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ELRCDismissedNot stated in the judgment (Chamber Summons application dated 14th April 2025)· [2025] KEELRC 2194 (KLR)

Kemboy Law Advocates v Njonjo & 3 others (Miscellaneous Application E041 of 2024) [2025] KEELRC 2194 (KLR)

Employment and Labour Relations Court
24 July 2025
1,286 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~5 min to read original · ~4 min brief

The bottom line

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A Kenyan court refused to let a company pay a legal fees debt in instalments because it offered no evidence of hardship and hadn't paid anything.

What this practically means

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Executive summary

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This ruling by Linnet Ndolo J of the Employment and Labour Relations Court at Nairobi, delivered virtually on 24th July 2025, resolves a Chamber Summons application dated 14th April 2025. The Applicants, against whom a Certificate of Taxation had been adopted as a judgment of the Court on 2nd April 2025 (following a ruling of 20th February 2025 declining to set aside the taxation award), sought stay of execution of the decree and leave to settle the decretal sum in eight monthly instalments - seven of Kshs. 500,000 and a final instalment of Kshs. 999,779. The application was supported by an affidavit of Beatrice Maiyo, the 4th Applicant's Legal Manager, who deponed that auctioneers had proclaimed the company's tools of trade and that the company faced financial hardship threatening its operations and employees' jobs. The Advocate, Ruth Wainaina-Kemboy, opposed, arguing the application failed the Order 42 Rule 6 threshold and that no specific loss or evidence of inability to pay was demonstrated, alleging a business restructuring designed to defeat obligations. The court identified Order 21 Rule 12 as the true substratum of the application and adopted the established principles: circumstances of the debt, the debtor's conduct, financial position, and bona fides in offering a fair proportion at once. Finding the Applicants' claims of hardship unsupported by evidence, noting their history of resisting payment and failure to pay anything even after interim relief from Manani J, the court dismissed the application with costs to the Advocate and vacated the interim orders of 16th April 2025.

Key legal issues

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01

Threshold for payment of a decree by instalments under Order 21 Rule 12

Holding

The court applies the principles in Rajabali Alidina: circumstances of the debt, conduct of the debtor, financial position, and bona fides in offering a fair proportion at once; mere cash flow challenges are insufficient

Reasoning

The court adopted the four principles from Botanics Kenya Ltd and Rajabali Alidina, and the requirement from Freight Forwarders and Hildegard Ndalut that a debtor show bona fides and good faith. It found the 4th Applicant's averment of financial hardship unsupported by evidence, noted the debtor's history of resisting payment, and that no payment had been made even after interim relief, all inconsistent with the required good faith.

p. 3
02

Whether the Applicants demonstrated specific loss and good faith warranting stay of execution

Holding

No; the decretal sum was not contested, no appeal was declared, and the debtor made no payments, so stay and instalment orders were refused

Reasoning

The Advocate argued the threshold under Order 42 Rule 6 was unmet since the decretal sum was not contested and no intention to appeal was declared. The court found the Applicants' assertion of inability to pay unsupported by evidence and noted they resisted payment until their objection to taxation was overruled, conduct inconsistent with bona fides.

p. 3

Legal principles established

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  • A judgment debtor seeking payment by instalments must demonstrate inability to pay in a lump sum, offer reasonable instalments, act in utmost good faith and show bona fides by offering a fair proportion of the debt at once

Court orders

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  1. 1.The application dated 14th April 2025 is dismissed with costs to the Advocate
  2. 2.The interim orders granted on 16th April 2025 are vacated

Authorities

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Legislation

  • Civil Procedure RulesOrder 42 Rule 6
  • Civil Procedure RulesOrder 21 Rule 12(1) and (2)

Cases cited (5)

  • Botanics Kenya Ltd v Ensign Food (K) Ltd
    [2016] KEHC 5870 (KLR)
  • Rajabali Alidina v Remtulla Alidina & another
    [1961] EA 565
  • Freight Forwarders Ltd v Elsek & Elsek (K) Ltd
    [2012] eKLR
  • Hildegard Ndalut v Lelkina Diaries Ltd & another
    [2005] eKLR
  • Keshanji Jethabhai & Brothers Limited v Saleh Abdullah
    [1959] EA 260
Jurisdiction invoked
Inherent jurisdiction of the Court under Order 21 Rule 12 of the Civil Procedure Rules (application for payment of decree by instalments)

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, "Kemboy Law Advocates v Njonjo & 3 others (Miscellaneous Application E041 of 2024) [2025] KEELRC 2194 (KLR)", Case Analysis (2025). Not stated in the judgment (Chamber Summons application dated 14th April 2025). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2194/eng@2025-07-24

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