The National Bank of Kenya 
Summary
- The Sh453 million demand includes Sh198.3 million in salary for the remaining period, Sh49.58 million gratuity in lieu of pension, Sh9.5 million for utilities, Sh1.14 million servant allowance and a Sh3.8 million entertainment allowance.
- Mr Munir is also asking for Sh2.53 million medical insurance, Sh7.6 million car benefit and Sh126 million in damages to remainder of his active career to 60 years.
Former National Bank of Kenya (NBK) chief executive Munir
Sheikh Ahmed is seeking a Sh453 million compensation for his dismissal
from the lender in April 2016, making it one of the largest claims an
employee has ever made against an employer in Kenya.
Mr
Munir, who was removed from his position for alleged cooking of books,
wants the bank to reinstate him to the position of managing director on
the terms he enjoyed prior to his termination or be paid salary and
allowances for the 76 months that were remaining on his contract.
The
former bank executive says in a petition before the Employment and
Labour Relations Court that he was irregularly removed from his position
contrary to the relevant employment laws, forcing him to challenge the
decision.
He is seeking the court’s declaration that his termination was
“un-procedural, unfair, unlawful and wrongful” and contrary to the
provisions of the Constitution, Employment Act and the Fair
Administrative of Actions Act.
“The petitioner further
prays, without prejudice to prayer for reinstatement, for payment of
statutory entitlements, terminal dues, remainder of contract period
buyout and damages in the sum of Sh453,489,133,” Mr Munir's lawyers told
the court.
Justice Bryam Ongaya has asked Mr Munir and NBK to return to court on Monday for an inter-parties hearing of the case.
More than bank's profit
Should Mr Munir get the money he is asking for, it will be more than the Sh410.78 million net profit that NBK made in 2017.
The Sh453 million demand includes Sh198.3 million in salary for
the remaining period, Sh49.58 million gratuity in lieu of pension, Sh9.5
million for utilities, Sh1.14 million servant allowance and a Sh3.8
million entertainment allowance.
Mr Munir's compensation demands
| Compensation | Amount (Sh Mn) |
|---|---|
| Salary | 198 |
| Gratuity | 50 |
| Utilities | 10 |
| Servant allowance | 1 |
| Entertainment allowance | 4 |
| Medical insurance | 3 |
| Car benefit | 8 |
| Career damages | 126 |
| Other compensation | 55 |
| Total | 453 |
The former NBK boss is seeking close to Sh0.5 bn for his dismissal in April 2016 over fraud allegations.
Mr Munir is also asking for Sh2.53 million medical insurance,
Sh7.6 million car benefit and Sh126 million in damages to remainder of
his active career to 60 years.
He further wants NBK to
retract the notice it put up linking him to misconduct and governance
issues that rocked the lender in 2015.
“The respondent
(NBK) breached the petitioner’s (Mr Munir) right to fair labour
practices, the right to a fair disciplinary and administrative process
and denied him adequate time and opportunity to respond to allegations
against him,” the lawyers say in court papers.
Mr
Munir, who had worked at Standard Chartered Bank in various capacities
before joining NBK, alleges that he was given only one day to prepare
before facing the bank’s disciplinary hearing held in March 2016 and had
no access to his office.
“I was escorted out of my
office by the respondent’s security team on instructions of the board of
directors immediately the show cause letter was served. This was a
humiliating, degrading and embarrassing experience,” Mr Munir says in a
supporting affidavit.
Damaged reputation
He
adds that by NBK allegedly finding him liable for gross misconduct, his
over 20-year career and reputation has been damaged, causing him to be a
pariah in professional and social life.
In April 2018,
the Capital Markets Authority (CMA) fined Mr Munir Sh5 million, saying
that he led the board and other senior managers to overstate profits of
NBK for second and third quarters of 2015 in addition to siphoning about
Sh1 billion from the bank’s coffers.
It also
disqualified him from holding a board position in any publicly listed
company or working for a licensed person for a period of three years.
However,
in July, the High Court temporarily restrained CMA from demanding Sh5
million in fines after Mr Munir challenged the fine and ban.
Additional reporting by Galgallo Fayo
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