the
backdated letter accepting his resignation on the same date
that he submitted his withdrawal of resignation. He relies on
the case of Edwin Beiti Kipchumba v National Bank of
Kenya Limited [2018] eKLR, where the court upheld an
employee's right to rescind resignation, finding that the
employer's refusal to accept the withdrawal was due to the
Respondent's directors being compromised and at the heart
of the fraud under investigation by the CBK. On the issue of
defamation, the Claimant submits that the Respondents'
accusations labelling him fraudulent, corrupt and a sex
molester were made without evidence and were therefore
defamatory. He submits that these statements meet the
legal threshold for defamation, which requires, that the
words must tend to lower the person's reputation in the
estimation of right-minded person, the words must refer to
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the person, the words must be malicious. In support of his
argument, he cites the cases of Alnashir Visram v
Standard Limited [2016] eKLR and Wycliffe A. Swanya
v Toyota East Africa Ltd & another [2009] eKLR. Given
the damage to his reputation, the Claimant submits that he
is entitled to general damages of Kshs 20,000,000/- citing
the case of Richard B.O. Onsongo v Rose Ogendo
Nyamunga, Joyce Oweya & Paul Ogendo (Civil Case 9
of 2014) [2018] KEHC 8169 (KLR) (27 February 2018)
(Judgment). Additionally, the Claimant submits that he is
entitled to exemplary damages of Kshs 5,000,000/- based on
the principle in Godfrey Julius Ndumba Mbogori &
another v Nairobi City County [2018] eKLR that
exemplary damages serve the purpose of deterrence and
punishment. In conclusion, the Claimant urges the court to
grant the reliefs sought in his claim.
Respondents' Submissions
10. In opposition to the claim the Respondents identify the
following issues for determination:
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i. Whether the Claimant was wrongfully terminated
from his employment or his Constitutional right to
fair hearing was breached;
ii. Whether the Claimant was defamed in the notice to
show cause letter arising from complaints from a
former employee, which letter was sent to him
confidentially; and
iii. Whether the Claimant should be awarded damages
including aggravated damages.
11. On the first issue, the Respondents submit that there was
no wrongful termination, as the Claimant voluntarily
resigned. They contend that the termination of employment
was initiated by the Claimant himself and was not due to any
wrongful conduct on their part. In support of this position,
they cite the decision in Edwin Beiti Kipchumba v
National Bank of Kenya Limited [2018] eKLR as
referenced in Kennedy Obala Oaga v Kenya Ports
Authority [2018] eKLR, which held that resignation is a
unilateral act by an employee and that the Employment Act
does not prevent an employee from resigning at any stage of
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the disciplinary process. Additionally, the Respondents rely
on David K Cheruiyot v Barclays Bank of Kenya Limited
(Cause 242 of 2011) [2015] KEELRC 1164 (KLR)
(Employment and Labour) (20 April 2015), where it was
held that the Claimant was not entitled to the prayers sought
having chosen to resign.
12. The Respondents maintain that they adhered to the
requisite procedural steps as outlined in the employment
contract and organizational policies. They assert that the
notice to show cause was issued in response to serious
breaches of the 4th Respondent's Code of Conduct, Adult
Safeguarding Policy, Financial Fraud Policy, and Sexual
Harassment Policy. Furthermore, the Respondents submit
that despite responding to the notice to show cause, the
Claimant repeatedly failed to attend disciplinary hearings.
They highlight his absence from the hearing scheduled for 3 rd
September 2023 citing illness, and his failure to attend the
rescheduled hearing on 8th September 2023, without
providing a valid explanation. The Respondents assert that
the Claimant's actions were a deliberate attempt to evade
accountability. They further submit that his decision to
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engage legal counsel in an effort to revive the disciplinary
process after his resignation was akin to "closing the stable
door after the horse had already bolted."
13. On the second issue, the Respondents submit that the
claim of defamation is unfounded, as the notice to show
cause does not meet the legal threshold for defamation.
They emphasize that the letter was a private communication
issued in the course of legitimate administrative functions
and was devoid of malice. To establish the elements required
to prove defamation, they refer to the decision in the case of
Elisha Ochieng Odhiambo v Booker Ngesa Omole
[2021] eKLR, which sets out the following requirements:
a. The Claimant must demonstrate the defamatory
nature of the matter complained of, in that it was
uttered to someone else other than the defamed
party and was published maliciously.
b. The words must have the effect of lowering the
claimant’s reputation in the eyes of right-thinking
members of society or causing them to be shunned or
avoided.
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c. The statement must have been made with malice or
reckless disregard for the truth.
