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ELRCPartially AllowedNot stated in the judgment· [2024] KEELRC 2584 (KLR)

Mbukua v Water Services Trust Fund (Cause 1323 of 2017) [2024] KEELRC 2584 (KLR)

Employment and Labour Relations Court
24 October 2024
1,474 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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A Kenyan employer still owes an ex-employee over Kshs 1.1 million despite claiming to have fully settled a court-ordered payment.

What this practically means

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Executive summary

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This was an application for settlement of accounts arising from a judgment of the Employment and Labour Relations Court delivered by Hon. Justice Rika on 27th May, 2022, awarding the Claimant Kshs.5,280,000 plus costs and interest. Costs were taxed at Kshs.311,838.33. Disputes arose over partial payments, and after failed reconciliation efforts before the Deputy Registrar, the matter returned to Court, presided over by C. N. Baari, J, to determine whether the Respondent had fully settled the decretal sum and, if not, the outstanding balance. The Claimant contended the outstanding sum stood at Kshs.1,459,471.29, accounting for interest at 12% per annum on the judgment sum of Kshs.5,591,838.33 and post-judgment payments of Kshs.2,447,671 and Kshs.2,654,831.76. The Respondent, relying on a pre-judgment payment of Kshs.3,144,166.75 less statutory deductions and a further payment of Kshs.2,028,381.74, asserted it had cleared the debt. The Court held, consistently with Justice Rika's ruling of 19th April, 2023, that the pre-judgment payment was not deductible. It found the undisputed post-judgment payments totalled Kshs.4,476,052.74, leaving an outstanding balance of Kshs.1,115,785.56 exclusive of interest at 12% per annum, subject to statutory deductions. The Court declared the decretal sum unsatisfied to that extent. No costs order was made and no authorities were cited.

Key legal issues

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01

Whether the Respondent has fully settled the decretal sum

Holding

The Respondent has not fully settled the decretal sum; the outstanding amount is Kshs.1,115,785.56/- exclusive of interest, subject to statutory deductions.

Reasoning

The judgment sum was Kshs.5,280,000 plus taxed costs of Kshs.311,838.30, totalling Kshs.5,591,838.30 exclusive of interest at 12% per annum. It was not disputed that the Respondent paid Kshs.2,447,671 on 23rd December, 2022 and Kshs.2,028,381.74 on 2nd April, 2024, totalling Kshs.4,476,052.74. Deducting these payments from the decretal sum leaves a balance of Kshs.1,115,785.56. The pre-judgment payment of Kshs.2,129,000 (or Kshs.3,144,166.75 gross) was held non-deductible in the ruling of 19th April, 2023.

p. 4
02

Whether the pre-judgment payment was deductible from the decretal sum

Holding

Not deductible, as already determined by Justice Rika in the ruling of 19th April, 2023.

Reasoning

The Respondent asserted it had paid Kshs.3,144,166.75 less statutory deductions before judgment. Justice Rika had, in a ruling rendered on 19th April, 2023, held that the amount paid before judgment was not to be deducted from the judgment sum. The Court applied that ruling in computing the outstanding balance.

p. 3

Legal principles established

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  • A pre-judgment payment found not deductible from the award cannot be counted in settling the decretal sum; settlement of accounts is computed on the judgment sum plus taxed costs, with interest at 12% per annum.

Court orders

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  1. 1.A declaration that the Respondent has not fully settled the decretal sum
  2. 2.A finding that the outstanding amount due from the Respondent is Kshs.1,115,785.56/- exclusive of interest, subject to statutory deductions
Jurisdiction invoked
Original jurisdiction of the Employment and Labour Relations Court over settlement of accounts arising from a judgment of the same court (referenced judgment of Hon. Justice Rika of 27th May, 2022); no specific provision 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, "Mbukua v Water Services Trust Fund (Cause 1323 of 2017) [2024] KEELRC 2584 (KLR)", Case Analysis (2024). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2584/eng@2024-10-24

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