https://new.kenyalaw.org/akn/ke/judgment/keca/2026/1386

https://new.kenyalaw.org/akn/ke/judgment/keca/2026/1386

The Court of Appeal held that the dismissal was unfair because the disciplinary record did not clearly establish the allegations against the respondent and the bank failed to comply with its own mandatory HR Manual, particularly the requirement that the Chief Executive Officer sign termination and dismissal letters...

Source-derived case information.

Citation
[2026] KECA 1386 (KLR)
Parties
Appellant: Consolidated Bank of Kenya Limited; Respondent: Eustace Muchigiri Njuguna
Court
Court of Appeal
Jurisdiction
Kenya
Case Number
Civil Appeal 274 of 2020
Procedural Posture
Civil Appeal From an ELRC Judgment; Cross Appeal on Remedies / Judgment on Appeal and Cross Appeal
Outcome
Appeal dismissed; cross-appeal partially allowed.
Judges
["K M'Inoti", "EC Mwita", "B Ongaya"]
Legal Topics
Unfair Termination, Summary Dismissal, Disciplinary Procedure, Contractual HR Manual Compliance, Notice Pay, Compensation for Unfair Termination, Reinstatement, Section 49 Employment Act Discretion
Source Language
en
Employment and Labour Law Civil Appellate Procedure Unfair Termination Summary Dismissal Disciplinary Procedure Contractual HR Manual Compliance Notice Pay Compensation for Unfair Termination +2 more

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Parties

Consolidated Bank of Kenya Limited

Appellant

Eustace Muchigiri Njuguna

Respondent

Procedural Posture

Civil Appeal From an ELRC Judgment; Cross Appeal on Remedies / Judgment on Appeal and Cross Appeal

  1. 1 Whether the dismissal was unfair because the reasons for dismissal were not shown to exist and the Chief Executive Officer did not sign the dismissal letter.
  2. 2 Whether the trial judge erred in awarding six months’ salary as compensation.
  3. 3 Whether the respondent was entitled to pay in lieu of notice and whether it should have been three months’ salary.

Ratio Decidendi

The Court of Appeal held that the dismissal was unfair because the disciplinary record did not clearly establish the allegations against the respondent and the bank failed to comply with its own mandatory HR Manual, particularly the requirement that the Chief Executive Officer sign termination and dismissal letters for officers. The Court upheld six months’ compensation as a proper exercise of discretion but corrected the notice pay award to three months under the contract.

Court Disposition

Appeal dismissed; cross-appeal partially allowed.

Orders

  • The appeal is dismissed.
  • The cross-appeal is partially allowed.