A Kenyan court has declared that the management of Nairobi Hospital wrongly dismissed a group of its workers and must now compensate them. The ruling was delivered by Justice Anna Ngibuini Mwaure of the Employment and Labour Relations Court in Kenya, who stated that the hospital failed to follow the country’s labour laws when it terminated the staff in April 2021.
The affected workers were represented by their union, the Kenya Union of Domestic, Hotels, Educational Institutions, Hospital and Allied Workers (Kudheiha). The case centred around the hospital’s decision to sack the employees during what it described as a restructuring exercise. However, the court found that the management did not follow due process as required by Section 40 of the Kenyan Employment Act.
Justice Mwaure explained that Nairobi Hospital did not notify the union or the Labour Ministry in advance of the redundancy exercise, which is a mandatory legal requirement. She also pointed out that there was no evidence that the hospital used any clear and objective criteria to select which employees would be laid off. According to the judge, there were no meeting minutes, consultation records or official communication to support the hospital’s claim of a genuine redundancy process.
Even more concerning to the court was the fact that while some staff were being dismissed, the hospital continued to advertise for new positions. This made the redundancy claims questionable. Justice Mwaure ruled that the process was not only flawed but also showed a clear disregard for the rights of the affected workers. She described the termination as procedurally unfair and not in line with good labour practices.
Although the judge initially ordered that the dismissed employees be reinstated to their former positions, she later agreed that this might not be possible in every case. The hospital argued that some of the roles had already been filled or were no longer available. As a result, the court ruled that the affected staff should instead receive compensation equal to twelve months’ salary each. The court also directed that the hospital should pay interest on the compensation and cover the legal costs of the case.
This latest ruling follows a similar pattern seen in past labour cases in Kenya. The courts have consistently emphasised that employers must strictly follow laid-down procedures when laying off workers. This includes giving proper notice, consulting with unions, and using transparent criteria to avoid targeting certain employees unfairly. The court also stressed that redundancy should only be used when the position truly no longer exists—not as a disguise to get rid of workers while hiring new people for similar roles.
In 2022, a similar case involving Nairobi Hospital saw the court award KSh1.3 million to Anne Karoki, a former procurement manager, who was wrongfully terminated following a disagreement over a CCTV contract. In that instance too, the court ruled that the dismissal was done without due process.
So far, the management of Nairobi Hospital has not released any official statement in response to the court’s decision. But the judgment is already generating interest within Kenya’s healthcare and labour sectors. Many observers say it serves as a strong reminder to employers—both public and private—on the need to follow the law strictly when restructuring their workforce.
Labour experts believe that unfair dismissal cases are likely to increase as more institutions face financial strain or seek to reorganise their operations. They advise that companies should ensure proper consultation and fair treatment of employees to avoid legal battles.
The court’s position reaffirms the role of the judiciary in protecting workers’ rights in Kenya. The judgment is also seen as a win for the Kudheiha union, which has been vocal in defending its members against what it describes as growing cases of unlawful terminations in the health sector.
Justice Mwaure concluded that while companies are free to restructure, they must do so within the bounds of the law. She said employers must respect workers’ rights and ensure transparency at all stages of employment decisions.
