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ELRCPartially AllowedConstitutional Petition No E039 of 2023· [2023] KEELRC 1497 (KLR)

Namai v National Bank of Kenya Limited (Constitutional Petition E039 of 2023) [2023] KEELRC 1497 (KLR)

Employment and Labour Relations Court
22 June 2023
2,716 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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What this practically means

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Executive summary

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The petitioner, employed by the respondent bank since January 1995 and terminated on January 17, 2022 for unsatisfactory performance, petitioned the Employment and Labour Relations Court seeking declarations of violation of his rights under Articles 41 and 47 of the Constitution, a declaration of unfair termination and discrimination, reinstatement, aggravated and general damages, and costs. The respondent maintained that it followed its performance policy - reviews, warnings, a performance improvement plan, a capability hearing and an appeal - and that the dispute belonged in an ordinary suit under the Employment Act, not a constitutional petition. The Court held that although the respondent purported to comply with the procedural requirements of section 41 of the Employment Act, it acted unreasonably by completely disregarding the petitioner's valid grievances about his work environment at Kitengela Branch - abrupt transfers, absence of mentorship and support, Covid-19 disruption, understaffing, and a branch that had not broken even for eight years - which explained the unsatisfactory performance scores. The poor performance was attributable to the respondent's defective operational requirements and could not be visited upon the petitioner. The Court declared that the petitioner's rights under Articles 41 and 47 were violated and that the termination was unfair. The prayer for a discrimination declaration was deemed abandoned; reinstatement failed for practicability as the position had been filled; aggravated damages were refused for want of malice or recklessness. The petitioner was awarded Kshs. 5,000,000.00 general damages for the constitutional violations, payable by August 1, 2023 with interest thereafter, plus costs of the suit.

Key legal issues

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01

Whether a constitutional petition lies for unfair termination within a contract of service

Holding

The petition properly invoked Articles 41 and 47; the violations occurred notwithstanding the respondent's compliance with the Employment Act procedural requirements

Reasoning

The respondent had followed notice and hearing requirements under section 41 of the Employment Act, but the petitioner alleged that even so, his rights to fair administrative action and fair labour practices were breached. The Court found the grievances raised at the capability hearing and on appeal were well-grounded under section 46 and were disregarded, amounting to unreasonableness under Article 47 and unfair labour practices under Article 41.

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02

Whether the termination was for a fair reason

Holding

The termination was unfair; the unsatisfactory performance scores were not attributable to the petitioner's capacity but to the respondent's defective operational requirements

Reasoning

Although the scores of unsatisfactory performance were not in dispute, the petitioner's unresolved valid grievances - abrupt transfers, lack of mentorship and support, Covid-19 disruption, understaffing and a branch that had not broken even for eight years - were not taken into account. In absence of rebuttal by the respondent, poor performance could not fairly be attributed to the petitioner.

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03

Appropriate remedies for constitutional violations in employment

Holding

General damages of Kshs. 5,000,000.00 awarded guided by factors in section 49 of the Employment Act; reinstatement, aggravated damages and discrimination declaration refused

Reasoning

The Court considered the 27 years of clean and meritorious service, the complete disregard of the petitioner's grievances, and the respondent's action while the petitioner still owed it substantial loan amounts. Section 49 factors were used only as guidance since the award was for constitutional violation, not under the Employment Act.

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Legal principles established

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  • An employer who disregards an employee's valid grievances about the work environment cannot establish a fair reason for termination on grounds of unsatisfactory performance
  • Where poor performance is attributable to the employer's defective operational requirements, it cannot be visited upon the employee

Court orders

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  1. 1.Declaration that the petitioner's fundamental rights and freedoms were violated by the respondent, in particular Articles 41 and 47
  2. 2.Declaration that the respondent terminated the petitioner's employment unfairly
  3. 3.Respondent to pay petitioner Kshs. 5,000,000.00 compensation for actual violation of constitutional rights, payable by August 1, 2023, failing interest at Court rates from the date of judgment until full payment
  4. 4.Respondent to pay costs of the suit

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 41
  • Constitution of Kenya, 2010Article 47
  • Employment Act, 2007section 4
  • Fair Administrative Action Actsection 4
  • Employment Act, 2007section 41
  • Employment Act, 2007section 45
  • Employment Act, 2007section 46
  • Employment Act, 2007section 49
Jurisdiction invoked
Constitution of Kenya, 2010 Articles 41 and 47; Employment Act, 2007

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, "Namai v National Bank of Kenya Limited (Constitutional Petition E039 of 2023) [2023] KEELRC 1497 (KLR)", Case Analysis (2023). Constitutional Petition No E039 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1497/eng@2023-06-22

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