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ELRCPartially AllowedCause No E600 of 2025· [2025] KEELRC 2712 (KLR)

Mbogo v Amitruck Limited (Cause E600 of 2025) [2025] KEELRC 2712 (KLR)

Employment and Labour Relations Court
3 October 2025
1,699 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Employment Court confirmed it can freeze assets in employment disputes, but only ordered the employer to deposit the admitted Kshs 176,269.70 owed.

What this practically means

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Executive summary

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This is a ruling on a Notice of Motion dated 25th June 2025 by the Claimant, Tuzline Mbogo, in an employment dispute against her former employer following a redundancy. She sought orders for production of financial documents, audited financial statements, management accounts and registers of assets and securities, and in the alternative, that the Respondent deposit Kshs. 4,226,269.70 in a joint interest-earning account, essentially a Mareva-type protective order. The Claimant averred that the Respondent had declared all employees redundant, was closing its Kenyan business, had paid everyone except her, and threatened to frustrate execution. The Respondent filed Grounds of Opposition contending the court lacked jurisdiction to grant the orders, that they were unspecific, and premature absent a substantive judgment. The court identified two issues: jurisdiction and merit. On jurisdiction, it rejected the Respondent's argument, founded on Chovondo v Ultimate Engineering Ltd, that Mareva injunctions fall outside Section 12(3) of the ELRC Act, holding that the provision expressly empowers the court to grant interim preservation orders and the operative question is whether the dispute arises from employment relations. On merit, the court declined the Mareva injunction: the application identified no specific assets or accounts and lacked particularised evidence of dissipation risk. However, applying Rule 68(3) of the ELRC (Procedure) Rules, 2024, and noting the Respondent's admitted debt of Kshs. 176,269 and uncontroverted evidence that only the Claimant was unpaid, the court ordered the Respondent to deposit Kshs. 176,269.70 into a joint interest-earning account within thirty days. The motion succeeded in part; costs were in the cause.

Key legal issues

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01

Jurisdiction of the ELRC to grant Mareva-type interim relief

Holding

The Court has jurisdiction; Section 12(3) of the ELRC Act empowers it to grant interim preservation orders including injunctions where the dispute arises out of employment or labour relations.

Reasoning

The Respondent argued Mareva injunctions fall outside Section 12(3) of the ELRC Act and are traditionally High Court remedies under Order 39 Rules 5 and 6 CPR, relying on Chovondo v Ultimate Engineering Ltd. The court rejected this, holding Section 12(3) does not limit the form of injunctive relief; the operative question is whether the dispute arises from employment relations, which this termination-benefits dispute plainly does.

p. 3
02

Whether the threshold for a Mareva injunction was met

Holding

No. The application was overly broad, identified no specific assets or bank accounts, and lacked evidence of a real risk of dissipation.

Reasoning

Order 39 Rule 5(2) requires an applicant to specify the property to be attached and its estimated value because freezing orders operate harshly on respondents. The claimant sought a blanket freezing order against any assets or monies in NCBA, KCB or any bank, without affidavit evidence showing monies held in the named banks or particular assets susceptible to attachment; averments on removal of assets were general and speculative.

p. 3
03

Whether protective security by way of deposit should issue under Rule 68(3) ELRC (Procedure) Rules, 2024

Holding

Yes, but limited to Kshs. 176,269.70, the admitted balance of redundancy pay, to be deposited in a joint interest-earning account within 30 days.

Reasoning

The Respondent filed only Grounds of Opposition raising legal objections without rebutting the claimant's factual assertions. The demand letter from the Respondent's advocate admitted owing Kshs. 176,269.00; other employees were paid except the claimant, and the Respondent was allegedly winding up local operations. Together these showed sufficient cause for protective relief, though not for the larger sum of Kshs. 4,226,269.70 claimed.

p. 4

Legal principles established

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  • Section 12(3) of the ELRC Act empowers the ELRC to grant interim preservation orders including Mareva-type injunctions where the dispute arises out of employment or labour relations; the form of injunctive relief is not limited
  • An applicant for a Mareva/freezing injunction must specify the property to be attached, give an estimated value, and provide particularised evidence of assets and a real risk of dissipation
  • Where satisfaction of relief in a pending suit may be defeated or frustrated, the ELRC may order deposit of security under Rule 68(3) of the ELRC (Procedure) Rules, 2024

Court orders

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  1. 1.The Respondent is directed to deposit the sum of Kshs. 176,269.70 into a joint interest-earning bank account in the names of the advocates on record for the parties within thirty (30) days from the date of the Ruling
  2. 2.Costs shall be in the cause

Authorities

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Legislation

  • Employment and Labour Relations Court ActSection 12(3)
  • Civil Procedure RulesOrder 39 Rules 5 and 6; Order 39 Rule 5(2); Order 21 Rule 1
  • Employment and Labour Relations Court (Procedure) Rules, 2024Rule 68(3)
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticle 159(2)(d); Article 48

Cases cited (1)

  • Chovondo & 3 others v Ultimate Engineering Ltd; Omido & another (Intended Respondent)
    [2023] KEELRC 1269 (KLR)
Jurisdiction invoked
Section 12(3) of the Employment and Labour Relations Court 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, "Mbogo v Amitruck Limited (Cause E600 of 2025) [2025] KEELRC 2712 (KLR)", Case Analysis (2025). Cause No E600 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2712/eng@2025-10-03

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