A former senior manager at KCB Bank, Mr Roy Sylvester Akala, has won a legal battle against the bank after the Employment and Labour Relations Court ruled that his termination was unjustified and procedurally flawed.
Justice Christine Baari, in a judgment delivered on 13 June 2025, awarded Mr Akala compensation amounting to Sh9.3 million — the equivalent of seven months’ salary — following what the court deemed an unlawful dismissal.
Mr Akala, who served as Director of Operations Management, was dismissed in September 2018 over allegations that he misled the bank’s Executive Committee regarding financial claims tied to card operations, which allegedly resulted in losses. However, the court found that the accusations were not substantiated.
“I note from the evidence before court that the forensic report that formed the basis of the termination of the claimant’s contract did not recommend disciplinary action against the claimant. The bank’s witnesses were unanimous that the report did not implicate the claimant,” Justice Baari stated in the ruling.
Three witnesses who appeared on behalf of the bank confirmed that Mr Akala’s name was not mentioned in the forensic audit report. Furthermore, his lawyer, Kent Omondi, told the court that his client was never given the full audit report used to justify his dismissal.
In her judgment, Justice Baari further criticised the manner in which the dismissal process was handled. She pointed out that Mr Akala was never informed of his right to be accompanied by a colleague or union representative during the disciplinary hearing.
“The termination of the contract was fundamentally flawed and grossly fell short of the dictates of employment law,” the judge ruled.
- Constructive dismissal under Kenya employment law
- Termination for poor performance under Kenyan employment law
- Desertion of duty not enough reason for dismissal, court rules
KCB had accused Mr Akala of fraudulently reporting during a performance review that there were no outstanding financial claims concerning the card operations under his watch. The bank further alleged that he provided misleading information to the Executive Committee.
According to the bank, an internal audit conducted on 31 March 2018 flagged several irregularities, including questionable transactions worth Sh1.47 million and issues relating to a suspense account tied to Mastercard operations. This led to a forensic audit, which the bank said revealed manipulated systems that disguised overdue claims as current — a process referred to internally as “greening” or “refreshing”.
Although the bank insisted that these findings pointed to misconduct under Mr Akala’s leadership, cross-examination during the trial revealed otherwise.
The bank’s lead witness admitted that the report specifically named other individuals — identified as James Maina, Omollo, and Samuel Kirika — as being responsible for the discrepancies and financial losses.
Despite these revelations, Mr Akala was held accountable and consequently dismissed — a decision the court has now overturned.
Email your news TIPS to Editor@nairobilawmonthly.com, and to advertise with us, call +254715061658 anytime of the day
