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ELRCPartially AllowedELRC Cause No. E182 of 2025· [2026] KEELRC 2676 (KLR)

Damarys Wangui Kiarie v Tana and Athi Rivers Development Authority

Employment & Labour Relations Court of Kenya
30 September 2026
HWHellen Wasilwa
4,945 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~20 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled that an employer must pay promised salary increments, awarding a former TARDA manager over Kshs. 728,000 in arrears and gratuity.

What this practically means

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Executive summary

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The Claimant, formerly Chief Manager, Human Resources & Administration at TARDA, claimed Kshs. 4,024,791 being unpaid salary increments for 2020 and 2021 under a three-year contract dated 28th December 2018 with a progressive salary scale of Kshs. 152,060 x 165,700 x 180,660, plus corresponding gratuity. The Respondent denied breach, asserting increments were conditional under Clause 4(b) of the Local Agreement, that a Covid-19 organisation-wide salary freeze applied until July 2021, that the Claimant as the officer administering remuneration was estopped, and that gratuity of Kshs. 1,416,470 was fully paid. At trial, the Respondent's witness conceded no evidence of the freeze was produced and that the Respondent never communicated that the increment conditions were unmet; the Claimant conceded her claim was not computed and her letter to the Inspectorate was unsigned. The court held that the appointment letter's salary progression was not effected: the Claimant was underpaid by Kshs. 157,200 in 2020, Kshs. 140,760 from January to June 2021, and Kshs. 258,060 from July 2021 to May 2022, totalling Kshs. 556,020, with 31% gratuity thereon of Kshs. 172,366.3. Judgment was entered for the Claimant for Kshs. 728,386.2 less statutory deductions, with costs and interest at court rates from the date of judgment. The claim succeeded only in part, as the pleaded Kshs. 4,024,791 was not awarded.

Key legal issues

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01

Breach of contract by non-implementation of salary progression

Holding

The court found the salary was to progress from Kshs. 152,060 to 165,700 to 180,660 and that the Respondent failed to effect this, underpaying the Claimant across 2020, January–June 2021 and July 2021 to May 2022.

Reasoning

The appointment letter of 28th December 2018 expressly set out the salary scale and the entry point. Pay slips produced by the Claimant showed she remained on Kshs. 152,060 to June 2021 and thereafter on Kshs. 165,700. The court computed the differential year by year, totalling Kshs. 556,020, and added 31% gratuity on that sum.

p. 24
02

Gratuity computed on understated salary

Holding

Gratuity at 31% was to be computed on the full contractual salary; the shortfall of Kshs. 172,366.3 was added to the award.

Reasoning

The letter of appointment provided for 31% service gratuity at expiry of the contract. Since gratuity is calculated on gross salary earned, the unimplemented increments reduced the gratuity. The court applied 31% to the Kshs. 556,020 differential, yielding Kshs. 172,366.3, and awarded the combined total of Kshs. 728,386.2.

p. 25
03

COVID-19 and organisation-wide salary freeze as justification

Holding

The court did not accept the freeze/Covid-19 defence as defeating the express salary progression in the appointment letter, awarding the differential notwithstanding it.

Reasoning

RW1 conceded no evidence of the freeze was produced and that Covid-19 disruption was not provided for in the contract nor communicated. The appointment letter's stated salary scale stood unvaried; the court proceeded on the documented contractual terms rather than the unproven freeze narrative.

p. 12

Legal principles established

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  • Where an employment contract stipulates a progressive salary scale, the employer must effect the increments; failure to do so is a breach entitling the employee to the differential and a corresponding gratuity adjustment computed on the same basis.

Court orders

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  1. 1.Judgment entered for the Claimant in the sum of Kshs. 728,386.2 less statutory deductions
  2. 2.Respondent to pay costs of the suit
  3. 3.Interest at court rates with effect from the date of the judgment
Jurisdiction invoked
Employment and labour relations jurisdiction of the ELRC under Article 162(2) of the Constitution (cause of action arising within the Court's jurisdiction as pleaded)

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, "Damarys Wangui Kiarie v Tana and Athi Rivers Development Authority", Case Analysis (2026). ELRC Cause No. E182 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2676/eng@2026-09-30

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