Ayanna Yonemura v Liwa Kenya Trust [2014] KEELRC 151 (KLR)
The bottom line
#A Kenyan employer that fails to keep proof of salary payment and uses 'gross' instead of 'consolidated' pay lost a Kshs 246,500 employment claim.
What this practically means
#Executive summary
#Key legal issues
#Whether salary for January 2014 was due
The Claimant proved on a balance of probability that she was not paid her last salary of Kshs.170,000/= for January 2014; the Respondent's reply was a bare denial unsupported by documentary evidence of payment.
The Claimant testified in support of her claim and proved the three-month contract and non-payment of the final month's salary. The Respondent, though admitting the employment, denied owing January salary but produced no documentary evidence of payment, leaving its response a bare denial incapable of displacing the Claimant's proof on a balance of probability.
Whether the Claimant was entitled to house allowance
The contract provided only a gross salary inclusive of a car allowance and did not expressly consolidate a housing element, so the Respondent did not provide housing or pay rent, and house allowance at 15% of basic wage was awarded per the General Wages Order.
Section 31(1) of the Employment Act obliges an employer to pay a sufficient sum as rent in lieu of housing unless under section 31(2) the contract consolidates a housing element into the salary. Clause 1 of the contract provided only a gross salary inclusive of a car allowance, with no express housing provision, so the statutory exclusion did not apply and the 15% component was awardable.
Legal principles established
#- For an employer to exclude provision of housing or payment of rent to an employee, the contract of service must specifically provide that the salary paid is a consolidated salary; 'gross' is not the same as 'consolidated'.
Court orders
#- 1.Kshs.170,000/= being unpaid salary for the month of January 2014
- 2.Kshs.76,500/= being housing allowance calculated at 15% of the monthly salary, total award Kshs.246,500/=
- 3.Interest on the salary and housing allowance at Court rates from date of Judgment to payment in full
- 4.Respondent to pay costs of the suit
- 5.Respondent to provide the Claimant with a certificate of service within 14 days from the date of the Judgment
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment disputes
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ayanna Yonemura v Liwa Kenya Trust [2014] KEELRC 151 (KLR)", Case Analysis (2014). Statement of Claim dated 25th April 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/151/eng@2014-07-18
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.