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ELRCPartially AllowedCause No. E1184 of 2025

Timothy Mwangi Kuria v African Management Initiative (AMI) Kenya Limited

Employment and Labour Relations Court of Kenya
25 September 2026
BMB. O. M. Manani
1,984 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 confirmed arbitration clauses in employment contracts are enforceable, but made the employer pay 75% of arbitration costs to protect the dismissed employee's access to justice.

What this practically means

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Executive summary

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The Claimant sued the Respondent alleging constructive dismissal arising from unilateral changes to his terms and conditions of employment. The Respondent filed a notice of motion dated 16th December 2025 seeking a stay of proceedings and referral of the dispute to arbitration pursuant to an arbitration clause in the contract of service, supported by the affidavit of its Chief Financial Officer, Isaac Kinuu. The Claimant opposed the application, contending that the arbitration agreement had been rendered inoperative by the Respondent's conduct, that its enforcement would offend constitutional principles and public policy, that the ELRC has exclusive jurisdiction over employment disputes, that the clause was imposed on a 'take or leave' basis in a standard form contract rendering it unconscionable, and that the cost of arbitration would deny him access to justice as a former employee. The court held that the contract contained a valid arbitration agreement which, absent evidence of fraud or undue influence, bound the parties. It acknowledged the doctrinal controversy over arbitration in employment disputes but held that arbitration agreements in employment contracts remain lawful and are not contra bonos mores. However, alive to access to justice concerns raised by the Claimant's unemployment, the court allowed the stay and referral but varied the cost burden, directing the Respondent to pay 75% of the arbitration costs and the Claimant 25%. Costs of the application were made costs in the cause.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the contract between the parties contains an arbitration agreement
  2. 2.Whether the arbitration agreement is enforceable or has been rendered null, void, inoperative or incapable of being performed
  3. 3.Whether enforcement of the arbitration agreement would offend public policy or access to justice

Key legal issues

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01

Enforceability of the arbitration clause in an employment contract

Holding

The clause is enforceable absent evidence of fraud or undue influence; the court cannot re-write the contract

Reasoning

The court found the contract contained an arbitration agreement requiring disputes to go to arbitration. The Claimant's unconscionability and public policy objections failed for want of evidence that the clause was procured through fraud or undue influence. The court noted the doctrine of unconscionability requires both procedural and substantive elements, and that arbitration agreements are not contra bonos mores per South African authority.

p. 9
02

Access to justice concerns regarding equal sharing of arbitration costs

Holding

Stay and referral granted, but costs apportioned 75/25 in the Claimant's favour to facilitate access to justice

Reasoning

The court acknowledged the Claimant's position that, having lost employment, he may be unable to comply with equal sharing of arbitration costs, which could drive him from the seat of justice. Balancing the enforceability of the arbitration agreement against access to justice, the court varied the contractual cost-sharing by requiring the Respondent to bear 75% of arbitration costs.

p. 9

Legal principles established

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  • A court before which proceedings are brought in a matter subject to an arbitration agreement shall stay the proceedings and refer the parties to arbitration unless the agreement is null and void, inoperative or incapable of being performed, or there is no dispute
  • Arbitration agreements in employment contracts remain lawful and their enforcement does not of itself offend public policy
  • A court may decline to enforce a contract which is unconscionable without re-writing its terms

Court orders

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  1. 1.The Respondent's request to stay proceedings in the cause and refer the dispute to arbitration is allowed
  2. 2.The Respondent shall pay 75% of the cost of the proposed arbitration whilst the Claimant shall pay the balance (25%)
  3. 3.Costs of the application shall be in the cause

The bench

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One judgment of the whole court — no separate or dissenting opinions.

BM
majority

Wrote the judgment

Jurisdiction invoked
Section 6(1) of the Arbitration Act; Employment and Labour Relations Court Act

Relief refused

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Claimant's plea that the arbitration agreement be declined for unconscionability and public policy

No evidence the clause was procured through fraud or undue influence; arbitration agreements are not contra bonos mores

p. 9

Costs

Costs of this application shall be in the cause.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

a) The Respondent's request to stay proceedings in the cause and refer the dispute to arbitration is allowed.
p. 9disposition - stay and referral to arbitration
b) However, the Respondent shall pay 75% of the cost of the proposed arbitration whilst the Claimant shall pay the balance (25%).
p. 9cost apportionment of arbitration
Absent evidence that the clause was procured through fraud or undue influence, it binds the parties.
p. 9binding effect of arbitration clause
the court restated that arbitration contracts are not contra bonos mores. As such, their enforcement cannot, of itself, be said to offend public policy as contended by the Claimant.
p. 9arbitration agreements and public policy

Issues in the judgment

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minor

Application dated 16th December 2025 but ruling delivered 25th September 2026, an unusually long interval

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, "Timothy Mwangi Kuria v African Management Initiative (AMI) Kenya Limited", Case Analysis (2026). Cause No. E1184 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2536/eng@2026-09-25

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