Florence Achieng Asetto v Faulu Microfinance Bank Kenya Limited [2018] KEELRC 2182 (KLR)

Summary at a glance

Facts

Claimant Florence Achieng Aseto took a staff loan of Kshs. 5,400,000/= with Respondent Faulu Microfinance Bank Kenya Limited at a reducing staff interest rate of 9% per annum. The Respondent increased the interest rate to commercial rate following the termination of the Claimant's employment contract.

Issues

• Whether the Respondent can convert the interest rate from staff rate to commercial rate concerning the loan the Claimant took.
• Whether the Claimant can amend her Memorandum of Claim

Reasoning

The Court finds that the Claimant is currently unemployed and will suffer greater injustice if the application to keep paying at staff rates is denied, as she has filed a case alleging unfair termination.

Outcome

The application for injunction is granted, and the application to amend the claim is allowed.

Orders

• That the Respondent be restrained from converting the interest rates payable on the loan from staff to commercial rates.
• That the Applicant be allowed to amend the Memorandum of Claim.

Remedies

• Allowing the Claimant to keep paying the loan at staff rates.
• Allowing the Claimant to amend the Memorandum of Claim.

Authorities cited