Court Slaps Stanbic with Kshs 5.5m Payout over Unlawful Dismissal

The court ruling against Stanbic Bank underscores the constitutional duty of employers to respect the dignity, privacy, and health needs of employees. It also serves as a warning to organisations against discriminatory dismissals on medical grounds

By The Weekly Vision Court Reporter

Stanbic Bank Ltd has suffered a major blow after the Employment and Labour Relations Court ruled that the dismissal of one of its staff members on medical grounds was unlawful, malicious, and discriminatory.

In a judgment delivered on 22nd September 2025, Justice Hellen Wailwa found that the bank violated the constitutional rights of the claimant, a former teller referred to as ANO for confidentiality. The judge noted that the bank failed to accord her reasonable accommodation, subjected her to harassment, and ultimately terminated her employment without due process.

The claimant joined the bank in March 2015 as a Project Administrator in the System Upgrades Department before being promoted to Construction Project Manager. In July 2016, she secured permanent employment as a teller at the Chiromo Branch and was later transferred to the Kenyatta Avenue Branch, where she worked until her dismissal.

Throughout her service, performance reports indicated she was diligent, often exceeding expectations in her duties. The employee disclosed that she had battled endometriosis, a condition causing severe pain, but continued to deliver on her responsibilities. In 2019, she underwent surgery that led to complications, resulting in repeated hospitalisations.

In June 2020, she contracted Covid-19 at work, prompting the bank to categorise her as vulnerable and direct her to work remotely. She was issued a laptop and continued to complete back-office tasks and attend Zoom meetings punctually.

Difficulties began in December 2021 when she received only a quarter of her salary without explanation. Later, the bank slashed her pay by half, citing exhaustion of sick leave, even though she was hospitalised when the notice was issued.

She testified that the bank compelled her to attend multiple medical evaluations but failed to provide feedback, ignored her transfer requests, and subjected her to ridicule by sharing details of her medical condition with colleagues. The harassment culminated in psychological distress, triggering a psychogenic seizure that led to a month-long hospital admission in 2022.

Justice Wailwa ruled that the bank’s actions amounted to inhumane treatment, violation of dignity, and breach of the claimant’s right to privacy and fair labour practices.

The court declared that her employment had been terminated “wrongfully, maliciously and unfairly,” awarding her compensation as follows:

  • One month’s salary in lieu of notice – Kshs 118,000. Twelve months’ salary as damages for unlawful termination – Kshs 1,416,000.
  • Kshs 4 million as damages for violation of constitutional rights.
  • The total award amounts to Kshs 5,534,000 (less statutory deductions).

The ruling underscores the constitutional duty of employers to respect the dignity, privacy, and health needs of employees. It also serves as a warning to organisations against discriminatory dismissals on medical grounds.

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