Tech News: Ex-Little Cab Executive Awarded $758,000 in Unfair Dismissal Case
A Kenyan court has ruled in favor of a former senior executive at Little Cab, Craft Silicon’s ride-hailing service, awarding him USD 758,000 in damages. The Employment and Labour Relations Court found that Ronald Otieno Mahondo, Little Cab’s first General Manager, was unlawfully terminated to prevent him from receiving a promised equity stake in the company.
Court Ruling and Key Evidence
Ronald Otieno Mahondo, who joined Little Cab in April 2016 to spearhead the platform’s development, alleged he was promised a 1% ownership stake as part of his compensation. A secretly recorded audio conversation with Craft Silicon CEO Kamal Budhabhatti corroborated this claim. Justice Mathews Nduma deemed the recording “credible, consistent, and verifiable,” concluding that Mahondo was unfairly “victimised” for seeking a formal, countersigned contract to solidify his share award. The court awarded him USD 8,000 for the unfair termination itself and a significant USD 750,000 representing the value of the promised 1% stake, based on a USD 75 million valuation of the ride-hailing company. Mahondo’s initial monthly salary was USD 1,860, later revised.
This case highlights the importance of clearly defined contracts and equity agreements, particularly within the rapidly growing tech startup ecosystem in Africa, where such disputes can have significant ramifications. The ruling serves as a reminder for companies to uphold their commitments to employees and adhere to fair labor practices.
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