Keroche Faces Auction of Vehicles and Machinery due to Unpaid Sh45 Million Compensation to Ex- Employee

October 26, 2023

Former Keroche manager Sam Shollei has seized various assets, including vehicles and machinery owned by Keroche Breweries. These assets are scheduled for auction on October 31, following a judgment he secured from the Employment and Labour Relations Court.

Shollei successfully litigated against Keroche for unfair dismissal in 2022, resulting in the brewing company being instructed to compensate him with Sh45.5 million.

“Under instructions received from the Employment and Labour Relations Court at Nakuru, we shall sell the under-mentioned goods, vehicles, plant, machinery and accessories by public auction on Tuesday, October 31, 2023, at 11 a.m. at our Head Office,” a newspaper advert read in part.

Okuku Agencies Auctioneer has seized various items, such as chairs, desks, drawers, computers, printers, office cabinets, plant machinery and accessories, as well as motor vehicles with registration numbers KBS 030K (Lorry/Truck), KBN 129A (Lorry Truck), KBY 272R (Van/Pickup), KAN 601R (Lorry), and KCD 860E (Pickup).

The terms of the sale require payment in Cash/Bankers Cheque or Electronic Funds Transfer immediately after the auctioneer’s hammer falls.

Prospective bidders are required to submit a refundable deposit of Sh1,000,000. Viewing of the items is permitted during regular working hours, but it must be scheduled in advance with the auctioneers. The sale is subject to a reserve price.

In a judgment issued in October 2022, Employment and Labour Relations Judge Hellen Wasilwa declared Mr. Shollei’s termination in November 2018 as unlawful. The ruling cited that the former Managing Director was not provided with notice or reasons for his dismissal.

His dismissal stemmed from an email he sent to top management that was deemed demeaning and disrespectful. Additionally, he faced accusations of poor performance following a decline in the company’s sales.

The court mandated Keroche to compensate him with six months’ salary for the failure to provide notice as stipulated in his contract. Furthermore, he was awarded 10 months’ salary as compensation for unfair termination, totaling Sh25 million, along with a gratuity of Sh5.5 million. An additional Sh4.5 million was allocated for leave pay.

In total, Mr. Shollei received Sh52.5 million, subtracting the Sh7 million he had received at the time of his termination on November 23, 2018.

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