Kisiara v Coperative Bank of Kenya Limited (Employment and Labour Relations Cause E978 of 2021) [2025] KEELRC 1902 (KLR)
The bottom line
#The Employment Court dismissed a former bank manager's unfair termination claim and ordered him to repay over Kshs. 8.2 million in staff loans, plus interest and costs.
What this practically means
#Executive summary
#Key legal issues
#Jurisdiction over the Counter Claim on a secured commercial loan
The court has jurisdiction because the loan facility was issued in the course of and by virtue of the Claimant's employment
The Claimant argued the loan was a commercial, secured debt within the Land Act and outside the ELRC. The Respondent argued the preferential facility was an employment benefit. The court held the facility was part and parcel of benefits accruing to the Claimant by virtue of his employment, so the dispute relates to employment and labour relations under Article 162(2)(a), and the court may hear it wholesale without dissecting issues to other fora.
Whether termination was wrongful, unfair and unlawful
The termination was lawful; valid and fair reasons existed and due process was followed
The Claimant was issued a notice to show cause, responded, and appeared before a disciplinary committee where he made admissions including conflicts of interest and failure to report suspicious high-value transactions. Prior warnings and audit findings showed persistent lapses. The court found the Respondent had substantiated the grounds under sections 43, 45 and 47(5) of the Employment Act, 2007, and the Claimant failed to discharge his burden under section 47(5).
Entitlement to the Counter Claim
The Respondent is entitled to judgment on the Counter Claim for the outstanding consolidated loans
The Claimant did not contest the validity of the Counter Claim, only the court's jurisdiction. Having found jurisdiction and relying on authority that staff loans remain due and owing after departure, the court allowed the Counter Claim and awarded Kshs.8,220,080.54 with interest.
Legal principles established
#- Disputes concerning loan facilities issued to employees in the course of employment, including accrued interest, fall within the jurisdiction of the Employment and Labour Relations Court as disputes relating to employment and labour relations
- Loan facilities issued to employees in the course of employment remain due and owing to the issuing institution and employer upon the employee's departure from employment
Court orders
#- 1.The Claimant is ordered to meet and pay Kshs.8,220,080.54 being loans owing to the Respondent employer
- 2.Interest on [i] above at commercial rate from the date of departure or dismissal from employment todate
- 3.Interest at court rates from the date of this judgment till payment in full
- 4.The costs of the claim shall be borne by the Claimant
- Jurisdiction invoked
- Article 162(2)(a) of the Constitution and section 12(1) of the Employment and Labour Relations Court Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kisiara v Coperative Bank of Kenya Limited (Employment and Labour Relations Cause E978 of 2021) [2025] KEELRC 1902 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1902/eng@2025-06-25
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.