Mikisi & 55 others v Butali Sugar Mills Limited & another (Cause 10 of 2023) [2025] KEELRC 1672 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Substantial loss
Substantial loss may occur and the appeal rendered nugatory if stay is denied, since claimants did not demonstrate ability to refund the decretal sums.
The applicant deponed it would suffer substantial loss if over 50 claimants executed for the award. The claimants filed no affidavit of means showing they could refund the decretal sum should the appeal succeed. Once inability to refund was raised, the burden lay on the claimants to demonstrate their sources of income, which they failed to do.
Delay
Filing the application 21 days after judgment and the notice of appeal 14 days after judgment was not inordinate delay.
The judgment was delivered on 7th November 2024, the notice of appeal lodged 14 days later, and the application filed 21 days after judgment with no execution commenced in the interim. Stay only delays enjoyment of the judgment; delay is not denial.
Arguability of the appeal and security
The merits and competency of the intended appeal cannot be determined on a stay application; the applicant's willingness to furnish security supported the grant.
The claimants argued no memorandum of appeal was attached and the appeal lost. The court held the merits and competency of an intended Court of Appeal appeal can only be argued at the hearing of that appeal, not before it. The applicant offered to comply with any security conditions, and conditional security of Kshs500,000 was imposed.
Legal principles established
#- Substantial loss is the cornerstone of stay of execution; mere execution does not amount to substantial loss
- Once inability to refund the decretal sum is raised, the burden shifts to decree holders to demonstrate their financial ability to refund
- Stay orders delay rather than extinguish enjoyment of judgment; this court cannot determine the merits of an intended appeal
Court orders
#- 1.The application dated 28th November, 2024 is merited and is hereby allowed upon the applicant meeting the condition in (b) hereunder.
- 2.The applicant shall within 30 days of this ruling deposit a sum of Kshs500,000/= with the court as security.
- 3.In default of (b) above, the order for stay shall expire and lapse.
- 4.Costs of the application shall abide with the appeal.
- Jurisdiction invoked
- Sections 3, 17 & 20 of the Employment and Labour Relations Court Act; Rules 21(1), 44, 45, 47, 54 & 68 of the ELRC (Procedure) Rules, 2024; Order 42 Rule 6 of the Civil Procedure Rules, 2010
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Mikisi & 55 others v Butali Sugar Mills Limited & another (Cause 10 of 2023) [2025] KEELRC 1672 (KLR)", Case Analysis (2025). Notice of motion dated 28th November 2024 in ELRC cause at Kakamega (judgment of 7th November 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1672/eng@2025-06-05
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.