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Court of AppealDismissedCivil Application E007 of 2026· [2026] KECA 1895 (KLR)

Krystalline Salt Limited v Kenya Chemical Workers Union

Court of Appeal
25 September 2026
3,528 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~14 min to read original · ~4 min brief

The bottom line

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The Court of Appeal refused to pause a ruling requiring Krystalline Salt to negotiate a union agreement, because money losses could be repaid later.

What this practically means

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Executive summary

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Krystalline Salt Limited applied to the Court of Appeal at Mombasa under Rules 5(2)(b) and 43 of the Court of Appeal Rules, 2022 and Sections 3A and 3B of the Appellate Jurisdiction Act for stay of execution and stay of further proceedings pending an intended appeal against the judgment of Mbaru, J. of the Employment and Labour Relations Court at Mombasa delivered on 30th October 2025. The ELRC had directed the parties to negotiate and execute a Collective Bargaining Agreement following a Recognition Agreement signed on 12th September 2024, despite the applicant's contention that the respondent union's membership had fallen far below the simple majority required under Section 54 of the Labour Relations Act and that a termination process was pending before the National Labour Board. The Court framed a single issue: whether the applicant deserved stay orders. It applied the settled two-limb Rule 5(2)(b) test - arguability and nugatory aspect - both of which must be satisfied conjunctively. The Court found the draft appeal arguable, since it raised bona fide questions on the interpretation of Sections 54 and 57 of the LRA and on whether a recognition agreement survives loss of majority. However, on the second limb, the Court held that a CBA runs for a fixed period and would become superfluous if the appeal succeeded, and that any financial obligations were quantifiable and compensable by damages. The application was accordingly dismissed with costs to abide the outcome of the appeal.

Key legal issues

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01

Whether the intended appeal is arguable

Holding

Yes - the draft memorandum raises arguable grounds on the interpretation of Sections 54 and 57 of the LRA and the compulsion to negotiate a CBA

Reasoning

The Court perused the draft memorandum of appeal and found the intended challenges to the trial Judge's interpretation and application of Sections 54 and 57 of the Labour Relations Act, and the complaint that the applicant was compelled to enter a CBA without legitimate basis, to be bona fide arguable points worthy of consideration by a full bench. The first limb of the Rule 5(2)(b) test therefore succeeded.

02

Whether the appeal would be rendered nugatory if stay is not granted

Holding

No - a negotiated CBA is time-bound and reversible, and any financial exposure is compensable by damages

Reasoning

The Court held that CBAs run for a specific period, so if the appeal succeeds a registered CBA becomes superfluous. The applicant did not satisfactorily demonstrate the financial implications or that the respondent could not refund amounts paid. Any expenses could be adequately compensated by damages, so the second limb failed and the application, requiring both limbs conjunctively, was dismissed.

p. 6

Legal principles established

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  • An applicant under Rule 5(2)(b) must demonstrate both that the intended appeal is arguable and that it will be rendered nugatory absent a stay; both limbs must be satisfied conjunctively
  • The threshold for arguability is low; even a single non-frivolous ground suffices
  • Stay of proceedings is a grave judicial action interfering with a litigant's right to conduct litigation and access to justice, and the test is high and stringent

Court orders

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  1. 1.The Notice of Motion dated 3rd February 2026 is dismissed with costs to abide the outcome of the appeal
On appeal from
Employment and Labour Relations Court at Mombasa
Mombasa ELRC Cause No. E067 of 2025
Jurisdiction invoked
Sections 3A and 3B of the Appellate Jurisdiction Act and Rules 5(2)(b) and 43 of the Court of Appeal Rules, 2022

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Krystalline Salt Limited v Kenya Chemical Workers Union", Case Analysis (2026). Civil Application E007 of 2026. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2026/1895/eng@2026-09-25

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.