A group of former Barclays Bank employees has gone to court accusing the bank of misleading and coercing them into agreeing to a voluntary retirement scheme.
The employees, who retired in 2017 and 2018, are also aggrieved by the bank's decision of changing interest rates of their loans to commercial rates.
The over 80 former workers say that forcing them to repay the money at an expensive rate is unreasonable and unlawful.
They claim that after they accepted the retirement offer, the bank - now Absa, blocked their accounts and credit cards without notice, a move that has crippled them financially.
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They have filed a suit at the Employment Labour and Relation Court through the law firm of Chigiti & Chigiti Advocates seeking to stop the bank from charging the outstanding loans at commercial rates.
The ex-workers are also seeking orders to compel the bank re-negotiate the voluntary exit schemes of 2017 and 2018, with full consultation, and "with the labour office within the due process dictates".
They want the court to issue an injunction restraining the institution from implementing the loan security restructuring and interest rates changes.
It is their contention that although the scheme affected a large number of employees, it was planned in secrecy with little consultation.
They also claim that a circular leading to their exit did not outline the personal loan clearance term and that it was only brought to their attention through letters given to them after their applications were accepted.
"The change of the interest from staff to commercial rates left the claimants with loans that suddenly became expensive for the jobless ex-bankers which offend the right to protection," the workers' affidavit states.
Citing Article 27 of The Constitution, the lot said the rates are extremely harsh and unfair for former senior employees who cannot get employment easily.
They also allege that they were forced to surrender cars and or clear all car loans on a very short notice.
According to their documents, part of the conditions for leaving the bank was that the unsecured loan and credit had to be cleared upfront or be merged to an existing secured facility.
But after agreeing to the offer, they were shocked to learn that they were either expected to repay any unsecured loans or provide security, a development they say was not included in the email.
They said the bank then changed the interest rate on the outstanding secured loans from staff preferential rate of 6 percent to commercial rate of 14 per cent.
As part of the employment benefits, some of the ex-bankers were entitled to use the bank cottages in Diani – Mombasa, but they were immediately cancelled and told they could no longer enjoy the same.