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ELRCPartially AllowedNot stated in the judgment· [2025] KEELRC 2869 (KLR)

Banking, Insurance and Finance Union (K) v Jubilee Holdings Ltd (Cause E257 of 2024) [2025] KEELRC 2869 (KLR)

Employment and Labour Relations Court
23 October 2025
RSRadido Stephen
943 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court ruled Jubilee Holdings must negotiate a CBA with the union because only the National Labour Board can revoke a recognition agreement.

What this practically means

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Executive summary

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The Banking, Insurance & Finance Union [K] sued Jubilee Holdings Ltd on 8 August 2024, seeking an order compelling the Respondent to sign a Collective Bargaining Agreement for the period 1 January 2021 to 31 December 2022, plus costs. The Respondent opposed, contending that Union membership had fallen below the simple majority threshold under section 54(1) of the Labour Relations Act and that it had moved the National Labour Board to revoke the recognition agreement anchoring the CBA; it also asserted that unionisable employees were outsourced. The court found the recognition agreement signed on 19 February 2018 remained valid and binding because the mandate to revoke it at first instance rests with the National Labour Board, which declined revocation on 21 May 2024. It held that until revocation, the employer has a legal duty to bargain; refusing to negotiate with a Union having even one member would curtail that employee's Article 41 constitutional rights and the Union's organisational rights. The court found the Respondent's stance constituted a violation of the Union's constitutional right to organise and bargain collectively. It declared the violation and ordered the Respondent to conclude and execute the CBA within 60 days rather than the 14 days sought. Because of ongoing social partnership between the parties, no order on costs was made. Judgment delivered virtually on 23 October 2025 by Radido Stephen, Judge.

Key legal issues

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01

Validity and binding effect of the recognition agreement

Holding

There is a valid and binding recognition agreement between the parties since the National Labour Board declined to revoke it.

Reasoning

The parties signed a recognition agreement on 19 February 2018. The Respondent issued a termination notice on 17 June 2022 and applied to the National Labour Board for revocation, which the Board declined on 21 May 2024. The court holds that revocation at first instance is for the Board, and its refusal leaves the agreement valid and binding.

p. 2
02

Duty to conclude and execute a CBA despite low membership

Holding

The Respondent violated the Union's constitutional right to organise and bargain collectively and must execute the CBA within 60 days.

Reasoning

The Respondent argued that membership had fallen below the simple majority threshold under section 54(1) of the Labour Relations Act. The court held that refusing to bargain with a Union with even one member would curtail that employee's Article 41 rights and the Union's organisational rights. Until the recognition agreement is revoked, the employer has a legal duty to bargain, and its refusal constituted a constitutional violation.

p. 3

Legal principles established

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  • The mandate to revoke a recognition agreement at first instance vests in the National Labour Board; until revoked, a recognition agreement remains valid and binding.
  • While a recognition agreement subsists, an employer has a legal duty to bargain regardless of membership numbers, since refusal would curtail the organisational rights of the remaining members.
  • The only legal avenue for an employer to refuse to negotiate a CBA is revocation of the recognition agreement by the National Labour Board.

Court orders

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  1. 1.Declaration that the Respondent has violated the Union's Constitutional right to organise and collective bargaining
  2. 2.The Respondent to conclude and execute a Collective Bargaining Agreement with the Union within 60 days
  3. 3.No order on costs
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over labour disputes; Article 41(1),(2) and (4)(b) of the Constitution invoked in reasoning

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, "Banking, Insurance and Finance Union (K) v Jubilee Holdings Ltd (Cause E257 of 2024) [2025] KEELRC 2869 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2869/eng@2025-10-23

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