Court backs sacking of Absa manager over customer accounts fraud

The investigation focused on:

• A withdrawal totaling approximately KSh 3.6 million from a jointly held customer account.
• A separate transaction involving KSh 1,169,000.
• Another unauthorized cash withdrawal of approximately KSh 1,850,000.

The total customer losses exceeded KSh 6.3 million. Following the investigation, Absa reimbursed affected customers and commenced disciplinary proceedings against staff members implicated in the incident.

Findings of the Forensic Investigation

The bank’s forensic investigators concluded that the branch manager had failed to perform critical verification and due diligence procedures required under banking regulations.

The investigation reportedly found that she:

• Authorised payments without conducting mandatory verification checks.
• Failed to properly inspect customers’ identification documents.
• Made unusual enquiries through the bank’s internal systems.
• Had unexplained communications with an individual suspected of participating in the fraud.
• Was in contact with a suspected fraudster before some of the disputed transactions took place.

The forensic reports further alleged that fraudulent transactions were approved under her authority and that she interacted with suspected fraudsters inside the branch premises. These findings formed the basis for disciplinary action by the bank.

Dismissal by Absa

After reviewing the investigation reports, Absa suspended Ms Adhiambo and subsequently terminated her employment on November 29, 2019.

The bank argued that the following:

• Significant customer funds had been lost while she was responsible for branch operations.
• Internal controls and anti-fraud procedures were not followed.
• Her conduct violated the high standards of integrity expected of senior banking officials.

Court Proceedings

Ms Adhiambo challenged the dismissal in court, claiming:

• She was innocent of wrongdoing.
• The disciplinary process was unfair.
• The bank failed to provide her with the forensic reports necessary for her appeal.
• She was entitled to compensation for unfair dismissal and other employment benefits.

She sought:

• Twelve months’ salary compensation.
• Notice pay.
• Service pay for approximately 20 years of employment.
• Payment for accrued leave days.
• Preferential treatment on an outstanding staff loan.

Court Decision

The Employment and Labour Relations Court rejected her claim and sided with Absa.The judge held that the bank had demonstrated, on a balance of probabilities, that she had committed gross misconduct and failed to uphold the standards expected of a branch manager.

The court stated:

“The respondent has proven on a balance of probabilities that the claimant grossly misconducted herself.”

The judge further found that:

• The dismissal was lawful and justified.
• The bank had valid reasons to lose confidence in her ability to continue serving in a senior banking role.
• Her failures contributed to circumstances that enabled fraudulent withdrawals from customer accounts.

While the court awarded her payment for unused leave days, it upheld the termination itself as fair and lawful.

Why the Case Matters

The ruling is significant because it reinforces the principle that bank employees , especiall branch managers are held to extremely high standards of integrity and accountability. Kenyan courts have repeatedly stated that banks are custodians of public funds and may dismiss employees where audit trails, investigations, and evidence show negligence or involvement in suspicious transactions. Similar rulings have recently been issued in cases involving other Kenyan banks such as NCBA, Co-operative Bank, and Stanbic.

Primary Source

The most detailed public report on the case is:

Business Daily Africa – “Court backs sacking of Absa manager over customer accounts fraud” (4 May 2026).