A Kenyan technology executive has sued an Indian software company, alleging it unlawfully declared her position redundant before transferring her duties, customers and accounts to an Indian national.
Mary Muthumbi says Newgen Software Technologies Limited told her that her role was “no longer tenable” because the markets were performing poorly, but continued the same business through another employee.
She alleges the move amounted to discrimination based on nationality because she was the only Kenyan in the relevant role and team.
The Employment and Labour Relations Court in Nairobi has since issued an interim order preserving Newgen’s Kenyan receivables up to USD143,293 (Sh18.4 million), pending determination of the dispute.
Justice Joram Abuodha ordered the status quo maintained and barred the company from transferring, remitting, withdrawing or otherwise dealing with the protected funds in a manner that could diminish them. Newgen can, however, use the funds to pay salaries, meet statutory obligations and settle ordinary business expenses for its Kenyan operations.
Ms Muthumbi is seeking USD143,293 in terminal dues and compensation for unfair termination, as well as general and aggravated damages for alleged nationality discrimination, interest, costs and a certificate of service.
She was employed as a regional manager on March 1, 2022, under a contract revised in March 2024. Her responsibilities included facilitating executive-level engagements between Newgen and major financial institutions and government agencies in Kenya and the region.
Mary Muthumbi.
Photo credit: Pool
Her employment was terminated through a September 22, 2025 letter, with the dismissal taking effect on October 25. The company cited poor market performance and said her position was no longer tenable, according to court documents.
Ms Muthumbi disputes the explanation, saying her work continued after her departure. She says she handed over her files, accounts, customer relationships and correspondence to Lenin Mahiya, an Indian national. “Mr Mahiya travelled to Kenya so that I might introduce him to my customers and prospects,” she says in her affidavit.
Her lawyers argue that the position was not genuinely redundant because the functions were retained and assigned to another Indian citizen. They say this amounted to discrimination based on nationality.
The dispute has also raised questions about Newgen’s presence in Kenya. Ms Muthumbi says the company is incorporated in India, with its registered office in New Delhi, but has no office, place of business or registered agent in Kenya.
She argues that the company is not registered as a foreign company carrying on business in Kenya under the Companies Act, 2015, yet has substantial and continuing business in the country. Her court papers list KCB, Equity Bank, Co-operative Bank, NCBA, I&M Bank, Prime Bank, NSSF, Shelter Afrique and Faulu among its Kenyan customers. The receivables include licence, subscription, renewal, maintenance, support and implementation fees, as well as commissions.
A woman has sued Newgen Software Technologies Limited and is seeking Sh18.4 million in terminal dues and compensation for unfair termination.
Photo credit: Shutterstock
Ms Muthumbi says preserving the receivables is necessary because enforcing a judgment against a foreign company without local assets could prove difficult.
She also says the dismissal caused financial distress, coming weeks after she obtained an Sh11 million loan from HFCB Kenya, formerly HFC, HF Group. A May 19, 2026 demand put her outstanding personal loan and asset finance at Sh11.2 million and warned of repossession and credit-bureau reporting.
Her claim includes USD15,141 in service pay, USD3,087 for 12.25 days of unclaimed leave, USD1,033 for one month’s medical insurance and USD1,390 in legal fees. Newgen has yet to respond to the allegations in court. The case will be mentioned on September 21.
