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Small ClaimsDismissedNot stated in the judgment (Notice of Motion dated 23rd June, 2026)· [2026] SCC 227 (KLR)

Chepkwony v Cheluget (Commercial Case E638 of 2026) [2026] SCC 227 (KLR)

Employment and Labour Relations Court
21 August 2026
2,369 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan court refused to throw out a job-seeker's refund claim, saying allegations of fraud about a Kshs.25,000 recruitment fee must be tested at a full trial.

What this practically means

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Executive summary

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This is a ruling on a Notice of Motion dated 23rd June 2026 in which the respondent, Rebecca Cheluget, sought the striking out of the claimant's statement of claim dated 20th May 2026 and dismissal of the claim with costs, under Order 2 Rule 15(1)(a)-(d) of the Civil Procedure Rules and Sections 1A, 1B and 3A of the Civil Procedure Act. The applicant argued that the claim for Kshs.757,000 arose from an illegal arrangement in which the claimant and 31 others paid Kshs.25,000 each to the applicant to secure employment at Ken-Knit Limited, and that no court should enforce such a bargain under the doctrine of ex turpi causa non oritur actio. The claimant countered that she and others were deceived by the applicant, who held herself out as Head of Human Resource and represented the payment as a standard mandatory recruitment fee, so that the claim was grounded in fraud, misrepresentation and money had and received. The court accepted the force of the illegality doctrine as applied in Kenya Airways Limited v Flora and Mureithi v Mwangangi, but held that whether the transaction was illegal or the claimant was fraudulently induced were contested factual matters requiring evidence and cross-examination. Applying the cautious approach to striking out in Meya Agri Traders Ltd v Elgon House and D.T. Dobie, the court found the claim disclosed a reasonable cause of action and dismissed the application, with costs to abide the outcome of the main claim, fixed a compliance mention, and granted leave to appeal.

Key legal issues

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01

Whether the claim founded on money paid for employment facilitation discloses a reasonable cause of action capable of proceeding to trial

Holding

The application to strike out was dismissed because the pleaded case of fraud and misrepresentation raises triable issues that cannot be resolved summarily

Reasoning

The court accepted that agreements to procure employment through bribery or improper influence are unenforceable under ex turpi causa non oritur actio. However, the Claimant's pleaded case alleges fraudulent misrepresentation by the Applicant as Head of Human Resource, presenting the Kshs.25,000 as a legitimate mandatory recruitment fee. Whether the Claimant knew the payment was meant to purchase influence, whether the representations were false, and whether the transaction was illegal are matters of evidence requiring trial and possible cross-examination.

p. 5
02

The applicable principles for striking out pleadings under Order 2 Rule 15(1)

Holding

Striking out is a discretionary, draconian power to be exercised sparingly and only in clear and obvious cases; a pleading raising a triable issue must go to trial

Reasoning

Relying on Meya Agri Traders Ltd v Elgon House (2010) Ltd and D.T. Dobie & Company (Kenya) Limited v Joseph Mbaria Muchina & another, the court held that the jurisdiction must be exercised cautiously because summary striking out deprives parties of a full trial. A claim is not frivolous merely because the applicant thinks it unlikely to succeed, nor vexatious merely because the applicant disputes the facts. The power is meant to weed out plainly hopeless claims, not to decide contested factual questions.

p. 3

Legal principles established

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  • The power to strike out pleadings must be exercised cautiously and sparingly, and a suit must not be summarily dismissed unless it plainly and obviously discloses no reasonable cause of action and is beyond redemption by amendment.
  • Where the legality or fraud of a transaction is contested, it must be established on evidence at the substantive hearing, not conclusively presumed at the interlocutory stage.

Court orders

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  1. 1.The application dated 23rd June, 2026 is dismissed
  2. 2.Costs shall abide the outcome of the main claim
  3. 3.Mention on 12th October, 2026 for compliance with Order 11 of the CPR
  4. 4.Leave to appeal is granted
Jurisdiction invoked
Order 2 Rule 15(1) of the Civil Procedure Rules; Sections 1A, 1B and 3A of the Civil Procedure Act

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, "Chepkwony v Cheluget (Commercial Case E638 of 2026) [2026] SCC 227 (KLR)", Case Analysis (2026). Not stated in the judgment (Notice of Motion dated 23rd June, 2026). Source: https://new.kenyalaw.org/akn/ke/judgment/scc/2026/227/eng@2026-08-21

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