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ELRCStruck OutNot stated in the judgment· [2025] KEELRC 203 (KLR)

Amudala v African Bush and Beach Adventures & another (Cause E007 of 2024) [2025] KEELRC 203 (KLR)

Employment and Labour Relations Court
30 January 2025
MMM. Mbarũ
2,764 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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A Kenyan court struck out a multi-million shilling employment claim because the dispute between estranged spouses was really about company shares, not a job.

What this practically means

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Executive summary

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The claimant alleged that the 1st respondent company employed him as managing director from 1 February 2015 at an agreed salary of Ksh.200,000 per month, of which he received only Ksh.120,000, and that on 31 July 2023 the 2nd respondent, his estranged wife and co-director, verbally terminated his employment without notice, hearing or justification. He claimed wrongful termination, underpayments of Ksh.8,160,000, twelve months' compensation, notice pay, service pay, unpaid leave, public holiday pay, overtime, house allowance and a certificate of service, totalling several million shillings. The respondents denied any employment relationship, contending the relationship was strictly matrimonial and that the claimant ran his own business, Buddy's Bar & Restaurant; they called the company's actual manager, Alex Mokora Obare, and a driver who confirmed the claimant never worked for the company. The court framed three issues: whether an employment relationship existed, whether remedies should issue, and costs. It found that the claimant's own bank deposits showed no salary pattern, there was no signed contract, no PAYE or pay slips, and the marriage and shareholding explained the transactions. Relying on Abraham Gumba, the Barclays Bank and Velani authorities, the court held the dispute was a family/commercial shareholding matter to be pursued under the Articles of Association, not an employment claim. Without jurisdiction the court downed its tools and struck out the suit, with no orders on costs.

Key legal issues

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01

Whether an employment relationship existed between the claimant and the respondents

Holding

No employment relationship existed; the evidence demonstrated a domestic/family business relationship rather than employment

Reasoning

The claimant and 2nd respondent were spouses and became co-shareholders of the 1st respondent after a third party exited in 2019. Bank deposits were made by the claimant himself, with no pattern of salary payments of Ksh.120,000 or Ksh.200,000. There was no signed contract, no PAYE pattern, no pay slips. Mr. Obare was the manager from inception. The claim was a family dispute dressed as an employment case.

p. 5
02

Whether the court had jurisdiction to determine the claimant's shareholding stake

Holding

The claimant's grievance relates to his shareholding and is a commercial dispute outside the ELRC's jurisdiction; the suit was struck out

Reasoning

Within the shareholding, the claimant's stake can be quantified but only in a commercial claim, not in employment and labour relations proceedings. The typical scenario was a family dispute escalated as an employment case. Without jurisdiction the court must down its tools and strike out the suit.

p. 6

Legal principles established

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  • An employment relationship is a special relationship distinct from commercial or family business arrangements; where shareholders dispute their stake, recourse lies in the company's Articles of Association, not in employment law
  • A court without jurisdiction must down its tools notwithstanding the merits of the claim

Court orders

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  1. 1.The suit is struck out
  2. 2.No orders on costs

Authorities

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Legislation

  • Employment ActSection 45
  • Employment ActSections 18(4) and (5)

Cases cited (3)

  • Abraham Gumba v Kenya Medical Supplies Authority
    [2014] eKLR
  • Barclays Bank of Kenya Ltd & Africa Group (S.A) Ltd v Gladys Muthoni & 20 others
    [2018] KECA 718 (KLR)
  • Velani & 6 others v Naran & 2 others
    [2021] KEHC 75 (KLR)
Jurisdiction invoked
Jurisdiction of the Employment and Labour Relations Court under employment and labour relations; the court held it was ousted because the dispute is commercial

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, "Amudala v African Bush and Beach Adventures & another (Cause E007 of 2024) [2025] KEELRC 203 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/203/eng@2025-01-30

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