Court awards ex-FamilyBank boss Sh30.6million for wrongful dismissal

Employment and Labour Relations court has awarded former Family Bank managing director Peter Munyiri Maina Sh30.6 million over unfair dismissal.

Justice Maureen Onyango awarded Munyiri the amount for the five years as per the appointment letter.

The judge said there was no dispute that Munyiri was employed by the bank on a fixed term contract running from July 15, 2011 to July 14, 2016.

“There is further no dispute that Munyiri is entitled to payment of gratuity for the years he worked for the bank,” ruled Justice Onyango.

Munyiri had moved to court seeking to be paid 57 million dues owed to him by Family Bank.

He claimed the bank was unlawfully withholding dues rightfully owed to him as a result of the employee-employer contract that existed between himself and Family Bank.

Through lawyer Kioko Kilukumi, Munyiri further averred that he was employed by Family Bank as the managing director on July 15, 2011.

He claimed that the terms of employment was a fixed term contract for a period of five years and at the end of which he would be paid gratuity to be calculated at 10 per cent of the gross basic for the year one of the employment and there after the applicable rate will be aligned with the banking industry rate.

The applicant applied to rely on the rate of 31 per cent that was applicable to National Bank of Kenya and Housing Finance Company Limited.

But Family Bank while responding to the case said Munyiri was not entitled to the relief sought and urged the court to dismiss the same with costs as it is based on erroneous, assumptions and extraneous gratuity rate covering wrong date.

It added that the 31 per cent rate is not applicable but rather 18 per cent of gross basic salary as per the report prepared PriceWaterhouseCoopers.

The bank further claimed that the two banks that Munyiri was using as a benchmark are state owned and their gratuity is similar to the rate provided in parastatals

The bank further argued that Munyiri was duly paid his dues at the time of separation save for gratuity and that the delay was occasioned by lack of standard banking industry rate.

However, he former boss is facing several criminal charges before the Milimani chief magistrate’s court for money laundering relating to Sh1.6 million National Youth Service (NYS) phase I scandal.

Munyiri, alongside six others who have all been sacked, including KTDA branch manager Robert Oscar Nyaga, was charged for the offence linked to the National Youth Service scandal.

Nine counts, including failure to report unusual transactions carried out by the chief suspect Josephine Kabura Irungu’s three bank accounts, were brought before the seven.  In the case, they are each out on a Sh1 million bond or Sh300,000 cash bail.

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