Lilian Rhoda Adhiambo v Barclays Bank of Kenya [2021] KEELRC 2031 (KLR)
The bottom line
#Kenya's ELRC ruled that a dismissed bank employee loses preferential staff loan rates once employment ends, refusing to stop the bank from charging higher interest.
What this practically means
#Executive summary
#Key legal issues
#Whether the Applicant established a prima facie case with probability of success for an interlocutory injunction
No prima facie case established; preferential staff rates contractually ceased on termination of employment and the Applicant did not seek reinstatement.
The Staff Loan Terms and Conditions provided that preferential rates cease immediately employment terminates for whatsoever reason unless the Bank agrees otherwise in writing. The Applicant was dismissed and did not seek reinstatement or re-engagement, distinguishing the authorities she relied on. Without proof that the new rates were unlawfully imposed in breach of the agreements, no prima facie case existed, so irreparable injury and balance of convenience need not be considered.
Whether the Court can rewrite loan terms to preserve staff rates post-employment
No; the court enforces and gives effect to the parties' agreement and has no jurisdiction to rewrite contracts.
The loan terms expressly permitted preferential rates only while the borrower remained in the Bank's employment. Relying on Damondar Jihabhai, the Court held its function is to enforce contractual intention. It is for the Court to determine whether the employment relationship lawfully ended, but having found termination and the contractual variation clauses, it could not alter the agreed terms by way of interlocutory relief.
Whether the refund of allegedly overcharged interest could be ordered at the interlocutory stage
No; it is final relief grantable only on merits upon trial.
The prayer sought computation and refund of interest charged above the preferential staff rates. The Court held such an order is in the nature of final relief requiring full ventilation of the claim at trial, and could not be granted on the interlocutory application.
Legal principles established
#- Preferential staff interest rates are a fringe benefit tied to the employment relationship and survive termination only upon reinstatement or other lawful justification.
- Where no prima facie case is established, the court need not consider irreparable injury or balance of convenience.
- The court's function is to enforce and give effect to the parties' agreement, not to rewrite contracts.
Court orders
#- 1.Prayer for interlocutory injunction declined for lack of merit
- 2.Prayer for computation and refund of interest charged above the preferential staff rate declined as final relief grantable only upon trial
- 3.Entire application dismissed with costs to the Respondent
- Jurisdiction invoked
- Section 12 of the Employment and Labour Relations Court Act (invoked by the Applicant; jurisdiction not disturbed by the Court)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Lilian Rhoda Adhiambo v Barclays Bank of Kenya [2021] KEELRC 2031 (KLR)", Case Analysis (2021). Notice of Motion dated 20.12.2019 (ELRC, Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/2031/eng@2021-03-04
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.