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CEO Ordered to Pay Sh1.2 Million in Sexual Harassment Case

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NAIROBI, Kenya – A Nairobi court has ordered IT Pawa Solutions Chief Executive Officer to pay Sh1.2 million in compensation to a former employee, following a finding that misconduct and harassment occurred after a corporate event, an episode that underscores the legal and ethical boundaries in Kenyan workplaces.

The case, heard at the Employment and Labour Relations Court, stemmed from an evening at the Orchid Club in Nairobi on January 14, 2023.

According to court documents, after the office party, the female employee went to retrieve her belongings from the CEO’s car parked at RFUEA Grounds when she was allegedly assaulted.

She testified she was intoxicated and disoriented, and lacked the capacity to resist.

A colleague who had waited outside the club discovered her distressed and in tears.

The employee attempted to get medical help from St. Peter’s Hospital in Muthiga but was turned away because no police report had been filed.

The CEO offered a different account, claiming the encounter was a case of miscommunication fueled by alcohol.

He alleged the employee made advances, and that his subsequent messages, including a sexually explicit video, were meant to “lighten the mood” and had even been shared with his wife.

Yet Judge Stella Rutto found his narrative inconsistent and “highly improbable,” particularly considering the timeline and behavior he described.

The court held that the CEO’s actions, both the alleged assault and the post-incident communications, created a hostile work environment.

The judge determined that combining a traumatic event with demeaning messages was the “worst form of gender-based violence in the workplace.”

The compensation awarded was for sexual harassment and unfair treatment in breach of employment protections. Moreover, the judge dismissed a counterclaim of Sh6.5 million that the company had filed against the employee.

This ruling has broader implications for corporate conduct, workplace culture, and how courts treat alleged violations of dignity and respect.

It reinforces that consensual boundaries, workplace professionalism, and employee protections cannot be overridden by status or attempted humor.

Executives may now be more cautious in conflating private behavior with workplace relationships, especially when they hold power over subordinates.

The judgment is a potent reminder: in Kenya, the law does not excuse inappropriate conduct even under the veil of social gatherings.

For victims, it signals that courts are willing to scrutinize behavior beyond narrow definitions of assault, holding employers accountable for patterns of misconduct, communication, and harassment.

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