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ELRCPartially AllowedStatement of claim dated 12th March 2024 (ELRC, Nyeri)· [2025] KEELRC 228 (KLR)

Munyi v S.A Manyatta Secondary School (Employment and Labour Relations Cause E010 of 2024) [2025] KEELRC 228 (KLR)

Employment and Labour Relations Court
4 February 2025
OMOnesmus N Makau
1,834 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ordered a school board to pay a former secretary Kshs.164,577 for underpayment and unpaid house allowance, but rejected her gratuity claim.

What this practically means

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Executive summary

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The claimant, a secretary employed by the respondent School Board of Management on 20th May 2010 at a basic salary of Kshs.4,700 later increased to Kshs.11,500, resigned in January 2022 after about 11 years and 7 months of service. She sued for gratuity, house allowance, salary underpayment and a certificate of service, quantified at approximately Kshs.318,305.72. The respondent denied liability, asserting she was not a civil servant, that the applicable Wage Order was that of 2018 (not 2022), and that she was paid all her dues. The claimant testified that she was neither housed nor paid house allowance and that her salary fell below the statutory minimum; the respondent's principal admitted both that no house allowance was paid and that the school follows government circulars. The court framed a single issue: whether the claimant was entitled to the dues sought. It held that no employer, including a School Board, may contract below statutory minimum terms under the Employment Act, the Labour Institutions Act and the applicable Wage Order. It awarded house allowance of Kshs.75,466.62 (15% of the minimum basic salary for 3 years) and salary underpayment of Kshs.89,110.80. However, the gratuity claim failed because gratuity is contractual, her appointment letter was silent, and no exhibit substantiated the circular-based claim. Judgment was entered for Kshs.164,577.42, with costs at lower court rates, subject to statutory deductions.

Key legal issues

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01

Entitlement to house allowance

Holding

The claimant was entitled to house allowance since she was neither housed nor paid any allowance; awarded 15% of the minimum basic salary for 3 years (Kshs.75,466.62)

Reasoning

RW1 admitted the claimant was neither housed nor paid house allowance. Section 31 of the Employment Act imposes a mandatory duty on employers to provide reasonable housing or a sufficient allowance. The claimant's limited claim of 3 years at 15% of the basic salary was computed using the 2018 Wage Order minimum of Kshs.13,975.30, which the court adopted as binding.

p. 4
02

Entitlement to service gratuity

Holding

Claim for gratuity declined as it was not anchored in the contract of employment and was not substantiated

Reasoning

Gratuity is a contractual entitlement; the claimant's appointment letter made no provision for it. The circulars she relied on did not apply to School Board employees, and none of her exhibits concerned gratuity for Board employees. The claim was therefore unsubstantiated and declined.

p. 4
03

Underpayment of salary

Holding

The claimant was underpaid by Kshs.2,475.30 per month against the 2018 Wage Order minimum; awarded Kshs.89,110.80 for 3 years

Reasoning

There was no dispute that the claimant earned Kshs.11,500 while the 2018 Wage Order prescribed a minimum of Kshs.13,975.30. Relying on sections 3, 7 and 26 of the Employment Act and section 48(1) of the Labour Institutions Act, the court held minimum wages constitute terms of the contract, and awarded the 3-year shortfall limited to the period claimed.

p. 4

Legal principles established

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  • No employer, including a School Board of Management, may employ any person under a contract of service below the minimum terms and conditions prescribed by the Employment Act, the Labour Institutions Act and the Wages Order
  • A right to gratuity must be anchored in the contract of employment as opposed to service pay which is anchored on section 35 (5) of the Employment Act
  • Section 31 of the Employment Act mandatorily requires an employer to provide reasonable housing or pay sufficient house allowance

Court orders

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  1. 1.Judgment entered for the claimant against the respondent: salary underpayment of Kshs.89,110.80 and house allowance of Kshs.75,466.62, totalling Kshs.164,577.42
  2. 2.Costs awarded to the claimant at the Lower court rates because of the quantum of damages awarded
  3. 3.The award is subject to statutory deductions
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and related labour statutes

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, "Munyi v S.A Manyatta Secondary School (Employment and Labour Relations Cause E010 of 2024) [2025] KEELRC 228 (KLR)", Case Analysis (2025). Statement of claim dated 12th March 2024 (ELRC, Nyeri). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/228/eng@2025-02-04

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