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Originally published by Capital Business
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business
July 13, 2026
3w ago

Appeal Court finds Consolidated Bank unfairly dismissed employee

Appeal Court finds Consolidated Bank unfairly dismissed employee

The judges found that the disciplinary process failed to clearly establish the allegations against him and that the bank breached its Human Resource Manual by allowing the Head of Human Resources, rather than the Chief Executive Officer, to sign the dismissal letter...

✨ Key Highlights

The Court of Appeal has upheld a finding that Consolidated Bank of Kenya unfairly dismissed a senior employee, ruling the bank failed to follow its disciplinary procedures and lacked valid grounds for termination.

  • The court increased the former employee's notice pay to three months' salary and retained a compensation award of six months' salary for unfair termination.
  • The case involved former Business Development Officer Eustace Muchigiri Njuguna and his summary dismissal in June 2014.
  • Key procedural breaches included the Head of Human Resources signing the dismissal letter instead of the Chief Executive Officer, as required by the bank's HR Manual.

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Part of the Day's Coverage

Court of Appeal Rejects KenGen Tender Review and State CEO Renewal Bids - July 2026

The Court of Appeal has ordered a fresh review of a disputed KenGen carbon credits tender, ruling that new evaluation criteria cannot be introduced during the due diligence stage. The same court upheld a finding that Consolidated Bank of Kenya unfairly dismissed a senior employee, ruling the bank failed to follow its disciplinary procedures and lacked valid grounds for termination. Additionally, the Court ruled that former Kenya Reinsurance Corporation Managing Director Jadiah Mwarania had no automatic right to a third five-year term, dismissing his appeal for contract renewal.

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