The Labour Court in Nairobi ruled that Family Bank must pay former managing director Peter Munyiri Ksh.30 million following a dispute over unpaid gratuity payments for his five-year contract.
Munyiri argued that the bank failed to meet industry standards, citing a 31% gratuity rate for tier 2 institutions like the Housing Finance Company of Kenya and National Bank Limited. He claimed his contract entitled him to 10% of annual gross salary, totaling Ksh.57 million.
Justice Maureen Anyango awarded Ksh.30.6 million based on a PriceWateHouseCoopers survey showing an 18% average market rate for banking executives. The court dismissed Munyiri's 31% claim, noting tier 2 banks differ from parastatal institutions.
Munyiri faces criminal charges alongside six others, including KTDA manager Robert Oscar Nyaga, over the National Youth Service scandal. They are accused of failing to report suspicious transactions linked to Josephine Kabura Irungu's accounts.
The former MD announced plans to appeal the ruling, which fell short of his Ksh.57 million demand.
