It is the oldest trap in the corporate world: the unwritten promise. For one Kenyan salesman, relying on an "understood" bonus structure instead of a signed contract has resulted in a devastating financial loss, exposing the perilous informality of Kenya’s labor market.

Mr. Kariuki, a former employee of Redachem East Africa Limited, believed his consistent performance entitled him to a Sh1.35 million payout. He had resigned in January 2023, expecting his 2022 commission check to follow him. It never came. When he sued, the Employment Court told him what his contract should have: "Show us the money."

Legalizing the "Handshake"

The dismissal of the case by Justice Stella Rutto highlights a critical gap in employee protection. Kariuki claimed a 6 per cent commission on gross profit was standard practice. The company countered that 2022 was a different financial year with different realities. Without access to the company's audited accounts, Kariuki was shooting in the dark.

Labor experts warn that thousands of Kenyan workers are operating under similar "gentleman's agreements," vulnerable to the whims of their employers once they hand in their resignation letters. "Legitimate expectation is a shield, not a sword," notes a legal analyst. "You cannot use it to attack an employer’s bank account without hard data."

• The Evidence Gap: The court noted that Kariuki failed to subpoena the company's financial records to prove they made a profit. He simply calculated a number and demanded it.
• The Resignation Factor: The timing of the claim—filed months after resignation—weakened the plaintiff's position, painting the lawsuit as a disgruntled afterthought rather than a pursuit of contractual rights.

Corporate impunity or Legal rigor?

While the court’s decision is legally sound, it raises ethical questions about corporate transparency. How can an employee prove profitability if the books are closed? The ruling effectively places the burden of proof on the party with the least access to information.

The verdict serves as a grim advisory: if it is not in writing, it does not exist. Kariuki learned this lesson the hard way, walking away with nothing but a court judgment that will serve as a case study for years to come.