Court orders NBK to pay former MD Sh 26 Million for illegal termination


High court has ordered the National Bank of Kenya to pay its former Managing Director Munir Sheikh Ahmed Sh 26.5 million for illegal termination.

Employment and Labour Relations court Judge Byram Ongaya termed the termination as unlawful and wrong. He ruled that the bank breached Ahmed’s right to fair labour practices, the right to a fair disciplinary and administrative process.

“The termination of petitioner’s employment was unprocedural, unfair, unlawful and wrongful as it was contrary to provisions of Articles 41 and 47 of the constitution sections 41,43 and 45 of the Employment Act and section 4(3) of the fair administrative actions,” ruled judge Ongaya.

The judge further ordered the bank to retract a damaging notice it published over his alleged misconduct and governance and pay the amount by 15th December 2020.

According to the Judge, the lender denied him adequate time and opportunity to respond to the allegations made against him. 

Ahmed was sacked in 2016, 16 months before he completed his five year tenure at the helm of the NBK and was escorted out of the bank by security personnel upon receiving the show-cause letter.

In his petition, Ahmed also sought orders to be reinstated to his former position on the terms that he previously enjoyed for the remainder of the contract period and pay arising from his salary accrued benefits from April 2016 until the date of reinstatement.

According to the petitioner,  the allegations levelled in the show-cause letter were contemplated and executed by the bank’s board itself and an audit completed in March 2016 was only used to justify the dismissal.

“The allegations against me were vague, the time allowed to prepare defence was too short and termination was based on the interim report by the bank’s external auditors Deloitte and Touche,” Ahmed submitted.

He further added that after the publication in the newspapers on March 30, 2016 by the bank, the Inspector General of police informed the public he had ordered his immediate arrest and that of senior management officers.

NBK had opposed Ahmed’s petition claiming he was served with the notification of a disciplinary hearing and show-cause notice.

Ahmed had sought compensation of Sh 453, 489,133 from the bank.