The Employment and Labour Relations Court has ordered a prominent city hospital to pay its former CEO Ksh 72.9 million following a ruling that his 2019 summary dismissal was unfair and unlawful.
The court found that the hospital’s decision to terminate the CEO fell short of the requirements of substantive and procedural fairness as outlined in Sections 41, 43, and 45 of the Employment Act. The ruling emphasized that the termination process was flawed from the start.
According to the judgment, the former CEO will receive Ksh 14 million for three months’ salary in lieu of notice, alongside Ksh 56 million as compensation for unlawful dismissal. Additional payments were also ordered as part of the total payout.
The court described the termination as a “botched-up procedure.” The CEO had been asked to submit a show-cause letter within seven days but was reportedly denied access to the premises where he could gather the necessary materials.
The judgment also noted the tense working environment that had existed since the hospital’s lawyers attempted to forcibly enter the CEO’s office. The court highlighted that the atmosphere pointed to a predetermined intent to terminate his employment, making the dismissal unfair.
This ruling adds to a growing list of wrongful termination payouts by the same hospital. Just months earlier, another former CEO received Ksh 100 million, while a separate ex-CEO was awarded Ksh 206 million for similar claims of unfair dismissal.
Legal experts say the repeated rulings indicate systemic issues with the hospital’s employment practices and underline the importance of following proper procedures in executive terminations.
The latest court decision serves as a warning to institutions to uphold both procedural and substantive fairness in employment, particularly when dealing with senior executives.
