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ELRCDismissedNot stated in the extract

Ngetich v KCB Bank Kenya Limited (Employment and Labour Relations Cause 1148 of 2018) [2023] KEELRC 3274 (KLR)

Employment and Labour Relations Court
7 December 2023
1,864 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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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

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Executive summary

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The Claimant, formerly the Respondent's manager of Service Quality and Compliance at the Isebania branch, sued for compensation after his employment was terminated on 22nd December 2017. The termination followed the discovery of a loss of approximately Ksh. 17,206,246.00 arising from fraudulent transactions on the bank's Mpesa Super Agency Suspense Account between May and July 2017. The Respondent attributed the loss to the Claimant's failure to institute monitoring checks; the Claimant denied responsibility, asserting he had delegated oversight of the Mpesa docket to his assistant, had not been trained on the platform, and that managing it was not in his job description. The court framed two issues: whether the contract was lawfully terminated and whether the parties were entitled to the reliefs sought. The court found the Claimant's evidence ambivalent and self-contradictory, painting him as evading responsibility. It held that mobile money transactions are cash transactions falling within his cash-control mandate, and that delegation does not absolve the delegator of responsibility, applying the principle that one can delegate authority but not responsibility, drawn from Okoiti v Waiguru quoting Attorney General v Independent Policing Oversight Authority. Under section 44(4)(c) of the Employment Act, negligent performance of duty constitutes misconduct justifying termination. The loss occurred while the Claimant was in office, not on leave. Procedure was also fair: suspension, notice to show cause, and a disciplinary hearing with representation and signed minutes. The claim was dismissed with costs to the Respondent.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the Claimant's contract of service was lawfully terminated.
  2. 2.Whether the parties are entitled to the reliefs that they seek through their respective pleadings.

Key legal issues

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01

Whether the termination was for a valid reason

Holding

Yes - the Claimant negligently failed to monitor the Mpesa platform, amounting to misconduct under section 44(4)(c) of the Employment Act.

Reasoning

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.

p. 4
02

Whether the termination followed fair procedure

Holding

Yes - suspension, notice to show cause and a disciplinary hearing with representation and minutes satisfied fair procedure.

Reasoning

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.

p. 4
03

Whether delegation absolved the Claimant of responsibility for the loss

Holding

No - the delegating person remains accountable for the outcome of delegated work.

Reasoning

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.

p. 4

Legal principles established

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  • 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

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  1. 1.Dismissal of the Claimant's suit
  2. 2.Costs awarded to the Respondent

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (first-instance employment claim)

Relief refused

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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

p. 4

Costs

Claim dismissed with costs to the Respondent

Quotable passages

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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.
p. 3Delegation and accountability
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.
p. 4Delegation principle adopted from precedent
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.
p. 4Valid reason for termination
Consequently, I dismiss it with cost to the Respondent.
p. 4Final orders/disposition

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, "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.