Njoroge v SBM Bank Kenya Limited (Cause E347 of 2021) [2025] KEELRC 180 (KLR)
The bottom line
#A Kenyan court upheld a bank's dismissal of an IT officer over cyber-fraud, ruling the employer followed fair procedure and had valid reasons for termination.
What this practically means
#Executive summary
#Key legal issues
#Whether the disciplinary and termination procedure met Sections 41 and 45 of the Employment Act
The procedure was fair: the Claimant was informed of allegations, given investigations, show-cause letter, hearing, and appeal; her claim of denial of her chosen companion was not borne out by the minutes
The Claimant recorded a statement under investigation, replied in detail to the show-cause letter, attended a hearing accompanied by a colleague whose attendance she confirmed at the outset without protest, and the minutes were signed by her. She was advised of a right of appeal, exercised it, and conceded the appeal decision was communicated. Compulsory leave extensions did not breach policy since she continued on full pay.
Whether the Respondent had valid reason to terminate under Sections 43 and 45
Yes - the Claimant's negligent handling of her computer and associations with persons implicated in the cyber-fraud gave sound, defensible and well-founded reasons
The Claimant granted unauthorized remote access to colleagues, kept a wildcard/root password contrary to password standards, left her computer unattended and unlocked allowing malware infection, and was associated with persons connected to the fraud, including advising Sharon Anyango on opening the account used to channel stolen funds. Applying the genuine-belief standard, the Court found sufficient reason established.
Whether the Counterclaim was established
The Counterclaim was allowed - the unpaid loan balance and the unreturned IPhone were undisputed
No Response to the Counterclaim was found on record, and in her evidence the Claimant did not dispute the loan amount owed at termination or that she was issued an IPhone she did not return. The Counterclaim was therefore allowed as prayed.
Legal principles established
#- The standard of proof of reason for unfair termination under Section 43 of the Employment Act is not proof beyond reasonable doubt; the employer need only show it genuinely believed the reason existed at the time of termination, and a valid reason is one which is sound, defensible and well-founded
Court orders
#- 1.The Claim is dismissed with no order on the costs
- 2.The Counterclaim is allowed as prayed, but with no order on the costs
- 3.The Claimant is at liberty to collect her certificate of service and terminal dues, as offered by the Respondent, in the letter of termination
- Jurisdiction invoked
- Employment Act 2007 (Sections 41, 43, 44, 45) - first-instance Employment and Labour Relations Court claim
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Njoroge v SBM Bank Kenya Limited (Cause E347 of 2021) [2025] KEELRC 180 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/180/eng@2025-01-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.