Wednesday, November 20, 2019
Home Business News Companies Family Bank ordered to pay its former MD Ksh 30 million

Family Bank ordered to pay its former MD Ksh 30 million

A Nairobi Labour Court has on Friday ordered family Bank of Kenya to pay its former MD Peter Munyiri Ksh 30 million in unpaid gratuity.

Peter Munyiri who had filed a successful application before the court claimed unpaid gratuity for a five-year contract served under the institution.

- Advertisement -

Family Bank of Kenya was further accused by its former MD for offering him less than what other company grouped in the same tier.

The claim filed by the accuser claimed that the institution is ranked by the Central Bank of Kenya in the same tier as Housing Finance Company of Kenya (HFCK) and the National bank of Kenya (NBK) who pay gratuity at the rate of 31%.

Passing the ruling was Judge Maureen Anyango who awarded Mr. Peter Munyiri Ksh 30.6 million instead of Ksh 57 Million he claimed.

The 30 million was arrived at after Price Water Coopers auditors concluded that the average market rate for gratuity in the banking industry was at 18% of the gross annual basic salary.

Banks such as the National Bank of Kenya are said to be paying out gratuity at the rate of 31% as they are under parastatals.

Also read: Bank of Uganda advises the public to be vigilant of the Kenyan currency

Munyiri has however appealed the Ksh 30 million award as he seeks Ksh 57 million.

Slavian Mwangecho
Slavian Mwangecho
Passionate blogger on a day to day activities happening in Kenya, Africa and around the world. A keen follower of the latest news making headlines around the world

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Margaret Nyakang’o nominated new controller of budget

Margaret Nyakang’o has been nominated by President Uhuru Kenyatta as the new controller of budget. The Tuesday nomination will...