Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedNot stated in the judgment as provided

Koech v Kenya Post Office Savings Bank (Petition E034 of 2024) [2025] KEELRC 430 (KLR)

Employment and Labour Relations Court
18 February 2025
990 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~4 min to read original · ~4 min brief

The bottom line

#

A Kenyan bank was ordered to pay Kshs. 1 million because it dismissed an employee without giving him a fair hearing, even after a court cleared him of theft.

What this practically means

#

Executive summary

#
The Petitioner, Charles Koech, was employed by Kenya Post Office Savings Bank from 2nd October 1990, rising to branch manager at Kehancha. On 26th August 2015 the Respondent summarily dismissed him for operational irregularities bordering on gross misconduct. He was thereafter charged with stealing by servant before the Kehancha Law Courts on the same allegations, but on 13th July 2021 he was acquitted of all charges. The Respondent nonetheless upheld the dismissal, stating it was not bound by the criminal outcome. The Petitioner then filed this petition seeking declarations that the dismissal violated the Constitution and the Fair Administrative Actions Act, certiorari to quash the dismissal, reinstatement, a permanent injunction, compensation and damages. The Respondent, though duly served, neither entered appearance nor filed a response, and the matter proceeded undefended. The Petitioner relied on Articles 41, 47 and 236 of the Constitution and sections 41, 43 and 44 of the Employment Act, submitting that the dismissal was procedurally flawed, that the Respondent bore the burden of justifying it, and citing Co-operative Bank of Kenya Ltd v Yator on the requirement of procedural fairness even in gross misconduct cases. The court found the dismissal breached constitutional and statutory procedural fairness and that the Respondent failed to justify it. Reinstatement and certiorari were found unavailable; the Petitioner was instead awarded Kshs. 1,000,000/- compensation for breach of his constitutional rights, together with costs of the Petition and interest at court rates from the date of judgment until payment in full. Judgment delivered at Kisumu on 18th February 2025 by Nzioki Wa Makau, Judge.

Questions the Court framed

#

The issues the Court set itself to decide, in its own words.

  1. 1.Whether the Petitioner's summary dismissal violated Articles 41 and 47 of the Constitution and section 41 of the Employment Act on procedural fairness
  2. 2.Whether the Respondent discharged its burden under sections 43 and 44 of the Employment Act to justify the termination and summary dismissal
  3. 3.Whether the Petitioner's acquittal in the criminal proceedings invalidated the dismissal
  4. 4.What remedies, if any, the Petitioner is entitled to, including whether reinstatement or certiorari could issue

Key legal issues

#
01

Procedural fairness in summary dismissal

Holding

The dismissal breached the procedural fairness requirements of Articles 41 and 47 of the Constitution and section 41 of the Employment Act; the decision to terminate was made unilaterally without a proper hearing

Reasoning

The Petitioner relied on Articles 41, 47 and 236 of the Constitution and section 41 of the Employment Act, arguing he was never accorded a hearing before dismissal. The Respondent's letter of 31st December 2021 merely recorded 'careful evaluation' of his appeal, underscoring the absence of a proper hearing. The Respondent, though served, filed no response, leaving the petition unchallenged. The court accepted that procedural fairness is required notwithstanding alleged gross misconduct.

p. 3
02

Burden of justifying termination and summary dismissal under sections 43 and 44 of the Employment Act

Holding

The Respondent failed to discharge its statutory obligation to prove the reasons for termination and to justify summary dismissal, having not defended the suit or provided its version of events

Reasoning

Sections 43 and 44 of the Employment Act place on the employer the burden of proving the reasons for termination and justifying summary dismissal. The Respondent neither entered appearance nor filed a response, so the court had no evidence from the employer justifying the dismissal. The Petitioner's acquittal on charges of stealing by servant founded on the same allegations further undermined any basis for the termination.

p. 3

Legal principles established

#
  • Even where gross misconduct warrants summary dismissal, an employer must ensure procedural fairness by allowing the employee to give his defence before imposing the sanction

Court orders

#
  1. 1.Compensation of Kshs. 1,000,000/- for the breach of the Petitioner's constitutional rights as regards his employment with the Respondent
  2. 2.Costs of the Petition to the Petitioner
  3. 3.Interest at court rates on the compensation sum from the date of judgment until payment in full

The bench

#

One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Articles 22(1), 41, 47 and 236 of the Constitution of Kenya, 2010, in relation to employment and fair administrative action

Relief refused

#

Order of certiorari to quash the dismissal and reinstatement to his position

The court found reinstatement impossible and certiorari unavailable; the Petitioner himself conceded this in submissions

p. 3

Permanent injunction restraining the Respondent from replacing him

Not granted, reinstatement having been found unattainable

Costs

Costs of the Petition awarded to the Petitioner

Quotable passages

#

Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

He cannot be reinstated and therefore the orders sought of certiorari will not issue. He will instead be compensated as follows
p. 3Remedies - compensation in lieu of reinstatement and certiorari
Kshs. 1,000,000/- (Read - One million Kenya Shillings only) for the breach of his constitutional rights as regards his employ with the Respondent.
p. 3Final orders - compensation for breach of constitutional rights
Costs of the Petition.
p. 3Final orders - costs
even where an employee has committed gross acts of misconduct, which acts warrant summary dismissal, the law requires that before such sanction is undertaken, an employer must ensure procedural fairness
p. 3Procedural fairness in dismissal

Issues in the judgment

#
minor

Internal date discrepancy: the letter reviving the claim is referred to as dated 31st December 2021 in the reliefs but as 31st October 2021 in submissions

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Koech v Kenya Post Office Savings Bank (Petition E034 of 2024) [2025] KEELRC 430 (KLR)", Case Analysis (2025). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/430/eng@2025-02-18

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