14. The Respondents submit that by applying these principles
to the present case, it is evident that the notice to show
cause merely sought the Claimant’s response to allegations
and did not constitute a definitive assertion of guilt or
wrongdoing. They reiterate that the letter was addressed
solely to the Claimant and was not shared with any
unauthorized third parties. To reinforce their position, the
Respondents cite the case of Miguna Miguna v Standard
Group Limited & 4 others [2017] eKLR, which held that a
defamation claim requires proof that a defamatory
statement was published or caused to be published by the
defendant. Additionally, the Respondents submit that the use
of the term "alleged" in the notice to show cause
underscores the absence of malice, as it demonstrated that
no definitive conclusions had been drawn against the
Claimant.
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15. On the final issue, the Respondents urge the court to
consider the decision in George Ngige Njoroge v
Attorney General [2018] eKLR, which held as follows:
"Aggravated damages are awarded in actions where
damages are at large. They are normally awarded in
actions of defamation, intimidation, false imprisonment,
malicious prosecution, and trespass to land, persons or
goods. The matters that the court should take into
account in awarding such damages include the
Defendant’s motive, conduct and manner of committing
the tort. The court has to consider whether the Defendant
acted with malevolence or spite or behaved in a high-
handed manner."
16. The Respondents submit that since the Claimant has
failed to prove defamation, he is not entitled to aggravated
damages. They reiterate that the notice to show cause was a
confidential internal document issued in adherence to
procedural fairness. Furthermore, they maintain that they
acted in good faith by accommodating the Claimant through
repeated rescheduling of the disciplinary hearing. In light of
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the foregoing, the Respondents urge the court to dismiss the
Claimant's case in its entirety.
17. The Court has considered the pleadings, testimony and
submissions of the parties and the law in coming to this
decision. The Claimant asserts he rescinded his resignation.
In order to benefit from the latitude accorded to an
employee who resigns out of duress or coercion then
rescinds the resignation, certain criteria must be met. As
held in the Irish Employment Tribunal in UD 946/2007,
McManus v Brian McCarthy Contractors, a resignation
can be rescinded taking into account the circumstances
under which the resignation was offered. In this case the
Claimant asserts he resigned then rescinded the decision in
a letter to the 4th Respondent. This recission was within the
bounds in the Irish case. In my considered view, the
circumstances of the resignation coupled with the impending
disciplinary hearing take this resignation to the level where a
Court can infer it was not voluntary or made with full intent
to sever the employment relationship. The Claimant had
been soul searching after the allegations against him were
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made. It would be hoped that the Respondents had gathered
sufficient evidence of the allegations made against the
Claimant. Given that he had been facing persistent
interference with his docket, the decision to resign seems to
have been off the cuff and made in the heat of the moment.
Where an employee resigns impulsively under pressure or
humiliation, the employer has a duty to investigate the
employee's true intentions before accepting the resignation.
That said, the Claimant seems to have suffered some mild
depression for which he sought medical attention before he
finally was let go when the disciplinary hearings never
managed to take off. The resignation therefore in the Court's
view was not voluntary and the recission did not take away
from the Claimant the right to due process or the benefit of
the repudiation.
18. The Claimant asserts he was defamed. The Court does
not discern defamation as the contents of the letter making
the accusations was not published to the world or even
copied to persons who had no business being in the know. As
such the claims on the said limb are dismissed. The Claimant
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did not prove any entitlement to aggravated damages and
the only compensation he will recover are 3 months' salary
as compensation – Kshs. 1,135,443.30 for the failure to hear
the Claimant and for the obtuse acceptance of his
resignation even after it was withdrawn. The 3 months take
into account the Claimant has mitigated his losses and has
even moved on to other engagements and is therefore not
without recourse to earning a salary.
19. The Claimant was entitled to receive notice of termination
which is one month – Kshs. 378,481.10 in addition to the
withheld statutory dues amounting to Kshs. 704,000/- per his
testimony whereat he indicated he had been paid part of his
dues. The Claimant is also to be paid his gratuity
accumulated per his August 2023 payslip – Kshs.
1,488,324.15 less any gratuity already paid out. If this sum
has been settled in full the same shall be excluded from the
computations of final dues.
20. The Claimant will also have costs of the suit and interest
on the sums awarded from the date of this judgment till
payment in full. The decretal sum is to be settled by the 4 th
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Respondent to the exclusion of the 1 st, 2nd and 3rd
Respondents.
21. In the final analysis the Court enters judgment for the
Claimant against the 4th Respondent for:-
a. Unpaid terminal dues amounting to Kshs. 704,000/- less
any sums paid subsequent to the Claimant testifying in
Court.
b. Unpaid gratuity if any.
c. One month's salary as notice – Kshs. 378,481.10
d. Compensation of 3 months' pay – Kshs. 1,135,443.30
e. Cost of the suit
f. Interest at court rates on the sums in a), b), c) and d)
above from the date of judgment till payment in full.
It is so ordered.
Dated and delivered at Kisumu this 19th day of February
2025
Nzioki wa Makau, MCIArb.
JUDGE
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