The Employment and Labour Relations Court in Nairobi awarded former National Bank of Kenya (NBK) will pay former Chief Executive Officer Munir Ahmed Ksh26 million for unfair sacking.
Justice Byrum Ngaya exonerated Mr Ahmed from being at the centre of losses incurred by the bank.
Justice Ngaya faulted NBK’s board, noting that the external audit did not apportion any guilt on Munir for the Ksh1.2 billion loss by the lender.
According to the judge, NBK had Mr Ahmed take the bullet alone while the loss of funds could have been as a result of someone else’s laxity or negligence.
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Court ruling
“While the court reckons that the subsequently reported loss of Sh1.2 billion reflected adversely on the respondent, its board, management, and other staff," the verdict declared.
"... a return of a loss is an inherent possibility in any business enterprise and by itself (alone) does not establish misconduct or poor performance on the part of the CEO like in the case of the petitioner or indeed, against the other staff or the board,” it continued.
Mr Ahmed was fired from the lender was on March 31, 2016.
