Abraham Nyambane Asiago v Barclays Bank of Kenya Limited [2015] KEELRC 1190 (KLR)
The bottom line
#A Kenyan court ruled Barclays fairly fired a banker for misconduct, but still owed him Kshs. 803,363 because the termination letter was unsigned.
What this practically means
#Executive summary
#Key legal issues
#Valid reason for termination
The Respondent had a valid reason - the Claimant engaged in unauthorised financial dealings with a customer
The forgery charge was unproved as neither the investigation team nor the disciplinary panel made conclusive findings. On the borrowing charge, the Claimant gave contradictory accounts of his dealings with Peter Ng'ang'a Waweru, first denying any financial dealings, then claiming payment for services and later supply of building poles. The Court rejected his account and adopted the Respondent's evidence of unauthorised dealings with a customer.
Procedural fairness of termination
Termination was procedurally unfair because the termination letter was unsigned, contravening the CBA and the Bank's own terms and conditions of service
Although the Claimant was taken through the motions of Section 41 of the Employment Act, the termination letter was unsigned. The line manager who should have signed it disowned it, and the Employee Relations Manager conceded an unsigned letter was invalid. Clause A5(d) of the CBA and Clause 10 of the terms of service required written notice served by an authorised officer. Issuing an unsigned letter amounted to verbal termination.
Remedies
Claimant awarded 6 months' salary compensation, 1 month in lieu of notice and withheld suspension salary; reinstatement and pre-retirement loss compensation refused
Reinstatement is a premier remedy available only in exceptional circumstances, and was declined given the Claimant's employment record and the valid reason for termination. Compensation of six months' salary factored in length of service and the Respondent's conduct in the disciplinary process. The claim for compensation for loss of employment before retirement had no legal basis and was dismissed.
Legal principles established
#- The employer bears the burden under Section 43 of proving reasons for termination on a balance of probability, not beyond reasonable doubt
- Bank employees are held to a high degree of honesty and integrity; where these are questioned the employment relationship becomes untenable
- Issuing an unsigned termination letter amounts to verbal termination contrary to law and human resource practice
- Reinstatement is not available to an employee with a negative employment record
Court orders
#- 1.Award to the Claimant of 6 months' salary in compensation for unfair termination (Kshs. 615,810)
- 2.Award of 1 month's salary in lieu of notice (Kshs. 102,635)
- 3.Award of withheld salary during suspension, 1 month and 25 days (Kshs. 84,918)
- 4.Total award of Kshs. 803,363 in favour of the Claimant
- 5.Respondent to issue the Claimant with a certificate of service
- 6.Respondent to pay the costs of the case
- 7.Award to attract interest at court rates from the date of the award until payment in full
- 8.Respondent's claim for accrued interest at commercial rates on the housing loan facility dismissed
- 9.Reinstatement or re-engagement refused
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment and labour relations disputes (Constitution Article 162(2)); termination of employment claim under the Employment Act, 2007
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Ringa v NCBA Bank Kenya PLC (Cause E206 of 2023) [2025] KEELRC 1053 (KLR)[2025] KEELRC 1053 (KLR)3 Apr 2025followed
Cite this brief
#Cite this brief
Caselaw, "Abraham Nyambane Asiago v Barclays Bank of Kenya Limited [2015] KEELRC 1190 (KLR)", Case Analysis (2015). Cause No 149 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/1190/eng@2015-04-17
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.