Safaricom has been ordered to compensate 17 former employees with over Sh55 million after the Employment and Labour Relations Court found that their 2018 dismissal was unlawful. The judgment, delivered by Justice Mathews Nduma Nderi on July 17, 2025, concluded a protracted legal battle spanning more than seven years.
The affected employees, all Area Sales Managers (ASMs), were fired following the failed implementation of a Huawei Y311 device-based digital subscriber registration project. The court found that Safaricom unfairly blamed the employees for systemic issues in the flawed rollout, despite their repeated warnings during the pilot phase that began in October 2016.
Justice Nderi ruled that although there was no deliberate violation of the claimants’ constitutional rights, the process of termination was deeply flawed. He noted that the ASMs were subjected to “impossible standards” and were denied a fair chance to defend themselves before being summarily dismissed.
“All 39 ASMs involved in the project were dismissed on June 28, 2018,” court records stated, though only five were later reinstated. The court, however, found no evidence of discrimination in the selection of those reinstated.
The judge awarded each of the 17 employees the equivalent of 10 months’ gross salary as compensation, in addition to one month’s pay in lieu of notice. The individual awards ranged from Sh935,000 to over Sh4.2 million depending on the salary scale. Claims for housing allowance, per diem, future earnings, and aggravated damages were dismissed due to insufficient evidence.
Safaricom argued that the dismissals were warranted, citing alleged negligence by the ASMs, which supposedly led to financial losses and regulatory risks. The company claimed some devices were found on rival networks or misused by dealers.
However, the court rejected this argument, stating the project’s failures were due to operational shortcomings, not employee misconduct.
The compensation is to be paid with interest from the date of the judgment until full payment is made. Safaricom was also ordered to bear the legal costs of the suit.
This ruling marks a significant victory for the former employees and reinforces the importance of fair labour practices in Kenya’s corporate sector.
