This archive report was first published on 11 July 2019.
On July 11, 2019, the Labour Court ordered the National Bank of Kenya (NBK) to pay three former employees Sh11.2 million in compensation for wrongful termination.
The court's decision came after investigations revealed that a member of staff at the bank's ICT Department had withdrawn Sh330 million from various government-related accounts and credited the same to two accounts held by NBK in 2013.
Although the bank claimed that Jimmy Labi and Sylvester Mutuli, administrators of the Virtual Private Network (VPN) system, failed to report the shortcomings and vulnerability of the VPN system, the court found that they were not given adequate opportunity to respond to any charges before action was taken against them.
Justice Maureen Onyango awarded Jimmy Labi and Sylvester Mutuli Sh5.69 million and Sh4.7 million respectively as compensation for 12 months' gross salary, while another ex-staffer, Joseph Karumba, is set to receive Sh800,000 as compensation for 10 months' gross salary.
