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ELRCAllowedApplication dated 24th February, 2021

Peter Mwendwa Kaliki v Public Service Commission of Kenya & another [2021] KEELRC 1419 (KLR)

Employment and Labour Relations Court
13 May 2021
MMM. Mbaru
478 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~2 min to read original · ~4 min brief

The bottom line

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A Kenyan employment court confirmed that statutory deductions come off an award first, then interest runs on what remains from judgment date.

What this practically means

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Executive summary

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The respondents filed an application dated 24th February 2021 under Rule 33(1)(c) of the Employment and Labour Relations Court (Procedure) Rules seeking review and clarification of the judgment delivered on 11th October 2016, specifically paragraph 44, on the question of when interest starts accruing in relation to statutory deductions on the award of Ksh.342,342 to the petitioner. The application was supported by the affidavit of Christine Oyugi, who explained that the terms of the judgment were unclear on whether interest at 12% court rate accrues on the award before or after statutory deductions, which clarification was needed to enable compliance. There was no reply from, nor attendance by, the petitioner. The court, M. Mbaru J, held that a party may seek review or clarification under Rule 33. Re-reading paragraph 44, the court found the judgment spoke for itself: statutory deductions arise from the total award, pursuant to section 49(2) of the Employment Act, 2007, which subjects all payments to an employee to statutory deductions. The court clarified the computation: total award of Ksh.342,342 less statutory deductions, plus costs as taxed, yields total dues; those total dues attract interest at court rates from the date of judgment, 11th October 2016. The application was allowed, with no orders on costs. The ruling was delivered in open court at Nairobi on 13th May 2021.

Questions the Court framed

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

  1. 1.Whether the respondents' application dated 24th February 2021 warrants review and clarification of paragraph 44 of the judgment delivered on 11th October 2016
  2. 2.Whether interest on the award starts accruing before or after statutory deductions

Key legal issues

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Whether interest accrues on the award before or after statutory deductions

Holding

The judgment at paragraph 44 speaks for itself: the total award is first subjected to statutory deductions; the resulting total dues (plus taxed costs) then attract interest at court rates from the date of judgment, being 11th October 2016.

Reasoning

The court re-read the dispositive orders in paragraph 44 and noted that statutory deductions arise from the total award. Section 49(2) of the Employment Act, 2007 subjects all payments made to an employee to statutory deductions. The court clarified the computation sequence: total award less statutory deductions, plus costs, equals total dues; interest at court rates runs on those total dues from the date of judgment. The application under Rule 33 was therefore merited.

p. 2

Legal principles established

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  • All payments made to an employee are subject to statutory deductions under section 49(2) of the Employment Act, 2007, and interest at court rates accrues on the total dues (after statutory deductions) from the date of judgment

Court orders

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  1. 1.Clarification that the total award of Ksh.342,342 shall be subjected to statutory deductions first, and the total dues payable to the petitioner (after deductions and inclusive of taxed costs) shall attract interest at court rates from the date of judgment (11th October 2016)
  2. 2.No orders on costs

The bench

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

MM
majority

Wrote the judgment

Jurisdiction invoked
Rule 33(1)(c) of the Employment and Labour Relations Court (Procedure) Rules

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.

Accordingly, the above shall apply with regard to application dated 24 th February, 2021. No orders on costs.
p. 2Final orders
Total dues attract interests at court rates from the date of judgement being 11th October, 2016.
p. 2Interest accrual
Pursuant to section 49 (2) of the Employment Act, 2007 all payments made to an employee are subject to statutory deductions.
p. 2Statutory deductions

Issues in the judgment

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minor

The judgment inconsistently records the award amount, stating both Ksh.342,243 and Ksh.342,342

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, "Peter Mwendwa Kaliki v Public Service Commission of Kenya & another [2021] KEELRC 1419 (KLR)", Case Analysis (2021). Application dated 24th February, 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1419/eng@2021-05-13

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