NAIROBI, Kenya — The Employment and Labour Relations Court has ordered the Kenya Medical Supplies Authority (KEMSA) to compensate two former directors a total of Sh12 million for unlawful dismissal and violation of their constitutional rights.
In a ruling delivered on November 3, 2025, Justice Mathews Nduma found that Edward Njoroge, the former Director of Corporate Services, and Caroline Anunda, the former Finance Manager, were subjected to unfair labour practices, including indefinite compulsory leave without due process or notice.
“The placing of the 1st and 3rd Petitioners on an indefinite compulsory leave without notice, due process, or reasons violated their rights under Articles 27, 41, 47, 50, and 236 of the Constitution of Kenya,” Justice Nduma ruled.
Each petitioner was awarded Sh6 million in general damages for the violation of their rights, with interest accruing from the date of judgment until full payment.
The court also ordered that Njoroge receive an additional payment equivalent to six months’ gross salary as compensation for unlawful constructive dismissal, noting that his resignation on October 1, 2024, was triggered by KEMSA’s breach of contract.
“The conduct by the Respondents justified repudiation of the contract of employment by the 1st Petitioner. The resignation amounted to unfair constructive dismissal,” Justice Nduma stated.
The case arose from a September 2024 interdiction letter that accused the directors of offences linked to an adverse audit opinion in the Auditor General’s 2022–2023 report.
The petitioners challenged the decision, arguing that an adverse audit finding does not amount to a disciplinary offence under KEMSA’s Human Resource Disciplinary Policy Manual.
They further contended that they were not given an opportunity to respond to the allegations as required under Section 21.6 of KEMSA’s disciplinary manual, which guarantees an employee’s right to be heard in all disciplinary cases.
Anunda, who joined KEMSA in 2012 on permanent and pensionable terms, also challenged the conversion of her employment to a fixed-term contract in 2020—a change the court found to have been irregular, though time-barred for review.
The judge held that her non-renewal in February 2025 was influenced by unfair administrative action despite what he described as her “stellar performance.”
The court further criticised KEMSA’s mass compulsory leave directive of 2023, noting that it violated fair labour practices and caused unnecessary psychological distress to staff.
“The Petitioners suffered psychological torture, public ridicule, and odium upon being subjected to unlawful compulsory leave for an indefinite period without any notice or hearing,” the judgment read.
Justice Nduma dismissed preliminary objections raised by the Attorney General, the Public Service Commission, and the Ministry of Health, affirming that the case was properly before the court.
The ruling adds to the growing scrutiny of KEMSA’s management decisions, particularly following a series of human resource controversies and procurement scandals that have plagued the authority in recent years.
