Egerton University v Musyoka (Employment and Labour Relations Appeal E001 of 2023) [2025] KEELRC 1851 (KLR)
The bottom line
#Kenya's Employment Court confirmed that employment awards can be taxed, and that 'review' cannot be used to smuggle in what should be an appeal.
What this practically means
#Executive summary
#Key legal issues
#Whether the double taxation issue raised in the Respondent's review application qualified as an error apparent on the face of the record or newly discovered matter
It did not; the review application did not establish a prima facie case for review and the trial magistrate erred in granting it, effectively sitting on appeal over her own ruling
The double taxation issue was already considered in the ruling of 6th July 2022, so it was neither new evidence nor a glaring self-evident error. The proper remedy against an allegedly erroneous ruling is an appeal. Allowing review on such grounds makes the magistrate sit in appeal on her own judgment, which is legally impermissible. The court therefore allowed the appeal and reinstated the 6th July 2022 ruling.
Whether the consent award of 24th February 2021 was subject to taxation
Yes; the consent award was subject to taxation under section 37 of the Income Tax Act and sections 19 and 49(2) of the Employment Act
The reinstated ruling of 6th July 2022 had upheld statutory deductions, citing section 37(1) of the Income Tax Act on lump sum payments read with section 19(1) of the Employment Act. The judgment reiterates that employers must deduct and account for tax on emoluments and that payments under section 49 of the Employment Act are subject to statutory deductions. Any claim of actual double taxation is for KRA or appeal, not review.
Legal principles established
#- A belief in an erroneous conclusion or a challenge to an allegedly erroneous ruling is a ground for appeal, not review; review has a limited scope
- An error apparent on the face of the record must be prima facie visible and not require elaborate argument or more than one opinion
Court orders
#- 1.The appeal dated 1st February 2023 is allowed and succeeds
- 2.The Ruling delivered on 30th November 2022 (not 9th December 2022) is set aside
- 3.Orders made finding that the consent award was subject to taxation
- 4.The ruling of 6th July 2022 is reinstated
- 5.Each party to meet their respective costs
- On appeal from
- Employment and Labour Relations Court (Principal Magistrate's Court)
- ruling dated 30th November 2022 in the Respondent's review application dated 8th September 2022
- Jurisdiction invoked
- First appeal under the Employment and Labour Relations Court (Procedure) Rules, 2016; review grounds under Rule 33(1) of those Rules and section 80 of the Civil Procedure Act / Order 45 Rule 1 of the Civil Procedure Rules
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Egerton University v Musyoka (Employment and Labour Relations Appeal E001 of 2023) [2025] KEELRC 1851 (KLR)", Case Analysis (2025). Appeal dated 1st February 2023 (Nakuru ELRC). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1851/eng@2025-06-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.