Kyalo v National Bank of Kenya Limited (Cause E669 of 2023) [2024] KEELRC 119 (KLR) (2 February 2024) (Ruling)
- Court
- Employment & Labour Relations Court
- Case number
- 119
- Citation
- [2024] KEELRC 119 (KLR)
- Decided
- 2 February 2024
The Court finds a real danger of the Claimant falling into default on his loan repayment if the proposed change is implemented. The Court orders the Respondent to continue applying the preferential interest rate of 4.5% per annum to both of the Claimant’s mortgage facilities and restrains the Respondent from applying any commercial interest rate.
Facts
Claimant was employed as a Networks Manager by Respondent Bank. His contract was terminated on 11th July 2023. The Respondent proposed to apply a commercial interest rate of 13.5% per annum to his two mortgage facilities, which would increase his monthly instalments from Kshs. 128,589 to Kshs. 236,795. Claimant sought a permanent injunction to prevent this change.
Issues
- Fairness of termination
- Applicability of preferential interest rate
Reasoning
The Court considers the termination unfair and unlawful, and the loans were intended as employment benefits. The Court orders the status quo to continue until the claim is heard and determined.
Outcome
Claimant's Application granted
Orders
- Respondent to continue applying preferential interest rate of 4.5% per annum
- Restraining the Respondent from applying any commercial interest rate
Remedies
- Permanent injunction to prevent application of commercial interest rate
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