A former operations manager at East African Maltings, a subsidiary of East African Breweries Ltd (EABL), has been awarded Sh8.2 million in compensation for unfair dismissal over allegations of falsifying stock records.
Mr John Kiriga was dismissed in February 2020 for allegedly breaching the company’s code of conduct by falsifying and misrepresenting barley stock records, which the company claimed resulted in a loss of Sh223.9 million.
Following an audit investigation, Mr Kiriga was accused of inflating stock figures to match Systems Applications and Products (SAP) records, thereby concealing material stock variances.
He challenged the termination, arguing that the disciplinary process was flawed and saught Sh25 million in compensation. He sued both East African Maltings and its parent company, EABL.
The companies opposed the claim, stating that Mr Kiriga had willfully neglected his duties.
The Labour Relations Court was told that he manually amended stock numbers without following standard procedures, and that during a disciplinary hearing, he admitted to the manual adjustments, although he maintained there was no documented process guiding them.
However, Justice Hellen Wasilwa ruled that the termination lacked valid grounds.
“For an employee to be dismissed or terminated, there must be a valid reason. In the case of the claimant, the reasons leading to his dismissal show no intentional concealment of stocks,” she said in a judgment delivered on June 4, 2025.
The court noted that the audit firm contracted to conduct the investigation, Stealth Africa Consulting LLP, confirmed that some stock figures had to be entered manually due to unavailable readings. The CEO and chief investigator Anthony Ngige, who testified as a witness, also acknowledged that stock variances persisted even after Mr Kiriga’s departure.
Another witness attributed the losses partly to grain spillage during transfers and exposure to rain, which affected moisture content and subsequently skewed final stock readings.
The court further criticised the employer for procedural lapses. While Mr Kiriga was given a chance to be heard, EABL failed to follow its own disciplinary policy, which requires employees to be informed of outcomes within five days. Mr Kiriga was notified three weeks later.
“It is therefore my finding that the dismissal of the claimant was not based on valid reasons and due process was not followed, so it was unfair and unjustified,” Justice Wasilwa ruled.
