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ELRCPartially AllowedNot stated in the judgment· [2024] KEELRC 2466 (KLR)

Kenya Union Of Domestic, Hotels, Educational Institutions And Hospital Workers Union (KUDHEIHA) v Board of Management of Mombasa Hospital Association (Cause E011 of 2024) [2024] KEELRC 2466 (KLR)

Employment and Labour Relations Court
11 October 2024
2,200 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court awarded an 11% wage increase and house allowance but rejected a health-worker allowance for non-medical hospital staff.

What this practically means

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Executive summary

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The claimant, a registered trade union, and the respondent, a medical facility, operate under a Recognition Agreement with successive CBAs, the last effective 1 January 2021 to December 2022. Negotiations for a new CBA stalled over four items: general wage increment, house allowance, leave travelling allowance and risk/extraneous allowance. After conciliation failed, the dispute came to court. The claimant sought a 12% wage increase and 12% house allowance for 2023 and 2024, leave travelling allowance of Ksh.7,000, and risk/extraneous allowance of Ksh.8,000 per month citing an SRC circular of 14 September 2015, plus costs. The respondent, citing an operating deficit, macroeconomic hardship and its prior commitments, offered 11% on wage and house allowance and Ksh.7,000 on leave travel allowance, and maintained the risk/extraneous allowance was inapplicable to the claimant's cadre. The court held that CBA negotiations must address cost of living, sectoral productivity and ability to pay, and that increments are determined on the CPI and spread over the CBA term, applying Kenya Petroleum Oil Workers Union v Kenya Pipeline Company Limited. Preferring the respondent's simple rate computation over the claimant's compound rate approach, the court awarded a wage increase of 11% in each year, house allowance at 11%, and leave travelling allowance of Ksh.7,000 across all cadres. The risk/extraneous allowance claim failed: the SRC circular covered health workers, who are not synonymous with all workers in a health facility, and the respondent already provided safety and medical benefits. Each party was ordered to bear its own costs. Judgment delivered at Mombasa on 11 October 2024.

Key legal issues

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01

Applicable rate of wage and house allowance increments for CBA 2022/2023

Holding

Simple rate application of 11% in both years for wage increase and house allowance; the negotiations had converged at 11% and the respondent's simple rate computation was preferred over the claimant's compound rate

Reasoning

The court held CBA negotiations must be assessed on cost of living, sectoral productivity and ability to pay. The parties' positions had converged from 12% and 9% respectively to 11% each. The respondent's tabulated cost implications and simple rate computation were accepted; compound increments were not justified. Dues for the lapsed phase become arrears payable.

p. 5
02

Entitlement to risk/extraneous allowance of Ksh.8,000 based on the SRC circular of 14 September 2015

Holding

Claim declined; the circular applies to health workers, not to every employee in a health facility, and the claimant's members already enjoy safety and medical benefits

Reasoning

The court extracted the SRC circular and held that a health worker (nurse, doctor, pharmacist, dentist or health care professional) is different from any person working in a health facility. Expanding the circular's category to the claimant's members would negate its context. The respondent's safety committee, inspections, apparel, unlimited medical cover, uniforms and training sufficed as direct benefits.

p. 6
03

Leave travelling allowance

Holding

Awarded at Ksh.7,000 across the cadres, the position the parties had substantially agreed upon during negotiations

Reasoning

Both parties had converged on Ksh.7,000 in the January 2024 negotiations meeting; the court adopted that agreed figure across all cadres of the claimant members.

p. 5

Legal principles established

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  • CBA wage negotiations must address the minimum standard of living/cost of living index, sectoral productivity, and the employer's ability to pay
  • Wage increments under a CBA are determined on the CPI and spread over the period of the CBA to ensure equality over the term
  • The SRC circular on health worker allowances does not extend to all employees working in a health facility

Court orders

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  1. 1.Wage increase at the simple rate of 11% each year for the CBA 2022/2023
  2. 2.House allowance at 11% for 2022/2023
  3. 3.Leave travelling allowance of Ksh.7,000 across the cadres of the claimant members
  4. 4.Risk/extraneous allowance claim declined; claimant members secured through other direct benefits
  5. 5.Each party is to bear its own costs

Authorities

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Legislation

  • Employment ActSection 31
  • Occupational Safety and Health ActNot specified

Cases cited (1)

  • Kenya Petroleum Oil Workers Union v Kenya Pipeline Company Limited & 2 others
    [2018] eKLR
Jurisdiction invoked
First-instance reference of an unresolved trade dispute following conciliation before the Minister under the Labour Relations Act framework (not expressly 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, "Kenya Union Of Domestic, Hotels, Educational Institutions And Hospital Workers Union (KUDHEIHA) v Board of Management of Mombasa Hospital Association (Cause E011 of 2024) [2024] KEELRC 2466 (KLR)", Case Analysis (2024). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2466/eng@2024-10-11

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