Ngotho v Bank of Africa Kenya Limited (Cause E462 of 2025) [2025] KEELRC 2304 (KLR) (31 July 2025) (Ruling)

Summary at a glance

Facts

Claimant was employed by Respondent and later terminated. She alleged that an employee diverted funds from clients' accounts into her own account. The claim was for an injunction to restrain the Respondent from varying interest rates.

Issues

• Whether the Claimant has made out a case for grant of an injunctive order with respect to the applicable loan interest rates.
• Whether the Respondent can vary the interest rates pending the hearing and determination of the main suit.

Reasoning

The Court found that the Claimant's employment contract and the loan facility were closely intertwined, and the Claimant's termination from employment was yet to be determined. The Court adopted the principles from Chris Kisire Chepkoit v National Bank of Kenya Limited and Beatrice Wangui Mwihia v Barclays Bank of Kenya to grant the injunctive order.

Outcome

The Court granted the injunctive order.

Orders

• The Respondent is restrained from varying or applying interest at a rate higher than the 5% statutory interest rate on the loan account and facility between the Claimant and the Respondent pending the hearing and determination of the main suit.

Remedies

• Injunction

Authorities cited