A court has faulted Family Bank for dismissing one of its managers without clear performance targets or a fair hearing, in a ruling that reinforces strict procedural safeguards in workplace discipline.
The Employment and Labour Relations Court in Nairobi found that the lender unfairly terminated Kevin Ndungu Kiriga in April 2017, citing underperformance without proving the claim or following due process.
It ruled that the bank failed to show valid grounds for dismissal and ignored mandatory disciplinary procedures required under the law.
“An employee cannot be accused and/or terminated for 'underperforming' duties whose description he has not been given, and key performance indicators of which have not been given in writing by the employer before the job performance commences,” the judge said.
Mr Kiriga joined the bank in June 2013 as an assistant manager earning Sh110,000, before rising to a managerial role with a salary of Sh145,000.
Over time, he was moved across departments, including corporate banking and relationship management, but the court noted his new roles were never backed by written job descriptions or clear performance indicators.
The bank terminated his employment on April 28, 2017, citing “continued underperformance”.
However, the court found that the employer did not provide evidence of key performance indicators or scorecards to justify the claim.
“The respondent did not establish the validity of the alleged reason for terminating the claimant’s employment. There was, therefore, no substantive fairness in terminating the claimant’s employment,” the court ruled.
It also found that the bank breached procedural fairness by failing to issue a show-cause letter or conduct a disciplinary hearing.
Evidence presented in court showed the employee was not allowed to respond to the allegations before dismissal.
“The respondent did not comply with the mandatory procedure and did not give the claimant an opportunity," the court said.
It awarded Mr Kiriga Sh1.3 million, equivalent to nine months’ salary, as compensation for unfair termination. The judge said the award considered the abrupt manner of dismissal and lack of due process.
Claims for Sh43.5 million in loss of employment and severance pay were dismissed for lacking a legal basis.
During the trial, the bank’s human resources officer admitted there was no disciplinary hearing and was unsure whether any warning letter had been issued.
She also confirmed that a hearing is mandatory in cases of poor performance.
The court further questioned the basis of the performance review conducted barely a month after Mr Kiriga was transferred to a new role. It noted that the employer did not clarify which duties were being assessed or provide documentation of agreed-upon targets.
The court emphasised that employers must clearly define roles and expectations before evaluating performance.
It also held the requirement to consult employees and revise contracts when job roles change.
The court found that the bank’s actions failed both substantive and procedural fairness tests.
“There was, therefore, no substantive fairness in terminating the Claimant’s employment,” she ruled.
