Category: Business

Former Jumia Kenya Executive Alleges Racial Discrimination in Language Preference Row

Chief operations officer claims French-speaking bias led to constructive dismissal from e-commerce giant

NAIROBI — A former senior executive at Jumia Kenya has filed a lawsuit alleging he was forced out of his position partly because he does not speak French, in a case that has raised questions about diversity and inclusion practices at one of Africa’s largest e-commerce platforms.

James Njine Kamau, who served as chief operations officer at Ecart Services Kenya Limited, Jumia’s parent company, claims the firm’s chief executive told him in August 2025 that he preferred French-speaking managers because they were “easier to deal with” than their English-speaking counterparts.

The allegation, detailed in court documents filed at the Chief Magistrate’s court in Milimani, Nairobi, on Tuesday, marks a rare public challenge to corporate practices at a company that has positioned itself as a champion of digital commerce across the continent.

Mr Njine, who spent seven years rising through the ranks at Jumia before his departure in late 2025, is seeking at least 14.1 million Kenyan shillings in compensation and damages. His lawsuit paints a picture of systematic marginalisation that he says began shortly after a new chief executive joined the company in May 2024.

“This conduct was discriminatory, arbitrary, targeted me on the basis of linguistic and cultural identity, and was clearly designed to marginalise me, undermine my professional standing, and impede my career progression,” Mr Njine stated in his witness statement.

The case comes at a sensitive time for Jumia, which has been restructuring operations across Africa as it seeks to achieve profitability after years of losses. The company, which went public on the New York Stock Exchange in 2019, has faced mounting pressure from investors to demonstrate sustainable growth in challenging markets.

Ecart Services has denied any wrongdoing. In an emailed response, Ibrahim Mbogo, speaking for the company, said Jumia observes “the highest standards of corporate governance and labour laws in Kenya” and is “committed to a diverse, inclusive, and merit-based workplace.”

“Jumia cannot provide specific comments on the allegations or the merits of the case at this time, as we respect the judicial process and will present our defence formally in court,” Mr Mbogo added.

According to the lawsuit, Mr Njine’s troubles began after the arrival of new management. He claims he was subjected to what he describes as a “fundamentally flawed” performance improvement plan designed to create a pretext for his removal rather than to support his development.

The former executive alleges he was deliberately excluded from high-level meetings and strategic decision-making forums that were integral to his role as chief commercial officer, a position he had been promoted to in December 2024.

“Such actions were not isolated, but systematic, coordinated, and deliberate, intended to erode my authority, diminish my professional standing, and create a humiliating, hostile, and untenable working environment,” Mr Njine stated.

The situation came to a head when the company presented him with a separation agreement offering a 3.2 million shilling package, which he rejected. The agreement would have terminated his contract on December 31, 2025.

Mr Njine’s legal team characterises his subsequent resignation as constructive dismissal, arguing that the working environment had become intolerable. In a demand letter sent on December 4, 2025, his lawyers wrote that the company’s actions had “stripped our client of the dignity, authority, and responsibilities inherent in his role.”

The compensation Mr Njine is seeking includes 8.7 million shillings for unfair termination, 2.2 million shillings representing three months’ salary in lieu of notice, and 735,743 shillings for accrued but untaken leave. He also wants the court to order immediate vesting of 4,000 shares granted to him under Jumia’s virtual restricted stock unit programme in December 2024, which were scheduled to vest in December 2026.

Beyond financial compensation, Mr Njine is asking the court to declare that Ecart’s conduct violated both the Employment Act and the Constitution of Kenya. He wants a ruling that he was subjected to unfair labour practices through “deliberate marginalisation” and the imposition of what he calls a sham performance improvement plan.

The case highlights broader questions about corporate culture and diversity in multinational companies operating across Africa, where linguistic and cultural differences can complicate management structures. Jumia, founded in Nigeria by French entrepreneurs, operates across 11 African countries with varying colonial histories and official languages.

Employment law experts say the case could set important precedents for how discrimination based on language is treated under Kenyan law, particularly in multinational corporations where linguistic preferences may intersect with broader issues of cultural bias.

