- What happened in the Thakrar case ?
A former WPP Scangroup CEO Bharat Thakrar, filed a Kshs. 4.5 billion lawsuit after his dismissal , claiming lost bonuses , share options, and reputational damage.
However, the court struck out the caseThakrar v WPP PLC & 8 others [2025] KEHC 7382 (KLR), not because his case lacked merit but because it had been filed in the wrong court!
This Article distils the key lessons from the case, highlights common litigation pitfalls, and outlines actionable strategies for designing resilient employment agreements.
- Why does the Court choice matter , this greatly ?
Filing a case in the wrong court, no matter how strong your case may be, can lead to an automatic dismissal. Kenyan law assigns specific types of cases. In this case, employment matters can only be heard by the Employment Labour Relations Court (ELRC).
- Why do Executive employment claims often fail in Kenya?
In our experience, beyond filing in the wrong court, many high-level employment claims fail because of the following common pitfalls:
- Unclear or incomplete contracts – Especially around bonuses, share options, or severance packages. Courts rely on precise, written terms.
- Voluntary resignations – Stepping down without legal guidance can weaken a claim, unless there’s clear evidence of coercion or breach.
- By-passing internal grievance procedures – Most contracts and HR policies require disputes to go through internal channels first.
- Weak or missing documentation – Courts favour claims backed by emails, agreements, board minutes, or financial records—not just verbal promises.
- What should executive leaders / Employers learn from this case ?
To avoid expensive court cases and losses , both parties must insist on ;-
- Having clear custom executive contracts ;
- Following a fair and documented exit process. A strategic exit is just as important as a strong entry;
- Seeking legal advisory early (before conflict).Early advice is more cost-effective than post-factor defences ; and
- Keep proper records- emails, board minutes, agreements and payment schedules.
Conclusion
The Thakrar vs WPP Scangroup case, although dismissed on jurisdictional grounds, highlights legal vulnerabilities in executive employment relationships in Kenya, stressing the importance of both parties correctly understanding the law and forum from the outset.
Our team is well-versed in employment law in Kenya, including drafting of contracts, pre -litigation and litigation representation before the Employment and Labour Relations Court, negotiation of executive exit packages, and contract design that stands up in court.
Authored by: Gathoni Mugwe- Litigation Associate
Contact us : info@wmcoadvocates.co.ke
Disclaimer –This Article is in general terms for guidance only and is not intended to substitute professional advice. While due diligence has been undertaken, in ensuring the accuracy of information provided herein, Waithira M. & Co. Advocates is not responsible for any actions , omissions undertaken as a result of the same.
