Kinyanjui v Equity Bank (K) Limited (Cause 683 of 2019) [2024] KEELRC 2133 (KLR)
The bottom line
#A Kenyan bank lawfully fired a credit officer for poor loan appraisals, but must pay his full salary for the eight months he sat on unpaid suspension.
What this practically means
#Executive summary
#Key legal issues
#Whether the reason for termination was valid and fair
The Respondent had a valid and fair reason
The Claimant admitted on cross-examination that he did not see the matatu or enter the client's house and relied on the SACCO's income schedule. The court found he did not conduct proper KYC and never saw the assets, exposing the bank to risk of loss. On a preponderance of probabilities, irregular and un-procedural loan appraisal was a valid and fair reason under Sections 43 and 45 of the Employment Act.
Whether the procedure followed was fair under Section 41
The procedure was procedurally fair
The Claimant received a suspension letter, two show-cause letters to which he responded, and a disciplinary hearing held 15th December 2016 to which he could bring a fellow employee, before termination on 10th January 2017. The court found he was accorded sufficient time to prepare his defence and an opportunity to be heard, meeting the Section 41 threshold.
Whether the Claimant was discriminated against
No discrimination proved
The Claimant alleged that colleagues on the credit committees were not terminated while he was, amounting to discrimination. The court found that particulars of the alleged discrimination were neither set out nor proved; allegations that others were surcharged or spared were unproven, so the discrimination claim and its compensation failed.
Entitlement to salary withheld during the 8-month suspension
Claimant awarded full salary for the suspension period
Relying on Rika J. in Sheikh Abubakar Bwanakai Abdallah v Judicial Service Commission, the court held that administrative suspension is not a disciplinary sanction; the employment contract subsisted with mutuality of obligations. The appointment letter was silent on the percentage of pay during suspension, so the court awarded full salary for the 8 months.
Legal principles established
#- For a termination to be fair there must be a valid and fair reason and a fair procedure
- The employer need only genuinely believe on reasonable basis that the ground for termination exists (Section 43(2))
- Administrative suspension is not a disciplinary sanction and an employee on suspension while still under contract should not go without any salary
Court orders
#- 1.Full salary during the period of suspension unless already paid
- 2.Certificate of service
- 3.Each party to bear their own costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 and the Employment and Labour Relations Court Act, 2011 (employment dispute)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kinyanjui v Equity Bank (K) Limited (Cause 683 of 2019) [2024] KEELRC 2133 (KLR)", Case Analysis (2024). Cause No 683 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2133/eng@2024-07-29
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.