The lawsuit arrives as Jumia continues to navigate a difficult business environment. In November, the company announced it was leveraging artificial intelligence to reduce its workforce by seven percent as part of ongoing efficiency measures. Earlier this year, it announced plans to cut logistics costs through the introduction of electric vehicles.

Mr Njine’s career at Jumia spanned multiple roles. He joined as a commercial planner in 2018, before being promoted to head of commercial operations and head of performance and planning in 2022. In December 2023, he took on the additional role of head of general merchandise before his final promotion to chief commercial officer.

The court has yet to set a hearing date for the case. Both parties are expected to present their arguments in the coming months, with the outcome likely to have implications for employment practices across Kenya’s growing technology sector.

Kenyans with unexplained money flowing into their bank accounts and mobile money wallets now face the prospect of paying tax on these deposits after the Tax Appeals Tribunal handed the Kenya Revenue Authority fresh powers to treat undocumented cash as taxable income.

In a landmark ruling that signals a major shift in how the taxman pursues revenue, the tribunal has determined that the burden of proof lies squarely with account holders to demonstrate that their deposits are not income. The decision effectively reverses the traditional approach where KRA had to prove that money was taxable before demanding payment.

The ruling emerged from a dispute between KRA and Virginia Wangari, a Naivasha hotel businesswoman, whom the authority assessed for Sh6.5 million in taxes after discovering Sh52.6 million in unexplained bank and M-Pesa deposits between 2018 and 2022. After adjusting for supported non-income items, KRA treated net deposits of Sh50.9 million as taxable income and applied an industry profit margin of 18.49 percent for the hospitality sector.

Wangari challenged the assessment, arguing that KRA had wrongly assumed all deposits were income, ignored her explanations, applied an arbitrary margin, and subjected her to double taxation. However, the tribunal dismissed her appeal, holding that tax assessments by the Commissioner enjoy a presumption of correctness until rebutted by documentary evidence.

The tribunal emphasized that taxpayers must produce bank reconciliations, source documents, ledgers, or contracts to show that funds were capital injections, loans, or agency collections. General explanations without supporting documentation, the panel ruled, do not displace tax liability.

Tax experts say the ruling represents a significant escalation in KRA’s enforcement powers and places millions of Kenyans at risk of unexpected tax bills if they cannot adequately document the sources of their income. The decision comes at a time when President William Ruto’s administration has intensified its crackdown on tax evasion to boost revenue collection without imposing new taxes following the deadly anti-tax protests of 2024 that claimed over 50 lives.

The ruling builds on another controversial case involving Kirin Pipes Limited, where the tribunal upheld a Sh21.6 million tax assessment after the company failed to prove that deposits into its accounts between 2019 and 2022 were loans or shareholder capital rather than undeclared sales revenue. KRA had initially assessed the pipe manufacturer for Sh34.3 million in income tax and Sh22.6 million in VAT after its banking analysis revealed unexplained deposits.

In that case, Kirin Pipes argued that shareholders had injected Sh29.4 million in additional capital, secured a Sh31.6 million loan from Nanchang Municipal Engineering Development, and received Sh24.6 million from shareholders to fund operations. The company also claimed some deposits were advance payments from clients that were later invoiced and declared for tax purposes.

However, the tribunal found that the company had provided uncertified bank statements and vague SWIFT confirmation slips without corroborating documents such as board resolutions, updated CR12 records showing revised shareholding, or evidence of loan repayment. The loan agreement itself was deemed problematic as it was interest-free, open-ended, and had no repayment timeline.

Samuel Mwaura, Tax Partner at Grant Thornton Kenya, warns that the rulings signal a new era of aggressive tax enforcement. He predicts an increase in litigation as the authority disallows expenses not supported by electronic tax invoices, even when they represent genuine business costs.

The legal backing for KRA’s approach comes from Section 3 of the Income Tax Act, which broadly defines income to include business profits, employment earnings, rent, dividends, interest, pensions, and other gains or benefits unless specifically exempted. This means any unexplained deposits, when not backed by proper documentation such as loan agreements or shareholder capital records, fall within the definition of taxable income.

