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ELRCDismissedNot stated in the judgment· [2015] KEELRC 502 (KLR)

Banking, Insurance & Finance Union (Kenya) v Capital Sacco Society Limited [2015] KEELRC 502 (KLR)

Employment and Labour Relations Court
25 September 2015
BOByram Ongaya
770 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court dismissed a Sacco employee's unfair dismissal claim because her own testimony admitted serious misconduct, so the termination was valid.

What this practically means

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Executive summary

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The claimant union sued on behalf of its member, Joy Dina Mukiri (the grievant), a clerical officer employed by the respondent Sacco from 1 September 2006 and deployed at Kiangua, Mitunguu and Gatimbi branches. By letter dated 4 February 2014 the respondent alleged she had fraudulently issued a Kshs. 30,000.00 loan to one Purity Ntinyari Gituma: no loan form existed, the customer lacked cash flow and matured shares, no assessment was done, and the grievant singly processed and posted the loan. The claimant sought a declaration that the dismissal was wrongful and unfair, reinstatement, salaries to judgment, twelve months' compensation, and Kshs. 3,000,000 exemplary damages; the respondent sought dismissal of the suit with costs. The court found the union had standing, being in a recognition and collective agreement with the respondent. The grievant was taken through notice and hearing under section 41 of the Employment Act, 2007, and her employment was terminated with effect from 11 April 2014 after the board found her explanations unsatisfactory. The sole issue framed was whether the termination was upon a valid ground. The grievant admitted in evidence that she issued the loan without good cash flow and against un-matured shares, breached policy to assist Purity with exams, posted the loan before the loan form was signed, delivered only Kshs. 9,000 to Purity and kept the balance, and repaid only Kshs. 2,000. The court held the respondent had a valid and genuine reason under section 43 of the Employment Act, the termination was not unfair, and dismissed the suit with costs on 25 September 2015 (Byram Ongaya, Judge, Nyeri).

Key legal issues

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01

Whether the grievant's termination was on a valid ground

Holding

Yes - the respondent had a valid and genuine reason under section 43 of the Employment Act, 2007

Reasoning

The grievant admitted in evidence that she issued a loan without a good cash flow, against un-matured shares, posted the loan before the customer signed the loan form, breached policy, and retained part of the loan cash. Procedurally she was taken through notice and hearing as envisaged in section 41 of the Employment Act. Given the admission, the suit had to fail.

p. 2
02

Whether the claimant union had standing to sue on behalf of the grievant

Holding

Yes - the parties were in recognition and collective agreements

Reasoning

The court accepted that the union had standing to file suit on behalf of its member because a recognition and collective agreement existed at all material times. Standing was therefore not in dispute; the claim nonetheless failed on merit.

p. 1

Legal principles established

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  • An employer terminates employment for a valid reason where, at the time of termination, there is a genuine and valid reason under section 43 of the Employment Act
  • A union recognised under a recognition agreement has standing to sue on behalf of its member

Court orders

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  1. 1.Judgment entered for the respondent against the claimant
  2. 2.The suit is dismissed with costs
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (sections 41 and 43 applied)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Banking, Insurance & Finance Union (Kenya) v Capital Sacco Society Limited [2015] KEELRC 502 (KLR)", Case Analysis (2015). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/502/eng@2015-09-25

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