Union of National Research Institute Staff of Kenya [UNIRISK] v Kenya Marine and Fisheries Research Institute [KMFRI] [2019] KEELRC 130 (KLR)
The bottom line
#Kenya's Employment Court awarded a 41.5% pay increase to KMFRI staff based on inflation evidence, rejecting the union's exaggerated 120% demand for lacking proof.
What this practically means
#Executive summary
#Key legal issues
#General wage increase
CPI-based increase of 41.5% (10.4% p.a.) spread over 4 years awarded in place of the Union's 120% demand
The Claimant demanded 120% over 4 years, which would add Kshs. 456 million to the wage bill. The CPMU report showed healthy financial performance and CPI of 41.5% over the reference period. The Court adopted the CPI rate as a rational, evidence-based measure, balancing employee interests against the Respondent's capacity.
Basic salary
The Respondent ordered to adjust its pay structure to meet statutory minimum wage rates; specific Union figures rejected for lack of evidence
The lowest salary of Kshs. 9,660 was below the statutory minimum wage of Kshs. 12,926 under the General (Amendment) Order 2017. However, the Union provided no economic analysis justifying its demanded figures of Kshs. 19,320 minimum and other adjustments, so the Court declined to endorse numbers plucked out of thin air.
Leave Traveling Allowance
Uniform Kshs. 6,500 across the board from RI-1 to RI-14 granted
The Respondent paid a flat rate of Kshs. 4,000. The CPMU confirmed employees travel from and to different corners of the country while on leave, and a journey such as Mombasa to Busia may cost more than Kshs. 4,000. The Court fixed Kshs. 6,500 across all grades rather than the tiered demands of the Union.
Commuter Allowance
Awarded on a graded scale from Kshs. 4,000 (RI-1 to 4) to Kshs. 17,000 (RI-14)
The CPMU observed that employees in lower job grades received less favourable commuter allowances than those in higher grades. The Court awarded a revised scale from Kshs. 4,000 for RI-1 to 4 up to Kshs. 17,000 for RI-14, addressing the disparity while staying within the evidential material.
Effective date and unionisable grades
Effective date is 1st July 2014, ending 30th June 2018, satisfied in arrears; RI-15 demands struck out
The effective date should naturally be 1st July 2014, the start of the CBA cycle. The two-year cycle was overtaken by change in the law, so the judgment covers up to 30th June 2018 and is satisfied in arrears. The Union is only authorised under the Recognition Agreement up to RI-14.
Legal principles established
#- A court will not endorse wage figures lacking evidential or economic justification; it must not engage in a tinkering exercise crafting a new pay structure without supporting data
- Where an employer's lowest salary falls below the statutory minimum wage, the pay structure must be adjusted to meet the current statutory minimum wage rates
- Consumer Price Index can serve as a rational basis for a general wage increase over a CBA period
Court orders
#- 1.Final Judgment is entered in favor of the Claimant
- 2.General Wage Increase allowed at the CPI rate of 41.5%, (at 10.4% per annum), spread over 4 years
- 3.The Respondent shall adjust its salary structure in order to meet the current statutory minimum wage rates, as stated in the General (Amendment) Order
- 4.Leave Traveling Allowance granted across the board from RI-1 to RI-14 at Kshs. 6,500
- 5.Commuter Allowance awarded as detailed at paragraph 26(a) to (h) of the Judgment
- 6.Effective date shall be 1st July 2014, ending 30th June 2018, with the Judgment to be satisfied in full, in arrears
- 7.No order on the costs
- Jurisdiction invoked
- Original jurisdiction of the Employment and Labour Relations Court over a collective bargaining dispute referred under the Labour Relations Act; interim judgment of 22nd March 2019 referred parties to SRC advice, with final determination reserved to the Court
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Union of National Research Institute Staff of Kenya [UNIRISK] v Kenya Marine and Fisheries Research Institute [KMFRI] [2019] KEELRC 130 (KLR)", Case Analysis (2019). Cause No. 186 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/130/eng@2019-12-13
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.