Bacchus Grocers Limited v Karisa (Appeal E112 of 2024) [2025] KEELRC 2569 (KLR)
The bottom line
#A Kenyan employer lost its bid to pay a court award in instalments because it issued bad cheques and failed to show good faith.
What this practically means
#Executive summary
#Key legal issues
#Whether the decretal sum is subject to statutory deductions
Yes - the award is subject to mandatory statutory deductions under section 49(2) of the Employment Act, and the appellant should issue the respondent with a P9 Form for KRA returns reflecting the deductions.
The court held that section 49(2) of the Employment Act is a mandatory provision requiring that any payments made under it be subject to statutory deductions. The awards were issued on 30 January 2025, and before any payment to the employee, statutory deductions must be made. The respondent has a legitimate expectation of receiving a P9 Form detailing the deductions remitted.
Whether the appellant should be permitted to pay the decretal sum in instalments with a stay of execution
No - the application was refused because the appellant lacked good faith, reneged on the offer, and issued bad cheques.
Applying Kamanga v Venus Inn & another [2024] KEELRC 404 (KLR), the court held that a judgment debtor seeking instalment payments must show sincerity and bona fides by proposing fair payment arrangements. The appellant reneged on the offer to pay in instalments once it had forestalled execution, and the cheques issued were returned as bad or contained errors. The required good faith was absent.
Legal principles established
#- Decretal sums under awards of the Employment and Labour Relations Court are subject to mandatory statutory deductions under section 49(2) of the Employment Act.
- An applicant seeking leave to pay a decretal sum in instalments must demonstrate good faith and bona fides by proposing fair payment arrangements.
Court orders
#- 1.The application dated 7 May 2025 (referred to in the ruling as dated 5 May 2025) is dismissed
- 2.The decretal sum is due in full, less statutory deductions
- 3.Costs awarded to the respondent
- Jurisdiction invoked
- Court's supervisory and execution jurisdiction over its decree under the Employment Act and applicable civil procedure provisions (not expressly cited in the ruling)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Bacchus Grocers Limited v Karisa (Appeal E112 of 2024) [2025] KEELRC 2569 (KLR)", Case Analysis (2025). Appeal No E112 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2569/eng@2025-09-25
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.