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ELRCDismissedNakuru C.M. E&LRC Cause Number E059 of 2023 (appeal therein)· [2025] KEELRC 328 (KLR)

Bedi Investments Limited v Boniface (Appeal E019 of 2024) [2025] KEELRC 328 (KLR)

Employment and Labour Relations Court
12 February 2025
JRJames Rika
551 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan employer lost its bid to stop execution of an employment award because an overdrawn bank letter alone doesn't prove substantial loss.

What this practically means

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Executive summary

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The Appellant, the judgment-debtor in Nakuru C.M. E&LRC Cause Number E059 of 2023, applied by notice dated 16th July 2024 for stay of execution of the judgment and decree of the trial court dated 6th March 2024, pending appeal. The application was supported by affidavits of the Appellant's Human Resource Officer, Peris Waithera, and followed the trial court's dismissal of a similar application in a ruling dated 10th July 2024, on the ground that the Appellant had failed to establish that it would suffer any loss if the decretal sum was paid. The Respondent replied through an affidavit sworn by his counsel, Nigel Ouma Mwallo, reiterating the trial court's finding. The Appellant relied on a letter from its bank, BOI, showing an overdrawn account, and asserted financial losses sustained during the Covid-19 pandemic. The parties agreed to have the application determined on affidavits and submissions. The court found nothing before it establishing substantial loss: a bank letter showing an overdrawn account was not evidence of substantial loss, no financial statements were exhibited, and the insolvency claim was alarmist and unsupported. Applying Century Oil Trading Company v Kenya Shell Limited, the court held that substantial loss is not the ordinary financial loss of paying a decree; the applicant must establish the Respondent's inability to refund the decretal amount if the appeal succeeds, which the Appellant did not do. The application was declined with no order on costs.

Key legal issues

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01

Whether the Appellant demonstrated substantial loss to warrant stay of execution pending appeal

Holding

The application was declined because the Appellant failed to establish substantial loss; the bank letter showing an overdrawn account was insufficient and assertions of insolvency were unsupported

Reasoning

The court held that an overdrawn bank account letter is not evidence of substantial loss. No financial statements, current or from the Covid-19 period, were exhibited, making the insolvency claim alarmist and unsupported. Citing Century Oil Trading Company v Kenya Shell, the court held both parties' positions must be considered. The Appellant also failed to show the Respondent would be unable to refund the decretal sum if the appeal succeeded, which is the proper test of substantial loss.

p. 2

Legal principles established

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  • Substantial loss is not the ordinary financial loss a judgment-debtor incurs in paying a decree; the applicant must establish the respondent's inability to refund the decretal amount if the appeal succeeds

Court orders

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  1. 1.The application filed by the Appellant dated 16th July 2024 is declined
  2. 2.No order on the costs
On appeal from
Trial Court (Nakuru C.M. E&LRC)
E059 of 2023
Jurisdiction invoked
Appellate jurisdiction over subordinate Employment and Labour Relations Court cause; application for stay of execution pending appeal

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, "Bedi Investments Limited v Boniface (Appeal E019 of 2024) [2025] KEELRC 328 (KLR)", Case Analysis (2025). Nakuru C.M. E&LRC Cause Number E059 of 2023 (appeal therein). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/328/eng@2025-02-12

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