Twiga Foods has been ordered to compensate a former sales representative after a Kenyan court found his termination was unlawful. In a judgment delivered virtually on October 9, the Employment and Labour Relations Court ruled that the company failed to prove poor performance or follow proper procedure. The decision requires Twiga to pay a total of KES 1.026 million, approximately $7,800, inclusive of compensation and refunded deductions.
Court Ruling
Justice Linnet Ndolo concluded that Twiga dismissed Maxton Duke Kibira unfairly in December 2018. The judge said the company neither provided a clear job description nor documented performance shortcomings before ending his employment. The court emphasized that lawful termination requires evidence, due process, and demonstrable support for an employee to improve.
Background of the Case
Kibira joined Twiga in 2015 as a sales representative, earning roughly KES 100,000 per month, about $774. He told the court he faced unrealistic sales targets, frequent station transfers, and forced overtime that strained his ability to perform. He also alleged that Twiga deducted KES 426,000, around $3,298, from his pay as a surcharge for unbanked cash without giving him a chance to dispute it.
Allegations and Evidence
The court found that Twiga’s witness could not present concrete proof of poor performance by Kibira. Justice Ndolo described the deductions as unilateral and inconsistent with labor law procedures that require notice and an opportunity to be heard. The ruling further noted that penalizing Kibira through both salary deductions and termination amounted to punishing him twice for the same alleged issue.
Company Defense and Court’s Response
Twiga argued that the deductions were tied to bonuses that Kibira had not earned and that repeated warnings had been issued over his output. The court held that the company did not substantiate these claims with records, performance reviews, or improvement plans. Without this evidence, the justification for dismissal and deductions could not stand under Kenyan employment law.
Wider Industry Context
This judgment follows a series of recent labor cases pushing Kenya’s tech and startup sector to tighten workplace practices. In April, the same court ordered neobank Umba to pay KES 2.88 million, about $22,300, after firing an executive without documented targets and fair appraisal steps. Judges also faulted Dawa Life Sciences in April over unequal pay for equal roles, a signal to startups to address opaque compensation structures.
Compensation Details
The court awarded Kibira six months of salary as compensation for unfair termination. It also ordered Twiga to refund the irregular salary deductions that had been taken during his employment. Together, these amounts total KES 1.026 million, about $7,800, with interest accruing until payment is made.
Implications for Employers
Legal experts say the ruling reinforces the need for clear job descriptions, measurable performance metrics, and documented support for underperforming staff. Employers are expected to conduct fair hearings and maintain records when imposing penalties or considering dismissal. Failure to meet these thresholds increasingly results in financial penalties and reputational risks in Kenya’s maturing tech ecosystem.
Implications for Employees
For employees, the case underscores the value of keeping personal records of targets, transfers, and any disciplinary steps. Workers who face deductions or performance-related sanctions without proper hearings have legal avenues to challenge those actions. The court’s stance suggests a rising willingness to scrutinize managerial discretion where evidence and due process are lacking.
What Twiga Faces Next
Beyond the immediate payout, Twiga may need to review performance management, payroll deductions, and documentation protocols. Aligning policies with Kenya’s labor standards can reduce exposure to future disputes and support better staff retention. Clear communication and consistent enforcement are likely to be central to any internal reforms.
The Twiga ruling adds momentum to a broader push for compliance and transparency in Kenya’s startup labor practices. By prioritizing documentation, fair hearings, and supportive performance processes, companies can meet legal requirements and strengthen workplace trust. As more cases test these standards, robust human resources governance is moving from a nice-to-have to a baseline expectation.
Source: Techcabal