Kenya’s Employment & Labour Relations Court has recently delivered three pivotal rulings that send a clear signal to corporates, startups, and SMEs: transparent pay structures and fair procedures are non-negotiable. From a landmark unequal-pay decision against Dawa Life Sciences to a high-profile wrongful-dismissal award at Umba, and a decisive win for content moderators contracted by Meta, these judgments underscore the legal and reputational risks of overlooking equality and process.
Unequal Pay Is Unlawful: Dawa Life Sciences Case
In Ogila v. Dawa Life Sciences, Justice Stella Rutto ruled that paying employees different salaries for identical roles constitutes unlawful discrimination. Tom Oduor Ogila, who served as Acting Production Manager for nearly two years, earned KES 180,554 per month—well below his peers’ average of KES 509,829—before his dismissal in 2022. The court awarded him KES 3,877,166 (USD 30,000), comprising KES 2,000,000 for breach of equality, KES 1,400,000 for unfair termination, and KES 477,166 for unpaid leave. Anchored in Article 27(5) of the Constitution and Section 5 of the Employment Act, this ruling places the onus on employers to justify any pay differentials objectively and document them rigorously.
Fair Process Matters—Even in Probation: Umba Ruling
In March 2025, a Kenyan court found that neobank Umba unlawfully dismissed its Head of Growth during the six-month probation period without due process. The executive was terminated via a WhatsApp call, with no clear performance targets or formal review. Judge Stella Rutto held that Section 41 of the Employment Act applies equally to probationary staff, mandating documented evaluations and an opportunity to respond. Umba was ordered to pay KES 2.88 million (USD 21,600)—equivalent to three months’ salary—and to issue a Certificate of Service within 30 days. This precedent confirms that startups and SMEs cannot sidestep procedural fairness by labeling staff “on probation.”
Outsourced Moderators Vindicated: Sama vs. Meta
Content moderators employed by Sama, Meta’s outsourcing partner, secured a landmark victory after being summarily dismissed in January 2023. Over 180 moderators sued for unpaid wages and unfair termination; on June 2, 2023, Judge Byram Ongaya ordered Sama to continue payments and clear all back wages, recognizing Facebook as their “true employer”. The court emphasized the psychological harm moderators face when exposed to disturbing content and enforced compliance pending a full hearing. This decision reinforces that labour-law obligations travel with the work, regardless of outsourcing arrangements.
Corporate Takeaways & Best Practices
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Conduct Regular Pay Audits
Identify and rectify unjustified salary disparities. Establish transparent, role-based salary bands, supported by market data and documented approvals. -
Embed Procedural Fairness
Implement structured performance management—set clear objectives, conduct periodic reviews, and provide written feedback. Ensure every termination, including during probation, follows due process. -
Vet and Monitor Vendors
Incorporate labour-compliance clauses in all third-party contracts. Require periodic audits and proof of adherence to Kenyan employment standards, especially for outsourced functions. -
Leverage Modern HRIS Solutions
Solutions like FaidiHR automate manual HR and payroll processes—streamlining salaries, leave, attendance, and compliance in one cloud-based platform .
Brewing a Fair Future
These rulings collectively usher in a new era of corporate accountability in Kenya. Beyond financial penalties, the reputational damage of being on the wrong side of history can undermine employee trust and brand equity. For forward-looking organisations, aligning HR policies with these legal benchmarks is not only a compliance imperative but also a strategic advantage—fueling employee engagement, reducing turnover, and strengthening market positioning.
For more information on modernising your HR and payroll operations, reach out via sales@faidihr.com or call +(254) 702 339 699.