The Employment and Labour Relations Court has ordered Mediheal Group of Hospitals to pay Sh422 million to 63 Indian expatriates as compensation for unlawful dismissal and unpaid salaries.
In a landmark ruling delivered on June 12, 2025, Justice Anna Ngibuini Mwaure found that the medical institution, associated with former Kesses MP Dr Swarup Mishra, had failed to pay salaries owed to the expatriates for several months, effectively forcing them into involuntary resignation.
“Failure to pay the employees’ salary constantly for several months goes to the root of the contract, and it leaves an employee vulnerable and embarrassed,” ruled Justice Mwaure. “Such behaviour would push any employee to resign as he is not getting the fruit of their labour.”
The expatriates, who were employed as medical professionals across Mediheal’s subsidiaries in Kenya and Rwanda—including diagnostics, dialysis, and fertility centres—had sued the hospital group, its 12 health facilities, Dr Swarup Mishra and Pallavi Mishra in February 2024.
They claimed salary arrears amounting to 186 million Indian rupees (approximately Sh278.8 million) had gone unpaid, despite multiple written promises.
The court heard that despite attempts to resolve the matter through arbitration—as stipulated in their contracts—Mediheal failed to respond to the expatriates’ requests for the appointment of an arbitrator.
Their representative, Girija Ballav Mahapatra, presented appointment letters and other supporting documents in court.
In addition to salary arrears, the court awarded three months’ notice pay (Sh50.3 million) and general damages for constructive dismissal equivalent to six months’ salary (Sh93.8 million), bringing the total award to Sh422 million.
Justice Mwaure found the conduct of the hospital amounted to an unfair labour practice, noting a letter from Mediheal Chairman Dr Mishra dated October 27, 2024, which thanked the expatriates for their patience in waiting for salary payments—a letter the judge said amounted to an admission of delayed payments.
