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ELRCDismissedNot stated in the ruling· [2016] KEELRC 164 (KLR)

Godfrey Kimani Njenga v Athi River Mining Limited [2016] KEELRC 164 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
20 December 2016
MNMathews Nderi Nduma
300 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~1 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court confirmed that 'interest at court rates' on an award can be set at up to 14% per annum, and rejected a bid to lower it to 12%.

What this practically means

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Executive summary

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This short ruling of the Industrial Court at Nairobi, delivered by Mathews Nderi Nduma, Principal Judge, on 20th December 2016, determines an application concerning the rate of interest applicable to sums awarded in a judgment delivered by Nzioki wa Makau J. on 14th June 2013. That judgment awarded the claimant costs and interest on the sums awarded, with interest 'at court rates' running from the date of filing suit until payment in full. The applicant contended that, under Rule 28(3) of the Industrial Court Rules, 2010 read with section 27 of the Civil Procedure Act, the applicable interest was 12% per annum, amounting to Kshs.39,093, which the applicant had settled. The respondent, however, had tabulated interest at 14% per annum, amounting to Kshs.78,118.84, following guidance from the Deputy Registrar. The court considered section 27(2) of the Civil Procedure Act, which permits the Court or Judge to give interest on costs at any rate not exceeding fourteen per cent per annum, and held that interest at court rates is discretionary provided it does not exceed 14%. Since the original judgment specified no percentage, the Deputy Registrar's guidance of 14% was within the permissible range. The application was found to lack merit and was dismissed with costs.

Key legal issues

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01

The applicable rate of interest on an award where the judgment awards 'interest at court rates' without specifying a percentage

Holding

The applicant's claim that 12% per annum applied under Rule 28(3) of the Industrial Court Rules, 2010 read with section 27 of the Civil Procedure Act fails; interest at court rates is discretionary and may lawfully be levied at up to 14%, which the Deputy Registrar correctly did.

Reasoning

The court considered section 27(2) of the Civil Procedure Act, which empowers the Court or Judge to give interest on costs at any rate not exceeding fourteen per cent per annum. A plain reading shows that interest at court rates is discretionary, subject to the 14% ceiling. The original judgment fixed no percentage; the Deputy Registrar's guidance of 14% fell within the statutory maximum. The application therefore lacked merit and was dismissed with costs.

p. 2

Legal principles established

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  • Interest 'at court rates' is a matter of judicial discretion capped at fourteen per cent per annum under section 27(2) of the Civil Procedure Act
  • Where a judgment does not specify a percentage of interest, the Deputy Registrar may levy costs at 14%, being a rate permissible by law

Court orders

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  1. 1.The application is dismissed with costs
Jurisdiction invoked
Rule 28(3) of the Industrial Court Rules, 2010 as read with section 27 of the Civil Procedure Act (Cap 21)

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, "Godfrey Kimani Njenga v Athi River Mining Limited [2016] KEELRC 164 (KLR)", Case Analysis (2016). Not stated in the ruling. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/164/eng@2016-12-20

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