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ELRCPartially AllowedCause No E055 of 2022· [2023] KEELRC 425 (KLR)

Akrim v Mobile Consultations Africa Ltd (Cause E055 of 2022) [2023] KEELRC 425 (KLR)

Employment and Labour Relations Court
17 February 2023
2,434 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court ruled it cannot hear rent arrears claims in employment cases unless the tenancy is clearly linked to the job.

What this practically means

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Executive summary

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The respondent (employer) filed a notice of motion dated June 30, 2022 seeking to strike out paragraphs 7 and 20(d) and prayers b(iv) and (c) of the claimant's memorandum of claim for want of jurisdiction, and to strike out paragraph 13 of the memorandum of claim and paragraph 5 of the claimant's witness statement as libellous, scandalous, vexatious and an abuse of process. The respondent argued that rent/tenancy disputes belong to the Environment and Land Court or the Business Premises Rent Tribunal, and shareholding disputes to the High Court. The claimant countered that the tenancy arose from the employment relationship under section 12(1)(a) of the Employment and Labour Relations Court Act, that the shareholding was not in dispute, and that the impugned passages were admissible under section 55 of the Evidence Act. The court found that the claimant had not demonstrated the tenancy was directly related to the employment, and struck out the rent arrears claim for want of jurisdiction, relying on the principle that jurisdiction is everything. It declined to strike out paragraph 13 and the witness statement paragraph as premature, reserving the question for the conclusion of the suit, and declined to address shareholding as it was not raised in the claim. Prayer (c) relating to shareholding was struck out. Costs were awarded in the cause.

Key legal issues

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01

Jurisdiction over tenancy/rent arrears claim within an employment suit

Holding

The court lacks jurisdiction over the rent arrears claim because the tenancy was not demonstrated to be directly related to the employment relationship

Reasoning

The claimant relied on section 12(1)(a) of the Employment and Labour Relations Court Act arguing the premises were used by the respondent by virtue of the employment relationship. The court found the claimant had not demonstrated that the tenancy was connected to or arose from employment, noting tenancies are often entered into without any employment nexus. The matters of tenancy payment therefore fall outside the court's jurisdiction under the Act.

p. 5
02

Whether impugned paragraphs are scandalous, vexatious and an abuse of process

Holding

Application to strike out paragraph 13 and witness statement paragraph 5 refused as premature; the court will determine the matter at the conclusion of the suit

Reasoning

The court held that no prejudice would be caused if the case proceeded to full hearing and evidence was adduced. There was insufficient evidence to conclude the impugned passages were an abuse of process, and it was premature to rule at that interlocutory stage. The court reserved final determination on the allegations until the conclusion of the suit.

p. 5
03

Shareholding and co-founder title

Holding

The court declined to address shareholding as it was not raised in the claim and is not in dispute

Reasoning

The claimant himself admitted he was not asking the court to determine the shareholding question, which the parties had handled between themselves through a proposed vesting agreement. Since the issue was not raised in the claim, the court would not address it, and prayer (c) relating to shareholding was struck out.

p. 5

Legal principles established

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  • A court's jurisdiction flows from the constitution or legislation and cannot exceed what is conferred by law
  • Jurisdiction is a threshold question best taken at inception and must be addressed promptly once it arises
  • Jurisdiction is everything; a court without jurisdiction must drop the case

Court orders

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  1. 1.Paragraphs 7 and 20(d) of the memorandum of claim and prayers b(iv) struck out for want of jurisdiction over the rent/tenancy claim
  2. 2.Prayer (c) of the memorandum of claim relating to shareholding struck out as it is not in dispute
  3. 3.Prayer 2 of the application (striking out paragraph 13 of the memorandum of claim and paragraph 5 of the witness statement as scandalous/vexatious) not granted
  4. 4.Costs in the cause

Authorities

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Legislation

  • Employment and Labour Relations Court ActSection 12 (section 12(1)(a) of the Employment and Labour Relations Act referenced)
  • Employment and Labour Relations ActSection 12(1)(a)
  • Environment and Land Court ActNot specified
  • Business Premises Rent Tribunal ActNot specified
  • Evidence ActSection 55
  • Civil Procedure RulesOrder 2 rule 15(1); Order 21 Rule 1
  • Constitution of KenyaArticles 41, 48, 159(2)(d)

Cases cited (5)

  • Samuel Kamau Macharia & Another vs Kenya Commercial Bank Limited & 2 Others
    (2012) eKLR
  • Mpaka Road Development Co Ltd vs Abdul Gafur Kana t/a Anil Kapuri Pan Coffee house
    (2001) eKLR / 2004 1 EA 161
  • United States International University (USIU) vs The Attorney General
    Petition no 170 of (2012) eKLR
  • Kenya Power Lighting Company Ltd vs Balozi Kenga
    (2019) eKLR
  • Kakuta Maimai Hamisi vs Peris Pesi Tobiko & 2 Others
    (2013) eKLR
Jurisdiction invoked
Sections 12(1)(a) and 55 of the Employment and Labour Relations Court Act / Employment and Labour Relations Act; Order 2 rule 15(1) Civil Procedure Rules for striking out pleadings

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, "Akrim v Mobile Consultations Africa Ltd (Cause E055 of 2022) [2023] KEELRC 425 (KLR)", Case Analysis (2023). Cause No E055 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/425/eng@2023-02-17

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