Rosslyn Njoki Kamau v Emomentum Interactive Systems Limited [2018] KEELRC 1779 (KLR)
The bottom line
#A Kenyan employment court refused a company's request to pay a judgment debt in instalments because its own financial records showed it could afford to pay.
What this practically means
#Executive summary
#Key legal issues
#Whether the Respondent was entitled to stay of execution and payment by instalments
The application was dismissed because the Respondent had capacity to pay, its bona fides were wanting, and it offered no bank statements or cash flow analysis proving financial incapacity.
The court held that a debtor's mere hardship does not justify instalment payments; the applicant must demonstrate financial bona fides. Here the Respondent's own financial disclosures showed director allowances and emoluments exceeding the decretal sum of slightly over Kshs. 500,000/-. Expenses could be cut back to meet the decree. Allegations that the attached goods belonged to another party were unproved, with no objection proceedings taken.
Whether sanctions should issue against the Claimant and the auctioneer
Sanctions were refused as the claim of third-party ownership of the attached goods was a mere allegation.
The Respondent asserted the attached goods belonged to another party or were tools of trade, but produced no proof and took out no objection proceedings as the law requires. In the absence of a competing claim over the goods, there was no basis for sanctions against the Claimant or the auctioneer for levying execution.
Legal principles established
#- In deciding on payment of a decretal sum by instalments, the court considers the circumstances in which the debt was incurred and the financial bona fides of the debtor; mere hardship is not sufficient
- The discretion to order payment by instalments must be exercised judicially, and the onus is on the applicant to show entitlement to the indulgence
Court orders
#- 1.The Notice of Motion dated 23rd March 2018 is dismissed with costs to the Claimant
- 2.The Claimant is at liberty to execute the decree if the attached goods were not realized in satisfaction of the decree
- Jurisdiction invoked
- Not expressly stated; original employment and labour relations jurisdiction over a decree for stay of execution and payment by instalments under the Civil Procedure Code
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Rosslyn Njoki Kamau v Emomentum Interactive Systems Limited [2018] KEELRC 1779 (KLR)", Case Analysis (2018). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1779/eng@2018-05-03
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.