Kenya: Appeal Court Finds Consolidated Bank Unfairly Dismissed Employee
The Kenyan Court of Appeal ruled that Consolidated Bank of Kenya unfairly dismissed a senior employee for failing to follow internal disciplinary procedures. The court awarded the employee compensation but denied his request for reinstatement.
Why it matters
This case reinforces the importance of corporate adherence to internal HR manuals and labor laws in Kenya.
Nairobi - The Court of Appeal has upheld a finding that Consolidated Bank of Kenya unfairly dismissed a senior employee, ruling that the lender failed to follow its own disciplinary procedures and did not establish valid grounds for terminating his employment.
In a judgment delivered on July 10, the appellate court dismissed the bank's appeal and partly allowed a cross-appeal by former Business Development Officer Eustace Muchigiri Njuguna.
The court increased his notice pay from one month to three months' salary while retaining an award equivalent to six months' salary as compensation for unfair termination.
The dispute arose from Njuguna's summary dismissal in June 2014 over allegations that he had facilitated irregular transfers involving customer accounts.
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