John Nguri Kinyanjui v Equity Bank (K) Limited [2019] KEELRC 2001 (KLR)
The bottom line
#Kenya's Employment Court blocked a bank from hiking a fired employee's loan rates, repossessing his property or blacklisting him with CRB until his unfair termination case is decided.
What this practically means
#Executive summary
#Key legal issues
#Whether the Applicant established a prima facie case for interlocutory relief
The pendency of a suit claiming unfair termination, coupled with the Applicant's history of non-default, disclosed a prima facie case warranting interim protection
The court noted the loan letters allowed the entire facility to fall due on cessation of employment, but the Claimant had filed a suit alleging unfair termination which was still pending. Given the disputed fairness of the termination and the Applicant's prior record of servicing the loans without default, there was prima facie evidence justifying preservation of the status quo until the truth could be established at trial.
Where the balance of convenience lay
The balance of convenience tilted in favour of granting the Applicant the prayers sought
The court reasoned that if the claim succeeded after the Applicant had already been condemned on the loans, he would suffer double jeopardy. By contrast, the Respondent would lose nothing under the interim orders since the Applicant would continue servicing the loans as he had done previously. Accordingly, granting the prayers best met the ends of justice pending trial.
Legal principles established
#- Where the fairness of a termination is disputed and pending determination, an employee who has not defaulted in servicing his loans should not be condemned on the loans before the termination claim is resolved
- In employment-related loan disputes, the balance of convenience may favour maintaining the status quo where the employer-respondent would lose nothing by the interim orders
Court orders
#- 1.Pending the hearing and determination of the claim, the Respondent's action of varying the Applicant's interest rates for all his facilities from 8% to 13% is stayed and/or suspended
- 2.Pending the hearing and determination of the suit, an injunction issued prohibiting the Respondent from repossessing, selling or in any other way dealing with LR No. Ndumberi/Nduberi/3232 and Motor Vehicle registration No. KCM 277B, and from listing the Applicant with the Credit Reference Bureau (CRB)
- 3.Costs in the cause
- Jurisdiction invoked
- Section 12(3) of the Employment and Labour Relations Court Act and Rule 17 of the Employment and Labour Relations Court [Procedure] Rules 2016
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "John Nguri Kinyanjui v Equity Bank (K) Limited [2019] KEELRC 2001 (KLR)", Case Analysis (2019). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2001/eng@2019-03-11
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.