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ELRCPartially AllowedCause No. 286 of 2016 (Originally Kisii High Court Civil Case No. 17 of 2007)· [2022] KEELRC 1135 (KLR)

Alfred Oginga Igonyi & 66 others v Ogembo Tea Factory Ltd [2022] KEELRC 1135 (KLR)

Employment and Labour Relations Court
16 February 2022
837 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This ruling arises from a judgment delivered on 9 July 2019 in which the Court entered judgment for 67 Claimants against Ogembo Tea Factory Ltd and directed the parties to compute and file salary and allowances arrears for adoption. The parties failed to agree on the computations. The Respondent's Head of Legal and Regulatory Affairs forwarded computations totaling Kshs 18,672,257/- and requested settlement negotiations. The Claimants accepted the offer by letter dated 30 March 2020 and later filed an affidavit of acceptance on 20 April 2021. Over a series of mentions between May 2021 and November 2021, the Respondent repeatedly failed to file its own computations as directed, contended that negotiations had collapsed, and disclosed that it had filed an appeal before the Court of Appeal. The Court concluded that since the Respondent had made an offer which the Claimants accepted, and considering the Respondent's lack of keenness to resolve the long outstanding matter, the Respondent's computations accepted by the Claimants should be adopted as part of the judgment. The Court also censured the Respondent's conduct as indicating a party intent on delaying the effective resolution of a dispute that had ended in adverse orders against it. The Court entered judgment for the Claimants in the sum of Kshs 18,672,257/-, with interest at court rates from 30 March 2020, being the date the Claimants accepted the offer. Ondabu & Co. Advocates appeared for the Claimants and Nyachiro Nyagaka & Co. Advocates for the Respondent.

Key legal issues

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01

Binding effect of an accepted settlement offer

Holding

The Respondent's offer of Kshs 18,672,257/-, accepted by the Claimants, was adopted as part of the judgment

Reasoning

The Respondent had forwarded its computations totaling Kshs 18,672,257/- and requested settlement negotiations. The Claimants accepted the offer in writing on 30 March 2020 and filed an affidavit of acceptance on 20 April 2021. The Respondent, despite repeated opportunities to file its own computations and negotiate, failed to comply and showed conduct indicative of delay. The Court found the offer and acceptance sufficient to enter judgment on the accepted figure.

p. 4
02

Interest on the awarded sum

Holding

Interest at court rates was awarded from 30 March 2020, the date the offer was accepted

Reasoning

Having adopted the accepted offer as part of the judgment, the Court fixed the accrual of interest at the date of acceptance, treating that date as the point at which the sum became due to the Claimants.

p. 4
03

Respondent's conduct and delay

Holding

The Court censured the Respondent's dilatory conduct throughout the post-judgment mentions

Reasoning

The Respondent repeatedly failed to file its computations, claimed negotiations had collapsed, and filed an appeal, all after adverse orders had been made against it. The Court noted this conduct in justifying adoption of the accepted offer.

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Legal principles established

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  • Where a party makes an offer which the other party accepts, the accepted offer may be adopted as part of the judgment, particularly where the offeror has not been keen to have the matter resolved
  • Interest on an accepted offer adopted as judgment runs from the date of acceptance of the offer

Court orders

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  1. 1.The Respondent's computations (totaling Kshs 18,672,257/-) accepted by the Claimants are adopted as part of the judgment
  2. 2.Judgment entered for the Claimants in the sum of Kshs 18,672,257/-
  3. 3.The sum to attract interest at court rates from 30 March 2020, being the date the Claimants accepted the offer
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over the Cause (following its judgment of 9 July 2019); no constitutional/statutory article expressly cited

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, "Alfred Oginga Igonyi & 66 others v Ogembo Tea Factory Ltd [2022] KEELRC 1135 (KLR)", Case Analysis (2022). Cause No. 286 of 2016 (Originally Kisii High Court Civil Case No. 17 of 2007). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1135/eng@2022-02-16

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