Hospital Ordered to Pay Former CEO Ksh 72.9M for Wrongful Termination

A hospital ward in Kenya.
A hospital ward in Kenya.
Photo
Kenyans.co.ke/Murang'a GH

A popular private hospital in Nairobi has been ordered to pay Ksh72.9 million to its former Chief Executive Officer (CEO) for wrongful termination.

In its ruling, the Employment and Labour Relations Court saw the 2019 summary dismissal of the former CEO as unjustified and lacking.

The judge claimed that the sacking fell short of the requirements of substantive and procedural fairness as provided in Sections 41, 43 and 45 of the Employment Act.

“A case of unfair and unlawful termination of employment therefore ensues in the circumstances, and I hold as such,” the judge ruled.

An image of a court gravel
An image of a court gravel
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CapitalFM

As per the ruling, the former boss will be awarded a three-month salary instead of notice, which will total Ksh14 million, and 12 months' compensation for the unlawful dismissal amounting to Ksh56 million, among other payments.

He had been poached from another prominent city hospital before his termination, which the court termed as a "botched-up procedure".

This is because he had been asked for a show-cause letter to be submitted within seven days, but he had reportedly been denied access to the premises that could have provided data and materials for the same.

"Again, the atmosphere in which the claimant was operating had already been poisoned and soured from the date the respondent's lawyers attempted to storm the claimant's office," the court noted.

"It is no wonder the claimant, from day one, presents a case of predetermination to terminate his employment."

This ruling is the latest in a slew of payouts the hospital has been ordered to pay to its former employees, all related to wrongful termination.

It comes just months after it was ordered to pay another one of its former CEOs Ksh100 million in another unlawful termination payout in August.

A few weeks before that, another ex-CEO of the same hospital was awarded Ksh206 million for the same.

Inside an ICU ward at a hospital in Kisii County
Inside an ICU ward at a hospital in Kisii County
Photo
Joseph Simba