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ELRCDismissedNot stated in the judgment (Claim filed 22 January 2024)· [2025] KEELRC 1302 (KLR)

Banking Insurance & Finance Union v Elimu Sacco Society Ltd (Cause E054 of 2024) [2025] KEELRC 1302 (KLR)

Employment and Labour Relations Court
8 May 2025
1,208 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court dismissed a union's emergency motions because it asked for relief it never actually claimed in its main case, and awarded the Sacco costs.

What this practically means

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Executive summary

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The Banking Insurance & Finance Union sued Elimu Sacco Society Ltd on 22 January 2024 over refusal to deduct and remit union dues for 13 unionisable employees, seeking a declaration, an order for deduction and remittance by crossed cheque per Gazette Notice No. 516 of 13 January 2009, and costs. The court dealt with three interlocutory Motions. The Motion dated 19 January 2024 sought deduction and remittance of dues; the court found it overtaken by events because the Respondent had commenced deductions, save for two employees (one in management and one whose contract had lapsed), and the Union conceded dues had been paid apart from two members. The Motions dated 13 May 2024 and 22 May 2024 sought declarations that grievants (Duncan Ochola Andiego; Sarah Nafula Wanjala and Rael Wabwire) be deemed regular employees under section 37 of the Employment Act, or alternatively declarations of unlawful termination. The court held these Motions incompetent: no unfair termination action was pleaded in the Memorandum of Claim and no amendment had been filed when the Motions were lodged; the orders were in vacuo. On the fixed-term contracts, the court found from the Union's own letters that the contracts lapsed on expiry and whether non-renewal amounted to unfair termination could not be decided at the interlocutory stage. The court dismissed all three Motions and awarded costs to the Respondent. The main claim and a later amendment application were unaffected by this ruling.

Key legal issues

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01

Competence of a Motion seeking relief not pleaded in the Memorandum of Claim

Holding

A Motion seeking declaratory orders for unfair termination where no such claim is pleaded is incompetent and is dismissed

Reasoning

The Union's Memorandum of Claim concerned union dues only. The Motions of 13 May and 22 May 2024 sought declarations that grievants be deemed regular employees and compensation for unfair termination. The court held these orders were in vacuo since the claim pleaded no unfair termination action or reinstatement prayer, and the Memorandum had not been amended when the Motions were filed.

p. 3
02

Whether non-renewal of fixed-term contracts can found interim relief

Holding

It cannot be determined at the interlocutory stage whether non-renewal of fixed-term contracts amounts to unfair termination

Reasoning

Letters dated 13 and 14 May 2024 showed the grievants' fixed-term contracts would not be renewed on expiry. The court found the contracts lapsed on their own terms and declined to decide the fairness of non-renewal at an interlocutory stage, especially where the termination was unpleaded.

p. 3
03

Status of the union dues Motion dated 19 January 2024

Holding

The Motion was overtaken by events as the Respondent had commenced deductions except for two employees

Reasoning

The Union conceded during the session that the Respondent had paid outstanding union dues save for two members (one in management and another whose contract had lapsed). The Respondent confirmed commencement of deductions in its submissions, rendering the Motion moot.

p. 2

Legal principles established

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  • Interlocutory relief cannot be granted where the underlying cause of action is not pleaded in the Memorandum of Claim

Court orders

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  1. 1.The Motions dated 19 January 2024, 13 May 2024 and 22 May 2024 are dismissed
  2. 2.The Respondent is awarded costs
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over the claim and interlocutory motions (not expressly cited in the judgment)

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, "Banking Insurance & Finance Union v Elimu Sacco Society Ltd (Cause E054 of 2024) [2025] KEELRC 1302 (KLR)", Case Analysis (2025). Not stated in the judgment (Claim filed 22 January 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1302/eng@2025-05-08

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