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ELRCPartially AllowedNot stated in the judgment· [2019] KEELRC 2323 (KLR)

Anthony Mbaabu Mugwika & 7 others v Ruiri Farmers Co-operative Society Limited [2019] KEELRC 2323 (KLR)

Employment and Labour Relations Court
6 February 2019
NMNzioki wa Makau
437 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 Kithima Coffee Farmers Co-operative Society to pay eight workers over Kshs 11 million in unpaid salaries dating back to 2001.

What this practically means

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Executive summary

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This was an undefended employment claim before the Employment and Labour Relations Court at Meru, decided by Nzioki wa Makau J on 6th February 2019. Eight employees of the Respondent society - the secretary manager, cashier, driver, two factory managers, a cherry recorder, a turn man and a night watchman - claimed unpaid salary arrears from 2001 to 2017 totalling Kshs. 11,528,664.50, together with general damages, interest and costs. They asserted diligent and loyal service with no disciplinary action against them. Anthony Mbaabu Mugwika testified on behalf of the Claimants. The Claimants relied on an Inspection Report of 16th January 2016 by Co-operative Auditors Zachary Njeru and Nicholas Kariuki, which revealed the society reeling in debt, owing Kshs. 28,072,286/- as at December 2016 in salary arrears to present and former staff, plus a surcharge of Kshs. 1,129,892/- owed to the Commissioner of Co-operatives; the auditors recommended a retirement scheme and sale of idle land to offset debts. The court found that the Claimants had proved on a balance of probabilities that they were owed salary arrears, held the Respondent liable to pay the sums shown in the audit report and the tabulation filed on 1st February 2019 (adopted as part of the judgment), and awarded the Claimants costs. General damages and interest were not addressed in the final orders, so the judgment is best classified as partially allowed.

Key legal issues

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01

Liability for unpaid salary arrears

Holding

The Respondent is liable to pay the salary arrears shown in the audit report and the tabulation filed in court

Reasoning

The claim proceeded undefended. The Claimants, current employees of the Respondent in various positions, relied on a Co-operative Auditors' Inspection Report of 16th January 2016 which recorded debts owed to current and former staff, and on their letters of appointment. The court found the claim proved on a balance of probabilities and adopted the tabulation filed on 1st February 2019 as part of the judgment.

p. 2
02

Entitlement to costs

Holding

The Claimants, having succeeded, are entitled to costs of the suit

Reasoning

The claim was undefended and the Claimants proved their case; costs followed the event.

p. 2

Legal principles established

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  • In an undefended cause, a claimant who proves salary arrears on a balance of probabilities is entitled to payment as itemised and supported by an audit report

Court orders

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  1. 1.The Respondent to pay the Claimants salary arrears as itemised in the tabulation filed on 1st February 2019, which shall form part of the Judgment of the Court
  2. 2.The Claimants awarded costs of the suit
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act (specific provision not 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, "Anthony Mbaabu Mugwika & 7 others v Ruiri Farmers Co-operative Society Limited [2019] KEELRC 2323 (KLR)", Case Analysis (2019). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2323/eng@2019-02-06

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