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ELRCPartially AllowedMombasa CMELRC No. E674 of 2021 (appeal therefrom)· [2025] KEELRC 2575 (KLR)

Riley Falcon Security Services Limited v Okwaro (Appeal E041 of 2025) [2025] KEELRC 2575 (KLR)

Employment and Labour Relations Court
25 September 2025
1,053 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court ruled that claims for unpaid overtime and underpayment must be filed within 12 months of leaving a job, setting aside an award to a former night guard.

What this practically means

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Executive summary

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This first-instance appellate judgment of the Employment and Labour Relations Court at Mombasa, delivered by M. Mbarũ J on 25 September 2025, allowed the employer's appeal against the decision of Hon. J. B. Kalo in Mombasa CMELRC No. E674 of 2021. The respondent had been employed as a night guard on annually renewed fixed-term contracts from March 2016 until termination by notice in March 2020, and claimed underpayments, overtime and unpaid leave covering 2016 to 2019. The magistrate had awarded overtime of Ksh. 564 and leave pay of Ksh. 30,383.39. On appeal, the court held that fixed-term contracts are lawful under section 10(3) of the Employment Act, that each contract creates a distinct employment relationship, and that claims for overtime, underpayments and similar benefits accruing daily, weekly or monthly are continuing injuries governed by section 90, which imposes a 12-month limitation period from cessation of employment. Claims dating back to 2016, 2017 and 2018 were therefore time-barred when the suit was filed in October 2021. The court further found, from pay slips, that overtime had been paid, and that accrued leave days were cashed in the final dues at Ksh. 9,989.60, a payment not challenged, noting that leave accumulation is capped at 18 months under section 28(4). The award of costs was also held unjustified. The court set aside the lower court judgment in its entirety and ordered each party to bear its own costs.

Key legal issues

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01

Limitation of overtime and underpayment claims

Holding

Overtime and underpayment claims are continuing injuries under section 90 and claims dating back to 2016-2018 were time-barred when the suit was filed in October 2021

Reasoning

The court applied section 90 of the Employment Act, citing authority that benefits accruing daily, weekly or monthly are continuing injuries attracting a 12-month limitation period from cessation. Each annual fixed-term contract was a distinct employment relationship, so claims predating October 2020 were time-barred.

p. 3
02

Leave pay

Holding

Accrued leave days were compensated in the final dues and any accumulation beyond 18 months is impermissible under section 28(4)

Reasoning

The final dues tabulation included accrued leave days cashed at Ksh.9,989.60, which payment was not challenged. Section 28(4) permits accumulation of leave only up to 18 months, so the magistrate's award of leave pay for 2018 and 2019 was not sustainable.

p. 3
03

Costs and interest

Holding

Employment claims do not attract costs and where justified reasons must be given; the magistrate's award was unjustified

Reasoning

The court reaffirmed that employment claims do not ordinarily attract costs and that where costs are awarded reasons must be stated. The learned magistrate did not give adequate reasons, so the award of costs could not stand.

p. 3

Legal principles established

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  • Claims for overtime, unpaid salary and other benefits accruing daily, weekly or monthly are continuing injuries that must be brought within 12 months under section 90 of the Employment Act
  • A fixed-term contract is lawful and each contract forms a distinct and separate employment relationship

Court orders

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  1. 1.Appeal allowed
  2. 2.Judgment in Mombasa CMELRC No. E674 of 2021 set aside in its entirety
  3. 3.Each party to bear its costs
On appeal from
Magistrates' Court (ELRC), Mombasa
CMELRC No. E674 of 2021
Jurisdiction invoked
First appellate jurisdiction over the magistrates' court (Employment and Labour Relations Court Act; appeal from CMELRC No. E674 of 2021)

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, "Riley Falcon Security Services Limited v Okwaro (Appeal E041 of 2025) [2025] KEELRC 2575 (KLR)", Case Analysis (2025). Mombasa CMELRC No. E674 of 2021 (appeal therefrom). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2575/eng@2025-09-25

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