WHAT ARE BACKGROUND CHECKS?
Background checks are a process used by employers to verify the accuracy of a candidate’s personal, professional, and financial history. This type of investigation involves examining a variety of records, such as criminal history, employment verification, education credentials, credit reports, and references. What most Employers aim to achieve with this process is to assess whether a candidate is trustworthy, qualified, and a good fit for the organization they are looking to join, while also helping to mitigate potential risks such as fraud, negligence, or workplace misconduct.
JUST HOW IMPORTANT AND EFFECTIVE ARE BACKGROUND CHECKS?
A thorough background check has become a vital component of the recruitment process. The business culture in Nairobi has always been characterised as fast-paced. A fast-paced business environment may mean higher risks and what determines the success or not of an entity is how efficiently this entity is able to mitigate such risks that threaten their profit up streaks.
Employee Background Checks is one such strategy. Also known as pre-employment screening, employee background checks help employers verify the credentials, experience, and integrity of potential hires, confirming their educational qualifications, criminal records and lack thereof and credit history where relevant. Background checks serve as a protective measure against potential risks, ensuring that organizations make informed and responsible hiring decisions.
CASE STUDY
AMBASA V. EQUITY BANK (K) LIMITED & ANOTHER [2025] KEELRC 2113 (KLR)
In a recent decision by the Employment and Labour Relations Court in Nairobi, the court found that the Petitioner, Benard Okoth Ambasa, was not unfairly and unlawfully terminated as he alleged, after the 1st Respondent, Equity Bank, terminated Bernard’s employment due to “unsatisfactory background screening results”, after just a few weeks of him starting there.
Facts
Bernard Okoth Ambasa is the Petitioner herein and a former employee of the 1st Respondent. Equity Bank is the 1st Respondent and former employer of the Petitioner. Dr. Dorcas Kiai is the 2nd Respondent, and was at the time, a Human Resource Practitioner at the 1st Respondent – the Bank.
Dr. Dorcas Kiai and Bernard Okoth Ambasa were former colleagues at Kenya Revenue Authority (KRA) before Dorcas moved to Equity Bank. On 09.12.2024, Dorcas texted Bernard on WhatsApp and shared with him that Equity was looking to hire a General Manager – Human Resource Employee Relations. She further informed him that her Group HR, David Ssegawa thought he would be interested in the role, and she was reaching out to see whether he was.
Bernard answered Dorcas in the affirmative and in the course of the few days to come, on Dorcas’ request, he shared with her his profile and credentials. Bernard had his first interview with the Bank on 19.12.2024 and his second interview on 09.01.2025. On 22.01.2025, the Bank gave him an offer via email. Bernard counter offered and the two parties (Bernard and the Bank) negotiated the terms of the employment. Finally, on 24.01.2025, the Bank gave Bernard a further offer of a consolidated salary of Kes. 950,000/-. He accepted this offer on that same date.
Bernard later received his appointment letter on 30.01.2025 and he was required to start his new role on 10.02.2025.
Issue & Analysis
According to Equity’s Human Reasource Policy and Manual, since the petitioner had been employed at the job level of General Manager, he was subject to “background screening and enhanced screening”. Further, Equity requires all employees and potential employees “during the probation period and after confirmation of employment, to declare all business interests…” “… declaring false information, including leaving out information that is relevant to what the employee owns in terms of businesses, will lead to disciplinary action.”
The Bank contracted Spectrum Network International to conduct a background check on Bernard. The investigation revealed that the petitioner was a Director at Yarrow Spa & Barber Shop, registration number BN_X2C8XBMY, Dokam Travels (BN_P6C2G57) and Roekam Executive Barbers & Spa (BN_GVCQQYLY). The Respondents explained to the Court that “The petitioner failed to disclose the said businesses and his directorship in the declaration form he signed on 10.02.2025. He only disclosed two businesses (Resourcing and People Management Limited and Grand Dominion Ltd) in the said form and left out the high-risk businesses for money laundering that are mostly flagged by Banks.”
The Respondents in their replying affidavit continued; “The petitioner had a fiduciary duty to disclose all information that could affect the mind of the decision-maker in whether or not to confirm him to full employment as per the contractual terms.” “…” “With the banking industry being a sensitive sector, all employees and potential employees are supposed to be above suspicion like Caesar’s wife, and any suspicion of dishonesty and integrity issues leads to automatic separation”.
Bernard’s contract of service with the Bank was terminated on 04.04.2025.
Determination
The issue before court was whether Bernard’s termination was unfair.
The court found that his termination was not unfair nor unlawful because as per the letter of appointment he signed on 30.01.2025, during the first six months (probation period), his employment was “…subject to satisfactory background screening results…” and which screening results the Bank had found unsatisfactory.
In dismissing the suit, the Court stated, “The background checks were not a disciplinary process but was part of the recruitment, selection and appointment processes…”
CONCLUSION
Employee background checks are an essential component of modern hiring practices. They offer employers a reliable means of verifying a candidate’s integrity and reducing workplace risks. Equity Bank for example was able to flag “high-risk businesses for money laundering that are mostly flagged by Banks”. Conducted within the bounds of applicable labour laws, constitutional protections, and data privacy regulations, background checks are endorsed by Courts of Law such as was in this case of Ambasa V. Equity Bank (K) Limited & another [2025] KEELRC 2113 (KLR) (https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2113/eng@2025-07-17).
At RISKHOUSE INTERNATIONAL, we boast of a team of expert investigators who have continually assisted our clients with their pre-employment needs, through a mix of analysis of publicly available information, human source inquiries and overt investigations. Our team incorporates specialists in intelligence analysis, financial investigations, cyber security and legal advisory allowing our clients to make informed hiring decisions and manage or avoid altogether, potential risks to their organisations.