Fresh trouble for Keroche after court ruling

The court ruling piles more financial pressure on the already financially troubled brewer

Keroche CEO Tabitha Karanja speaks during a press conference

Naivasha based brewing company Keroche Breweries will have to pay its former managing director Sam Shollei Sh45.5 million for unfair and wrongful discharge in November 2018 .

Employment and Labour Relations Court judge Hellen Wasilwa who made the ruling for Shollei’s compensation said that the company did not highlight the reasons for the sacking of Shollei neither did it give him opportunity to defend himself.

“As provided under Section 45(2) of the Employment Act 2007, the termination of the contract was unfair and unjustified,” the judge said in her ruling.

Shollei had taken the company to court where he wanted Sh75 million as compensation saying his dismissal did not follow due process.

The court however directed Keroche to pay him six months salary for failure to given him notice as stipulated in his contract.

The court directed that Shollei be paid 10 months salary as compensation for unfair firing, which sums up to Sh25 million and gratuity of Sh5.5 million.He will also be entitled to leave pay of Sh4.5 million.

The court awarded Shollei a total of Sh52.5 million exclusive of the Sh7 million he was paid when he was fired on November 23, 2018.

Shollei was fired before his four year contract lapsed after the company cited low product sales.

Before joining Keroche Breweries, Shollei who is the ex-husband to politician Gladys Boss Shollei was the Chief Executive Officer for Standard Media Group plc which houses KTN News and the Standard newspaper.

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