Nairobi, Jan. 23 -- The existence of a termination-by-notice clause in an employment contract does not shield an employer from statutory scrutiny under the Employment Act, the Court of Appealhas ruled.

The appellate court said employers must still justify termination and follow fair procedures, even where contracts permit termination by notice.

"It is incumbent upon the employer to clearly state the reasons for the termination, notwithstanding the existence of a termination clause," the court observed.

The ruling arose from a dispute between Middle East Bank Kenya Limited and its former head of operations and information technology, Hellen Waseka.

Ms Waseka was hired on a four-year fixed-term contract starting in November 2009, with r...