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ELRCPartially AllowedCause No. 16 of 2016· [2018] KEELRC 946 (KLR)

Kenya Union of Commercial, Food & Allied Workers v Nyanas Water & Sanitation Co. Ltd & 3 others [2018] KEELRC 946 (KLR)

Employment and Labour Relations Court
9 October 2018
2,609 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ordered four water-sector entities to equally share over Kshs. 4 million in unpaid salaries, holding that restructuring and devolution made them all responsible.

What this practically means

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Executive summary

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The claimant union filed a Memorandum of Claim dated 9th February 2016 on behalf of 14 employees alleging refusal to pay salaries for 17 months and failure to remit Ukulima Sacco, pension scheme and union dues. The 2nd respondent (Kisumu Water & Sanitation Co. Ltd) and 4th respondent (County Government of Kisumu) denied liability, the 2nd respondent asserting it was not the employer and that devolution had realigned staff to the counties, and the 4th respondent contending no cause of action was disclosed. The 1st and 3rd respondents filed no responses. The court framed three issues: whether the claimant had a tangible case on unpaid salaries and dues; who was responsible for payment; and costs. Relying on the documented history of unpaid salaries, unremitted deductions, unfulfilled promises by the 2nd respondent, and the intertwined relationship among the respondents arising from the devolution of water services and the restructuring of the 1st respondent, the court found the claim plausible. It discounted the 2nd and 4th respondents' defences as mere denials, held the 1st respondent primarily liable as employer but found all respondents bound, and apportioned liability at parity in equal shares. The court awarded salary arrears of over Kshs. 4 million and union dues of Kshs. 252,000.00, payable within thirty days, with interest at court rates from the date of judgment, and ordered the respondents to bear the costs of the claim.

Key legal issues

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01

Whether the claimant proved unpaid salaries and other dues against the respondents

Holding

The court found the claim plausible, holding the 1st respondent primarily liable as employer but all respondents intertwined and liable, and discounted the 2nd and 4th respondents' defences as mere denials.

Reasoning

The court accepted the claimant's elucidation of the linkage between the respondents arising from the devolution of water services and the restructuring of the 1st respondent. Although the 1st respondent bears primal responsibility as employer, the 2nd and 4th respondents' pleadings amounted to bare denials without substantive answer to the documented unpaid salaries and unremitted dues, and so were unmerited.

p. 4
02

Who is responsible for payment of the dues

Holding

All respondents were held liable at parity, in equal shares.

Reasoning

The court found the respondents so intertwined that the matter bound all of them in one way or the other. The 1st respondent, as employer, takes primal responsibility, but the 2nd respondent had made unfulfilled promises to pay and the devolution of water services drew the county government and the water companies into responsibility for the obligations, justifying joint but equal-share liability.

p. 4
03

The 4th respondent's submission that no reasonable cause of action was established

Holding

The authority on reasonable cause of action was noted but the court did not strike out the claim; instead it found the claim plausible against all respondents.

Reasoning

The 4th respondent relied on authorities defining a reasonable cause of action as one with some chances of success, contending none was established against it. The court acknowledged the submission ('So far, so good for her case') but, on the evidence, found the claim plausible and the respondents liable, effectively rejecting the no-cause-of-action defence.

p. 4

Legal principles established

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  • Where respondents are intertwined in relation to employment liabilities, liability may be apportioned equally among them.

Court orders

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  1. 1.Payment of salary arrears amounting to over Kshs. 4 million for the period of seventeen months
  2. 2.Payment of union dues amounting to Kshs. 252,000.00
  3. 3.The respondents be and are hereby awarded liability at parity, in equal shares
  4. 4.The respondents to meet and pay all dues within thirty (30) days of the judgment
  5. 5.The claimant is awarded interest at court rates from the date of the judgment
  6. 6.The costs of the claim shall be borne by the respondents

Authorities

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Legislation

  • Water Actsections 53 and 5 (now repealed)
  • Employment Actsection 2 (definition of employer)
  • Constitution of Kenya, 2010devolution of water provision services to counties

Cases cited (2)

  • Time Magazine International Ltd and another vs. Michael F Rotich and another
    (2002) eKLR
  • Cresent Construction Co. Ltd Vs Delphis Bank Ltd
    (2007) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under Article 162(2) of the Constitution (implied; not expressly cited in the judgment)

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, "Kenya Union of Commercial, Food & Allied Workers v Nyanas Water & Sanitation Co. Ltd & 3 others [2018] KEELRC 946 (KLR)", Case Analysis (2018). Cause No. 16 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/946/eng@2018-10-09

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