JUDGMENT OF THE COURT
The genesis of the entire dispute resulting into this appeal before us is a letter dated 12th June, 1984 in which, the Central Bank of Kenya, the appellant appointed Davies K. Muteti, the respondent as its employee in the position of a clerk on probationary terms of service. His salary was in the scale Kshs.30,740/= by Kshs.2,100/= to Kshs.45,440/= per annum. He entered the scale at Kshs.30,740/= per annum. In addition he was paid housing allowance at the rate of Kshs.18,000/= per annum but in the alternative he could claim an allowance as an owner occupier in which case the amount in respect of house allowance could be different. He was to be entitled to local leave at the rate of 30 days per leave year after he completed six months service with the appellant. He would be paid traveling allowance of Kshs.1,500/= on annual leave. That letter stated further towards the end as follows:
“On successful completion of probation, you will be offered permanent and pensiona…