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ELRCPartially AllowedNot stated in judgment (Statement of Claim dated 21st January 2021)· [2025] KEELRC 2199 (KLR)

Mburu v Standard Chartered Bank Kenya Limited (Cause E082 of 2021) [2025] KEELRC 2199 (KLR)

Employment and Labour Relations Court
24 July 2025
LNLINNET NDOLO
2,750 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~11 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled Standard Chartered's redundancy was a disguised unfair dismissal and ordered the bank to pay Kshs. 3.5 million.

What this practically means

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Executive summary

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Grace Mburu was employed by Standard Chartered Bank Kenya Limited from 1st August 2015 as Manager, Financial Crime Compliance, rising to Principal Financial Crime Compliance (Grade 5) before her employment was terminated on 23rd October 2019 on grounds of redundancy following a restructuring of the Compliance and Financial Crime Compliance functions. She sued, contending the redundancy was a disguised, discriminatory scheme to remove her, pointing to the advertisement in December 2019 of a Senior Manager, CFCC Grade 5 position closely resembling her former role. She sought twelve months' salary as compensation. The Respondent defended the redundancy as a bona fide outcome of the ICEE restructuring, asserting that the Claimant was consulted, offered a downgraded Grade 6 role without salary reduction, voluntarily opted for the redundancy package, and received all statutory and contractual dues. The court, citing the Court of Appeal in Kenya Airways Limited v Aviation & Allied Workers Union and its own decision in Fredrick Mulwa Mutiso v Kenya Commercial Bank, held that the Section 40 Employment Act conditions act as a control against termination clothed in redundancy language and that an employer must demonstrate a link between termination and redundancy. Finding the Respondent's explanations unconvincing and noting striking similarities between the job descriptions, the court found a whiff of mala fides and no genuine redundancy. Judgment was entered for the Claimant for Kshs. 3,498,954, six months' salary, with interest at court rates from the date of judgment and costs of the case.

Key legal issues

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01

Bona fides of the redundancy

Holding

There was no genuine case of redundancy; the Respondent abolished the position only to reinstate and advertise it two months later, evidencing mala fides

Reasoning

The Court traced the full journey to termination and found the Respondent's explanation for downgrading and abolishing the Claimant's position unconvincing. The attempt to distinguish the advertised position from the Claimant's former role failed on comparison of the job descriptions, which revealed striking similarities, and the Respondent's claim of having no control over the downgrade was unconvincing.

p. 7
02

Employer's burden to demonstrate link between termination and redundancy

Holding

Applying Kenya Airways Limited v Aviation & Allied Workers Union, the employer must demonstrate a link between the termination and the redundancy; the Respondent failed to do so

Reasoning

Both parties relied on the Court of Appeal decision in Kenya Airways Limited v Aviation & Allied Workers Union. The Respondent could not justify abolishing a Grade 5 position and advertising a similar Grade 5 role two months after the exit, so the required link was absent, rendering the redundancy a disguise for unfair termination.

p. 6
03

Relevance of the offer of a lower Grade 6 position

Holding

The offer of a lower Grade 6 position without salary change did not legitimise the redundancy; career growth ranks pari passu with or higher than monetary reward in a specialised field

Reasoning

The Court rejected the Respondent's reliance on the offer of the downgraded role, holding that for a professional who had risen through the ranks in a highly specialised area, career progression matters at least as much as pay. The offer would have made the exit more painful and could not cure the mala fides.

p. 7

Legal principles established

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  • In cases of termination of employment as a result of reorganisation leading to redundancy, the employer must demonstrate a link between the termination and the redundancy
  • The conditions under Section 40 of the Employment Act serve as a control measure against unlawful termination of employment clothed in redundancy language

Court orders

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  1. 1.Judgment entered in favour of the Claimant in the sum of Kshs. 3,498,954 being six (6) months' salary in compensation for unlawful and unfair termination of employment
  2. 2.The award to attract interest at court rates from the date of judgment until payment in full
  3. 3.The Claimant awarded the costs of the case
Jurisdiction invoked
Employment and Labour Relations Court, Employment Act, Section 40

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, "Mburu v Standard Chartered Bank Kenya Limited (Cause E082 of 2021) [2025] KEELRC 2199 (KLR)", Case Analysis (2025). Not stated in judgment (Statement of Claim dated 21st January 2021). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2199/eng@2025-07-24

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