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ELRCPartially AllowedNot stated in judgment (Memorandum of Claim dated 19th July 2021)

Njue v KCB Bank Kenya Limited (Employment and Labour Relations Cause E782 of 2021) [2025] KEELRC 2018 (KLR)

Employment and Labour Relations Court
30 June 2025
3,965 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~16 min to read original · ~4 min brief

The bottom line

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The Employment and Labour Relations Court ruled KCB unfairly sacked a manager because it called no witnesses and skipped its own appeal process, awarding 10 months' salary.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent bank from 21st January 2008 and serving as Cash Manager at the Kitale Branch, challenged the summary termination of his employment effective 18th September 2018. He sought a declaration of unfair termination, twelve months' salary compensation, a certificate of service, and costs. He alleged he was dismissed without being accorded a fair hearing, that no witnesses were called at the disciplinary hearing for cross-examination, and that the Respondent failed to constitute a Disciplinary Appeals Committee under its own policy to hear his appeal. The Respondent maintained the dismissal was for valid reasons, including a fabricated workplace injury report amounting to attempted fraud, abdication of cash management duties, breach of the IT Security Policy by sharing login credentials, and manipulation of sales codes, and that due procedure under Section 41 of the Employment Act was followed. The court found the process procedurally flawed: although the Claimant was served with notices to show cause and attended a hearing, no witnesses were called to prove the allegations, and the forensic report and statements relied upon were not disclosed to him. The Respondent also failed to constitute the disciplinary appeals committee required by its own policy. Relying on Sections 41 and 45(2) of the Employment Act, the court held the termination substantively and procedurally unfair and awarded the Claimant ten months' salary compensation of Kshs 1,579,930 less statutory deductions, a certificate of service, and costs plus interest from the date of judgment.

Questions the Court framed

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

  1. 1.Whether the termination of employment was procedurally fair
  2. 2.Whether the termination of employment was justified (valid and fair reasons)
  3. 3.Whether the Claimant is entitled to the reliefs sought
  4. 4.Who bears the costs of the proceedings

Key legal issues

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01

Procedural fairness of the disciplinary process

Holding

The process was procedurally unfair because the Respondent called no witnesses at the disciplinary hearing, denying the Claimant an opportunity to cross-examine, and the documents relied upon (including the forensic report and hospital records) were not produced through witnesses

Reasoning

Section 41 of the Employment Act requires the employer to explain the reasons for termination and afford the employee a hearing. The court held that the envisaged hearing involves witnesses who can be cross-examined. The Respondent relied on an independent forensic report and recorded statements not provided to the Claimant, and no witness from the hospital testified regarding alleged forged documents. The committee therefore had no proof of the allegations.

p. 8
02

Failure to constitute a disciplinary appeals committee and hear the appeal

Holding

The Respondent did not constitute the Disciplinary Appeals Committee required under clauses 4.16 and 6.9 of its own Disciplinary and Grievance Handling Policy, rendering the process flawed

Reasoning

The Claimant established that the KCB Bank Group Disciplinary and Grievance Handling Policy dated 28th December 2012 establishes a Disciplinary Appeals Committee to hear appeals. Despite the Claimant appealing on 21st September 2018, the Respondent did not constitute such a committee. This internal policy non-compliance contributed to the finding of procedural unfairness.

p. 8
03

Substantive justification for the termination

Holding

The Respondent failed to prove valid and fair reasons for the termination since no evidence was adduced through witnesses to establish the allegations of fictitious injury reports, falsified sales credit and data manipulation

Reasoning

The court noted the Respondent alleged forgery of hospital documents, falsification of sales credit and data manipulation but called no witness to produce that evidence. Under Sections 43, 45(2) and 47(5) of the Employment Act the employer bears the burden of proving valid and fair reasons. The RW1 himself admitted no witnesses were called and that the forensic report and statements were not given to the Claimant.

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Remedies for unfair termination

Holding

The Claimant was awarded 10 months' salary as compensation, a certificate of service, costs and interest

Reasoning

In exercising discretion under Section 49 of the Employment Act, the court considered the failure by the Respondent to follow due process and the cutting short of the Claimant's career. It fixed compensation at 10 months of the salary of Kshs 157,993, less statutory deductions, and ordered issuance of a certificate of service with costs and interest.

p. 8

Legal principles established

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  • A fair disciplinary process under Section 41 of the Employment Act requires that witnesses be called and the employee be given a chance to cross-examine them; where no witness is called, there is no proof of the allegations
  • Termination is unfair where the employer fails to establish a valid and fair reason and fair procedure

Court orders

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  1. 1.10 months' salary as compensation for unfair termination, computed as 10 x 157,993 = Kshs 1,579,930 less statutory deductions
  2. 2.The Claimant to be issued with a certificate of service
  3. 3.The Respondent to pay costs of the suit plus interest at court rates with effect from the date of judgment

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 Act, Section 12 (dispute arising from employment and unfair termination)

Relief refused

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Twelve months' salary compensation for unfair termination

The court awarded 10 months rather than 12, considering the failure to follow due process and the cutting short of the Claimant's career

p. 8

Compensation for the workplace injury (deformed finger)

No relief was awarded on the injury claim; the claim as pleaded was for unfair termination reliefs, and the forensic investigation found the injury was not sustained at the workplace

p. 3

Costs

The respondent should pay costs of this suit plus interest at court rates with effect from the date of this judgment

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 view of the failure by the respondent to follow due process and cutting short the claimant’s career, I find 10 months salary as compensation for the unfair termination is appropriate and which I award = 10x157,993= Kshs 1,579,930 less statutory deductions.
p. 8Final orders - compensation award
The claimant should also be issued with a certificate of service. The respondent should pay costs of this suit plus interest at court rates with efiect from the date of this judgment.
p. 8Final orders - certificate of service and costs
Under the law the disciplinary process envisaged is a hearing where witnesses are called and the employee has a chance to cross examine them.
p. 8Procedural fairness under Section 41
Indeed, without establishment of the existence of valid reason and without demonstrating that due process was followed the termination becomes unfair and unjustified and for which I find.
p. 8Unfair termination under Section 45(2)

Issues in the judgment

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minor

The judgment states the termination letter was dated 1st September 2018 while the pleadings and submissions throughout record the termination as effective 18th September 2018

minor

The date of the KCB Disciplinary and Grievance Handling Policy is inconsistently stated as 25th December 2012 in paragraph 66 and 28th December 2012 elsewhere

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, "Njue v KCB Bank Kenya Limited (Employment and Labour Relations Cause E782 of 2021) [2025] KEELRC 2018 (KLR)", Case Analysis (2025). Not stated in judgment (Memorandum of Claim dated 19th July 2021). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2018/eng@2025-06-30

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