A Kenyan court has ruled that Dawa Life Sciences Limited unlawfully discriminated against one of its senior managers by paying him significantly less than his counterparts, awarding the aggrieved employee Sh3.8 million in compensation.
The Employment and Labour Relations Court found that Tom Oduor, who held a senior managerial role at the pharmaceutical firm, was consistently underpaid despite performing the same duties as his peers. The court stated that such disparity violated Kenyan labour laws on equality and non-discrimination.
Justice Stella Rutto stated that the law places a responsibility on employers to ensure equal pay for equal work.
“Before September 2020, the claimant was the lowest-paid senior manager in the team under which he was serving.”
She highlighted evidence from the company’s internal communication that confirmed Oduor’s disadvantaged position.
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"This position was confirmed by Rushabh to Pedro Filipe in his email dated September 18, 2020, in which he stated that the claimant was the lowest-paid senior manager in all his teams. He further added that the average salary was sitting at Sh350,000. Indeed, it was after Rushabh’s email that the claimant’s salary was increased to Sh350,000," Rutto stated.
Despite this adjustment, Oduor was dismissed in January 2022 on the grounds of redundancy. He took the matter to court, arguing that the prolonged salary disparity amounted to discrimination. The judge agreed, noting that the employer had failed to justify the unequal treatment.
She criticised the company’s claim that salary differences were due to individual negotiations and value contributions.
"Therefore, in as much as the claimant may have accepted contractual terms that were less favourable compared to his counterparts, there was a statutory duty on the part of the employer to ensure fairness across the board and to strive to eliminate any discriminatory policy or practice in the workplace," she remarked.
Justice Rutto cited the legal burden placed on employers to prove that no discrimination occurred.
“By dint of Section 5(7) of the Employment Act, the employer bears the burden of proving the fact that the discrimination did not take place as alleged and that the discriminatory act is not based on any of the grounds specified within that section.”
She further underlined the employer’s responsibility under the Employment Act to uphold equality in the workplace.
“An employer is duty-bound to promote equal opportunity at work and strive to eliminate discrimination in any employment policy or practice.”
In addition to declaring the dismissal unfair and unlawful, the court awarded Oduor Sh2 million for breach of equality and freedom from discrimination, Sh1.4 million as damages for unfair termination, and Sh477,166 for unpaid leave days.
The case now sets a powerful precedent in Kenya’s employment landscape, reinforcing the illegality of pay discrimination and holding employers accountable for fairness in their policies and practices.
