Advisory on Termination Procedures – The Case of Kamuri v Cleanshelf Supermarkets Ltd [2025] KEELRC 2278

Case: Kamuri v Cleanshelf Supermarkets Ltd [2025] KEELRC 2278

 Background

The recent decision in Kamuri v Cleanshelf Supermarkets Ltd provides critical guidance on the standards and procedures required for lawful termination of employment, particularly in cases involving poor performance or misconduct.

 Key Findings from the Case

1. Procedural Fairness is Mandatory
   The Court held that even where poor performance is alleged, the employer must comply strictly with Section 41 of the Employment Act. This includes:
• Issuing a written notice to show cause.
• Conducting a disciplinary hearing where the employee can be heard.
• Allowing representation by a colleague or union representative.
• Using a language the employee understands.
2. Objective Performance Evaluation Required
   Allegations of poor performance must be supported by:
• Documented performance appraisals.
• A clear Performance Improvement Plan (PIP).
• Measurable and communicated performance standards.
• A reasonable period (2–3 months) to allow the employee to improve.
3. Unlawful Deductions from Terminal Dues
   Employers may not deduct amounts (e.g., for loans or unreturned property) from an employee’s terminal dues unless:
• There is express written consent from the employee, or
• It is permitted by law or a contractual agreement.
  In Kamuri, deductions for a Sacco loan and unreturned laptop were deemed unlawful due to lack of consent and supporting documentation.
4. Compulsory Leave ≠ Disciplinary Process
   Placing an employee on compulsory leave without initiating a proper disciplinary or performance improvement process was criticised. The Court found this inconsistent with fair procedure.

 Recommendations

Based on the court’s decision, we advise as follows:

1. Strengthen Termination Procedures

• Ensure written documentation for every step of the disciplinary process.
• Maintain records of verbal and written warnings.
• Use show cause notices, disciplinary invitations, and hearing minutes.
• Document all attempts to improve employee performance before termination.

2. Conduct Fair Performance Reviews

• Implement a structured performance appraisal system with objective metrics.
• Introduce a clear PIP process with timelines and review points.
• Ensure performance standards are communicated and acknowledged by the employee.

3. Review Deductions Policy

• Do not unilaterally deduct terminal dues.
• Obtain written consent for deductions related to loans, advances, or property.
• Ensure documentary evidence exists (e.g., loan agreements, asset handover forms).

4. Staff Training and Legal Compliance

• Train HR and supervisory staff on legal requirements under the Employment Act, 2007.
• Seek legal review of termination procedures before executing high-risk dismissals.

 Conclusion

The Kamuri decision reinforces the importance of due process in termination cases. Employers must not only have a valid reason for termination but must also ensure procedural fairness and compliance with statutory obligations.

Failure to do so exposes the employer to substantial financial liability, reputational damage, and protracted litigation.

For further guidance or assistance in reviewing your internal HR processes, please do not hesitate to reach out.