A former bank manager was awarded over KES 1.3 million in compensation by the Employment and Labour Relations Court after being unfairly dismissed by his employer over unproven sexual misconduct allegations.
Presiding Judge Jemimah Keli ruled on Wednesday that Faulu Microfinance Bank Limited failed to substantiate claims of sexual harassment against former Sales and Service Centre Manager Hawkins Ouma, calling his subsequent termination “unlawful” and “unprocedural.”
“The court held that Ouma’s dismissal was substantively unfair as the reason given by Faulu was invalid,” Judge Keli wrote in her ruling.
Ouma was fired in March 2022 based on a whistleblower email accusing him of “sleeping with junior staff,” but Faulu’s investigations revealed what the judge called “scanty information” and no formal complaints.
“There was no video or photographic proof which could have substantiated the allegations made by the said whistle blower,” she wrote.
Judge Keli also found fault with Faulu’s disciplinary process. “Ouma’s dismissal procedurally unfair due to lack of a fair hearing, as he was not provided adequate details of the charges and evidence against him to defend himself properly,” she wrote.
As compensation, Judge Keli awarded Ouma KES 1.2 million for unfair termination, equivalent to 10 months of his KES 120,000 monthly salary. He was also granted an additional KES 120,000 for lack of sufficient notice.
“The Claimant who at the time of hearing was 39 years old may or may not find suitable alternative employment,” Judge Keli explained regarding the compensation amount.
Ouma’s defamation claim was dismissed for lack of proof. “A fear for anticipated humiliation does not amount to such and thus no defamation was proved,” the judge determined.
First hired at Faulu in 2019, Ouma had risen to the rank of Manager before his abrupt dismissal three years later.
“The claimant had loans taken from the employer hence sudden financial burden,” Judge Keli noted in justifying the compensation.
While Ouma had demanded over KES 83 million in loss of future earnings until retirement, Judge Keli denied this request, stating he “has not proved that he cannot gain employment.”
Faulu has been granted a 30-day stay of execution on the judgment.
