Olkalou Dairy (2016) Ltd v Churchill Rombosia Kimwanga & another (Appeal E012 of 2025) [2025] KEELRC 2838 (KLR)
The bottom line
#A Kenyan employer facing attachment won a stay of execution, but only by agreeing to deposit the full decretal sum in court within 21 days.
What this practically means
#Executive summary
#Key legal issues
#Whether the requirements for stay of execution under Order 42 Rule 6 of the Civil Procedure Rules were satisfied
The court found the application was filed without undue delay, substantial loss may result, and the Applicant was willing to provide security, entitling it to a stay subject to depositing the decretal sum
The court applied Rule 73(2) of the ELRC (Procedure) Rules 2024, which imports the Civil Procedure Rules on execution and stay. It reiterated the principles in Butt v Rent Restriction Tribunal and Order 42 Rule 6, found the appeal filed within reasonable time, accepted the Applicant's explanation of substantial loss and its willingness to deposit the decretal sum, and held that all conditions were satisfied, obliging the court to grant the stay sought in the 13th March 2025 application.
Whether the Warrants of Attachment dated 4th April 2025 and Proclamation Notice dated 8th April 2025 were irregular and void
The court declared the warrants and proclamation notice irregular, null and void ab initio
The Applicant contended that no service of the cost assessment documents was effected as required under Order 21 Rule 9A of the Civil Procedure Rules and that the proclaimed assets were secured under a debenture with Co-operative Bank. The Respondents argued execution was lawful and the debenture had not crystallised by any enforcement action by the Bank. The court, evidently accepting the irregularity arguments, declared the warrants and proclamation null and void ab initio and stayed the attachment subject to the deposit of the decretal sum.
Whether the proclaimed assets were exempt as tools of trade under Section 44(1)(ii) of the Civil Procedure Act
The court did not grant exemption on this basis; it granted the stay on the Order 42 Rule 6 conditions and by reason of the irregular warrants
The court reproduced section 44(1) of the Civil Procedure Act, which exempts tools and implements of a person necessary for their trade or profession. The Respondent relied on Blackwood Hodge and Invesco Assurance holding that section 44 protects natural persons, not companies. The final orders rested on the stay conditions and the nullity of the warrants rather than on a tools-of-trade exemption, so this argument was not determinative.
Legal principles established
#- Stay of execution will only be granted if the application is made without undue delay, substantial loss may result if stay is not granted, and the applicant is able and willing to give security
- The court's discretion on stay must be exercised to ensure the appeal is not rendered nugatory if it succeeds
Court orders
#- 1.Stay of attachment of the proclaimed movable properties per the proclamation/distrain notice dated 8th April 2025, subject to the Applicant depositing Kshs.205,961/= in court within 21 days
- 2.Declaration that the Warrants of Attachment dated 4.4.2025 and the Proclamation of attachment/repossession/distrain of movable property Notice dated 8.4.2025 are irregular, null and void ab initio
- 3.Stay of execution of the Judgment delivered on 12th February 2025, subject to order No. 1 above
- 4.Costs to be in the cause
- On appeal from
- Nyahururu Chief Magistrate's Employment and Labour Relations Court (CMELRC)
- Nyahururu CMELRC No. E010 of 2022
- Jurisdiction invoked
- Rule 73(2) of the Employment and Labour Relations Court (Procedure) Rules, 2024 read with Order 42 Rule 6 of the Civil Procedure Rules, 2010
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Olkalou Dairy (2016) Ltd v Churchill Rombosia Kimwanga & another (Appeal E012 of 2025) [2025] KEELRC 2838 (KLR)", Case Analysis (2025). Nakuru ELRCA No. E012 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2838/eng@2025-10-22
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.