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ELRCDismissedMemorandum of Appeal dated 28th February 2025 (arising from MC ELRC No. E613 of 2021)· [2025] KEELRC 3726 (KLR)

Makau v Kenya Aerotech Limited (Employment and Labour Relations Appeal E062 of 2025) [2025] KEELRC 3726 (KLR)

Employment and Labour Relations Court
19 November 2025
1,454 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The Appellant, a retiree of the Respondent, appealed against the trial court's judgment of 28th November 2024 (as reviewed on 19th February 2025) in MC ELRC No. E613 of 2021, seeking interest on his retirement benefits of Kshs.982,347.20 (admitted by consent on 8th June 2023) either from his date of retirement on 18th December 2019 or from the date of filing suit on 15th April 2021, plus costs of the suit and appeal. He relied on Kaloki v Kenya Aerotech Ltd, where retirees of the same Respondent were granted interest from retirement, and on sections 26(1) and 27(1) of the Civil Procedure Act. The Respondent opposed, contending the interest prayer was never pleaded at trial and that interest and costs are discretionary remedies under sections 26(1) and 27(1), citing IEBC v Mule, Hammond Holdings and Highway Furniture Mart. The court agreed with the Respondent, holding that a court can only award in accordance with the pleadings; since the interest claim was never pleaded, it could not be introduced on appeal but should have been litigated at trial. It further held that interest and costs are discretionary, and absent evidence the trial court's discretion was exercised unreasonably, non-judiciously or whimsically, the appeal could not succeed. The appeal was dismissed with each party bearing their own costs of the appeal. Judgment delivered by D. K. Njagi Marete, Judge, on 19th November 2025.

Key legal issues

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01

Entitlement to interest from date of retirement on withheld retirement benefits

Holding

Refused; the claim for interest was not pleaded in the trial court and could not be entertained on appeal

Reasoning

The court found the prayers in the appeal inconsistent with those at the lower court. Pleadings open the issues for interrogation and trial, giving parties the opportunity to ventilate them. The proper course would have been to plead interest at the claim stage so the trial court could determine it on evidence.

p. 3
02

Discretionary nature of interest and costs under sections 26(1) and 27(1) of the Civil Procedure Act

Holding

Interest and costs are discretionary; the trial court's refusal was a lawful exercise of discretion not shown to be unreasonable

Reasoning

The court accepted the Respondent's submission that section 26(1) is permissive, not mandatory, and that section 27(1) requires the costs discretion to be exercised judiciously. Absent proof the discretion was exercised unreasonably or whimsically, the appellate court cannot interfere.

p. 3

Legal principles established

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  • A court can only award relief in accordance with the pleadings of the parties, which frame the issues for trial
  • Interest and costs are discretionary remedies; an appellate court will not fault the exercise of that discretion absent evidence it was unreasonable, non-judicious or whimsical

Court orders

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  1. 1.Appeal dismissed
  2. 2.Each party to bear their own costs of the appeal

Authorities

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Legislation

  • Civil Procedure Act, Chapter 21, Laws of KenyaSection 26(1)
  • Civil Procedure Act, Chapter 21, Laws of KenyaSection 27(1)

Cases cited (5)

  • Kaloki and 2 Others vs Kenya Aerotech Ltd
    [2022] KEELRC
  • Morgan Air Cargo Limited v Everest Enterprises Limited
    [2015] EKL R
  • Independent Electoral and Boundaries Commission & another v Mule & 3 others
    (Civil Appeal 219 of 2013) (2014) KECA 890 (KLR)
  • Hammond Holdings Limited & another v Coast Computer Bureau Limited & another
    [2024] KEELC 4060 (KLR)
  • Highway Furniture Mart Ltd vs The Permanent Secretary and another
    [2006] 2 ER94
On appeal from
Magistrates' Court (ELRC)
MC ELRC No. E613 of 2021
Jurisdiction invoked
First appellate jurisdiction over the magistrates' court employment and labour relations cause (Memorandum of Appeal under the court's appellate jurisdiction; no specific article cited)

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, "Makau v Kenya Aerotech Limited (Employment and Labour Relations Appeal E062 of 2025) [2025] KEELRC 3726 (KLR)", Case Analysis (2025). Memorandum of Appeal dated 28th February 2025 (arising from MC ELRC No. E613 of 2021). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/3726/eng@2025-11-19

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