Court orders Homa Bay tycoon to pay former employee Sh2 million

Homa Bay-based billionaire Sammy Wakiaga. [Courtesy] 

Homa Bay-based billionaire Sammy Wakiaga, who owns Rusinga Island Lodge, has been ordered to pay more than Sh2 million to his former Chief Operating Officer (COO) after termination of employment.

Justice Monica Mbaru ordered Wakiaga, who owns Cronicle Group International Limited, to pay British national Stephen France Sh2,046,565.57 in salary arrears.

France was employed by Wakiaga in 2015 as the COO of Cronicle Group International Limited, a company that runs Rusinga Island Lodge, Arcade Forex Bureau, Mbita Ferry Limited, heavy commercial properties and petroleum product distribution networks that include Kenya Pipeline and the Energy Regulatory Commission.

France was earning Sh360,000 per month (3000 USD).

However, the company denied ever employing France and the existence of an employment contract between the parties.

In her verdict, Justice Mbaru ruled that Sh2,046,565.57 is due and owing to work done and benefits thereof to France.

“Accordingly, the Court finds that the Claimant (France) is owed the sum of Sh2,046,565.57 acknowledged in the Deed of Settlement dated March 25, 2021 together with interest thereon at the contractual rate of 12 per cent per annum from May 31, 2021 until payment in full,” said Justice Mbaru.

According to France, on February 28, 2016, the company abolished his position and agreed to pay outstanding salary arrears amounting to Sh2,046,565.

The company was set to pay him in instalments, of Sh511,641 from May 31, 2021.

However, despite the agreement, the company has failed to pay France six years later.

France said he has suffered financial hardship and emotional suffering, and that these have adversely affected his family, who depend on him.

He said that he resigned from his employment by mutual consent and signed the Deed of Settlement and the contract of employment with the company’s Chairman Wakiaga.

However, in its defense, Cronicle Group International Limited said that the appointment letter of France dated March 16, 2015 was fraudulent.

Further, the company denied that Wakiage or any authorised officer of the company ever executed the said letter of appointment

The Conglomerate denied that France was appointed as its COO or ever served in that capacity, or earned the salary pleaded and denied any liability for the alleged terminal dues claimed.

The company said that the settlement was procured through France’s non-disclosure and misrepresentation of material facts, particularly the alleged existence of an employment relationship between the parties.

The Deed of Settlement was executed under a mistaken belief that the Respondent had lawfully employed the Claimant and would not have been entered into had the facts been disclosed.

However, France produced a contract of employment dated March 16, 2015, a copy of P9 KRA tax Deduction Card stamped by the company, an immigration entry permit application, and the Deed of Settlement dated March 25, 2021.

The judge noted that the company failed to call any witness to substantiate the allegations of fraud on France’s employment contract.

Justice Mbaru determined that there was an employment relationship between the parties and dismissed the assertion that France’s Deed of Settlement dated March 25, 2021 was fraudulently procured.