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ELRCPartially AllowedELRC Cause (Nairobi) — Claimant's Amended Statement of Claim dated 30th November 2023· [2025] KEELRC 2786 (KLR)

Kenya Chemical Workers Union v Beta Healthcare International Limited (Cause E982 of 2023) [2025] KEELRC 2786 (KLR)

Employment and Labour Relations Court
16 October 2025
CBC. N. Baari
3,940 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~16 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that a registered CBA binds an employer like law, but only employees who were union members while it was in force can claim its benefits.

What this practically means

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Executive summary

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The Claimant union sued the Respondent employer for failure to implement a Collective Bargaining Agreement registered as RCA No. 46 of 2019, covering 1st April 2018 to 31st March 2021, seeking implementation of the CBA, payment of accrued benefits of Kshs.49,252,260.76, interest, declarations of breach of Article 41 constitutional rights, damages, an injunction against harassment, and costs. The dispute concerned salary increments under Clauses 1.2.1–1.2.3 and Annex B, annual leave under Clauses 4.1–4.2, and leave travelling allowance under Clauses 18.0–18.3. The Respondent admitted the CBA but denied breach, contending that only two employees — Samwel Muturi Ngigi and Simon Kariuki Maina — were union members during the CBA's life, that it fully implemented the 12% annual increments, and that the conciliation process was procedurally flawed. The court framed three issues: whether Annex B creates enforceable obligations, whether the Respondent breached the CBA, and whether the grievants are entitled to the reliefs sought. It held that Annex B forms part of the CBA and is enforceable when read with the substantive clauses, but not separately. Check-off forms established that the other grievants joined the union in January–February 2022, after the CBA lapsed, so they were not covered. Payslips showed the two covered grievants were underpaid relative to Annex B grades, establishing partial breach, but leave and travel allowance claims failed on the evidence. The claim succeeded only as to salary underpayment for the two grievants, with the parties directed to compute the amounts and file them for adoption within 30 days; the rest of the claim was dismissed and each party was to bear its own costs.

Key legal issues

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01

Whether Annex B of the CBA creates enforceable obligations

Holding

Yes — Annex B forms part of the CBA and is enforceable, but only when read together with the substantive clauses, not as a standalone wage schedule.

Reasoning

Clause 1.2 of the CBA expressly provided that full details of job gradings and wages structure shall be as per Annex B. The court therefore found no doubt that Annex B formed part of the CBA, and that failure to implement wage increments in accordance with Annex B read with the substantive clauses gives rise to enforceable obligations against the defaulting party. However, it rejected the Claimant's attempt to apply Annex B separately from the main body of the CBA.

p. 7
02

Whether the Respondent breached the CBA

Holding

Partially — the Respondent failed to fully implement the salary provisions in respect of the two grievants who were union members during the CBA's life, but complied on leave days and leave travelling allowance.

Reasoning

Check-off forms showed that only Samwel Muturi Ngigi and Simon Kariuki Maina were union members during the CBA period; the others joined in January–February 2022 after the CBA lapsed in March 2021. Payslips showed the two grievants' earnings did not correspond to any grade in Annex B, demonstrating underpayment. On leave, neither grievant had 16 years' service to qualify for 24 days, and records showed payment of leave travel allowance as per the CBA.

p. 8
03

Whether the grievants are entitled to the reliefs sought

Holding

The claim succeeds only as to salary underpayment for the two covered grievants, whose differential entitlement must be computed and filed for adoption; all other reliefs are dismissed.

Reasoning

The registered CBA binds the employer, but its benefits extended only to union members during its life. The Claimant pleaded a global figure of Kshs.49,252,260.76 without stating which grievant was owed what, making assessment impossible. The court therefore directed the parties to compute the salary differentials for the two grievants for 2019–2021 and file the computation for adoption within 30 days, dismissing the remainder.

p. 8

Legal principles established

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  • Once a CBA is duly negotiated, signed and registered, it acquires the force of law and is binding on both the employer and the union.
  • An annex to a CBA which is incorporated by a substantive clause (here Clause 1.2 on wages and grading) forms part of the CBA and gives rise to enforceable obligations when read with the substantive clauses, though not independently.

Court orders

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  1. 1.Declaration that Annex B of the CBA forms part of the CBA and applies together with the substantive clauses of the CBA
  2. 2.Finding that the Respondent did not fully implement the CBA in respect of Samwel Muturi Ngigi and Simon Kariuki Maina as regards salary underpayment
  3. 3.Direction that the parties compute the amounts owed to Samwel Muturi Ngigi and Simon Kariuki Maina on account of salary for 2019, 2020 and 2021 and file the computation for adoption by the court within 30 days of the judgment
  4. 4.Dismissal of the rest of the claim, including claims for leave days and leave travelling allowance for the other grievants
  5. 5.Each party to bear their own costs

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 41(1), 41(2), 159(2)(b)
  • Labour Relations Act, 2007Sections 59(1)(b), 59(5), 62(1), 69(b)
  • Employment Act, 2007Sections 5, 10(3)
  • ILO Convention No. 87
  • ILO Convention No. 98
  • ILO Recommendation No. 91 (1951)

Cases cited (4)

  • Kenya Airways Ltd v Aviation & Allied Workers Union
    (2014) eKLR
  • Kenya Union of Commercial, Food & Allied Workers v Gikambura Dispensary
    [2012] eKLR
  • NUMSA v Bader Bop (Pty) Ltd
    [2003] 1 BLLR 1 (CC)
  • National Bank of Kenya Ltd v Pipeplastic Samkolit (K) Ltd & Another
    [2001] eKLR
Jurisdiction invoked
Original jurisdiction of the Employment and Labour Relations Court under Article 162(2) of the Constitution over employment and labour relations disputes (dispute over non-implementation of a registered CBA reported under the Labour Relations Act, 2007)

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, "Kenya Chemical Workers Union v Beta Healthcare International Limited (Cause E982 of 2023) [2025] KEELRC 2786 (KLR)", Case Analysis (2025). ELRC Cause (Nairobi) — Claimant's Amended Statement of Claim dated 30th November 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2786/eng@2025-10-16

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