Kenyan Court Orders Twiga Foods to Compensate Ex-Employee for Unfair Dismissal
Twiga Foods, a prominent Kenyan B2B e-commerce startup at the forefront of the African tech landscape, has been mandated to pay over KES 1 million ($7,800) to a former sales representative. This significant ruling by the Employment and Labour Relations Court found the termination of Maxton Duke Kibira’s employment to be unjust, sending a clear message about adherence to labor laws within Kenya’s rapidly expanding startup ecosystem.
Unpacking the Judgment and Broader Implications for African Tech
In a virtual judgment delivered on October 9, Justice Linnet Ndolo determined that Twiga Foods unlawfully dismissed Maxton Duke Kibira in December 2018. The company had cited “poor performance” as the reason for his termination but failed to furnish the court with substantial evidence to support this claim. Furthermore, the court highlighted that Twiga neither provided Mr. Kibira with a clear job description outlining his responsibilities and targets nor followed the stipulated due process before ending his employment. This judgment underscores the critical importance of robust HR policies and transparent employment practices for startups in the competitive African tech sector. This case is not an isolated incident but rather contributes to a growing series of employment-related litigations that are compelling Kenyan tech companies to meticulously review and strengthen their adherence to workplace rights. In a similar vein, April saw neobank Umba ordered to pay KES 2.88 million ($22,300) for unfairly dismissing an executive, specifically due to a failure in documenting performance targets. That same month, judges also scrutinized Dawa Life Sciences for disparities in salaries for the same role, a decision that has generated considerable discussion across the tech industry about fair compensation and equity.
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