KRA has clarified that the ruling does not give it blanket powers to tax every deposit made into personal or business accounts. The authority maintains that properly documented funds, such as loan proceeds, shareholder capital, or transfers supported by verifiable records, are not subject to taxation. However, the onus is on taxpayers to provide this documentation when challenged.

The enforcement push is part of a broader strategy by KRA to leverage technology and data analytics to identify tax evaders. From January 2026, the authority launched an automated digital system that validates income and expenses declared in tax returns against electronic tax invoices, withholding tax records, and import declarations from customs systems.

This new validation system, integrated into the iTax platform, flags mismatches in income declarations, VAT claims, and withholding tax data in real time. All declared income and expenses must now be supported by valid electronic tax invoices correctly transmitted with the buyer’s PIN, subject to exceptions provided under the Tax Procedures Act.

The digital crackdown extends beyond bank deposits to target the entire spectrum of business operations. KRA’s enforcement unit has been using various databases to pursue suspected tax cheats, including bank statements, import records, motor vehicle registration details, Kenya Power records, water bills, and data from the Kenya Civil Aviation Authority, which reveals individuals who own assets such as aircraft.

Car registration details are being used to identify individuals driving high-end vehicles but remitting little in taxes, while Kenya Power meter registrations help the taxman identify landlords who have been slapped with huge tax demands. The authority has also sought details of suppliers and contractors hired by county governments to tighten the noose on individuals and firms evading tax.

The banking analysis method, treating unexplained deposits as income, is increasingly becoming KRA’s weapon of choice during audits. The tribunal has cited earlier rulings holding that all bank deposits are taxable unless the account holder explains, with evidence, why they should not be taxed.

For businesses, the implications are profound. Companies that rely on informal suppliers who cannot issue electronic tax invoices face a dilemma. Unless expenses are documented electronically, KRA will assume the money remains in the business’s pocket and treat it as profit subject to tax.

Consider a small agribusiness that buys fertilizer and seeds from a rural supplier who has no PIN and cannot issue an electronic tax invoice. If the business paid Sh400,000 for these inputs, KRA will automatically treat that amount as profit, even though it was spent on genuine business expenses. Similarly, if a business spent Sh1 million in total but only Sh300,000 has electronic documentation, the remaining Sh700,000 will inflate profits, increasing the company’s tax bill and squeezing cash flow.

Self-employed professionals, including consultants, advisors, trainers, and freelancers, are among the most exposed under the new regime. KRA is now cross-referencing withholding tax records submitted by clients against annual income tax returns. When a client pays a consultant, they are required to deduct withholding tax at source and remit it directly to KRA. If a consultant files a nil return, under-declares income, or omits consultancy fees already subjected to withholding tax, the system automatically flags the account, triggering audits, penalties, and enforcement actions that may include bank account freezes or asset seizures.

Tax practitioners advise businesses and individuals to maintain meticulous records of all transactions, including bank reconciliations, source documents, ledgers, contracts, and board resolutions. They recommend setting aside between 25 and 30 percent of earnings for tax obligations to ease cash flow pressure and engaging certified tax professionals to reduce exposure to compliance risks.

The tribunal rulings come as KRA faces mounting pressure to meet revenue targets amid persistent shortfalls. Official data shows the authority collected Sh2.257 trillion in the year through June 2025, missing its revised target by Sh47.3 billion. This marked the third consecutive annual shortfall, exacerbating fiscal pressure at a time when public debt has surpassed Sh11.5 trillion.

The expanded enforcement coincides with major restructuring at KRA’s Times Tower headquarters, including recruitment for senior positions such as Deputy Commissioners, as the authority seeks to improve collection, particularly from the informal economy where compliance remains low.

However, the aggressive push has not been without controversy. Banks initially blocked KRA’s attempt to integrate its system with that of 38 lenders amid fears that the taxman could access sensitive personal information such as cash flows in accounts without adequate safeguards. Bankers expressed concern that KRA could use the integration to access customer information unlawfully, exposing banks to lawsuits and penalties from the data protection watchdog.

The plan to access sensitive personal data, including details of properties owned and bank accounts as well as cash transfers on mobile phones without a court warrant, was initially included in the Finance Bill 2024 but was scuppered by the withdrawal of the bill following the anti-tax protests.

