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ELRCDismissedCause No. 552 of 2012· [2018] KEELRC 41 (KLR)

Anne Muthoni Muturi v Consolidated Bank of Kenya [2018] KEELRC 41 (KLR)

Industrial Court of Kenya
20 December 2018
3,269 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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Kenya's Industrial Court dismissed a bank manager's unfair dismissal claim because the bank followed a proper disciplinary process before firing her for misconduct.

What this practically means

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Executive summary

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The claimant, employed by the respondent bank from 10th June 1996, rising from Secretary to Branch Operations Manager, River Road Branch, sued by Memorandum of Claim dated 30th March 2012 alleging wrongful, unfair and unlawful termination of her employment on 19th September 2011. She sought a declaration of unlawful termination, reinstatement or re-engagement, and alternatively admission to the respondent's management staff exit package of 1½ months' gross salary per year of service (Kshs.3,350,160), continuation of staff interest rates on her loans, and reversal of her account to ex-staff status. The respondent denied the claim, asserting a history of misconduct: threatening a colleague, walking out of a meeting, unauthorised absence, and negligence in opening a fraudulent account for Metscec Cables Limited that caused the bank to lose Kshs.250,000. It maintained the claimant was cautioned and warned, given an opportunity to explain, and lawfully dismissed with terminal dues paid. The claimant filed no written submissions. The court framed three issues: lawfulness of termination, entitlement to relief, and costs. It agreed with the respondent, holding the termination lawful in light of the claimant's misconduct, the disciplinary process followed and payment of all terminal dues, and described the claim as an attempt at unjust enrichment. The claim was dismissed with each party bearing their own costs. The judgment is dated and signed by D. K. Njagi Marete, J, and delivered on 20th December 2018 by Maureen Onyango, Principal Judge.

Key legal issues

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01

Whether the termination of the claimant's employment was wrongful, unfair and unlawful

Holding

The termination was lawful; the claimant's negligence caused the respondent loss and she had been previously cautioned and warned, and was given an opportunity to be heard before dismissal

Reasoning

The court accepted the respondent's uncontroverted account: the claimant threatened a colleague, walked out of a meeting, absented herself without permission, and negligently facilitated a fraudulent account opening that cost the bank Kshs.250,000. She was cautioned, warned, given a chance to explain by letter of 14th September 2011, and dismissed on 19th September 2011 with one month's salary in lieu of notice and payment of terminal dues.

p. 5
02

Whether the claimant is entitled to the relief sought

Holding

No; entitlement to relief falls with the failure of the unlawful termination claim

Reasoning

The court held that having failed to establish unlawful termination, the claimant could not obtain any of the reliefs sought, whether declaration, reinstatement, re-engagement or the exit package. The claim was dismissed with no order as to costs, each party bearing their own costs.

p. 5

Legal principles established

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  • An employee dismissed for misconduct following a disciplinary process, who has been paid all terminal dues, has no claim for unlawful termination

Court orders

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  1. 1.Dismissal of the claimant's claim
  2. 2.Each party to bear their own costs of the claim
Jurisdiction invoked
Employment and labour relations jurisdiction of the Industrial Court of Kenya over a Memorandum of Claim for wrongful termination of employment

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Anne Muthoni Muturi v Consolidated Bank of Kenya [2018] KEELRC 41 (KLR)", Case Analysis (2018). Cause No. 552 of 2012. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/41/eng@2018-12-20

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.