Court backs varsity after firing staff over unpaid loan

A court in Nairobi has backed the sacking of a university employee who inflated his Sacco shares to get a loan.

Justice Byrum Ongaya said South Eastern Kenya University (SEKU) was justified to kick out Alfred Mwenda since his actions amounted to gross misconduct.

The judge observed that although Mwenda was required to refund at least Sh4.6 million, he did not know how much he owed South Eastern University Credit and Savings Sacco and was unwilling to pay back.

He said minutes of the senior staff disciplinary committee meeting of September 27, 2021, showed several instances where he obtained Sacco loans without due procedure, such as obtaining approvals or inflating his share deposits.

“The court has considered the minutes and returns that on a balance of probability, the claimant was culpable as was levelled against him. The reasons for termination were valid as existing per section 43 of the Act and as per the respondent’s case, amounted to gross misconduct as related to respondent’s operational requirements and the claimant’s conduct or misconduct per section 45 of the Act,” said Justice Ongaya.

Mwendwa was hired by the university as an administrative assistant in May 2010 and then promoted to senior administrative assistant. He joined the university’s sacco as a member.

He said the sacco chairman sent him a demand letter requiring him to refund Sh4.6 million within 30 days. The money in dispute was allegedly taken between January 2018 and April 2021.

In his response, the court heard that Mwenda stated that the amount was exaggerated as the only pending loan was Sh255,420. He asserted that the loan had been procedurally taken.

The university then sent Mwenda a letter dated August 12, 2021 requiring him to show cause why disciplinary action should not be taken against him.

The learning institution claimed that, between June 7, 2018, and June 16, 2021, he obtained loans amounting to Sh4.6 million without following the loan application procedure.