Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedCause Number 1722 of 2011· [2014] KEELRC 716 (KLR)

David Mwangi Gioko & 43 others v Nairobi City Water And Sewerage Company [2014] KEELRC 716 (KLR)

Industrial Court of Kenya
28 January 2014
1,437 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

#

Nairobi Water must pay 42 former workers court-awarded benefits within 21 days, but a Kshs.45 million CBA arrears claim failed for lack of union involvement.

What this practically means

#

Executive summary

#
This is a Further Award of the Industrial Court at Nairobi in Cause Number 1722 of 2011, following the Court's Award of 22nd March 2013 in an unfair and unlawful termination dispute between 44-odd claimants and Nairobi City Water and Sewerage Company. The first Award had ordered compensation of five months' gross salary and specified terminal benefits (golden handshake, four months' basic salary per remaining five years, one month in lieu of notice and baggage allowance) for undisputed claimants, and directed the Nairobi Provincial Labour Officer to investigate the bona fides of disputed claimants and any salary arrears. The Labour Officer filed a report dated 25th September 2013, upon which both parties submitted. The Court rectified the record to show 44 Claimants, noting untidy and shifting numbers by the Claimants' advocates, including the erroneous inclusion of a claimant who had withdrawn. Of three disputed claimants, Samuel Muiruri Nyururu (contractual terms) and Jacinta Wanjiku Njagi (properly retired at 55 before the 2009 extension to 60) failed; Lucy Njoki Chege succeeded because the Respondent varied her contract by a retirement notice. The Court declined the claim for Kshs.45,242,786.30 in CBA salary arrears, holding it lacked a proper basis in law or fact since the union that negotiated the CBA was not party and its officials did not testify, but without prejudice to a fresh claim. The 42 successful claimants were awarded the first Award's entitlements less Kshs.4,229,425 already paid, payable within 21 days, failing which execution to proceed. There was no order on costs.

Key legal issues

#
01

Bona fides of disputed Claimants

Holding

Nyururu and Njagi are not bona fide Claimants; Chege's claim is upheld because the Respondent varied her retirement by notice

Reasoning

Nyururu accepted a 3-year contract later extended by 16 months, confining his entitlements to that contract. Njagi attained 55 years in 2008, before the 2009 extension of retirement age to 60, so she was properly retired. Chege also turned 55 in 2008 but was not retired; the Respondent varied her contract by a retirement notice dated 16th January 2009, retiring her on 31st December 2009, so her claim was upheld.

p. 4
02

Arrears of salaries and allowances under the CBA

Holding

Claim declined; the Labour Office's proposed figure was not accepted and the claim is separable, to be pursued with the Trade Union

Reasoning

The Labour Office found arrears of Kshs.40,319,871.60, but the Court held it was not persuaded this was the best approach: the CBA was negotiated by a union not party to the claim, its officials did not testify, the figure included arrears owed to non-parties, and the Respondent's explanations were half-hearted. The Court found it had no proper basis in law or fact to order payment, but declined the claim without prejudice to a fresh claim.

p. 4
03

Rectification of the record on the number of Claimants

Holding

The record was corrected to show 44 Claimants after accounting for withdrawals and duplicated names

Reasoning

Originally 64 Claimants; 18 withdrew on 6th November 2012 leaving 46; two names (Christine Kimwele and Ramjus Othieno) were duplicated, reducing the number to 44. The Court also noted an erroneous inclusion of A. Wairigi Wamburi, a withdrawn claimant, in the Claimants' schedule, which raised the number to 45 and only served to delay settlement.

p. 2

Legal principles established

#
  • Where an employee accepts contractual terms of employment, terminal benefits if any must be claimed under that contract
  • Claims founded on a CBA negotiated by a non-party trade union whose officials have not testified cannot be sustained without sufficient material

Court orders

#
  1. 1.The Record is rectified to show there are 44 Claimants
  2. 2.The Claims by Samuel Muiruri Nyururu and Jacinta Wanjiku Njagi are dis-allowed
  3. 3.The Claim for arrears of salaries and allowance of Kshs.45,242,786.30 is declined, without prejudice to a fresh claim ideally with participation of the Trade Union
  4. 4.The 42 successful Claimants shall be paid the items indicated in paragraphs (b) and (c) of the first Award, less Kshs.4,229,425 already paid and acknowledged
  5. 5.The Respondent shall pay this amount within 21 days of delivery of the further Award, in default execution to proceed
  6. 6.No order on the costs
Jurisdiction invoked
Jurisdiction as the Industrial Court over the employment dispute (Issue in Dispute: Unfair and Unlawful Termination), further to the Court's Award dated 22nd March 2013

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "David Mwangi Gioko & 43 others v Nairobi City Water And Sewerage Company [2014] KEELRC 716 (KLR)", Case Analysis (2014). Cause Number 1722 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/716/eng@2014-01-28

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