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ELRCDismissedCause No E276 of 2024· [2025] KEELRC 1549 (KLR)

Nyabwala v Elevate HR Limited (Cause E276 of 2024) [2025] KEELRC 1549 (KLR)

Employment and Labour Relations Court
29 May 2025
822 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~3 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court confirmed it can hear an employer's counterclaim arising from the same job relationship, and struck out the worker's objection with costs.

What this practically means

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Executive summary

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The Claimant sued Elevate HR Limited; a Notice of Motion by Impact Africa Network challenging its joinder was allowed by consent on 23rd January 2025, leaving Elevate HR Limited as sole Respondent. The Respondent filed a counterclaim seeking, among other things, satisfactory narratives and proof for uncategorised payments of Kshs. 617,812, recovery of those amounts, payment of personal advances totalling Kshs. 826,408.12, interest from 30th January 2024, recovery from monies held in lien, and costs. The Claimant filed a Notice of Preliminary Objection dated 11th March 2025 contending that the Court lacked jurisdiction to entertain the counterclaim because it did not raise an employment-related dispute. In written submissions, the Respondent relied on the Mukisa Biscuit definition of a preliminary objection as a pure point of law. The Court, per Linnet Ndolo J, held that the objection rested on a mistaken belief that the Court could hear the employee's claim but not the employer's complaints arising from the same relationship. Anchoring jurisdiction in Article 162(2)(a) of the Constitution and Section 12(1)(a) of the Employment and Labour Relations Court Act, and applying Abraham Nyambane Atsiago v Barclays Bank of Kenya, the Court held that a counterclaim flowing directly from the employment relationship falls squarely within its jurisdiction, and that parties submitting to the Court must take the case as a whole rather than split it into fragments. The preliminary objection was overruled with costs to the Respondent.

Key legal issues

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Jurisdiction of the ELRC over an employer's counterclaim arising from the employment relationship

Holding

The preliminary objection was overruled; the counterclaim flows directly from the employment relationship and falls squarely within the Court's jurisdiction under Article 162(2)(a) and Section 12(1)(a) of the ELRC Act.

Reasoning

The Court noted the claimant's apparent belief that while the Court can entertain his claim, it cannot entertain the employer's complaints arising from the same employment relationship. Relying on the Court's prior decision in Abraham Nyambane Atsiago v Barclays Bank of Kenya, it held that the employment relationship generates a multiplicity of rights and obligations, all falling under employment and labour relations, and that splitting a case into fragments across different courts could not have been the legislative intention.

p. 3
02

Validity of the preliminary objection as a pure point of law

Holding

The Court found no legal basis for the proposition advanced by the Claimant and rejected the objection.

Reasoning

The Claimant argued that the counterclaim did not raise an employment-related dispute. The Respondent relied on the Mukisa Biscuit definition of a preliminary objection as a pure point of law argued on assumed facts. The Court held that the Claimant's objection rested on a mistaken belief about the scope of the Court's jurisdiction and was ill advised.

p. 2

Legal principles established

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  • A counterclaim flowing directly from the employment relationship falls within the exclusive jurisdiction of the Employment and Labour Relations Court; a party who submits to the Court's jurisdiction cannot insist on splitting the case.

Court orders

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  1. 1.The Claimant's Preliminary Objection dated 11th March 2025 is overruled with costs to the Respondent

Authorities

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Legislation

  • Constitution of KenyaArticle 162(2)(a)
  • Employment and Labour Relations Court ActSection 12(1)(a)

Cases cited (2)

  • Mukisa Biscuit v West End Distributors Ltd
    (1969) EA, 696
  • Abraham Nyambane Atsiago v Barclays Bank of Kenya
    [2013] eKLR
Jurisdiction invoked
Article 162(2)(a) of the Constitution and Section 12(1)(a) of the Employment and Labour Relations Court Act

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, "Nyabwala v Elevate HR Limited (Cause E276 of 2024) [2025] KEELRC 1549 (KLR)", Case Analysis (2025). Cause No E276 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1549/eng@2025-05-29

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