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ELRCPartially AllowedCause No. E015 of 2025· [2026] KEELRC 2635 (KLR)

Michael Moragia Nyachae v Sansora Bakery Limited

Employment & Labour Relations Court of Kenya
29 September 2026
NMNzioki wa Makau
771 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~3 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court struck out an employer's counterclaim because most of it belonged in other courts, but allowed a narrower employment-only version.

What this practically means

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Executive summary

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The Claimant filed a preliminary objection seeking to strike out the Respondent's counterclaim on grounds that it raised matters outside the ELRC's jurisdiction and suffered fatal non-joinder of parties. The Claimant argued that counterclaim paragraphs concerning an alleged sale of land belonged to the Environment and Land Court or High Court, rent disputes belonged to the Business Premises Rent Tribunal, and allegations of fraudulent receipt of monies through a PayBill account were criminal matters involving entities that were neither parties nor the Claimant's employer. The Respondent countered that the objection raised factual issues requiring evidence, relying on Pontrilas Investments Limited v Central Bank of Kenya, and that the counterclaim arose from the Claimant's conduct during employment. The court, in a brief disposition, held that the amended defence included a counterclaim with a raft of reliefs belonging to another forum, relating to lease of property and a purported fraudulent sale of property belonging to entities not before the Court. It held the interests of justice required the counterclaim to focus only on claims competent for the ELRC. The court struck out the counterclaim with no order as to costs, allowed the Respondent to file a counterclaim solely on the employment dispute within 14 days, and observed that fraudulent acquisition of company property could be framed to fit within Article 162(2) of the Constitution and employment laws.

Key legal issues

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01

Jurisdiction over counterclaim reliefs belonging to other forums

Holding

Portions of the counterclaim concerning land sale, rent and lease matters fall outside the ELRC's competence and were struck out

Reasoning

The court noted the amended defence included a counterclaim whose reliefs relate to lease of property, value of property space let out and a purported fraudulent sale of property belonging to entities not before the Court. It held the interests of justice required the counterclaim to focus only on claims competent for the ELRC, requiring amendment.

p. 5
02

Non-joinder of parties

Holding

The court did not expressly rule on non-joinder as a standalone ground; the striking out rested on jurisdiction over the reliefs claimed

Reasoning

Although the Claimant argued the counterclaim was fatally defective for non-joinder of entities such as Sansora Group Limited and Development Bank of Kenya, the disposition rested on the counterclaim containing reliefs for another forum, with leave to re-file an employment-only counterclaim.

p. 5

Legal principles established

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  • A counterclaim containing reliefs for another forum should be confined to claims competent for the court's jurisdiction; the offending portions may be struck out

Court orders

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  1. 1.The Respondent's counterclaim is struck out with no order as to costs
  2. 2.A counterclaim solely in respect of the employment dispute may be filed within 14 days
Jurisdiction invoked
Article 162(2) of the Constitution of Kenya (labour and employment relations jurisdiction)

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, "Michael Moragia Nyachae v Sansora Bakery Limited", Case Analysis (2026). Cause No. E015 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2635/eng@2026-09-29

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