Munyoki v Family Bank Limited (Employment and Labour Relations Cause 188 of 2017) [2025] KEELRC 1137 (KLR)
The bottom line
#Kenya's Employment Court upheld a bank employee's summary dismissal for failing to verify forged loan documents, ruling the dismissal was fair in both reason and procedure.
What this practically means
#Executive summary
#Key legal issues
#Substantive fairness of the summary dismissal
The Respondent had a valid and fair reason to summarily dismiss the Claimant, who as a member of the branch Credit Committee failed to authenticate bank statements in three loan applications that turned out to be forgeries, causing substantial losses
The court found the Claimant sat on the Credit Committee whose duty included confirming the authenticity of documents via call-backs. His own evidence before the Disciplinary Committee showed he knew the process was necessary but admitted neither he nor any member undertook it. Given the bank's duty of care and the committee's central role in loan appraisal, no reasonable employer could continue accommodating such an employee, so the reason for dismissal was valid and fair.
Procedural fairness of the summary dismissal
The dismissal procedure was fair, embodying notification, hearing and consideration
The court noted procedural fairness was not genuinely contested. The Claimant was issued a show-cause letter dated 24th August 2016, responded to it, was invited to and attended a disciplinary hearing on 7th September 2016 where he was informed of his right of accompaniment, and lodged an appeal which the Respondent deliberated on and communicated its decision on by letter dated 11th November 2016. The process therefore met the ingredients of procedural fairness.
Entitlement to reliefs
The Claimant is not entitled to any of the reliefs sought
Having found the dismissal procedurally and substantively fair, the court held that none of the reliefs sought - the monetary award, the injunction on loan repayment, costs and interest - could be considered or granted independently of the claim for wrongful and unfair dismissal. The claim therefore failed in its entirety and was dismissed with each party bearing its own costs.
Legal principles established
#- An employer must prove both a valid and fair reason and fair procedure for a termination to be upheld as substantively and procedurally fair under sections 43 and 45(2) of the Employment Act
- For summary dismissal, the reason can only be fair and valid if related to the employee's conduct such as gross misconduct under section 44(4) of the Employment Act; the list is not exhaustive and any conduct amounting to a fundamental breach of the employment contract suffices
Court orders
#- 1.The Claimant's claim is dismissed
- 2.Each party is to bear its own costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act (dispute regarding unfair termination of employment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Munyoki v Family Bank Limited (Employment and Labour Relations Cause 188 of 2017) [2025] KEELRC 1137 (KLR)", Case Analysis (2025). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1137/eng@2025-02-20
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.