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ELRCPartially AllowedMemorandum of Claim dated 19th February 2021· [2025] KEELRC 1365 (KLR)

Kenya Union of Commercial, Food and Allied Workers v Eldoret Packers Limited (Cause E011 of 2021) [2025] KEELRC 1365 (KLR)

Employment and Labour Relations Court
9 May 2025
MOMAUREEN ONYANGO
3,210 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 can force an employer to sign a CBA and set its terms when the employer refuses to negotiate in good faith.

What this practically means

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Executive summary

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The Claimant, a trade union with a valid recognition agreement dated 26th April 2017 with the Respondent company, sought an order compelling the Respondent to sign the 2020-2022 Collective Bargaining Agreement as proposed by the union after negotiations deadlocked. The Respondent refused to submit counter-proposals, attributed the delay to the Covid-19 pandemic and its Managing Director's absence, and relied on a tripartite Memorandum of Understanding halting CBA matters. The dispute was reported to the Cabinet Secretary, a conciliator was appointed, and a Certificate of Unresolved Dispute issued on 16th November 2020. The court, characterising the matter as an economic dispute, directed the Central Planning & Project Monitoring Department of the Ministry of Labour to prepare an economic report, which noted a 14.32% rise in the cost of living and the Respondent's non-cooperation. The court framed one issue: whether it should adopt the Claimant's proposals and compel the Respondent to sign the CBA. Holding that collective bargaining is a fundamental right under Article 41(5) of the Constitution enforceable under Articles 22 and 23, and that section 57(1) of the Labour Relations Act mandatorily requires an employer with a recognition agreement to conclude a CBA, the court rejected the Respondent's submission that it could not be forced to contract. Relying on the Kenya Tea Growers Association decision, it held the ELRC adjudicates referred trade disputes including CBA terms. The court awarded a CBA effective 1st June 2025 with a 6% annual wage increase, 15% house allowance, 21 days annual leave and other terms per statute, the Wages Guidelines and the CPPMD Report, deferring some items to future negotiations.

Key legal issues

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01

Whether the court can compel an employer to sign a CBA and impose terms

Holding

Yes - collective bargaining is a constitutional fundamental right; where an employer refuses to bargain, the court adjudicating a referred trade dispute may determine the terms of the CBA

Reasoning

Article 41(5) entrenches collective bargaining in the Bill of Rights, enforceable under Article 22 with remedies under Article 23(3). Section 57(1) of the Labour Relations Act mandatorily requires an employer with a recognition agreement to conclude a CBA. The dispute went through conciliation and a Certificate of Unresolved Dispute was issued; under Part IX of the Act the ELRC adjudicates the dispute, including the economic terms. The Respondent deliberately refused to submit counter-proposals, cooperate with the conciliator, or engage the CPPMD.

p. 5
02

Terms of the CBA to be awarded

Holding

Court awarded 6% general wage increase per year, 15% house allowance, 21 days annual leave, and other terms per statute, Wages Guidelines and the CPPDU Report, effective 1st June 2025

Reasoning

Guided by minimum statutory terms, the Wages Guidelines, the CPPMD economic report showing a 14.32% rise in cost of living, and the parties' last CBA, and noting the Respondent's refusal to submit proposals, the court fixed terms item by item, deferring bonus, lunch/meals and gratuity to future negotiations.

p. 6

Legal principles established

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  • Collective bargaining under Article 41(5) of the Constitution is a fundamental right enforceable under Article 22, and the ELRC has jurisdiction to impose terms of a CBA where conciliation fails
  • Section 57(1) of the Labour Relations Act mandatorily obliges an employer with a recognition agreement to conclude a CBA

Court orders

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  1. 1.Court adopts terms of the 2020-2022 Collective Bargaining Agreement as awarded, including: statutory minimum wages for new employees; general wage increase of 6% each year per the Wages Guidelines and CPPDU Report; house allowance of 15% of basic pay; probation period, hours of work and overtime as per union proposal; annual leave of 21 days per year; sick, maternity, paternity, compassionate leave, uniforms, protective clothing, medical treatment, redundancy, warning, termination, summary dismissal, salary advance, funeral expenses, certificate of service, retirement at 60 years with benefits at 15 days per year worked, union leave of up to 5 days, bonus, acting appointment, gratuity and agency fee as variously awarded or deferred to future CBA
  2. 2.Effective date and duration of the CBA fixed at 1st June 2025
Jurisdiction invoked
Article 41(5) of the Constitution; sections 12(2) and (3) of the ELRC Act; sections 57(1) and 65 of the Labour Relations Act

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Kenya Union of Commercial, Food and Allied Workers v Eldoret Packers Limited (Cause E011 of 2021) [2025] KEELRC 1365 (KLR)", Case Analysis (2025). Memorandum of Claim dated 19th February 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1365/eng@2025-05-09

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