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ELRCStruck OutMemorandum of Claim dated 19th March 2018 (ELRC)

Nganga v Laptrust (Umbrella) Retirement Fund Board of Trustee & another (Employment and Labour Relations Cause 367 of 2018) [2025] KEELRC 1296 (KLR)

Employment and Labour Relations Court
8 May 2025
3,150 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court confirmed it cannot decide pension calculation disputes; retirees must first complain to the Retirement Benefits Authority before any court can hear their claim.

What this practically means

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Executive summary

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The Claimant, a former City Council of Nairobi labourer transferred to Nairobi Water and Sewerage Company in 2004 and retired on 18th September 2017, claimed that his retirement benefits of Kshs. 8,804,085.36 were unlawfully withheld: pension calculated on his 2008 rather than retirement salary, unpaid salary increments under the CBAs of 2005, 2012 and 2015, and loss from the transfer of his pension contributions to Madison Insurance between September 2005 and October 2010 (later reversed by a consent order in HCC No. 520 of 2006). The 1st Respondent (the pension trust) denied the claim, asserting the Claimant belonged to the distinct Laptrust DB Scheme and that the statutory pension formula was correctly applied. The 2nd Respondent denied liability for pension calculation, raised limitation under Section 89 of the Employment Act and, with the 1st Respondent, mounted a jurisdictional objection: disputes over pension benefits must first go to the CEO of the Retirement Benefits Authority under Section 46 of the Retirement Benefits Act and, on appeal, to the Retirement Benefits Appeals Tribunal. Relying on the Supreme Court's decision in Kenya Tea Growers (NSSF), the court held it had no jurisdiction over pension calculation matters and struck out the claim with no order of costs. The substantive allegations of miscalculation were never determined.

Questions the Court framed

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

  1. 1.Whether this court has jurisdiction to handle the dispute on calculation of pension dues
  2. 2.Whether the Claimant is entitled to the reliefs sought (not reached)

Key legal issues

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01

Jurisdiction of the ELRC over pension calculation disputes

Holding

The court lacks jurisdiction; the dispute must be pursued under the Retirement Benefits Act mechanism (complaint to CEO of RBA under Section 46, appeal to Tribunal under Sections 47/48)

Reasoning

Both respondents submitted that the Retirement Benefits Act provides an exhaustive internal dispute-resolution mechanism and that Section 12 of the ELRC Act does not confer jurisdiction over pension disputes. The court relied on the Supreme Court decision in Kenya Tea Growers (NSSF) and case law cited, holding that this court has no jurisdiction over pension matters, and struck out the claim.

p. 7

Legal principles established

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  • The ELRC has no jurisdiction to determine disputes over calculation of pension dues, which fall under the Retirement Benefits Authority dispute-resolution mechanism

Court orders

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  1. 1.The claim is struck out
  2. 2.No order of costs

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
ELRC Act Section 12 as argued; court found it lacks jurisdiction over pension calculation disputes under Retirement Benefits Act

Relief refused

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Declaration that underpayment of retirement benefits was unconstitutional, illegal and null and void

Court found it lacked jurisdiction over pension calculation disputes

p. 7

Payment of Kshs. 8,804,085.36 being withheld retirement benefits

Claim struck out for want of jurisdiction

p. 7

General damages, costs and interest

Claim struck out; no order of costs made

p. 7

Costs

No order of costs (each party to bear own costs implied - 'no order of costs')

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.

this matter having emanated from calculation of pension dues of the claimant, I do return a verdict that this court has no jurisdiction to handle the same.
p. 7jurisdiction
The claim is struck out accordingly with no order of costs.
p. 7disposition
jurisdiction is everything without it a court has no powers and where the court has no jurisdiction there is no need to continue the proceedings
p. 5jurisdiction - cited by 1st Respondent

Issues in the judgment

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minor

Judgment refers to claimant with both male and female pronouns

minor

Name of 1st Respondent's witness appears inconsistently as Susan Jobaye in the witness statement but Susan Ndubai in evidence record

minor

Cited case name appears misspelled ('Panal Pina Airfio Limited') and 'Kenya Tea Growers NSSF and Others KESC 42(KLR)' lacks full citation details

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, "Nganga v Laptrust (Umbrella) Retirement Fund Board of Trustee & another (Employment and Labour Relations Cause 367 of 2018) [2025] KEELRC 1296 (KLR)", Case Analysis (2025). Memorandum of Claim dated 19th March 2018 (ELRC). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1296/eng@2025-05-08

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