Employment and Labor Court declines to grant conservatory order as term of  CEO of  Consolidated Bank of Kenya expires

By Reporter

The immediate former Chief Executive Officer of  Consolidated Bank  of Kenya suffered a blow after the Employment and Labor relations Court, in Nairobi declined a conservatory orders two days before expiry of his contract.

The petitioner, Samwel Muthemba Muturi had moved to court challenge the decision of Treasury Cabinet Secretary John Mbadi refusal to renew his contract after the board of directors had approved the renewal.

Justice Nduma Nderi in his ruling observed that the applicant did not seek for order for stay to remain in his office as the CEO upon the expiry of his contract, which was only t wo days away to elapse.

This he noted would create a power vacuum in the bank and without taking into consideration of period the petition was likely to take.

The Judge instead noted that the petitioner only sought the conservatory order to stop the filling of the CEO position pending the hearing and determination of the petition.

Seeking a temporary conservatory order stopping the advertisement, recruitment or appointment of an acting CEO. Does not conserve anything but injunct a future recruitment process.

The petitioner  is due to elapsed on 11^th October 2025. Had sought for a new renewal of his term.

In his application,  the petitioner had sought renewal  of his contract  on 13 January  2025 which was six months  before  the lapse of his first 3 year  term of contract.

The petitioner argued the board of directors  on 21^st March wrote to Mbadi  and recommended  for the extension  of the contract  due to his performance.

The petitioner said following correspondences from Mbadi to the board, the chairman  wrote Muturi  on 12^th and 18^th September  informing him  of the expiry of his contract.

In his prayers, that a declaration  that the petitioner is eligible for renewal  of his  term for a further 3 years as the CEO of the bank

That  an order of Mandamus to compel  the Board  to renew and the CS  to confirm  the  reappointment  of the petitioner  as the CEO

 That  in the alternative, the petitioner be compensated for damages  equivalent to salary  for three years  totaling to Sh 78,348,800.

That the cost  of the petition  and interest  therein  and any other further  relief  that this honorable  court shall deem fit to grant.