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ELRCPartially AllowedCause No E500 of 2020· [2025] KEELRC 2296 (KLR)

Yego v Kenya Post Office Savings Bank (Cause E500 of 2020) [2025] KEELRC 2296 (KLR)

Employment and Labour Relations Court
31 July 2025
1,781 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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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

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Executive summary

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Sarah J. Yego, employed by Kenya Post Office Savings Bank from 2005 and rising to Assistant Operations Officer in the Card Services Department, challenged the termination of her employment on 25th September 2017 following interdiction on 8th September 2016 on half pay. She claimed twelve months' salary in compensation, half pay for the interdiction period, two months' salary in lieu of notice, accrued prorata leave pay, costs and interest, asserting that all her actions were sanctioned by superiors and that she was denied documents, including the investigation report, needed to defend herself. The Respondent maintained that the termination was justified by gross misconduct, alleging she adjusted credit system limits causing losses of over Kshs. 22 Million. The Court framed two issues: whether the termination was lawful and fair, and whether the remedies sought were payable. Applying Sections 43 and 41 of the Employment Act and its prior decisions in Misango, Chitavi and Rebecca Ann Maina, the Court found the disciplinary process a sham: the investigation report was not availed, the Claimant was not given an opportunity to face her accusers, she had only 48 hours to respond to the show cause notice, and her interdiction lasted a year with the appeal taking two years to determine, a delay the Court found inordinate. The termination was held substantively and procedurally unfair. The Claimant was awarded twelve months' salary of Kshs. 1,233,024 with interest at court rates from judgment until payment in full, plus costs. Claims for half pay, notice shortfall and prorata leave failed for want of evidence.

Key legal issues

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01

Validity of reason for termination

Holding

Not established on the evidence to the required standard; the process was unfair

Reasoning

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.

p. 4
02

Procedural fairness under Section 41 of the Employment Act

Holding

Breached: investigation report not availed, no opportunity to face accusers, and inordinate delay

Reasoning

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.

p. 5
03

Remedies for unfair termination

Holding

Maximum award of 12 months' salary granted; other heads failed for want of evidence

Reasoning

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.

p. 5

Legal principles established

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  • 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

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  1. 1.Twelve months' salary in compensation for unlawful and unfair termination, Kshs. 1,233,024 awarded to the Claimant
  2. 2.Interest at court rates from the date of judgment until payment in full
  3. 3.Costs of the case to the Claimant

Authorities

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Legislation

  • Employment ActSection 43
  • Employment ActSection 41
  • Employment ActSection 45 (referenced within Section 43)
  • Employment ActSection 42[1] (referenced within Section 41)
  • Employment ActSection 44[3] and [4] (referenced within Section 41)

Cases cited (3)

  • Evans Kamadi Misango v Barclays Bank of Kenya
    [2015] eKLR
  • Anthony Mkala Chitavi v Malindi Water & Sewerage Company Ltd
    [2013] eKLR
  • Rebecca Ann Maina & 2 others v Jomo Kenyatta University of Agriculture and Technology
    [2014] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (claim for unfair termination)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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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.