The Employment and Labour Relations Court in Nairobi ruled that employees in supervisory roles can be held accountable for operational failures committed by staff under their supervision.

The case involved a team leader at a banking institution who was dismissed after a high‑value transaction of Ksh48.18 million was erroneously transferred in 2015.

Court documents indicated the team leader had approved the payment without completing the required verification checks, breaching her duty to validate each transaction.

The employee argued that several officers were involved and that another staff member had admitted responsibility, but the court emphasized that her position required the greatest responsibility for verification.

The judgment found the dismissal lawful, rejecting the employee’s claims for compensation, notice pay and severance, and confirming that severance did not apply.

Additionally, the court ruled the former employee was no longer entitled to preferential staff loan terms and upheld the employer’s counterclaim for Ksh9.78 million, representing the outstanding loan balance as of September 2022.

The decision serves as a warning to senior staff that failure to properly check, approve and monitor team work can lead to direct liability for financial losses.