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ELRCPartially AllowedCause No E047 of 2023· [2025] KEELRC 2990 (KLR)

Kenya Engineering Workers Union v M/S Kenya Marine Contractors (EPZ) Limited (Cause E047 of 2023) [2025] KEELRC 2990 (KLR)

Employment and Labour Relations Court
30 October 2025
2,454 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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Kenya's Employment Court ruled a registered CBA binds employers like law, awarding a union over Ksh. 34 million in unpaid dues.

What this practically means

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Executive summary

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In this ELRC Mombasa suit, a trade union claimant sued its employer respondent for refusing to implement a collective agreement (CBA) between the parties, effective from an agreed date and signed on 20 November 2020, registered under CBA No. 107 of 2022 on 21 February 2023 after protracted litigation including Mombasa Civil Appeal No. 28 of 2015. The claimant sought salary arrears of Ksh. 21,764,098.11 and service gratuity of Ksh. 12,580,046, totalling Ksh. 34,344,144.11, with interest from the CBA effective date, plus costs. The respondent admitted the CBA's existence but contended all dues were settled before registration, that the Ksh. 10 million security deposit had not been liquidated, and counterclaimed for Ksh. 869,587.44. The respondent did not adduce evidence, having obstructed the proceedings throughout; the claim was heard in its absence after substituted service. The court held that under section 59(5) of the Labour Relations Act a registered CBA acquires the force of law and binds the parties, relying on Kenya Airways, Gikambura Dispensary, NUMSA v Bader Bop and UASU v Garissa University. The unrebutted WAN 4 schedule established the dues. The court awarded Ksh. 34,344,144.11 less the Ksh. 10 million deposit released to the claimant, payable within 30 days, with interest thereafter until payment in full. The Commissioner for Labour was directed to inspect the respondent and report within 60 days. The claim for six unidentified terminated employees was rejected as a fishing expedition. Costs were assessed at Ksh. 300,000 under section 12(4) of the ELRC Act. The counterclaim, unsupported by evidence, did not succeed.

Key legal issues

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01

Enforceability of the registered CBA

Holding

The CBA registered under CBA No. 107 of 2022 is enforceable against the respondent upon registration, effective from the date agreed by the parties

Reasoning

Section 59(5) of the Labour Relations Act provides that a collective agreement becomes enforceable upon registration by the ELRC and takes effect from the date agreed by the parties. The court relied on Kenya Airways and Gikambura Dispensary to hold that a registered CBA acquires the force of law, binds the parties, and must be implemented fully; failure to implement constitutes breach of statutory and contractual duty. The respondent's refusal to sign the CBA frustrated, but could not defeat, its enforceability.

p. 4
02

Quantum of dues under the CBA

Holding

The claimant's tabulation of Ksh. 34,344,144.11 in salary arrears, house allowance and service gratuity under Appendix WAN 4 stands unrebutted

Reasoning

The respondent, though filing a response and counterclaim, produced no work records to rebut the WAN 4 schedule; the records filed were unrelated background materials. Its assertion that dues were paid in 2018 had no supporting evidence. The court accepted the claimant's tabulation, but deducted the Ksh. 10 million security deposit, which justice demands be accounted for.

p. 4
03

Interest on the award

Holding

Interest was granted only from the date of judgment if payment was not made within 30 days, not from 1 August 2012

Reasoning

Although the claimant sought interest from the CBA effective date, the court held that in labour relations costs and interest should be applied sparingly, applying the restorative principle. However, given the respondent's obstructive conduct and the protracted disputes, the court allowed interest to accrue from the judgment date after expiry of the 30-day compliance window.

p. 5

Legal principles established

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  • A collective agreement becomes enforceable and shall be implemented upon registration by the ELRC, effective from the date agreed by the parties (section 59(5) LRA)
  • Upon registration a CBA acquires the force of law and binds the parties, who must implement it fully and without delay
  • A CBA is a binding agreement analogous to any other contract, settable aside only on ordinary contractual principles

Court orders

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  1. 1.Judgment entered for the claimant against the respondent; the CBA registered under CBA No. 107 of 2022 is enforceable with effect from 1 August 2018
  2. 2.Respondent to pay salary arrears of KSh. 21,764,098.11 and service gratuity of KSh. 12,580,046, totalling Ksh. 34,344,144.11, less the Ksh. 10 million security deposit released to the claimant
  3. 3.Dues to be paid within 30 days, after which interest accrues from the date of judgment until payment in full
  4. 4.The Commissioner for Labour to inspect the respondent's adherence to the CBA and report to the court within 60 days; respondent to pay costs incurred thereby; the ELRC Registrar to serve
  5. 5.Costs assessed at Ksh. 300,000

Authorities

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Legislation

  • Labour Relations Actsection 59(5)
  • Constitution of Kenyaarticles 41 and 47
  • Employment and Labour Relations Court Actsection 12(4)

Cases cited (7)

  • 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)
  • Amalgamated Union of Kenya Metal Workers v Mohamed t/a Rizwan Metal Craft
    [2023] KEELRC 2305 (KLR)
  • University Academic Staff Union (UASU) v Garissa University; Ministry of Labour and Social Protection & another (Interested Parties)
    (Miscellaneous Case E088 of 2023) [2023] KEELRC
  • Social Services League, M.P. Shah Hospital v KUDHEIHA
  • Nairobi City County Government v Kenya County Government Workers Union; Salaries and Remuneration Commission (Interested Party Applicant)
Jurisdiction invoked
Employment and Labour Relations Court Act, section 12; Labour Relations Act, section 59(5)

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 Engineering Workers Union v M/S Kenya Marine Contractors (EPZ) Limited (Cause E047 of 2023) [2025] KEELRC 2990 (KLR)", Case Analysis (2025). Cause No E047 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2990/eng@2025-10-30

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