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Small ClaimsStruck OutNot stated in judgment· [2026] SCC 165 (KLR)
Odera v Principal ACK Korisai Secondary School & another (Commercial Case E085 of 2026) [2026] SCC 165 (KLR)
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·~2 min to read original · ~4 min briefThe bottom line
#What this practically means
#Executive summary
#The respondents raised a preliminary objection dated 10th June 2026 challenging the jurisdiction of the Malaba Small Claims Court to hear the claimant's claim, contending that the dispute arises from an employer-employee relationship and falls within the exclusive jurisdiction of the Employment and Labour Relations Court, and seeking striking out with costs. The claimant opposed via a replying affidavit sworn on 13th July 2026, arguing that the objection disguised disputed questions of fact as points of law and that the claim was properly one for money had and received, being monies not remitted to him. The court framed a single issue: whether it had jurisdiction in light of the objection. Applying the principle that jurisdiction depends on the substance of the dispute rather than a party's label, the court examined the Statement of Claim and found that the claimant expressly pleaded employment as a teacher, termination, and non-payment of employment dues, with reliefs flowing directly from the contract of employment. No averment of money remitted or entrusted to the respondents supported the money-had-and-received characterization. Relying on Section 13(5) of the Small Claims Court Act, which expressly excludes employment and labour relations claims, the court held it lacked jurisdiction regardless of monetary value, upheld the preliminary objection, struck out the claim, and awarded the respondents costs of the objection and the suit assessed at Kshs. 5,000/=. Ruling delivered virtually on 21st July 2026 by A.Z. Ogange, Resident Magistrate/Adjudicator.
Key legal issues
#01
Jurisdiction of the Small Claims Court over employment-related claims
Holding
The court lacks jurisdiction over claims arising from an employer-employee relationship, notwithstanding their characterization as money had and received.
Reasoning
The court held that jurisdiction is determined by the substance of the pleadings, not the label. The claimant pleaded employment, termination and unpaid terminal dues; reliefs flowed directly from the contract of employment. No averment of money remitted or entrusted to the respondents existed. Section 13(5) of the Small Claims Court Act expressly excludes employment and labour relations claims, ousting jurisdiction regardless of the claim's monetary value.
p. 2
Legal principles established
#- A court must ascertain the true nature of a dispute from the pleadings and substance of the claim rather than the label a party assigns to it.
- Section 13(5) of the Small Claims Court Act excludes employment and labour relations claims from the Small Claims Court's jurisdiction regardless of monetary value.
Court orders
#- 1.The Preliminary Objection is upheld
- 2.The Claim is struck out for want of jurisdiction
- 3.The Respondents shall have costs of the Preliminary Objection and the suit assessed at Kshs. 5,000/=
- Jurisdiction invoked
- Small Claims Court Act, Sections 12 and 13(5)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Odera v Principal ACK Korisai Secondary School & another (Commercial Case E085 of 2026) [2026] SCC 165 (KLR)", Case Analysis (2026). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/scc/2026/165/eng@2026-07-21
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.