Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedNotice of Motion dated 15th August 2025 (in a suit by Memorandum of Claim dated 24th July 2025)· [2025] KEELRC 2963 (KLR)

Okeyo v KCB Bank Kenya Limited (Cause E071 of 2025) [2025] KEELRC 2963 (KLR)

Employment and Labour Relations Court
30 October 2025
2,330 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

#

Kenya's Employment Court set aside ex parte injunction orders against a bank because serving papers on a branch manager, not head office, denied it a fair hearing.

What this practically means

#

Executive summary

#
The respondent bank filed a Notice of Motion dated 15th August 2025 seeking review, setting aside or variation of the court's Ruling of 31st July 2025, which had granted a temporary injunction restraining the bank from increasing interest rates on the claimant's unsecured loan and mortgage facility, and reinstatement of its right to file a Replying Affidavit to the claimant's application dated 24th July 2025. The bank argued that service of the claimant's documents on 25th July 2025 was improper because it was effected on the Kisumu Branch Manager rather than at the bank's registered office in Nairobi, contrary to Order 5 Rule 3 of the Civil Procedure Rules, so the bank was condemned unheard in breach of its right to fair hearing. The claimant countered that service on the branch manager, who accepted the documents, was proper under Rule 28(1) of the ELRC (Procedure) Rules, 2024, and that the application was defective for want of a draft response. The court framed a single issue: whether the respondent was properly served. It held that service on a body corporate must first be effected on the Corporation Secretary, then a director, then any other authorised officer; absent evidence that the branch manager was an authorised officer, service was ineffective, the four-day response period only began running on receipt at the registered office on 28th July 2025, and the claimant's mode of service denied the bank its constitutional right to be heard. Finding sufficient cause, the court granted the application in terms of prayers 3 and 4, reinstating the injunction application for inter partes hearing, with each party bearing its own costs.

Key legal issues

#
01

Whether service on a bank's branch manager constitutes proper service on the corporation under Rule 28 of the ELRC (Procedure) Rules, 2024

Holding

Service on a branch manager, absent proof that he was an authorised officer, was improper; the claimant should have served at the registered office in Nairobi where policy decisions are made.

Reasoning

Rule 28(1) prioritises service on the Corporation Secretary, then a director, then any other authorised officer. The claimant served the Kisumu Branch Manager without ascertaining whether he was an authorised officer. With no evidence that he was duly authorised, the branch manager was not the decision-maker, and the applicant was unfairly prejudiced, remaining unaware of the suit until the documents reached its registered office on 28th July 2025.

p. 5
02

Whether the ex parte orders of 31st July 2025 should be set aside

Holding

Yes. Improper service deprived the applicant of its constitutional right to be heard, constituting sufficient cause for setting aside the ex parte orders and reinstating the application dated 24th July 2025 for inter partes hearing.

Reasoning

The right to be heard is non-derogable; natural justice requires that a party be made aware of proceedings against it. Service on the branch manager on 25th July 2025 did not give the applicant the reasonable time contemplated, since the four-day response period only began running on receipt at the registered office on 28th July 2025. This being a court of equity, the applicant should be heard on the application.

p. 5

Legal principles established

#
  • Service on a body corporate must be effected on the secretary, director or another authorised officer, in that order of priority
  • Service is the bedrock of the right to be heard; an unserved party is denied natural justice
  • The court has discretion to vary or set aside its own orders, but the applicant must demonstrate sufficient cause

Court orders

#
  1. 1.The Notice of Motion dated 15th August 2025 is granted in terms of prayer Numbers 3 and 4
  2. 2.The court's Ruling of 31st July 2025, insofar as it granted the order of injunction, is set aside / varied
  3. 3.Prayer Number 3 of the Notice of Motion dated 24th July 2025 is reinstated for inter partes hearing and determination
  4. 4.The respondent/applicant is allowed to file its Replying Affidavit to the application dated 24th July 2025
  5. 5.Each party to bear their own costs

Authorities

#

Legislation

  • Employment and Labour Relations Court (Procedure) Rules, 2024Rule 28(1)
  • Civil Procedure Rules, 2010Order 5 Rule 3; Order 51(2); Order 21 Rule 1
  • Constitution of KenyaArticle 159(2)(d); Article 48
  • Civil Procedure ActSection 1B

Cases cited (8)

  • Kiere V Karaithi & 6 others
    [2023] KEELC 21046 (KLR)
  • Robert Mugira Fabian V Athi River Mining Ltd
    [2014] KEElc (792) (KLR)
  • National Bank of Kenya Ltd V Hamida Bana & 103 others
    [2017] eKLR
  • Thomas Odhiambo Okello V Peter Wanyama
    [2019] eKLR
  • Abraham Nyambane Asiage V Barclays Bank of Kenya Ltd
    [2013] KEELRC 230 (KLR)
  • James Kanyaiita Nderitu & another V Marios Philotas Ghikas & another
    [2016] KECA 470 (KLR)
  • Sangram Singh V Election Tribunal Koleh
    AIR 1955 SC 664 AT 711
  • Shengo V Nihal Construction Ltd
    [2025] KEELRC 854 (KLR)
Jurisdiction invoked
Inherent discretion of the court to review, vary or set aside its own orders, in the interest of justice

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Okeyo v KCB Bank Kenya Limited (Cause E071 of 2025) [2025] KEELRC 2963 (KLR)", Case Analysis (2025). Notice of Motion dated 15th August 2025 (in a suit by Memorandum of Claim dated 24th July 2025). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2963/eng@2025-10-30

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