Two subsidiaries of the Ramco Group are embroiled in a legal dispute with their former Managing Director, Kevin Gicheru, who is demanding Sh79 million for what he alleges was a case of constructive dismissal.

Gicheru has sued Kenya National Spelling Bee Limited and Sai Office Supplies Limited, claiming his salary was unilaterally slashed by 40 per cent and that he was eventually forced out of employment.

Initially earning Sh713,000 a month, Gicheru alleges that while all staff took pay cuts during the Covid-19 period, only he continued to receive a reduced salary after operations resumed. He says the other employees had their pay reinstated.

According to Gicheru, the company’s director, Anand Dave, contacted him via WhatsApp and informed him that he and another employee, Eric Mosoti, would be subject to salary reductions.

Gicheru told the Employment and Labour Relations Court that he accepted the cut under duress, fearing dismissal—similar to what allegedly happened to a colleague who refused a similar directive. 

“No justifiable reasons were adduced on why it was necessary to deduct their salaries. The claimant states that he was bullied into proposing and accepting an unlawful salary deduction,” claimed Gicheru in his case filed before Employment and Labour Relations Court Judge Byrum Ongaya.

He further argued that, despite the firm citing financial constraints, he appeared to be the only one being edged out. During separation negotiations, Human Resource Manager Grace Wanjiru issued him with a show-cause notice, and the separation process dragged on for three months.

“Claimant avers that the respondents had a responsibility to ensure that the employment decisions do not unduly cause emotional and psychological harm to its employees through unwarranted actions. The separation process dragged on for three months without any meaningful attempt by the employer to resolve matters,” argued Gicheru.

Counterclaim

But the Kenya National Spelling Bee has denied the claims and filed a counterclaim seeking Sh3.1 million from Gicheru. It alleges he failed to serve a proper notice period upon exiting and is therefore liable for Sh428,000 in lieu of notice. Additionally, the firm is demanding Sh44,597 in unpaid AAR insurance premiums and Sh2.6 million for allegedly being absent from work for 279 days.

“Clause 11 of the respondent’s employment contract provided that the employment contract may be terminated by either party giving the other one months notice in writing or the similar period’s salary in lieu of notice. Having failed to give and serve the required notice period, the respondent is required to pay the claimant one month salary in lieu of notice,” the counter claim filed before the same judge reads in part.

In its defence, the company claims that, as of September 23 2021, Gicheru had not delivered sufficient business to make the Spelling Bee self-sustaining. Director Anand Dave stated that the payroll obligations of the Spelling Bee team exceeded its revenue and that questions were raised over whether the firm could become independent by January 2022.

Anand also asserts that it was Gicheru himself who suggested a pay cut—but only for himself, not for Mosoti. He further clarified that Gicheru was employed solely by Spelling Bee, not Sai, and that the firm could not continue to afford his salary.

In his rejoinder, Gicheru questioned how the company arrived at the Sh2.79 million absenteeism claim, arguing that he had been allowed to work remotely under a hybrid arrangement.

He insists he did not need to give notice as he was effectively constructively dismissed.