JUDGEMENT OF THE COURT
1. Mohamed Ahmed Abdun, the 1st appellant, was employed by Mini Bakeries (Msa) Ltd, the respondent, a company carrying on bakery business in Kenya, as its Branch Manager in Mombasa with effect from 1st June 2003 on terms set out in a letter of appointment dated 6th June 2003.
2. During the 1st appellant’s tenure as Branch Manager, an internal audit of the respondent’s business at the branch, on or about 15th July 2004, revealed that there were fictitious entries in the loading books, discrepancies in cashflow and a shortfall of Kshs.401,860.00 for which the respondent held the 1st appellant, as the branch manager, responsible.
3. According to the respondent, the 1st appellant accepted responsibility for that shortfall and executed an agreement dated 15th July 2004 witnessed by the operations manager,, the internal auditor and the accounts manager of the respondent. That agreement was in the following terms:
“I, Mohamed Ahmed Abdun... Herewith commit to have the foll…