NAIROBI, Kenya – July 21, 2025 — Kenya’s largest telecom operator, Safaricom PLC, has been ordered to pay KSh55 million in compensation to a group of former sales managers, following a court ruling that found their termination from the company was unlawful and procedurally flawed.
The judgment, delivered by the Employment and Labour Relations Court, stated that Safaricom had failed to provide the affected employees a fair opportunity to defend themselves against allegations that led to their dismissal. The court ruled that the dismissal process did not adhere to employment laws requiring due process and natural justice, rendering the terminations invalid.
Background of the Case
The case stems from a 2018 internal audit that implicated several regional sales managers in operational irregularities involving Safaricom’s device distribution and sales processes. The affected managers were accused of mismanagement, including alleged failures in activating and tracking thousands of mobile devices. As a result, Safaricom terminated their contracts, citing gross misconduct.
However, the court found that the company did not present sufficient evidence during internal hearings and denied the employees a meaningful opportunity to be heard—a fundamental right under Kenyan labor law.
The employer acted in violation of the employees’ rights by dismissing them without a fair hearing or sufficient justification.”
the court observed in its ruling.
Compensation and Impact
The court awarded the group KSh55 million, covering lost wages, damages for emotional distress, and compensation for breach of contract and unfair dismissal. Legal experts suggest this is one of the most significant wrongful dismissal awards in recent years involving a major corporation.
This decision sends a strong signal to other employers in both the private and public sectors about the importance of compliance with Kenya’s employment laws—particularly in matters involving dismissal and disciplinary action.
Safaricom’s Position
As of this publication, Safaricom has not publicly indicated whether it will appeal the ruling. The company, known for its strong HR policies and market leadership, now faces pressure to reassess internal disciplinary procedures to align more closely with labor law standards.
Wider Implications
This ruling not only impacts Safaricom but could also influence corporate governance across Kenyan businesses. Labor analysts believe it reinforces judicial willingness to hold companies accountable for unfair employment practices, especially when it involves senior staff or managerial roles.
The case highlights the rising awareness of employee rights in Kenya’s formal sector and the growing readiness of the courts to enforce them.