Despite these concerns, KRA has forged ahead with its enforcement agenda, determined to widen the tax base and boost revenue collection through technology and data analytics. The authority maintains that its approach is justified under existing law and that taxpayers who maintain proper records have nothing to fear.

For ordinary Kenyans, the message is clear. Every deposit into a bank account or mobile money wallet must now be accounted for with proper documentation. Failure to do so could result in an unexpected tax bill that presumes the money is income unless proven otherwise. In this new era of digital tax enforcement, the burden of proof has shifted decisively from the taxman to the taxpayer.

A healthcare catastrophe is unfolding across Kenya as hundreds of private and faith-based hospitals teeter on the brink of collapse, with patients increasingly turned away unless they can pay cash despite being fully registered members of the Social Health Authority.

The crisis has reached breaking point, with facilities collectively owed more than Sh76 billion in unpaid claims by SHA, leaving hospital administrators with an impossible choice: continue treating patients on credit while drowning in debt, or demand upfront payment and risk violating government directives.

At the epicenter of this disaster is a digital health insurance system that promised universal healthcare coverage but has instead become a bureaucratic nightmare, trapping patients between empty hospital coffers and their constitutional right to medical care.

Dr. Brian Lishenga, chairman of the Rural and Urban Private Hospitals Association of Kenya, revealed that the payment crisis has escalated dramatically since SHA’s inception in October 2024, with some facilities now going five months or more without receiving a single shilling from the authority.

“It’s like being in a bad marriage that you cannot leave,” Dr. Lishenga told this writer, describing the untenable relationship between healthcare providers and the government’s flagship health insurance program.

The backlog is particularly severe for high-cost medical interventions, including inpatient surgical procedures, renal dialysis, cancer treatment and maternity services, some dating back six months with no resolution in sight despite repeated assurances from the Ministry of Health.

Behind the staggering financial figures are real people facing real emergencies with diminishing options.

Sylvia, who requested to use only her first name, found herself in a nightmare scenario at a Machakos hospital where her cousin had been rushed following a caesarean section emergency. Despite the life-threatening situation, the family was told SHA was not working and demanded a Sh13,200 down payment before treatment could begin.

“We don’t have that money,” Sylvia said, her voice strained with anxiety as she made frantic calls to friends and relatives outside the hospital ward where her cousin waited in pain. “I have seen on the internet that the president said we should go to the hospital and we will be treated for free. This is not free.”

Her story is being replicated thousands of times across the country, particularly in rural areas and urban estates where lower-level private facilities serve communities that cannot afford to travel to distant public hospitals.

The consequences extend far beyond inconvenience. Without drugs, laboratory reagents or functioning equipment, hospitals are forced to turn away emergency cases or provide substandard care, raising the specter of preventable deaths.

One Level 3A facility owner, who spoke on condition of anonymity for fear of government retaliation, described a descent into financial ruin that reads like a business horror story.

Owed Sh15 million by SHA over five months, the hospital owner had purchased Sh8 million worth of medical equipment on credit to comply with new government facility classifications, only to find himself unable to make the required Sh354,000 monthly payments to suppliers.

The equipment suppliers, tired of empty promises, moved to auction the hospital’s assets. In a desperate bid to prevent total collapse, the owner surrendered his anaesthesia machine at a substantial loss just to buy time.

“I gave it to them with the hope that SHA will pay. I don’t know what I will do when they come again next month,” the hospital owner said, his resignation palpable. “I agreed to give it away at a loss, but what do I do?”

The facility, like hundreds of others, continues to receive patients daily. With 29 million Kenyans now registered for SHA and educated to expect free services, hospital owners cannot refuse care without risking closure by government authorities who have demonstrated a hair-trigger response to facilities attempting to charge patients out-of-pocket.

“Patients are entitled. Our biggest headache is that we cannot ask them to pay in cash,” the facility owner explained. “I know of some facilities that tried that and some patients called SHA and that resulted in their closure. There was no investigation done.”

