Yego v Kenya Post Office Savings Bank (Cause E500 of 2020) [2025] KEELRC 2296 (KLR)
The bottom line
#A Nairobi court ruled Kenya Post Office Savings Bank unfairly fired its employee and must pay her 12 months' salary, Kshs. 1,233,024, plus interest and costs.
What this practically means
#Executive summary
#Key legal issues
#Validity of reason for termination
Not established on the evidence to the required standard; the process was unfair
The termination letter cited an 'act of operational irregularity' and failure to adhere to operational procedures. The Respondent alleged the Claimant adjusted credit system limits causing losses of over Kshs. 22 Million, but the Claimant denied wrongdoing and asserted she acted under instructions from superiors. The Court applied Section 43 of the Employment Act, requiring the employer to prove the reason on a balance of probability, and found the process to have been a sham.
Procedural fairness under Section 41 of the Employment Act
Breached: investigation report not availed, no opportunity to face accusers, and inordinate delay
The Claimant was not supplied with the investigation report supporting the allegations, was given only 48 hours to respond to the show cause notice, was kept on interdiction on half pay for a year, and her appeal took two years to be determined. The Court applied the ingredients of procedural fairness set out in Chitavi and Rebecca Ann Maina and found the Respondent reached a conclusion of guilt without affording a proper opportunity to defend herself.
Remedies for unfair termination
Maximum award of 12 months' salary granted; other heads failed for want of evidence
Having found both substantive and procedural unfairness, the Court awarded twelve months' salary in compensation, considering the Claimant's long service since 2005 and the finding that she did not contribute to the termination. Claims for half pay during interdiction, notice shortfall and prorata leave failed because no evidence supported the figures claimed.
Legal principles established
#- In a claim of unfair termination the court examines both validity of reason and procedural fairness
- The employer bears the burden under Section 43 of the Employment Act to prove reasons for termination on a balance of probability
- Procedural fairness requires that the employee be afforded the charges, sufficient time, supporting documents and an opportunity to be heard
Court orders
#- 1.Twelve months' salary in compensation for unlawful and unfair termination, Kshs. 1,233,024 awarded to the Claimant
- 2.Interest at court rates from the date of judgment until payment in full
- 3.Costs of the case to the Claimant
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act (claim for unfair termination)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Yego v Kenya Post Office Savings Bank (Cause E500 of 2020) [2025] KEELRC 2296 (KLR)", Case Analysis (2025). Cause No E500 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2296/eng@2025-07-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.