Mang’ati v ABSA Bank Limited (Formerly Barclays Bank of Kenya Limited) (Cause 162 of 2020) [2022] KEELRC 1232 (KLR) (21 July 2022) (Ruling)

Facts

The Claimant, Pius Nga'o Mang'ati, was employed by the Respondent, ABSA Bank Limited, on a fixed-term contract that expired on August 31, 2017. During his employment, he took three housing loans with a preferential interest rate of 6%. The Respondent terminated his employment without notice, and subsequently changed the interest rate to a commercial rate, increasing the monthly repayment amount. The Claimant sought an interim injunction to prevent the Respondent from harassing him and from changing the interest rate.

Issues

1. Whether the Respondent's change in interest rate was justified
2. Whether the Claimant had a legitimate expectation of continued employment and preferential interest rates

Reasoning

The Court held that the Claimant was employed under a fixed-term contract and that his employment ended by euxion of time. The Respondent argued that the Claimant was in default in loan repayment and that the Claimant had not sought reinstatement as a remedy. The Court also cited previous decisions where it held that an employee who fails to service loans advanced by their former employer is undeserving of any equitable relief.

Outcome

The Claimant's application is disallowed, and the interim orders are vacated.

Authorities cited