Court orders Sacco to pay former CEO Sh2.4m, rules Jitegemee acted opaquely

A savings and credit cooperative society (Sacco) has been ordered to pay its former Chief Executive Officer (CEO) a total of Sh2.4 million after a court declared that summary dismissal against him was substantially and procedurally unfair.

The Employment and Labour Relations Court (ELRC) also ruled that Jitegemee Cooperative Savings & Credit Society Ltd did not provide Mr Simeon Mwakoi with an opportunity to defend himself against accusations made against him.

It further ruled that the principles of procedural fairness, which are both constitutional and statutory imperatives, were not observed.

“This court is compelled to conclude that the respondent’s (Jitegemee Cooperative Savings & Credit Society Ltd) actions portray it as an employer that acted opaquely and was in a hurry in dismissing the claimant (Mr Mwakoi),” ruled the ELRC.

The ELRC noted that it was not in dispute that through its letter, the respondent placed the claimant under what it termed as an administrative leave of 52 days to enable it to investigate issues discussed by its Board of Directors.

However, the ELRC said that it was important to note that the letter was expressed in a generalised manner, which, in its view, could not facilitate the claimant or any observer in understanding the specific allegations or investigations concerning him.

“Investigations against an employee may lead to outcomes that are prejudicial to the employee's employment, which, of course, is the employee's livelihood. As such, it becomes essential, pursuant to the dictates of Article 47 [the right to fair administrative action] of the constitution and stipulations of the Fair Administrative Action Act, that the employee be explicitly and concisely informed of what is being investigated against them,” ruled the ELRC.

The ELRC further said that it noted that the respondent did not place any evidence to demonstrate that on November 11, 2016, it convened a disciplinary hearing meeting but was adjourned to another date because of the claimant’s absence.