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ELRCPartially AllowedNot stated in extract

Kowido v Speed Capital Limited (Cause 2460 of 2016) [2025] KEELRC 1417 (KLR)

Employment and Labour Relations Court
16 May 2025
790 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~3 min to read original · ~4 min brief

The bottom line

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A Kenyan employment court refused to lift orders making company directors personally liable for a debt, even though their lawyer missed the hearing by mistake.

What this practically means

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Executive summary

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By a Motion dated 18th December 2024, the applicant (a judgment debtor company) sought a stay of execution of orders issued on 28th November 2024 and consequential orders, including an order that the Registrar compute the proper interest payable to allow it to settle the decretal sum. The background was a judgment delivered on 25th October 2019 which was never appealed. Execution attempts failed, leading to an application dated 13th October 2022 seeking examination of the respondent's directors; that application was allowed by Mbaru J on 16th February 2023, with the named directors to attend for cross-examination and, in default, to be held personally liable for the decretal sum of Kshs. 653,125/-. The directors never appeared. When the matter came up on 28th November 2024, only counsel for the decree-holder was present, the date having been taken in the presence of both parties, and the court ordered the directors personally liable and that execution issue against them. The applicant sought setting aside on the ground that its counsel mis-diarized the date. The court held that although a party should not be punished for the advocate's fault, no purpose would be served by setting aside orders that merely echoed Mbaru J's unappealed ruling and were the inevitable eventuality of the applicant's default. The court declined to set aside the orders, allowed prayer 6 directing the parties to liaise with the Deputy Registrar to compute interest on the decretal sum for payment, scheduled mention for 30th June 2025 for compliance, and ordered that no execution proceed in the interim.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the orders of 28th November 2024, made in the absence of the applicant's counsel who mis-diarized the date, should be set aside
  2. 2.Whether the Registrar should compute the interest payable on the decretal sum to enable settlement

Key legal issues

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01

Whether ex parte orders made on a date taken in the presence of both parties should be set aside where counsel mis-diarized the date

Holding

The orders were not set aside; they merely echoed an earlier unappealed ruling of Mbaru J and were the inevitable consequence of the applicant's continued default.

Reasoning

Judgment was delivered in 2019 and never appealed. Execution proved difficult, prompting a 2022 application allowed by Mbaru J directing directors to attend for cross-examination and, in default, be held personally liable. The directors never appeared. The date of 28th November 2024 was taken in the presence of both parties. Setting aside orders that were the inevitable eventuality of the earlier ruling would serve no purpose.

p. 2
02

Computation of interest on the decretal sum

Holding

Prayer 6 allowed; the parties to liaise with the Deputy Registrar to compute interest for purposes of payment.

Reasoning

The applicant did not challenge the legality of the orders but sought computation of the proper interest payable to allow the respondent to settle the decretal sum. The court found this prayer unopposed and reasonable, and directed computation of interest on the decretal sum for payment purposes.

p. 2

Legal principles established

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  • A party should not be punished for the fault of their advocate, but setting aside ex parte orders is discretionary and depends on the history and circumstances of the matter.

Court orders

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  1. 1.The Court will not set aside the orders of 28th November 2024
  2. 2.Prayer 6 of the Motion allowed - parties to liaise with the Deputy Registrar and compute the interest on the decretal sum for purposes of payment
  3. 3.Matter scheduled for mention on 30th June 2025 for compliance and further directions
  4. 4.No execution to proceed in the interim

The bench

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One judgment of the whole court — no separate or dissenting opinions.

Wrote the judgment

Jurisdiction invoked
Inherent powers of the Court to set aside ex parte orders and regulate its process (provision not stated in extract)

Relief refused

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Stay of execution / setting aside of the orders of 28th November 2024

The orders merely echoed the ruling of Mbaru J of 16th February 2023; the respondent never appealed and the directors never appeared for cross-examination; no purpose would be served by setting aside orders made in the absence of counsel who mis-diarized the date.

p. 2

Costs

No costs order recorded in the judgment.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

In the circumstances the Court will not set aside the orders of 28th November, 2024 but will allow prayer 6 of the Motion and direct that the parties herein liaise with Deputy Registrar of the Court and compute the interest on the decretal sum for purposes of payment of the amount due as prayed by the applicant.
p. 2Disposition - refusal to set aside; computation of interest
For avoidance of doubt, no execution to proceed in the interim.
p. 2Interim stay of execution
the Court ordered the named directors personally liable for the debts of the respondent and that execution do issue against them personally
p. 2Effect of the orders of 28th November 2024

Issues in the judgment

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minor

The judgment does not state the names of the parties or the case number; identification is by roles only.

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, "Kowido v Speed Capital Limited (Cause 2460 of 2016) [2025] KEELRC 1417 (KLR)", Case Analysis (2025). Not stated in extract. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1417/eng@2025-05-16

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