Wangai v Egerton University (Cause 224 of 2017) [2025] KEELRC 3702 (KLR)
The bottom line
#A Kenyan court confirmed employers may deduct PAYE from court-ordered employment payments, but fined a university interest for delaying them past the agreed deadline.
What this practically means
#Executive summary
#Key legal issues
#Lawfulness of PAYE deductions from decretal sums paid under a consent order
PAYE was validly deducted; decretal sums are subject to statutory deductions under section 49(2) of the Employment Act regardless of whether the award was adjudicated or consensual
The Claimant argued decretal sums are never taxed and that the consent was an invariable contract whose terms did not include tax. The court relied on section 49(2) of the Employment Act and Court of Appeal authority holding that the employer is obliged to recover the appropriate tax from any award payable to an employee, whether voluntary or obligatory, and that taxing amounts paid under a consent judgment is not a variation of the consent.
Whether the Respondent fully satisfied the consent order
The Respondent had paid the full decretal sum by March 2025, but in breach of the consent order unilaterally extended the payment period beyond June 2024, so interest for 9 months was awarded
The consent required liquidation of Kshs. 16,772,916 in 33 months ending June 2024. The consolidated pay summary showed payment completed only by March 2025, about 42 months. No leave or further consent authorised the extension. The court therefore granted interest at 14% p.a. for 9 months but otherwise found the consent satisfied.
Costs under the consent order
In the absence of agreement on costs as contemplated by the consent, costs were directed to be taxed in favour of the Claimant
The consent provided that the Claimant's costs would be agreed and paid upon full implementation of the decretal amount. No agreement was reached by June 2024 or March 2025, so the court directed taxation by the Deputy Registrar as Taxing Master.
Legal principles established
#- Every award of the Employment and Labour Relations Court, whether adjudicated or consensual, is subject to statutory deductions including PAYE
- Deduction of PAYE from an amount paid under a consent order does not amount to variation of the consent
- A unilateral extension of a consent payment period without leave or further consent warrants levy of interest on the principal for the extended period
Court orders
#- 1.Declared that PAYE tax was validly deducted from the sum payable to the Claimant by the Respondent, in terms of the consent order
- 2.In full satisfaction of the consent order, the Respondent shall pay to the Claimant interest on the principal amount, for a period of 9 months, at Kshs. 176,115
- 3.The Respondent shall pay costs of the Claim to the Claimant, as shall be taxed by the Taxing Master
- 4.The file shall be mentioned after payment of the above interest and taxed costs, for closure
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over execution of decree arising from its judgment of 24th January 2019
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Wangai v Egerton University (Cause 224 of 2017) [2025] KEELRC 3702 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/3702/eng@2025-12-19
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.