COURT ORDERS SAFARICOM TO PAY KSH 55 MILLION FOR WRONGFUL DISMISSAL

Safaricom PLC has been directed by the Employment and Labour Relations Court to compensate 17 former area sales managers a total of Ksh 55 million for what the court termed as unlawful and unfair termination.
The former employees sued the telecommunications giant after being dismissed in 2019, claiming their termination was abrupt, unprocedural, and violated their employment rights. They alleged that the company failed to give proper notice, did not follow due disciplinary process, and offered no valid reasons for their dismissal.
In her ruling, Justice Stella Rutto found that Safaricom had breached the Employment Act and the principles of natural justice. The court stated that the termination lacked substantive justification and was carried out without affording the affected employees a fair hearing.
“Termination of employment must be both substantively and procedurally fair. In this case, Safaricom failed to demonstrate either,” Justice Rutto said in the judgment.
The court awarded each of the 17 managers varying amounts based on factors such as their tenure, salary scale, and emotional distress caused by the abrupt dismissal. The total compensation amounts to Ksh 55 million.
The ruling sends a strong signal to employers to follow due process when handling employment disputes and termination procedures.
Safaricom has not yet responded publicly to the court’s decision. It remains unclear whether the company intends to appeal the ruling.