Iloti & 14 others (Acting on their behalf and behalf of the Dock Workers Union of Kenya) v Sang & another; Dock Workers Union of Kenya (Interested Party) (Cause E025 of 2025) [2025] KEELRC 1971 (KLR)
The bottom line
#A Mombasa court froze the Dock Workers Union's funds amid allegations of missing accounts and Ksh 52 million in unexplained loans, protecting trustees who sued.
What this practically means
#Executive summary
#Key legal issues
#Compliance with Rule 7 of the ELRC (Procedure) Rules, 2024
The claim complied with Rule 7(3); the preliminary objection on defectiveness failed
The court verified that the claim filed on 13 March 2025 was accompanied by a Verifying Affidavit of all claimants, a List of Witnesses, and supporting affidavit, satisfying the mandatory requirements of Rule 7(3). The claimants were represented by advocates, and the motions of Rule 7 were met.
Authority of suspended officials and ordinary members to sustain the claim
The claimants, having enjoined the union as an interested party under the Court Rules, have liberty to urge their case; the merits cannot be resolved at the interim stage
The court noted the claimants' membership is undisputed, the 2nd and 3rd claimants are registered officials, and the 1st, 4th and 5th are trustees in whom union property vests under section 37 of the LRA. Trustees' concerns over union property must be addressed firmly within the law, so the suit cannot be struck out at the interlocutory stage.
Limitation under section 35(6) of the LRA
The time-bar objection did not justify striking out the claim at this stage
The court held that the issues in dispute include suspension, misappropriation of union funds, violation of the union constitution and failure to audit accounts. Severing the claim against the 2nd respondent from the other issues would create unnecessary multiplicity of suits. The 2nd respondent did not attend or respond to urge its case.
Whether conservatory orders should issue
Conservatory orders granted restraining the 1st respondent from using union funds or taking loans, subject to approval of necessary expenses by the 2nd and 3rd claimants
Guided by Munya v Kithinji and Okoiti v Portside, the court found the claimants raised allegations of breach of articles 10 and 47 (fair hearing and fair administrative action) and had an arguable case that could be rendered nugatory. The public interest and protection of union property vested in trustees favoured granting the orders, with the main claim to be heard on priority.
Legal principles established
#- Conservatory orders are granted on the inherent merit of the case, considering public interest, constitutional values, proportionality and priority levels, not the private-law tests for injunctions
- A prima facie case in civil matters is one where, on the material presented, a tribunal properly directing itself concludes a right has been infringed so as to call for an explanation or rebuttal
- All property of a registered trade union vests in its trustees for the use and benefit of the union and its members
- A statement of claim must be accompanied by a verifying affidavit, list of witnesses, witness statement and a list of documents relied upon
Court orders
#- 1.Pending the hearing and determination of the claim, a conservatory order restraining the 1st respondent from using any funds of the interested party Union, including taking additional loans, except necessary expenses approved by the 2nd and 3rd claimants (Sulman Owuor and Kibibi Oeri, assistant general secretary and national treasurer)
- 2.The main claim to be heard on a priority basis
- 3.Costs to abide by the outcome of the claim
- 4.Pleadings to be served on the 2nd respondent to allow 14 days' right of response
- 5.Hearing directions to issue
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Labour Relations Act and the Employment and Labour Relations Court (Procedure) Rules, 2024; allegations grounded on articles 10 and 47 of the Constitution, 2010
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Iloti & 14 others (Acting on their behalf and behalf of the Dock Workers Union of Kenya) v Sang & another; Dock Workers Union of Kenya (Interested Party) (Cause E025 of 2025) [2025] KEELRC 1971 (KLR)", Case Analysis (2025). ELRC Cause at Mombasa (Memorandum of Claim filed 13 March 2025; Notice of Motion dated 13 March 2025). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1971/eng@2025-07-03
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.