Ochola v Chen Mechanical Works Limited (Miscellaneous Application E281 of 2024) [2025] KEELRC 3 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Whether the insurer should be joined as a Third Party
Joinder refused; indemnity/contribution claims between employer and insurer cannot be resolved in proceedings to adopt the Director's assessment.
The Respondent sought to join its insurer for indemnity or contribution but did not file a complete copy of the policy. The extract filed showed benefits payable subject to the First Schedule of WIBA, which convinced the Court the indemnity dispute could not be resolved in these adoption proceedings. There was also no evidence the intended Third-Party had been served within the timelines set by the Court's directions.
Whether deductions from the assessed compensation were lawful
Deduction of medical expenses (Kshs 485,767/-) was unlawful; deduction of advanced salary (Kshs 504,600/-) was lawful.
The Medical Treatment Rules, 1977 oblige the employer to bear treatment costs of workplace injuries, so deducting Kshs 485,767/- for medical expenses was illegal. However, WIBA compensation envisages covering the difference between pre-accident earnings and subsequent earnings, so the employer could lawfully deduct advanced salary of Kshs 504,600/-. The payment of Kshs 1,034,835/- received by the applicant was found to be towards compensation, not terminal dues.
Whether the Director's assessment should be adopted as an order of the Court
Yes, adopted but adjusted for payments already made and lawful deductions.
The Director performed a statutory function in assessing compensation of Kshs 3,433,200/-, the whole of which was payable to the applicant. The applicant admitted receiving Kshs 1,034,835/-, which the Court found was towards compensation. After deducting that payment and the lawful advance salary deduction, the applicant was entitled to Kshs 2,825,165/- with interest.
Legal principles established
#- An employer must pay for the treatment costs of an employee who falls ill or is injured in the workplace and cannot deduct such costs from compensation.
- Compensation under the Work Injury Benefits Act includes an element covering the difference between monthly earnings at the time of the accident and subsequent earnings, permitting deduction of advanced salary.
- The full assessed compensation by the Director of Occupational Safety and Health is payable to the injured employee.
Court orders
#- 1.The Summons dated 4 November 2024 is dismissed with costs
- 2.The Motion dated 23 September 2024 is allowed: the Court adopts the assessment of the Director of Occupational Safety and Health in the sum of Kshs 3,433,200/- less payment of Kshs 1,034,835/- already paid and further less advance salary of Kshs 504,600/-
- 3.The applicant is entitled to Kshs 2,825,165/-
- 4.The applicant to have interest on the outstanding compensation from the date of judgment until payment in full together with costs
- Jurisdiction invoked
- Work Injury Benefits Act - adoption of the Director of Occupational Safety and Health's assessment as an order of the Court
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ochola v Chen Mechanical Works Limited (Miscellaneous Application E281 of 2024) [2025] KEELRC 3 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/3/eng@2025-01-16
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.