Little Cab Founder Ordered to Pay Former GM Ksh 98 Million in Landmark Ruling
A Kenyan court has awarded Ronald Otieno Mahondo, the inaugural General Manager of ride-hailing app Little Cab, a substantial sum of Ksh 98 million following a ruling that his 2017 dismissal was both unlawful and designed to deprive him of a promised equity stake in the company. This decision marks the end of a protracted legal battle and sets a significant precedent in Kenyan employment law, particularly concerning startups and equity agreements.
Justice Served After Eight-Year Legal Battle
The Employment and Labour Relations Court, presided over by Justice Mathews Nduma, delivered its judgment on October 23, 2025, concluding an eight-year dispute between Mahondo and Kamal Budhabhatti, CEO of Craft Silicon and founder of Little Cab’s parent company. The core of the case revolved around a promised 1% equity stake in Little Cab, which Mahondo claimed was deliberately denied to him. The court awarded approximately Ksh 97 million (USD 750,000) for the lost equity and an additional Ksh 1.02 million for unfair termination. Crucially, a secret audio recording made by Mahondo, in which Budhabhatti acknowledged the equity promise, proved to be a decisive piece of evidence. Despite attempts by Craft Silicon to challenge its admissibility, Justice Nduma deemed the recording credible and verifiable under Kenyan law, solidifying Mahondo’s claim.
This landmark ruling underscores the importance of upholding contractual agreements and fair labor practices, especially within the rapidly evolving landscape of African tech startups. The case serves as a cautionary tale for companies regarding equity promises and the potential legal ramifications of unfair dismissal.
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Related Keywords: Kenyan court, Little Cab, unfair dismissal, KSh 98M award, general manager, lost equity, employment law Kenya, wrongful termination, compensation award, Kenyan lawsuit
