KCB ordered to pay former manager Sh16m for unfair dismissal

ebabyji0avo6urc58bfa4f2886c0 KCB ordered to pay former manager Sh16m for unfair dismissal

Kenya Commercial Bank (KCB) has been ordered to pay its  former internal audit director Sh16.4 million for unfair sacking.

Employment and Labour Relations Court judge Linnet Ndolo ruled that the lender ignored the law on redundancy when it laid off Fredrick Mulwa in 2013.

“There was no specific redundancy notice issued to the claimant as required under section 40 (b) of the Employment Act,” the judge ruled.

Mr Mulwa was ordered to leave office the same day he was issued with a termination letter.

The court said it found this awkward as KCB’s Chief Executive had earlier given him audience as a senior member of  management.


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“This court is unable to understand why an employee holding such a senior position would be required to leave in such haste and in such a manner,” said Justice Ndolo.

“In the absence of any credible information on these rather unusual happenings, the court reaches the conclusion that the termination of the claimant’s employment of redundancy was a facade for unlawful termination.”

The judge found KCB never notified the labour officer of the redundancy until three days before Mr Mulwa was forced out.

Mr Mulwa through his lawyers had argued that he was kicked out of the bank without the approval of the board of directors.

The court heard that on June 13, 2013 the bank’s Chief Executive informed staff that 120 people would lose their jobs in a restructuring process and would have to take a voluntary early retirement package.

The former auditor told the court that seven days after he was kicked out, his position was advertised. He had sought Sh142 million as compensation for the loss of employment up to the retirement of 60 years.

The bank had told the court Mr Mulwa had been informed that his position was to be scrapped under the reorganisation plan and that he had been given adequate notice of redundancy.


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