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ELRCPartially AllowedELRC Cause (Nairobi) - Notice of Motion dated 10th July, 2024 and Notice of Motion dated 28th February, 2025· [2025] KEELRC 2702 (KLR)

Kyalo v DT Dobie & Company (Kenya) Limited & 2 others (Cause E507 of 2024) [2025] KEELRC 2702 (KLR)

Employment and Labour Relations Court
3 October 2025
3,462 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court allowed a sacked executive to sue a French parent company by email for allegedly engineering his dismissal, and refused to pause the case.

What this practically means

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Executive summary

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The Employment and Labour Relations Court at Nairobi, per Agnes Kitiku Nzei J, determined two competing applications in an employment dispute. The Claimant, formerly General Manager – Passenger Car Sales until his termination on 9th May, 2024, sought leave to serve summons ex-juris on the 3rd Respondent, CFAO SAS, a French parent company, alleging the tort of inducing breach of his employment contract. The Claimant alleged he uncovered a bribery scheme relating to Government vehicle leasing tenders, reported it 'up the ladder', and was then terminated at the 3rd Respondent's instigation. The 1st and 2nd Respondents opposed, arguing the ELRC lacked jurisdiction over the foreign third party with whom the Claimant had no employment relationship. The Court applied the ingredients of the tort of inducing breach of contract (from OBG v Allan, Lumley v Gye and Joseph Ochieng v First National Bank of Chicago) and held a probable cause of action was disclosed; relying on Paramount Bank Ltd v Vaqvi Syed Qamara, it held the ELRC has jurisdiction over disputes arising out of employment, including such tortious claims. Leave to serve by email was granted, with appearance required within 21 days. The Court refused the 1st and 2nd Respondents' application to stay proceedings pending their appeal (Civil Appeal No. E141 of 2025) against the Ruling of 31st January, 2025, holding they had shown no prejudice and that the appeal would not be rendered nugatory, and that they were improperly litigating for the unserved foreign company. Both applications' costs were made costs in the suit. Note: the judgment document is marked DRAFT.

Key legal issues

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01

Whether the tort of inducing breach of an employment contract discloses a cause of action against a foreign parent company

Holding

The Claimant demonstrated a probable cause of action against the 3rd Respondent; the tort's essential ingredients were satisfied on the material placed before the Court

Reasoning

The court applied the classic ingredients of the tort from Lumley v Gye via OBG v Allan and Joseph Ochieng v First National Bank of Chicago: knowledge of the contract, intentional interference, breach directly attributable to the interference, and damage. The supporting affidavit alleged the 3rd Respondent's Managing Director instructed the 2nd Respondent to terminate the Claimant, and documents supporting inducement were unchallenged.

p. 4
02

Whether the ELRC has jurisdiction over the inducement claim against the 3rd Respondent

Holding

The ELRC can hear disputes arising out of employment, including tortious claims connected to the employment relationship; a party need not be in an employment relationship with the claimant to be sued where the dispute arises out of employment

Reasoning

Relying on Paramount Bank Ltd v Vaqvi Syed Qamara, the court held that the ELRC hears and determines all disputes relating to and arising out of employment and labour relations and may grant any appropriate relief. Employment contracts are contracts, so doctrines applicable to contracts generally apply to them. Jurisdiction is, however, assumed over the 3rd Respondent only upon ex-juris service.

p. 5
03

Whether proceedings should be stayed pending the appeal against the Ruling of 31st January, 2025

Holding

Stay refused; the applicants showed no prejudice and no nugatory-appeal risk, and were effectively litigating for an unserved foreign third party

Reasoning

The court noted no two cases are identical and that cited authorities are for guidance. The preliminary objection dismissed on 31st January, 2025 concerned the 3rd Respondent, not the applicants, who cannot validly litigate on its behalf. Without demonstrated prejudice or risk that the appeal would be rendered nugatory, the grave judicial action of staying proceedings was not warranted.

p. 7

Legal principles established

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  • Leave to serve summons outside jurisdiction is the mechanism by which a court assumes jurisdiction over a foreign defendant; jurisdiction is assumed only upon service
  • A person who procures another to breach a contract incurs liability as an accessory, and such a tort may ground a claim connected to employment contracts

Court orders

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  1. 1.Leave granted to the Claimant to effect service of summons and/or Notice of Summons outside Kenya upon the Third Respondent by Electronic Mail to rbielle@cfao.com and thirata@cfao.com
  2. 2.The Third Respondent shall enter appearance within 21 days of service
  3. 3.Costs of the Claimant's application shall be in the suit
  4. 4.The Notice of Motion dated 28th February, 2025 (stay of proceedings) is dismissed
  5. 5.Costs of the stay application shall be in the suit
Jurisdiction invoked
Article 162(2) of the Constitution of Kenya and Section 12 of the Employment and Labour Relations Court Act, 2012

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, "Kyalo v DT Dobie & Company (Kenya) Limited & 2 others (Cause E507 of 2024) [2025] KEELRC 2702 (KLR)", Case Analysis (2025). ELRC Cause (Nairobi) - Notice of Motion dated 10th July, 2024 and Notice of Motion dated 28th February, 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2702/eng@2025-10-03

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