Fwamba v Equity Bank Kenya Limited & another (Cause E1032 of 2024) [2025] KEELRC 2063 (KLR)
The bottom line
#Kenya's Employment Court stopped Equity Bank from raising a former executive's staff loan rates pending his unfair termination suit.
What this practically means
#Executive summary
#Key legal issues
#Jurisdiction of the ELRC over staff loan interest rates
The Court has jurisdiction because the rebated interest rates were a benefit of employment; disputes arising from the employer/employee relationship fall under Section 12 of the ELRC Act even if the loans are bound by separate contracts and charges.
While the loans themselves were governed by separate contracts and charges distinct from the employment contract, the preferential interest rates were an entitlement flowing directly from employment. The threatened variation was based on the disputed termination. Section 12 of the ELRC Act confers exclusive jurisdiction over disputes arising out of employment, and the Court declined to find a lack of jurisdiction, relying on Asiago and Mulinge.
Prima facie case
The Claimant established a prima facie case because it was not shown how he could be liable for fraud in the Bank unit while he worked at the Group level, and questions arise whether the two entities are separate legal persons.
The Claimant exhibited letters showing his transfers, secondment and reassignment between the Bank and the Group. The Court noted it was not told his job description in either entity, nor demonstrated that he could be held liable for fraud occurring in the Bank while serving at the Group level, raising a substantial question for trial.
Irreparable loss and balance of convenience
The Claimant would suffer irreparably if charged properties were lost on inability to pay increased rates, while the Respondent holds titles and faces no prejudice; the balance of convenience favours the Claimant.
The Claimant stood to lose charged properties if unable to pay the increased commercial rates. The 1st Respondent holds the title documents, the loans continue to be repaid at contracted rebated rates, and no default was alleged. Greater inconvenience would therefore arise to the Claimant from withholding the injunction.
Legal principles established
#- Rebated staff interest rates granted by virtue of employment are rooted in the employer/employee relationship, and disputes over their variation fall within the ELRC's jurisdiction even where the underlying loans are governed by separate contracts.
- Interlocutory injunctions are granted on the Giella principles: prima facie case with probability of success, irreparable harm, and balance of convenience.
Court orders
#- 1.A temporary order of injunction restraining the Respondents from increasing the Claimant's staff mortgage interest rate from 6% p.a. and Staff Equity Release loan from 8% p.a. to 13%, vide the letter dated 27th November 2024 or any other manner, pending hearing and determination of the suit
- 2.The suit shall be fast-tracked and set down for hearing
- 3.Costs of the application shall be in the suit
- Jurisdiction invoked
- Article 162(2) of the Constitution and Section 12 of the Employment and Labour Relations Court Act
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Migwi v Ollin Sacco Society Limited (Cause E003 of 2025) [2025] KEELRC 2971 (KLR)[2025] KEELRC 2971 (KLR)30 Oct 2025
Cite this brief
#Cite this brief
Caselaw, "Fwamba v Equity Bank Kenya Limited & another (Cause E1032 of 2024) [2025] KEELRC 2063 (KLR)", Case Analysis (2025). Cause No E1032 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2063/eng@2025-07-11
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.