Ngetich v KCB Bank Kenya Limited (Employment and Labour Relations Cause 1148 of 2018) [2023] KEELRC 3274 (KLR)
The bottom line
#A Kenyan court confirmed that delegating work to a junior does not excuse a manager from responsibility when things go wrong at work.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.Whether the Claimant's contract of service was lawfully terminated.
- 2.Whether the parties are entitled to the reliefs that they seek through their respective pleadings.
Key legal issues
#Whether the termination was for a valid reason
Yes - the Claimant negligently failed to monitor the Mpesa platform, amounting to misconduct under section 44(4)(c) of the Employment Act.
The Claimant was responsible for financial controls at the branch. Mobile money transactions are cash transactions within his monitoring mandate even if not expressly listed in his job description. Delegation to his assistant did not relieve him of responsibility. His wavering evidence indicated an attempt to evade responsibility, and the loss occurred while he was in office.
Whether the termination followed fair procedure
Yes - suspension, notice to show cause and a disciplinary hearing with representation and minutes satisfied fair procedure.
The Claimant was suspended and issued a notice to show cause, then accorded a disciplinary hearing where he appeared with a representative of his choice, was heard, and signed the minutes confirming their content. His assertion of denial of a fair hearing was therefore incorrect.
Whether delegation absolved the Claimant of responsibility for the loss
No - the delegating person remains accountable for the outcome of delegated work.
Relying on Okoiti v Waiguru quoting Attorney General v Independent Policing Oversight Authority, the court held that one may delegate authority but not responsibility; delegating both amounts to abdication. The Claimant retained overall responsibility for the sound management of the platform notwithstanding delegation to his assistant.
Legal principles established
#- Delegation of a function does not absolve the delegating person of responsibility over its implementation; one can delegate authority but not responsibility.
- Under section 44(4)(c) of the Employment Act, negligent performance of duty constitutes misconduct justifying termination.
Court orders
#- 1.Dismissal of the Claimant's suit
- 2.Costs awarded to the Respondent
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act (first-instance employment claim)
Relief refused
#Claimant's claim for compensation for allegedly unlawful termination
The court found a valid reason for termination and that fair procedure was followed; the claim was without merit
Costs
Claim dismissed with costs to the Respondent
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
In law, delegation of a function does not absolve the person that delegates the function of responsibility over its implementation.
One can delegate authority but not responsibility. If a person delegates both authority and responsibility, then this becomes abdication of duty or denudation of authority and it is not acceptable.
Under section 44 (4) (c) of the Employment Act, negligent performance of duty by an employee constitutes misconduct for which the employer is entitled to terminate the employee's contract of service.
Consequently, I dismiss it with cost to the Respondent.
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ngetich v KCB Bank Kenya Limited (Employment and Labour Relations Cause 1148 of 2018) [2023] KEELRC 3274 (KLR)", Case Analysis (2023). Not stated in the extract. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3274/eng@2023-12-07
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.