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ELRCDismissednot stated in the extract provided· [2025] KEELRC 1565 (KLR)

Ondiek v Afya Cooperative Savings and Credit Society Limited (Cause E342 of 2025) [2025] KEELRC 1565 (KLR)

Employment and Labour Relations Court
29 May 2025
611 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This is an interlocutory ruling of the Employment and Labour Relations Court at Nairobi delivered virtually by Radido Stephen J on 29 May 2025. The Claimant, James Omondi Ondiek, moved the Court by a Motion dated 17 April 2025 seeking a stay of the Respondent's staff loan default notice dated 14 April 2025 pending the hearing and determination of his suit challenging the termination of his employment on 18 December 2024, together with costs in the main suit. He argued that he could not service the staff loans advanced by Afya Cooperative Savings & Credit Society Ltd because he had not secured alternative employment, that the default notice was unfair and prejudicial, and that he wished to renegotiate the repayment terms, and he relied on the Nguruman and Mrao thresholds for interlocutory relief. The Respondent, in a replying affidavit sworn by its acting Chief Executive Officer, contended that the Claimant had taken three staff loans beyond the permitted maximum of two, that default notices properly issued on his default, and that his termination was lawful. The Court dismissed the Motion as without merit for three reasons: the Claimant had not, in either the initial or amended Statement of Claim, challenged the validity of the default notice, so the Motion sought orders in vacuo; he did not exhibit the loan documents to enable the Court determine whether the default notice was contractually grounded; and he did not explain why he had not first approached the Respondent to renegotiate the loan terms before invoking the Court's jurisdiction. The Motion was dismissed with costs to the Respondent.

Key legal issues

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01

Whether the stay of the default notice could be granted where the notice's validity was not challenged in the pleadings

Holding

The Motion failed because the Claimant never pleaded a challenge to the default notice, rendering the application orders in vacuo

Reasoning

The Court noted that neither the initial nor the amended Statement of Claim attacked the validity of the default notice sought to be stayed. Without a pleaded challenge to the notice, there was no substratum upon which the interlocutory stay could rest, so the relief was sought in a vacuum and could not be sustained.

p. 2
02

Whether the default notice was contractually grounded

Holding

The Court could not determine this because the Claimant did not exhibit the loan documents setting out the terms of the facilities

Reasoning

The burden was on the Claimant to demonstrate that the default notice lacked contractual foundation. By failing to attach the loan documents containing the terms of repayment, the Claimant deprived the Court of the material needed to assess whether the Respondent was entitled to issue the default notice, and the application necessarily failed on the evidence.

p. 2
03

Whether the Claimant exhausted negotiation with the Respondent before invoking the Court's jurisdiction

Holding

The Claimant did not disclose why he had not approached the Respondent to renegotiate the loan terms before coming to Court, weighing against the relief

Reasoning

Although the Claimant asserted a desire to renegotiate the repayment terms, he did not explain why he had not first approached the Respondent to do so before filing the Motion. The Court treated this omission as a further reason the interlocutory relief could not be granted, since the claim of willingness to renegotiate was untested and unexplained.

p. 2

Legal principles established

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  • An applicant for a stay of a notice or decision must place before the court the basis on which the notice's validity is challenged; orders sought without such a foundation are orders in vacuo and may be refused
  • A party seeking interlocutory relief grounded on a contract should exhibit the contract documents to enable the court determine whether the impugned notice is contractually grounded

Court orders

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  1. 1.The Motion dated 17th April 2025 is found to be without merit and is dismissed with costs
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over the employment dispute and incidental application (specific enabling provision not cited in the judgment)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Ondiek v Afya Cooperative Savings and Credit Society Limited (Cause E342 of 2025) [2025] KEELRC 1565 (KLR)", Case Analysis (2025). not stated in the extract provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1565/eng@2025-05-29

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.