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ELRCAllowedELRC Appeal No. E025 of 2026· [2026] KEELRC 2499 (KLR)

Abyssinia Iron Steel Limited v Zephania Azore Amanya

Employment and Labour Relations Court of Kenya at Machakos
18 September 2026
JKJemimah Keli
2,024 words in judgment
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The bottom line

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Kenya's Employment Court paused enforcement of a Sh-decree against Abyssinia Iron Steel until its appeal is heard, provided the company deposits the money in a joint account.

What this practically means

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Executive summary

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The appellant, Abyssinia Iron Steel Limited, filed a memorandum of appeal against a ruling delivered by Hon. Barbara Ojoo (CM) on 25th May 2026 and, pending the appeal, moved the ELRC at Machakos by Notice of Motion dated 2nd June 2026 seeking stay of execution of the judgment and decree of 23rd December 2024 in Mavoko MCELRC No. E070 of 2022, in which the respondent, Zephania Azore Amanya, had obtained judgment after proceedings the appellant allegedly failed to defend. The appellant argued the appeal was arguable, execution was imminent (property previously proclaimed and warrants of attachment liable to issue), substantial loss would ensue, and offered security by depositing the decretal sum in a joint interest-earning account. The respondent opposed, contending the application was an abuse of process by a litigant who failed to prosecute its defence, failed to comply with conditions for setting aside the judgment, engaged in forum shopping, and had not demonstrated substantial loss, security or exceptional circumstances. The court, applying Rule 21 of the ELRC (Procedure) Rules 2024 and, filling the lacuna on conditions, Order 42 Rule 6(2) of the Civil Procedure Rules, and the guidance in Butt v Rent Restriction Tribunal, found arguable points on service pay, overtime burden of proof and payable salary; found the appeal filed within the statutory 30 days and the application without delay; held the risk of the appeal being rendered nugatory proved since the respondent did not rebut the assertion of inability to refund the decretal amount; and found the security offer sufficient. The court granted a conditional stay of execution, ordered the record of appeal to be filed within 45 days, awarded costs in the cause, and set mention for 16th October 2026 for directions.

Key legal issues

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01

Whether the appellant satisfied the conditions for stay of execution pending appeal

Holding

Stay granted: the appeal was arguable, filed within the statutory 30-day period, brought without delay, the risk of the appeal being rendered nugatory was proved, and the appellant offered security by depositing the decretal sum in a joint interest-earning account.

Reasoning

The court found arguable points in the memorandum of appeal, including service pay where the respondent was allegedly registered under NSSF, the burden of proof of overtime, and the payable salary. The appeal was filed within the 30-day statutory period and the application without delay. The respondent did not rebut the assertion of inability to refund the decretal sum, proving the nugatory risk. The applicant offered security, meeting Order 42 Rule 6(2) criteria.

p. 9

Legal principles established

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  • Where the ELRC Procedure Rules are silent on conditions for stay of execution pending appeal, the lacuna is filled by Order 42 Rule 6(2) of the Civil Procedure Rules.
  • The risk of an appeal being rendered nugatory may be proved where the respondent does not rebut the applicant's assertion of inability to refund the decretal amount.

Court orders

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  1. 1.Stay of execution of the judgment delivered in Mavoko Magistrate Court on 23rd December 2024 pending hearing and determination of the appeal, on condition the decretal amount is deposited in a joint interest-earning account within 45 days, in default of which the stay lapses
  2. 2.The record of appeal to be filed within 45 days
  3. 3.Costs in the cause
  4. 4.Mention on 16th October 2026 for directions in the appeal

Authorities

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Legislation

  • Employment and Labour Relations Court (Procedure) Rules, 2024Rule 21(1) and (2); Rule 12
  • Civil Procedure RulesOrder 42 Rule 6(2)

Cases cited (2)

  • Butt vs Rent Restriction Tribunal
    (1982) KLR 417

    Guidance on exercise of discretion in stay of execution applications; stay ought not to render a successful appeal nugatory.

  • Wilson v Church (No 2)
    12 Ch D 454 (1879)

    Court ought to exercise its discretion so as not to prevent the appeal, if successful, from being nugatory.

On appeal from
Mavoko Magistrate's Court (MCELRC)
MCELRC No. E070 of 2022
Jurisdiction invoked
Appellate jurisdiction of the ELRC over appeals from the magistrates' court under the ELRC Procedure Rules 2024; stay of execution sought under Order 42 Rule 6(2) of the Civil Procedure Rules

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, "Abyssinia Iron Steel Limited v Zephania Azore Amanya", Case Analysis (2026). ELRC Appeal No. E025 of 2026. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2499/eng@2026-09-18

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