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ELRCPartially AllowedNot stated in the judgment· [2025] KEELRC 549 (KLR)

Beiti v National Bank of Kenya Limited (Cause E496 of 2020) [2025] KEELRC 549 (KLR)

Employment and Labour Relations Court
27 February 2025
924 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The claimant, employed by the respondent from 06.08.2012 and last serving as a Business Relationship Officer at Eastleigh Branch, Nairobi, sued for compensation of 12 months' salary for unfair termination, disturbance allowance following his movement from Mombasa to Nairobi, a withheld 2018 bonus, general damages, interest, a certificate of service and costs. The respondent admitted the employment relationship but maintained the termination was fair: the claimant had failed to comply with a circular on performance management requiring self-performance review, was issued a show-cause letter, was heard at a disciplinary hearing, and was dismissed, with his appeal rejected on 24.06.2020. The respondent further contended the move to Nairobi was a reinstatement and deployment consequential to a court order in Mombasa ELRC Cause 824 of 2016, not a transfer, and that the bonus was a discretionary fringe benefit. The Court found the claimant had indeed failed to self-appraise, was given notice and a hearing, and that the termination complied with sections 41, 43 and 45 of the Employment Act, being procedurally and substantively fair. The Court declined the disturbance allowance, bonus, damages relating to the sale of the claimant's home, and the credit reference bureau complaint, holding the listing accurate. The claimant was held entitled to the statutory certificate of service. Judgment was entered accordingly, with the certificate of service to be delivered within 30 days and each party to bear its own costs, having regard to the margins of success.

Key legal issues

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01

Whether the termination was procedurally and substantively fair

Holding

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.

Reasoning

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.

p. 2
02

Whether the movement from Mombasa to Nairobi attracted disturbance allowance

Holding

No allowance was payable because the movement was a reinstatement and deployment consequential to a court order, not a transfer.

Reasoning

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.

p. 2
03

Whether the claimant was entitled to the 2018 bonus

Holding

The bonus claim was declined as the bonus was a discretionary fringe benefit and the claim was not justified.

Reasoning

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.

p. 3

Legal principles established

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  • 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

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  1. 1.The certificate of service be delivered in 30 days from the date of judgment
  2. 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

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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, "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.