Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCAllowedNotice of Motion application dated 25/9/2024 (statement of claim filed 4th November 2022)· [2025] KEELRC 869 (KLR)

Bunde v Edu Plus Africa Limited & 2 others (Cause E691 of 2022) [2025] KEELRC 869 (KLR)

Employment and Labour Relations Court
13 March 2025
1,109 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~4 min to read original · ~4 min brief

The bottom line

#

Kenya's Employment Court allowed a former CEO to add a director and a linked company as parties after bank records showed money was moved out of the employer.

What this practically means

#

Executive summary

#
This was a ruling on a Notice of Motion dated 25/9/2024 in an employment dispute before the Employment and Labour Relations Court at Nairobi, in which the Claimant sought leave to join Humphrey Kasembeli Muchuma as 2nd Respondent and Inua AI Solutions Limited as 3rd Respondent and to amend her statement of claim accordingly. The Claimant, a Director/CEO of the Respondent company, alleged that the proposed 2nd Respondent closed the Respondent's Kenya Shillings and Dollar accounts at NCBA Bank, diverted withdrawn funds to the proposed 3rd Respondent, transferred all the Respondent's employees to it, used the Respondent's domain and email addresses to register the new entity's accounts, and is its sole director/shareholder - conduct she characterized as fraudulent and intended to defeat the suit by rendering the Respondent a shell, exposing her salary arrears claim of Kshs. 13,141,140.00 to being unenforceable. The Respondent opposed, arguing the proposed parties were neither necessary nor proper, that a company is a separate legal entity, that the application rested on unsubstantiated fraud allegations duplicating a commercial suit in the High Court (HCCOMC E290 of 2022), and that it was an abuse of process. Matheus Nduma, Judge, applied the joinder principles in Zephin Holdings and Joseph Njiru Kingonri (per Nambuye J.) under Order 1 Rule 10(2). Finding the bank statements insufficiently traversed, the court was satisfied on a balance of probability that the movement of substantial funds made the proposed parties necessary. The application was allowed with leave to amend; costs in the cause.

Key legal issues

#
01

Joinder of necessary parties under Order 1 Rule 10(2) of the Civil Procedure Rules

Holding

The proposed 2nd and 3rd Respondents are necessary parties because the balance of probability shows movement of substantial funds from the Respondent to the proposed 3rd Respondent at the behest of the proposed 2nd Respondent, who is alleged to be transferring employees and assets to defeat the suit

Reasoning

The court applied the two cited authorities setting out the tests for joinder: whether the party is necessary or proper, whether relief flows from them, whether the decree would be enforceable without them and whether their presence enables complete adjudication. The Claimant's supporting affidavit, including NCBA Bank statements obtained by letter dated 17/9/2024 in her capacity as Director/CEO, was not sufficiently traversed by the Respondent. On a balance of probability the alleged movement of funds and transfer of employees and domain accounts made the proposed parties necessary.

p. 3

Legal principles established

#
  • A proper party is one impleaded in the suit whose presence is necessary or relevant for the determination of the real matter in dispute or to enable the court effectively and completely adjudicate upon and settle all questions in the suit
  • Movement of substantial money from a Respondent at the behest of a proposed party to a proposed third entity, insufficiently traversed, makes those proposed parties necessary parties under Order 1 Rule 10(2)

Court orders

#
  1. 1.The Claimant/Applicant is granted leave to amend the amended statement of claim and include Humphrey Kasembeli Muchuma and Inua AI Solutions Limited as the 2nd and 3rd Respondents as prayed
  2. 2.Costs in the cause

Authorities

#

Legislation

  • Civil Procedure RulesOrder 1 Rule 1
  • Civil Procedure RulesOrder 1 Rule 2
  • Civil Procedure RulesOrder 1 Rule 10(2)

Cases cited (2)

  • Zephin Holdings Ltd versus Mimosa Plantation Ltd, Jeremiah Mezlagaro and Ezekiel Misango Mutisya
    [2014] eKLR
  • Joseph Njiru Kingonri versus Robert Maina Chege and 3 others
    [2022] eKLR; Eldoret Civil Case No. 136 of 2000
Jurisdiction invoked
Employment and Labour Relations Court original jurisdiction under the Employment and Labour Relations Court Act; joinder sought under Order 1 Rules 1, 2 and 10(2) of the Civil Procedure Rules

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Bunde v Edu Plus Africa Limited & 2 others (Cause E691 of 2022) [2025] KEELRC 869 (KLR)", Case Analysis (2025). Notice of Motion application dated 25/9/2024 (statement of claim filed 4th November 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/869/eng@2025-03-13

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