African Economic Research Consortium v Egesa (Civil Application E006 of 2026) [2026] KECA 1016 (KLR)
The bottom line
#Kenya's Court of Appeal paused an employee's award, but only because the employer agreed to park Kshs. 2 million in a joint account pending appeal.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.Whether the intended appeal is arguable
- 2.Whether the intended appeal will be rendered nugatory unless the stay orders sought are granted
- 3.What orders, if any, should issue to balance the interests of justice
Key legal issues
#Whether the intended appeal is arguable
The draft memorandum raising grounds against the ex parte orders of 15th December 2025 raised non-frivolous grounds; the intended appeal was arguable.
The draft memorandum of appeal proposed seven grounds directed at the ex parte order of 15th December 2025, including that the judge issued ex parte orders and imposed unjust terms under pressure of the Christmas vacation, and failed to fix an inter partes hearing date promptly. The Court found these grounds not frivolous and therefore arguable, without expressing any final view on their merits.
Whether the intended appeal would be rendered nugatory if stay is denied
Yes; if the respondent is paid the amounts in contention and later cannot refund them upon success of the appeal, the appeal would be rendered nugatory.
The Court assessed the respondent's ability to repay Kshs. 3,000,000. His bank statement showed a balance of Kshs. 1,007,290 and he annexed a log book of a Toyota Land Cruiser allegedly worth over Kshs. 15,000,000. However, the Court held that nothing prevents the respondent from disposing of the vehicle or depleting the account, so payment before the appeal could render its success nugatory.
The appropriate orders to balance the interests of justice
A conditional stay was appropriate: deposit of Kshs. 2,000,000 in a joint interest-earning account, with the appeal to be filed and served within 30 days.
Having found the intended appeal arguable and capable of being rendered nugatory, the Court weighed the interests of both parties and opted for a conditional stay of execution rather than an absolute one, coupling it with a time limit for filing the appeal to prevent delay.
Legal principles established
#- An applicant for stay pending appeal must demonstrate that the appeal or intended appeal is arguable and that, unless the orders sought are granted, the appeal, if successful, will be rendered nugatory.
- To show arguability, an applicant need not demonstrate a multiplicity of arguable grounds; a single arguable ground suffices.
- Nugatory value turns on whether what is sought to be stayed is reversible or, if not, whether damages would reasonably compensate the aggrieved party; 'nugatory' also covers matters of trifling or little value.
Court orders
#- 1.Stay of execution and/or further proceedings of the ex parte order of 15th December, 2025 granted on condition that the applicant deposits Kshs. 2,000,000 in an interest-earning account in the joint names of the applicant's and respondent's counsel pending hearing and determination of the intended appeal
- 2.The appeal to be filed and served within 30 days from the date of the order
- 3.Each party to bear their own costs of the application
The bench
#One judgment of the whole court — no separate or dissenting opinions.
- On appeal from
- Employment and Labour Relations Court at Nairobi
- Not stated in the judgment
- Jurisdiction invoked
- Inherent jurisdiction of the Court of Appeal to grant stay of execution pending appeal (rule invoked not stated in the judgment)
Relief refused
#Unconditional stay of execution
The Court considered that a conditional stay was necessary to balance the interests of justice
Costs
Each party shall bear their own cost of this application.
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
The principles that guide this Court in an application of this nature are well settled. An applicant must demonstrate that the appeal or intended appeal is arguable, and that unless the orders sought are granted, the appeal, if successful, will be rendered nugatory.
whether or not an appeal will be rendered nugatory depends on whether or not what is sought to be stayed, if allowed to happen is reversible, or if it is not reversible, whether damages will reasonably compensate the aggrieved party.
We therefore grant the orders sought on condition that the applicant deposits a sum of Kshs. 2,000,000 in an interest earning account in the joint names of the applicant's and respondent's counsel pending hearing and determination of the intended appeal.
The appeal should be filed and served within 30 days from the date hereof. Each party shall bear their own cost of this application.
Issues in the judgment
#The judgment does not state the case number, neutral citation, or the specific rule of this Court under which the application was brought.
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "African Economic Research Consortium v Egesa (Civil Application E006 of 2026) [2026] KECA 1016 (KLR)", Case Analysis (2026). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2026/1016/eng@2026-05-29
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.