Kagwamba v Biozeq Kenya Limited (Employment and Labour Relations Cause E195 of 2023) [2025] KEELRC 65 (KLR)
The bottom line
#A Kenyan employment court refused to let a sacked employee sue his employer's directors directly, but allowed him to update his claim against the company.
What this practically means
#Executive summary
#Key legal issues
#Setting aside the ex-parte orders of 28th February 2024
Refused; no plausible reasons advanced for setting aside the orders striking out the 2nd, 3rd and 4th Respondents
The Court applied the Shah v Mbogo principles on discretionary relief. In allowing the striking-out application, the Court had noted that no orders were sought against the 2nd to 4th Respondents and that the dispute was between the Claimant and the 1st Respondent, his employer. The claim of financial collapse and directors evading responsibility did not warrant disturbing the order given the Salomon principle.
Whether directors can be joined in an employment suit against the company
No; the company is a separate legal entity and allegations of financial collapse do not justify joining directors
Relying on Salomon v Salomon and Victor Mabachi v Nurturn Bates, the Court held that a company is a juristic person distinct from its directors. If a claimant establishes at execution stage that directors acted to frustrate a decree, legal mechanisms exist to hold them liable; those are not grounds for joinder at trial.
Leave to amend the Statement of Claim
Granted; amendments relevant to the core unfair-termination dispute and permissible before final judgment
Rule 34 of the ELRC (Procedure) Rules 2024 permits amendment subject to leave and corresponding leave to the other side. Applying the Aquiline Agencies principles, the Court found the proposed amendments relevant to the real issues, made in good faith, and within the timeframe allowed since the matter was yet to proceed to hearing.
Legal principles established
#- The discretion to set aside ex-parte orders is exercised to avoid injustice from accident, inadvertence or excusable mistake, not to assist deliberate obstruction or delay
- A company is a separate legal entity distinct from its shareholders, directors and agents unless factors warrant lifting of the veil exist
- Amendments to pleadings are permissible at any stage before final judgment and should generally be allowed if made in good faith, provided costs can compensate the other side
Court orders
#- 1.The Claimant/Applicant is granted leave to amend his Statement of Claim with necessary modifications referencing the 2nd, 3rd and 4th Respondents
- 2.The amended Statement of Claim to be filed and served upon the Respondent within 7 days from the date of the Ruling
- 3.The Respondent is granted corresponding leave to amend, file and serve its Response to the amended Statement of Claim within 14 days from the date of service with the amended Statement of Claim
- 4.The costs of the Application shall abide the outcome of the main suit
- 5.Refusal to set aside the orders of 28th February 2024 striking out the 2nd, 3rd and 4th Respondents
- Jurisdiction invoked
- Employment and Labour Relations Court (Procedure) Rules 2024, Rule 34; Employment and Labour Relations Court jurisdiction over employment disputes
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Bulimo v Maf Carrefour Retail Limited Kenya (Employment and Labour Relations Cause E541 of 2022) [2025] KEELRC 2469 (KLR)[2025] KEELRC 2469 (KLR)18 Sept 2025
Cite this brief
#Cite this brief
Caselaw, "Kagwamba v Biozeq Kenya Limited (Employment and Labour Relations Cause E195 of 2023) [2025] KEELRC 65 (KLR)", Case Analysis (2025). Application dated 18th September 2024 (Claimant's application) in an employment claim. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/65/eng@2025-01-17
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.