Kenya’s Employment and Labour Relations Court has dismissed a US$96,000 (KSh12.4 million) unfair dismissal claim filed by a former senior bank executive, ruling that his termination was both substantively and procedurally fair.
In a judgment delivered on February 4, 2026, Justice Onesmus Makau found that Consolidated Bank of Kenya Limited had valid grounds to dismiss the claimant, identified as Mmata, and had followed due process in ending his employment.
Mmata, who served as the bank’s Head of Information and Communications Technology (ICT), earned a monthly salary of US$8,960 (KSh580,000), which was later revised to US$10,660 (KSh690,090). He was dismissed in February 2023 following internal and external audit findings related to the procurement of a new Core Banking System (CBS).
The court, however, ordered the bank to refund US$13,500 (KSh872,961) that had been deducted from Mmata’s terminal benefits as a surcharge for allegedly lost equipment, ruling that the bank had failed to prove his liability for the loss.
Procurement irregularities
The dispute centred on the procurement of a new Core Banking System, a critical technology investment for the bank, carried out between 2021 and 2022. As Head of ICT, Mmata was responsible for coordinating user requirements for the system, a role that placed him at the centre of the procurement process.
According to court documents, internal and external audits found that Mmata had written several memoranda to the bank’s then Acting Chief Executive Officer challenging the recommendations of the Tender Evaluation Committee and the Procurement Manager.
The bank argued that these actions amounted to undue interference with the procurement process, describing them as a “top-down approach” that undermined established procurement structures and skewed the evaluation process.
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Consolidated Bank maintained that the executive’s conduct breached internal policies and procurement regulations, justifying disciplinary action.
Court’s findings
Justice Makau agreed with the bank’s position, ruling that the employer had demonstrated a valid reason for termination related to the claimant’s conduct.
“The respondent proved that the termination of the claimant was based on a valid reason and that a fair disciplinary process was followed,” the judge said in the ruling.
The court found that Mmata was issued with a notice to show cause, given an opportunity to respond to the allegations and was accorded a disciplinary hearing, in line with the requirements of Kenyan labour law.
As a result, the court dismissed Mmata’s claim for compensation, which included 12 months’ salary for unfair termination, notice pay and other related damages.
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Partial relief granted
While upholding the dismissal, the court ruled in favour of the claimant on one narrow issue relating to his terminal dues.
Justice Makau ordered Consolidated Bank to refund US$13,500 (KSh872,961) that had been deducted from Mmata’s final pay as a surcharge for allegedly lost equipment. The court held that the bank had not provided sufficient evidence to show that the equipment was under the claimant’s custody or that he was responsible for its loss.
The refund was ordered with interest, though the court did not award additional damages.
Implications for employers and executives
Legal analysts say the ruling reinforces the principle that senior executives are held to high standards of conduct, particularly in sensitive areas such as procurement, where transparency and adherence to process are critical.
“The court made it clear that where an employer can demonstrate valid reasons and compliance with procedural fairness, even high-value unfair dismissal claims will fail,” said a Nairobi-based employment lawyer.
The judgment also underscores the importance of proper documentation and internal controls in procurement, especially for technology projects that involve significant financial outlays and operational risk.
Background
Consolidated Bank of Kenya is a state-owned lender created through the merger of several collapsed financial institutions in the 1990s. In recent years, the bank has undertaken major technology upgrades as part of efforts to modernise operations and improve competitiveness.
The case adds to a growing body of Kenyan labour jurisprudence emphasising due process while recognising employers’ rights to discipline staff for misconduct.
Mmata has not publicly commented on the ruling.