The pharmaceutical supply chain has also collapsed for many facilities. The hospital owner revealed that pharmaceutical companies have blacklisted his facility after months of non-payment, meaning drugs can now only be purchased with upfront cash the hospital doesn’t have.

“That is why we don’t have drugs,” he said. “We cannot tell this to patients. We agree to see them but sometimes we don’t even have reagents for lab tests.”

With monthly running costs exceeding Sh1 million, including Sh200,000 in rent, Sh354,000 in equipment debt, and Sh450,000 in staff salaries, the mathematics of survival have become impossible without SHA payments.

Some staff members have already been terminated, while others have agreed to stay on despite reduced salaries, creating a workforce crisis that compounds the medical emergency.

The Ministry of Health has maintained a firm stance that hospitals are at fault for unpaid claims, not the government.

In an interview last week, Health Cabinet Secretary Aden Duale insisted that SHA conducts payments every 14th day of each month and that unpaid claims result from missing documentation or errors flagged automatically by the digital system.

“Those that have not been paid either have a missing document or something was not done correctly, and the system flags it. Hospitals should stop claiming they do not know why their claims have not been paid. The system automatically informs them,” Mr. Duale said.

But hospital administrators paint a vastly different picture of a system that rejects claims without explanation, provides no mechanism for dispute resolution, and leaves facilities trapped in an information black hole.

“We don’t know why we haven’t been paid. I have duly filled the claim forms. I have followed up with SHA via email, and in person,” the Level 3A facility owner said. “When I get to their branch they say that they can’t see our attachments yet, on our end, all attachments are up to standard.”

The digital portal itself has become a source of frustration, with hospitals reporting that system changes occur without notice, sometimes rendering previously submitted claims inaccessible or incompatible with new requirements.

More alarmingly, the Rural and Urban Private Hospitals Association revealed that over 10,000 inpatient beds and 3,500 maternity beds have been mysteriously deleted from the SHA portal without explanation, despite hospitals holding valid licenses from the Kenya Medical Practitioners and Dentists Council.

“We are gravely concerned that facilities have had their bed capacity deleted and downgraded in the SHA portal despite having valid KMPDC licences,” Dr. Lishenga said.

For maternity cases, which form a substantial portion of claims at lower-level facilities, the verification process has descended into absurdity.

“For a maternity case for instance, we have even asked SHA officials to do the due diligence and call the women asking them if they delivered in our facilities,” the facility owner explained. “Instead, they are rejecting claims without verification or an explanation.”

Complicating the crisis is an aggressive government campaign against fraudulent SHA claims that has seen over 1,400 facilities shut down or suspended since the program’s inception.

In August 2025, CS Duale suspended 40 hospitals following a forensic audit, with an additional 45 facilities degazetted shortly thereafter. The crackdown uncovered ghost hospitals, inflated bed capacities, and fictitious claims totaling Sh10.6 billion.

The government’s determination to root out fraud, while necessary, has created a climate of fear and suspicion that hospital associations say is ensnaring legitimate providers alongside criminal operators.

“Any healthcare provider whose information is used to defraud SHA will be held personally liable,” Duale warned, adding that facilities would be surcharged to recover funds already paid on false claims.

The Kenya Association of Private Hospitals criticized the ministry for “weaponizing SHA fraud controls” and threatening closure rather than working collaboratively to resolve payment disputes with legitimate facilities.

The Auditor General’s March 2025 report revealed fundamental problems with SHA’s digital procurement process, including unbudgeted and non-competitive procurement, undefined scope of work, and questions about who actually owns the system being managed by a private consortium.

These systemic weaknesses have created an environment where the line between genuine claims and fraudulent ones has become hopelessly blurred, with hospital owners saying they are being punished for a broken system they did not create.

SHA has reportedly paid Sh50 billion of the Sh93 billion in claims submitted since October 2024, a payout ratio that hospital associations say demonstrates the fundamental insolvency of the scheme.

“This is a sign that SHA is not collecting enough money to reimburse hospitals,” Dr. Lishenga said, accusing the Ministry of Health of publishing misleading reimbursement figures without disclosing total claims submitted, approved claims, or actual payout ratios.

The financial gap is compounded by Sh33 billion in arrears inherited from the defunct National Hospital Insurance Fund, which remain unpaid more than five months after President William Ruto directed their settlement.

