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ELRCAllowedMilimani MCELRC No. E636 of 2020 (Motion dated 21st March 2024)· [2025] KEELRC 2694 (KLR)

Kimuyu & 5 others v Muthuvi (Appeal E071 of 2024) [2025] KEELRC 2694 (KLR)

Employment and Labour Relations Court (Appeals Division)
3 October 2025
AJABUODHA NELSON JORUM
584 words in judgment
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The bottom line

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Kenya's Employment Court stopped execution of a money judgment because the employer's SACCO loan deduction argument deserves a full hearing on appeal.

What this practically means

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Executive summary

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The appellants filed a Motion dated 21st March 2024 under Order 22 Rule 25 and Order 51 Rule 1 of the Civil Procedure Rules, Sections 1A, 1B and 3A of the Civil Procedure Act and Article 48 of the Constitution, seeking a stay of execution of the orders in Milimani MCELRC No. E636 of 2020 pending an intended appeal. The dispute arose from a judgment entered against the appellants by the trial court on 31st January 2023. The appellants subsequently sought review and/or setting aside of the judgment with a view to statutory deductions, notably deductions for outstanding SACCO loans from the decretal sum. By a ruling delivered on 26th February 2024, the Chief Magistrate's Court at Milimani found in favour of the respondent, taking the view that the SACCO deduction issue was not included in the judgment and amounted to an introduction of a counterclaim after delivery of the judgment, and therefore did not constitute a ground for review. Dissatisfied, the appellants filed a Memorandum of Appeal dated 14th March 2024 and moved the court for stay, contending that execution would render the appeal nugatory and that the respondent would suffer no prejudice. The respondent filed no replying affidavit. The court, per Abuodha Nelson Jorum, Presiding Judge-Appeals Division, held that the entitlement to deduct outstanding SACCO loans from the decretal sum was a valid and arguable point for the appeal, and granted the appellants an unconditional stay of execution pending the hearing and determination of the intended appeal, with costs to abide the outcome of the appeal.

Key legal issues

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01

Whether the SACCO deduction question was a valid ground of appeal warranting stay

Holding

Yes - the entitlement to deduct outstanding SACCO loan from the decretal sum is a valid and arguable point on appeal, justifying an unconditional stay of execution.

Reasoning

The trial court had declined review, holding that the SACCO deduction issue was not part of the judgment and amounted to a counterclaim introduced after judgment. The appellate court found the trial court's view discernible from the ruling and considered the SACCO deduction question a legitimate, arguable issue deserving consideration on appeal, so an unconditional stay was granted to preserve the appeal's utility.

p. 2

Legal principles established

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  • Where an issue raised for review was not part of the judgment, the trial court may properly treat it as an introduction of a counterclaim after judgment and not a ground for review.

Court orders

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  1. 1.Unconditional stay of execution of the orders in Milimani MCELRC No. E636 of 2020 pending the hearing and determination of the intended appeal
On appeal from
Chief Magistrate's Court at Milimani
MCELRC No. E636 of 2020
Jurisdiction invoked
Article 48 of the Constitution; Order 22 Rule 25 and Order 51 Rule 1 of the Civil Procedure Rules; Sections 1A, 1B and 3A of the Civil Procedure Act

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, "Kimuyu & 5 others v Muthuvi (Appeal E071 of 2024) [2025] KEELRC 2694 (KLR)", Case Analysis (2025). Milimani MCELRC No. E636 of 2020 (Motion dated 21st March 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2694/eng@2025-10-03

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