Joseph Naftaly Macharia Karumba & 2 others v National Bank of Kenya Limited [2019] KEELRC 1296 (KLR)
The bottom line
#Kenya's Employment Court ruled National Bank unfairly fired three staff because it never gave them a proper disciplinary hearing before dismissal.
What this practically means
#Executive summary
#Key legal issues
#Procedural fairness under Section 41 of the Employment Act
Termination was procedurally unfair — the Claimants were never summoned to a disciplinary hearing in the manner provided by Section 41; what they underwent was an interrogation
The court found it uncontested that no notices summoning the Claimants to disciplinary hearings were issued as required by Section 41. The Respondent relied only on reports and recommendations from its Security Investigations and HR managers. The meeting of 6th September 2013 was merely an interrogation conducted more than six months after the triggering incident, with no charges, minutes, or opportunity to present a defence.
Substantive fairness / valid reason under Sections 43 and 45
Termination was substantively unfair; valid reasons could not be established without a hearing
Each Claimant denied the accusations against them and was not given an opportunity to be heard. Because Section 41 requires a hearing before dismissal, the court held that the Respondent could not prove a valid reason for termination in the absence of such a hearing, rendering the termination unfair within Sections 43 and 45.
Remedies — compensation under Section 49
Each Claimant awarded compensation considering length of service, the anguish of the hostile treatment between March and September 2013, and the manner of termination
Having found unfair termination, the court exercised its discretion under Section 49, taking into account each Claimant's long service and the anguish suffered during the period of hostile treatment before termination. Joseph received 10 months' gross salary and Sylvester and Jimmy 12 months' each. Claims for periods not worked were rejected as unjust enrichment, and reinstatement was refused as the three-year period had lapsed.
Legal principles established
#- An employee facing disciplinary action must be given adequate opportunity to respond to charges; termination without a hearing is unfair regardless of the offence charged
- Where no hearing is accorded as envisaged under Section 41 of the Employment Act, there can be no proof of a valid reason for termination
Court orders
#- 1.Declaration that the termination of the Claimants' employment was unfair both substantively and procedurally
- 2.Compensation of 10 months' gross salary (Kshs.800,000) to Joseph Naftaly Macharia Karumba
- 3.Compensation of 12 months' gross salary (Kshs.4,714,980) to Sylvester Akoli Mutuli
- 4.Compensation of 12 months' gross salary (Kshs.5,699,160) to Jimmy Mathew Labi
- 5.Certificates of service to all the Claimants
- 6.Respondent to pay the Claimants' costs of the suit
- 7.Interest on the decretal sum from date of judgment
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act (ss. 41, 43, 44, 45, 47, 49) and Article 41 & 47 of the Constitution of Kenya
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Joseph Naftaly Macharia Karumba & 2 others v National Bank of Kenya Limited [2019] KEELRC 1296 (KLR)", Case Analysis (2019). Consolidated Claims (ELRC, Nairobi) — Claims dated 11th August 2014, 7th August 2014 and 12th March 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1296/eng@2019-06-14
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.