Kenyan B2B Startup Twiga Foods Ordered to Pay $7,800 for Unfair Firing
Twiga Foods, a prominent Kenyan B2B startup known for its supply chain innovations, is once again in the news, this time not for its tech advancements or produce distribution, but for a significant legal ruling. The company has been ordered to compensate a former sales representative KSh 1 million, equivalent to $7,800, after a court determined that his dismissal was unjust. This ruling highlights crucial aspects of employee rights and fair labor practices within the rapidly evolving African tech ecosystem. The court’s decision underscores the necessity for companies, regardless of their growth trajectory, to adhere to proper legal procedures and provide substantiated evidence in cases of employee termination.
The Court’s Verdict: No Evidence for “Poor Performance” Claims
The virtual judgment, handed down by Justice Linnet Ndolo on October 9, explicitly stated that Twiga Foods failed to provide any credible evidence to support its claims of “poor performance” against Maxton Duke Kibira. Kibira, who had been with the company since 2015, presented his case to the court, detailing a work environment characterized by unrealistic sales targets, mandatory overtime, and frequent, disruptive transfers. A particularly contentious point was an alleged deduction of KES 426,000 ($3,298) from his salary by Twiga, which the company attributed to “unbanked cash.” However, Justice Ndolo firmly rejected this claim, signaling that the company’s actions lacked legal basis and justification. This ruling sends a clear message about accountability and the importance of respecting employee contracts and welfare, especially in dynamic sectors like African tech where rapid scaling often brings operational challenges.
This landmark decision against Twiga Foods serves as a potent reminder for startups and established companies alike about the critical importance of fair employment practices. The compensation of $7,800 to Maxton Duke Kibira emphasizes that allegations of poor performance must be backed by concrete evidence and due process. For the Kenyan tech landscape, this ruling reinforces the significance of upholding labor laws and ensuring that employees are not subjected to arbitrary dismissals or unjust financial deductions. It underscores that while innovation drives growth, ethical treatment and legal compliance remain foundational pillars for sustainable business success and a healthy working environment.
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