- A Kenyan finance manager has won a landmark case against his former employer, a subsidiary of an international firm, after the court ruled his dismissal was unlawful and procedurally flawed
- The Employment Court in Nairobi awarded him nearly KSh 1 million in compensation, finding that his local employer acted unfairly and failed to prove any misconduct
- The court found that no direct contract existed with the parent company, dismissing claims against Yantai Welworth International Trade Co. Ltd
Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
A Kenyan man has been awarded compensation after the Employment and Labour Relations Court found he was unfairly dismissed by a local subsidiary of an international Chinese trade company.
Source: Getty Images
In a judgment delivered on December 18, 2025, Justice Christine Baari ruled that Stephen Mwangi Maina’s termination by Careplus Ltd (the 2nd Respondent) was both procedurally and substantively unfair, and a violation of the Employment Act and the Constitution.
The court dismissed claims against the foreign parent company, Yantai Welworth International Trade Co. Ltd, and its director, Liu Zhigang, finding no direct employment contract existed, despite the claimant performing significant work for them.
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Who employed Mwangi?
According to the judgement seen by TUKO.co.ke, Stephen Mwangi Maina was initially engaged by Careplus Ltd in 2017 on a part-time basis. His role expanded until he was promoted to Finance Manager with a monthly allowance of KSh 60,000.
The dispute arose after a meeting on November 20, 2019, which was attended by Liu Zhigang, a director of both Careplus Ltd and the China-based Yantai Welworth.
Maina was appointed as the “financial manager and representative” for Yantai Welworth’s interests in Kenya, making him a signatory to bank accounts and tasking him with managing finances, training Chinese accountants sent from abroad, and handling audits.
He performed these dual roles for 22 months but testified that he was never paid a salary by the international company, only receiving his KSh 60,000 allowance from Careplus Ltd.
The relationship soured in 2021 when Maina sent a demand letter for his unpaid salary, prompting Careplus Ltd to respond by formally terminating his employment.
How did the employer justify the dismissal, and what did the court find?
Careplus Ltd alleged that Maina was terminated for gross misconduct, including making threats, harassment, and destroying company financial data. They also claimed he had “absconded duty.”
In her analysis, Justice Baari found these allegations completely unsubstantiated. The company failed to provide a single piece of evidence, such as a warning letter, report, or even the termination letter it claimed to have sent.
“The Respondents have not in any way shown that the Claimant threatened or harassed the 3rd Respondent or that he destroyed any data,” the judgment stated.
Crucially, the court ruled that the employer violated Section 41 of the Employment Act by not giving Maina any notice, a reason for termination, or an opportunity to be heard with a representative present.
On the claim of absconding, the judge cited precedent, stating,
“It is not enough for an employer to say an employee has deserted duty… The employer must demonstrate attempts made to reach out to an employee.” Careplus Ltd failed to do this.
Source: UGC
What compensation was awarded to the employee?
Justice Baari awarded Maina reliefs strictly against his direct employer, Careplus Ltd, dismissing the claim for unpaid salary from the Chinese parent company due to a lack of a direct contractual agreement.
“In this case, no evidence at all was led to prove the allegations of misconduct against the claimant. The termination is therefore similarly not based on fair, valid, and justified reasons, hence substantively unfair. In the end, I find the claimant’s termination both procedurally and substantively unlawful and unfair, and so I hold,” the judge ruled.
Maina was awarded 12 months’ salary as compensation for unfair termination, amounting to KSh 720,000, one month’s salary in lieu of notice (KSh 60,000), service pay for one completed year of service amounting to KSh 30,000 and payment for accrued annual leave for two years, amounting to KSh 120,000. Mwangi will get a total of KSh 930,000.
The court also ordered Careplus Ltd to issue Maina with a Certificate of Service and bear the costs of the lawsuit.
Court declares KETRACO manager’s compulsory leave illegal
In other news, the Employment Court saved the job of a KETRACO manager, declaring his three-month compulsory leave “null and void from the beginning.”
The court found that Antony Tawayi Wamukota was subjected to “double jeopardy,” being investigated twice for the same alleged infraction involving a damaged transformer, after he had already been disciplined and cleared.
Justice Byram Ongaya ordered his immediate reinstatement, stating the company’s action was procedurally unfair, violated Public Service regulations capping such leave at 30 days, and was unconstitutional.
Source: TUKO.co.ke
