Court grants former National Bank of Kenya boss Ksh.26.5M compensation for unlawful sacking


Former National Bank Managing Director Munhir Sheikh. PHOTO| COURTESY
Former National Bank Managing Director Munhir Sheikh. PHOTO| COURTESY

The Employment and Labour Relations Court has ordered National Bank of Kenya (NBK) to pay its former Managing Director Munir Sheikh Ahmed Ksh.26,520,000 as compensation for unlawful sacking.

Justice Byram Ongaya ruled that the bank failed to prove the allegations of gross misconduct and misrepresentation of financial statements which formed the basis of Mr. Munir’s sacking in 2016.
“Accordingly, the reason for termination was not established at all and the court finds that it was unreasonable to dismiss the petitioner upon a general allegation that was never established,” the judge said.

He was accused of failing to take appropriate action to ensure that the bank’s financial results reflected the correct position.

“…The bank’s interim financial statements for June 2015 and September 2015 erroneously showed that the bank was making profits whereas the final reports indicated actual losses,” the bank said.

Mr. Munir, who was fired 16 months to the end of his five-year term at the bank, then move to court citing unfair dismissal and claiming that the publication of his dismissal ruined his reputation.

In the ruling, Justice Ongaya termed the sacking of Mr. Munir as unfair labour practice.

“The court considers that it is unfair labour practice for an employer, without good cause or reason, to publicise and publish adverse material about its employee in view of the contract of service and its execution as it was done in the present case, and, such publication, in the court’s opinion, amounts to unfair labour practice,” the court ruled.

Mr. Munir, who joined National Bank of Kenya in 2012, had sued the bank seeking a compensation of Ksh.453.4 million, but the court rejected the amount.

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Story By Benjamin Muriuki
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