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ELRCPartially AllowedNot stated in judgment· [2025] KEELRC 214 (KLR)

Otieno v Absa Bank Kenya (Cause E065 of 2024) [2025] KEELRC 214 (KLR)

Employment and Labour Relations Court
30 January 2025
6,215 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled an employee's dismissal for poor performance was valid but unfair because the employer gave her less time to respond than its own policy required.

What this practically means

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Executive summary

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The claimant, a Universal Banker employed by the respondent bank from 1st September 2019 at a consolidated monthly salary of Kshs.104,938, was terminated on 23rd March 2022 for poor performance, her weighted performance score of 71.7% falling below the target of 100%. She had been placed on two performance improvement plans and received warnings. She sued for a declaration of unfair termination, pay in lieu of notice, damages, severance pay and house allowance, later contending her underperformance resulted from pregnancy and ill health. The Court framed two issues: whether termination was unlawful and entitlement to reliefs. On substance, the Court found the employer had a valid and fair reason: the scores were uncontested, support was offered through the plans, and the claimant never disclosed her pregnancy or attributed her underperformance to it in her responses or at the hearings, the sick-off notes relating to malaria and typhoid. On procedure, however, the respondent repeatedly accorded the claimant only two working days to respond to notices to show cause and hearing invitations, contrary to its own Disciplinary Capability and Grievance Policy and Procedure prescribing three, a shortfall the Court held impinged on her right to a fair hearing. The termination was therefore declared procedurally unfair under Section 45 of the Employment Act. The discrimination argument failed because it was neither pleaded nor supported by a prima facie case; parties are bound by their pleadings. Severance pay was refused (no redundancy), pay in lieu of notice (already paid) and house allowance (consolidated salary under Section 31(2)) were declined. The Court awarded compensation equivalent to one month's salary, Kshs.104,938, and ordered each party to bear its own costs. Judgment was delivered virtually at Kisumu on 30th January 2025.

Key legal issues

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01

Whether the reason for termination (poor performance) was valid and fair

Holding

The respondent demonstrated on a preponderance of probabilities that it had a valid and fair reason to terminate for under performance

Reasoning

The claimant's weighted performance scores of 72.9% (2020) and 71.7% against a target of at least 100% were not contested. She was placed on two Performance Accelerator Plans with support identified, and admitted she was never rated 'Good'. Her pregnancy/health explanation failed because she never disclosed it to the employer, did not attribute her underperformance to it in her responses to the notices to show cause or at the hearings, and the sick-off notes related to malaria and typhoid, not pregnancy. Applying Section 43(2) and the band of reasonable responses test, the employer genuinely believed the reason existed.

p. 8
02

Whether the termination procedure was fair

Holding

Although most procedural safeguards were met, the respondent consistently gave the claimant fewer days to respond to notices and hearing invitations than its own policy prescribed, rendering the termination procedurally unfair

Reasoning

Section 41 of the Employment Act compliance is mandatory. The respondent's Disciplinary Capability and Grievance Policy and Procedure prescribed three working days for responses and at least three working days' notice of hearings, but the claimant was given only two working days for both notices to show cause and the capability hearing of 30th September 2021. The Court held that an organisation's policies bind both parties and the shortfall implicated the claimant's right to fair hearing and preparation, including time to procure a colleague. Failure to appeal did not cure this. Under Section 45(4) and (5) the employer did not act in accordance with justice and equity.

p. 10
03

Whether the claimant was discriminated against on account of pregnancy

Holding

No: discrimination was neither pleaded nor proved; parties are bound by their pleadings and the burden shifts to the employer only upon a prima facie case

Reasoning

The memorandum of claim contained no plea of pregnancy-based discrimination, no particulars, and no prayer in damages for discrimination. Section 5(7) of the Employment Act places the burden of disproving discrimination on the employer, but only after the employee establishes a prima facie case by evidence. The claimant never informed the respondent of the pregnancy, attributed her performance issues to location change and client volume, and no sick-off note mentioned pregnancy. Her submission had no evidential foundation.

p. 12

Legal principles established

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  • An employer's own internal policies, manuals, guidelines and procedures bind both the employer and the employee, and non-compliance with prescribed timeframes implicates the employee's right to a fair hearing
  • An employee has a duty to disclose conditions, such as pregnancy or illness, likely to impact on contractual obligations; an employer cannot be presumed to know an employee is expectant
  • A valid and fair reason plus fair procedure are both required for a lawful termination; the employer need only prove reasons it genuinely believed to exist on a balance of probability

Court orders

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  1. 1.Declaration that termination of employment was procedurally unfair.
  2. 2.Equivalent of one (1) months salary Kshs.104,938,00.
  3. 3.Parties shall bear own costs.

Authorities

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Legislation

  • Employment ActSection 43(2)
  • Employment ActSection 41
  • Employment ActSection 45(4) and (5)
  • Employment ActSection 49(1)(c)
  • Employment ActSection 31(1) and 31(2)
  • Employment ActSection 5(3), 5(7) and 5(8)(c)
  • Constitution of KenyaArticle 27
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure ActSection 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (23)

  • Ako V Abso Motors Limited
    [2021] eKLR
  • Jane Samba Mukala V Ol Tukai Lodge Ltd
    [2013] eKLR
  • GMV V Bank of Africa
    [2013] eKLR
  • Oyombe V Eco Bank Ltd
    [2022] KECA 540 KLR
  • National Bank of Kenya V Samuel Nguru Mutonya
    [2019] eKLR
  • Jane Wairimu Machira V Mugo Waweru & Associates
    [2012] eKLR
  • Naumy Jemutai Kirui V Unilever Tea Kenya Ltd
    [2020] eKLR
  • COTEC Security Group Ltd V Kenya National Private Security Workers Union
    [2024] KEELRC 610 KLR
  • Walter Ogal Anuro V Teachers Service Commission
    [2013] eKLR
  • Naima Khamis v Oxford University Press (EA) Ltd
    (2017) eKLR
  • Galgalo Jarso Jillo V Agricultural Finance Corporation
    [2021] eKLR
  • Kenya Revenue Authority V Reuwel Waithaka Gatahi & 2 Others
    [2019] eKLR
  • British Leyland UK Ltd V Swift
    [1981] I.R.L.R 91
  • Pius Machafu Isindu V Lavington Security Guards Ltd
    [2017] eKLR
  • Mulwa Msanifu Kombo V Kenya Airways
    [2013] eKLR
  • Independent Electoral and Boundaries Commission & Another V Stephen Mutinda Mule & 3 Others
    [2014] Eklr
  • Adetoun Oladeji V Nigeria Breweries PLC
    SC 91/2002
  • Daniel Otieno Migore V South Nyanza Sugar Co. Ltd
    [2018] eKLR
  • Elizabeth O. Odhiambo V South Nyanza Sugar Co. Ltd
    [2019] eKLR
  • Kenya Power & Lighting Co. Ltd V County Government of Nairobi & Attorney General
    [2017] eKLR
  • Nyarangi and Others V Attorney General
    [2008] KLR 688
  • Peter K. Waweru V Republic
    [2006] KLR
  • Boniface Momanyi Nyachae V Kenya Orient Insurance Co. Ltd
    [2023] KECA 136 (KLR)
Jurisdiction invoked
Original employment and labour relations jurisdiction under the Employment Act (first-instance claim for unfair termination)

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, "Otieno v Absa Bank Kenya (Cause E065 of 2024) [2025] KEELRC 214 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/214/eng@2025-01-30

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