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Ex-manager sues Sidian Bank for unfair dismissal
He claims that, though the bank gave him a certificate of clearance after termination, it repeatedly issued misleading responses to employment verification requests, claiming that there were “pending matters”.
A former manager at Sidian Bank has sued the lender, claiming it discriminated against him through unequal pay compared to his peers, illegal sacking and defamation to other potential employers.
Mr Joseph Mwaiwa Mwangangi has filed three suits at the High Court in Nairobi and Kajiado seeking damages of Sh187.8 million for the alleged breaches amid claims that the bank also breached his personal data. He is also alleging infringement of his privacy through negative listing at the Credit Reference Bureau.
The court papers show that he was sacked in January 2024 over alleged gross misconduct and violation of the bank’s human resource policy by allowing his personal accounts to be used for customer transactions. He was the bank’s manager in its Kajiado branch.
He wants the bank compelled to pay him Sh83.8 million for the alleged unlawful dismissal, Sh83 million damages for defamation, including alleged false references to potential employers, and Sh21 million for breach of personal data.
In one of the cases filed at the Labour Relations Court in Nairobi, Mr Mwangangi is challenging his dismissal because the bank failed to disclose the source of the complaint, and he was not furnished with a copy of the investigation report.
Regarding alleged discrimination due to unequal pay, he states that his peers were earning an average salary of Sh300,000 monthly, while he was earning Sh195,859.
“His requests to have his salary matched were ignored, and this was against the Employment Act on equal work, equal pay, even though they were given similar performance targets as his peers, and thus the bank breached its HR policy on compensation,” says his advocates, J.N Pareno & Company Advocates.
The bank has denied the allegations and states that salary increment for staff was determined by performance-based pay and the cost-of-living adjustment. All three cases are yet to be determined.
Besides claiming compensation of Sh21 million for this, he is also seeking an order stopping the bank from any further circulation of his data and unauthorised disclosures except in line with the Data Protection Act, 2019.
“Performance-based pay was contingent upon satisfactory evaluation of an individual’s performance throughout the year. Further, in any event, the Bank states that it was an express term of the Bank’s policy that failure to increase employees’ salaries would not amount to breach of terms and conditions of service,” says the bank’s advocates, Munyao Muthama & Kashindi Advocates.
It states that Mr Mwangangi was sacked after routine reviews by the internal audit and security department discovered that he had violated its policies. It states that together with other employees at the Kajiado branch, they had used their staff accounts to facilitate customer transactions.
The bank further contends that the employees had been informed that their accounts would be monitored daily and that any employee who contravened the Common Controls for Transaction Processing would be subjected to disciplinary process.
“In addition, the Claimant, together with other branch managers, was informed that they would be subjected to disciplinary action if a member of their staff breached the Common Controls for Transaction Processing. Despite the training and sensitisation, the claimant subsequently and fundamentally breached the Common Controls for Transaction Processing,” says the bank.
In another case filed at the High Court in Nairobi, Mr Mwangangi has sued the bank alongside its chief executive officer and head of human resources over alleged post-dismissal defamation arising from the sharing of ‘misleading information’ with potential employers.
He claims that, though the bank gave him a certificate of clearance after termination, it repeatedly issued misleading responses to employment verification requests, claiming that there were “pending matters”.
“As a direct result, the plaintiff has been denied employment opportunities at institutions including Credit Bank, Absa Bank, KCB, HFC, and Consolidated Bank,” says his advocates.
“The plaintiff has since endured economic hardship, reputational ruin, psychological trauma, and financial strain, including continued mortgage obligations to the third defendant (Sidian Bank)”.
They want the bank and its officials compelled to issue Mr Mwangangi a neutral recommendation. The bank is yet to file its response to the case, which is still at the pre-trial stage.
The third case, which is pending at the High Court in Kajiado, involves allegations of data breach, with the claimant alleging that the bank officers accessed his personal confidential financial information unauthorised.
He adds that the bank called a loan he was servicing, issued him with statutory notices, and proceeded to list him at one Credit Reference Bureau (CRB).
“A negative listing on a Kenyan CRB can significantly impact an individual’s ability to access credit and other services, including job applications. It indicates that an individual has defaulted on a loan or payment obligation. This information is shared with financial institutions, making it harder to get loans, credit cards, and other financial products,” he explains.