In counties where the government is piloting its digital healthcare superhighway program, including Mombasa, Kirinyaga, Embu and Nandi, facilities report persistent non-payment that has left them unable to participate in primary healthcare services.

A Parliamentary committee report in November 2025 documented 19 critical failures in the SHA system, including inconsistent reimbursements, biometric challenges for patients without national IDs, and the absence of a functional claims management office required under the Social Health Insurance Act.

The committee found that some facilities had received no disbursements whatsoever, while erroneous payments to others, including Sh16 million mistakenly sent to a private hospital instead of Nyeri County Referral Hospital, remain unrecovered.

Faced with financial annihilation, hospital associations have begun directing members to demand cash payment from patients, effectively undermining the entire premise of universal health coverage.

In September 2025, RUPHA issued a directive to over 700 member facilities to suspend SHA services and revert to out-of-pocket payments, describing the authority as “a bad borrower and a bad debtor.”

“We have proved that SHA is a bad borrower and a bad debtor. From today, all medical services at this facility for Social Health Authority beneficiaries will be offered on a cash basis unless otherwise stated,” the association’s notice read.

The Kenya Healthcare Federation took the extraordinary step of informing SHA that private hospitals would no longer treat civil servants unless they paid cash, following nine months of non-payment for services rendered to government employees and their families.

For patients like James Nyau, a road accident survivor requiring weekly physiotherapy, SHA membership has proven worthless despite being a fully paid member.

“Every week I pay Sh1,100 for a single physiotherapy session, plus other costs that SHA doesn’t cover. I’ve skipped sessions because of the cost,” Nyau said, highlighting the gap between SHA’s promised benefits and actual coverage.

Samuel Gitau, an Eastleigh resident, echoed the sentiment: “My son was unwell recently, and I had to pay Sh1,100 for his treatment. Sometimes, you just don’t have the money. Insurance could make a big difference, but right now, it doesn’t.”

Legal experts and civil society organizations warn that the SHA payment crisis represents a violation of multiple constitutional provisions and statutes.

Article 43 of the Constitution guarantees the right to the highest attainable standard of health, while Article 47 ensures the right to fair administrative action. The Fair Administrative Action Act requires reasons for all adverse decisions, while the Public Finance Management Act demands lawful and accountable use of public funds.

“By rejecting claims without explanation and withholding payments, SHA is breaching all these principles,” noted one civil society analysis of the crisis.

The High Court in May 2025 quashed CS Duale’s decision to form a committee to verify pending bills owed to hospitals by the defunct NHIF, ruling that the government’s delay tactics were unconstitutional.

Yet hospitals report that nothing has changed on the ground, with the payment freeze continuing unabated despite court orders and repeated government promises.

Hospital administrators and medical associations are united in their warning: without immediate intervention, Kenya’s healthcare system faces systemic collapse.

“No one is listening to healthcare providers. If this continues, there will be a crisis in the system soon,” the Level 3A facility owner said. “We feel like the government knows what they are doing.”

Dr. Lishenga was more direct: “Unless there is a substantial move to settle liabilities, we will move to out-of-pocket payment. We have no other way. How do we keep the facilities open? You cannot have three-quarters of hospitals that have not paid their workers for the last three months and expect that health care will be normal.”

The stakes extend beyond hospital finances to the very survival of patients who depend on private and faith-based facilities for care. With public hospitals already overwhelmed and understaffed, the closure or dysfunction of private facilities would trigger a healthcare emergency affecting millions of Kenyans.

As hospitals run on empty coffers and patients face impossible choices between bankruptcy and suffering, the promise of universal health coverage increasingly resembles a cruel deception rather than the transformational reform it was meant to be.

For the facility owner still negotiating with creditors over his remaining equipment, the future is measured in weeks, not months.

“I don’t know what I will do when they come again next month,” he said, his words a testament to the desperation that now defines healthcare delivery in President Ruto’s Kenya.

This publication reached out to CS Duale and SHA CEO Mercy Mwangangi for comment on the specific allegations raised by hospital owners, but neither had responded by the time of going to press.