Beiti v National Bank of Kenya Limited (Cause E496 of 2020) [2025] KEELRC 549 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Whether the termination was procedurally and substantively fair
Termination was fair: the claimant failed to self-appraise despite directives, was given a show-cause letter and hearing, and the reasons were valid and fair under sections 41, 43 and 45 of the Employment Act.
The claimant by his own testimony and exhibited documents had failed to self-appraise or fill the prescribed performance review forms. He received a show-cause letter with particulars, attended a disciplinary hearing (choosing not to bring a representative as advised), and was found culpable. His appeal was considered and rejected. Failure to adhere to performance directives amounted to insubordination under the respondent's code and section 44(4)(e) of the Employment Act.
Whether the movement from Mombasa to Nairobi attracted disturbance allowance
No allowance was payable because the movement was a reinstatement and deployment consequential to a court order, not a transfer.
The parties had previously litigated in Mombasa ELRC Cause 824 of 2016 over alleged interference with the contract, and the Court had reinstated the claimant following a rescinded resignation. The move to Eastleigh Branch in Nairobi was therefore consequential to the reinstatement ordered by the court and deployment, not a transfer triggering disturbance allowance.
Whether the claimant was entitled to the 2018 bonus
The bonus claim was declined as the bonus was a discretionary fringe benefit and the claim was not justified.
The bonus of Kshs.25,000 for 2018 was withheld following the claimant's failure to comply with performance management directives. The Court found the bonus was a discretionary fringe benefit and not justified on the facts, and declined the claim.
Legal principles established
#- An employer terminating on misconduct must comply with notice and hearing under section 41 of the Employment Act, have valid reasons under section 43, and fair reasons relating to the employee's conduct and operational requirements under section 45.
- An employee is entitled to the statutory certificate of service upon termination.
Court orders
#- 1.The certificate of service be delivered in 30 days from the date of judgment
- 2.Each party to bear own costs of the suit
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment and labour relations disputes (Employment Act, 2007; sections 41, 43, 45 applied)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Beiti v National Bank of Kenya Limited (Cause E496 of 2020) [2025] KEELRC 549 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/549/eng@2025-02-27
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.