Ringa v NCBA Bank Kenya PLC (Cause E206 of 2023) [2025] KEELRC 1053 (KLR)
The bottom line
#Kenya's Employment Court upheld NCBA Bank's dismissal of an employee over undisclosed conflicts of interest and staff lending, dismissing his entire claim with costs.
What this practically means
#Executive summary
#Key legal issues
#Whether the employer established a valid reason for termination under Section 43 of the Employment Act
Valid reason established: conflict of interest, undeclared business interests, and lending/borrowing contrary to the Group Human Resource Policy
The Claimant initiated a Kshs. 7 million loan for Zhamo Agencies whose 50% cash cover was provided by his own company, Mbature Traders Ltd, and the loan funds flowed to his company. He admitted lending to a colleague and borrowing from another. Such conduct breached the policy against conflicts of interest and staff borrowing/lending, conduct inconsistent with the trust essential to banking employment.
Whether the constitutional challenge to the Group Human Resource Policy (Articles 40 and 41) succeeds
The challenge fails; the restrictions are reasonable
The Claimant argued the policy limiting outside business interests and staff borrowing violated property and labour rights. The Court relied on precedent holding that such restrictions protect the bank's reputation and customers' resources. No basis was found to invalidate the policy, and the constitutional allegations were found unsupported.
Whether the procedural fairness requirements of Section 41 were satisfied
Procedural fairness fully satisfied
The Claimant recorded two statements during investigations, received a show cause letter, attended a disciplinary hearing, and signed the minutes without reservation. He never requested the investigation report or legal representation, so he could not complain of their denial. The Legal Counsel present was an internal employee, not external counsel.
Legal principles established
#- In an unfair termination claim, the Court must determine both a valid reason (section 43) and due procedure (section 41).
- Restrictions on bank employees borrowing from or lending to customers and fellow employees are reasonable and constitutionally permissible.
Court orders
#- 1.The Claimant's entire claim is dismissed with costs to the Respondent
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (claim of unfair termination; Sections 41, 43, 45 applied)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ringa v NCBA Bank Kenya PLC (Cause E206 of 2023) [2025] KEELRC 1053 (KLR)", Case Analysis (2025). Cause No E206 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1053/eng@2025-04-03
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.