Maina v NCBA Bank Kenya PLC (Cause E193 of 2023) [2025] KEELRC 1055 (KLR)
The bottom line
#Kenya's Employment Court confirmed NCBA lawfully fired a banker for borrowing from a customer, dismissing his Kshs 31 million claim entirely.
What this practically means
#Executive summary
#Key legal issues
#Whether the Respondent had a valid reason to terminate the Claimant's employment under Section 43 of the Employment Act
A valid reason existed: the Claimant borrowed money from a bank customer and colluded with a colleague to facilitate a stock loan for a third party where the customer was the final beneficiary, in breach of the Group Human Resource Policy
The Claimant conceded in cross-examination that his employment prohibited lending to or borrowing from fellow employees or customers. The court endorsed prior authority holding that banks operate on utmost trust and good faith, and that restrictions on external borrowing by bank employees are reasonable. The Claimant's assertion that such restrictions were unconstitutional found no support. The court found the Respondent had established a valid reason under Section 43.
Whether the disciplinary and termination procedure satisfied Section 41 of the Employment Act
The procedural fairness requirements of Section 41 were fully satisfied
The Claimant participated in the investigation, responded to the show cause letter, and attended the disciplinary hearing. His complaints failed: the Legal Counsel at the hearing was the Respondent's own employee, not external counsel, and there was no record of a rejected request to be accompanied by an advocate; there was no evidence of a request for the investigation report or of prejudice; no witnesses existed to cross-examine since the evidence was what the Claimant himself told investigators; and he signed the minutes without reservation.
Whether the Claimant was entitled to the remedies sought
No remedies were awarded as the entire claim failed
Having found the termination substantively and procedurally fair, the court dismissed the whole claim, including notice pay, compensation, loss of income to retirement, constitutional and reputational damages, discrimination damages, and the certificate of service.
Legal principles established
#- Restrictions on bank employees borrowing from or lending to customers and fellow employees are reasonable and lawful, protecting the employer's business reputation and employees from financial ruin
- The banking employment relationship demands a high degree of honesty and integrity; where these are questioned, the employment relationship becomes untenable
Court orders
#- 1.The Claimant's entire claim is dismissed
- 2.Costs to the Respondent
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act 2007 (Sections 41, 43, 45) over a claim for unlawful and unfair termination of employment
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Maina v NCBA Bank Kenya PLC (Cause E193 of 2023) [2025] KEELRC 1055 (KLR)", Case Analysis (2025). Statement of Claim dated 8th March 2023 (ELRC cause, Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1055/eng@2025-04-03
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.