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ELRCPartially AllowedELRC Appeal No. E210 of 2023

Mathenge t/a Imperial Water Services v Juma (Appeal E210 of 2023) [2025] KEELRC 2048 (KLR)

Employment and Labour Relations Court of Kenya
4 July 2025
6,268 words in judgment
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The bottom line

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A Kenyan court cut an unfairly terminated worker's award to Kshs.660,576.92 but confirmed he was employed and entitled to compensation.

What this practically means

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Executive summary

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Peter Mathenge, trading as Imperial Water Services, appealed against the judgment of Hon. B.M. Cheloti in MCELRC/E051/2023 delivered on 8 September 2023, in which James Maloba Juma's claim for unfair termination was upheld and the appellant ordered to pay terminal dues of Kshs.894,383.91, a certificate of service, costs and interest. The appellant, who had been absent at the formal proof hearing, argued that the trial court disregarded his application dated 16 August 2023 seeking leave to defend, that no employer-employee relationship existed (asserting a commission agent arrangement), and that the awards lacked factual basis. The respondent countered that the appellant was properly served, indolent in prosecuting his application, and that the Ministry of Labour conciliation records demonstrated employment. The court framed three issues: whether the trial court disregarded the 16.08.2023 application; whether an employment relationship existed; and whether the reliefs granted were merited. It held the application was never canvassed before the trial court so it was moot, that fair hearing was satisfied as service was proved by affidavit, and that the unchallenged evidence, including the Ministry of Labour demand for Kshs.505,000 and the conciliation agreement, established employment. The court then varied the reliefs: salary arrears reduced to Kshs.505,000 per the Labour Officer's demand, leave and public holiday awards set aside as unpleaded and unproved, notice pay and service pay upheld, and maximum compensation reduced from 12 to 5 months. The appeal was partially successful; total award of Kshs.660,576.92, costs of suit and appeal to the respondent, and a 30-day stay.

Questions the Court framed

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

  1. 1.Whether the trial court erred in law and fact in disregarding the appellant's application dated 16.08.2023 and therefore reaching a wrong conclusion
  2. 2.Whether there was an employer-employee relationship between the parties
  3. 3.Whether the trial court erred in the reliefs granted

Key legal issues

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01

Whether the trial court disregarded the appellant's application dated 16.08.2023

Holding

The trial court did not disregard the application; it was never canvassed and there was no ruling, so the issues raised in it are moot on appeal

Reasoning

The application sought to arrest judgment and re-open the case but there were no proceedings or ruling on it. The physical file went missing on the fixed date and the appellant failed to follow up and prosecute the application. The obligation to prosecute cases and applications lies with parties; the advocate's dropped call allegation was not canvassed at trial and cannot arise at appellate level.

p. 7
02

Whether the appellant was accorded fair hearing

Holding

Yes; service was proved by an affidavit of a process server and hearing notices, so the right to fair hearing was satisfied

Reasoning

The court found an affidavit of service sworn by Richard Oyangi Ogola explaining personal service of summons, mention notice and the claim, plus notices culminating in the hearing notice for 31 July 2023. The allegation of non-service was untrue and there was no basis to fault the trial court.

p. 7
03

Whether there was an employer-employee relationship

Holding

Yes; the unchallenged evidence including the Ministry of Labour demand and conciliation agreement supported the trial court's finding

Reasoning

The appellant's claim that the respondent was a commission agent was uncorroborated. The respondent testified and called a witness who confirmed the employment relationship, and the Ministry of Labour wrote a demand letter and facilitated a conciliation meeting in which the appellant agreed to pay terminal dues. The trial court heard the testimony, which this appellate court lacks the benefit of, and its finding was not clearly wrong.

p. 9
04

Whether the reliefs granted were merited

Holding

Partly; salary arrears reduced to the Labour Officer's assessed Kshs.505,000, leave and public holiday awards set aside, notice pay and service pay upheld, and maximum compensation of 12 months reduced to 5 months

Reasoning

The salary arrears had been determined by the Labour Officer at Kshs.505,000 and the trial court gave no reason to deviate. Leave and public holiday claims were not pleaded or proved. Service pay was proved under section 35(5) and (6) of the Employment Act. The maximum compensation award was excessive for 3 years of service, and applying section 49 factors the court substituted 5 months' compensation.

p. 11

Legal principles established

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  • A first appellate court must re-evaluate the evidence and draw its own conclusions, while making due allowance for the fact that it did not see or hear the witnesses
  • An appellate court will not interfere with the exercise of discretion by an inferior court unless satisfied the decision is clearly wrong
  • The obligation to prosecute applications lies with parties; an application not canvassed before the trial court cannot ground an appellate complaint
  • The right to fair hearing is fulfilled once a party is accorded the opportunity to be heard
  • Claims for untaken leave and public holidays must be pleaded and proved

Court orders

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  1. 1.The termination is held as unfair
  2. 2.Judgment entered in favour of the claimant against the respondent: Kshs.505,000/= unpaid salary arrears; Kshs.20,000/= one month's salary in lieu of notice; Kshs.35,576.92/= service pay; compensatory damages of Kshs.100,000/=; total sum awarded Kshs.660,576.92
  3. 3.The Respondent to issue the Claimant with a certificate of service under section 51 forthwith
  4. 4.The cost of this suit be borne by the Respondent
  5. 5.Interest on (a) and (c) above at court's rate from the date of delivery of the judgment until payment in full
  6. 6.Costs of the appeal to the respondent
  7. 7.Stay of 30 days

The bench

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

majority

Wrote the judgment

On appeal from
Magistrates' Court (Employment and Labour Relations, Machakos)
MCELRC/E051/2023
Jurisdiction invoked
First appellate jurisdiction over the subordinate court in employment and labour relations matters

Relief refused

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Setting aside the entire judgment of the trial court with dismissal orders substituted

The appeal was only partially successful; the trial court's findings on fair hearing, service and employer-employee relationship were upheld

p. 11

Claims for unpaid annual leave and unpaid public holidays

Not pleaded and not proved on a balance of probabilities; not raised before the Labour Officer

p. 10

Costs

Costs of this suit to be borne by the Respondent; costs of the appeal to the respondent.

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.

In the upshot, the appeal is partially successful on the reliefs granted.
p. 11outcome
Judgment is entered in favour of the claimant against the respondent as follows:
p. 11final orders
The cost of this suit be borne by the Respondent.
p. 3costs
The court holds that the trial court did not disregard the application as the same was not canvassed.
p. 7prosecution of applications
The court was satisfied that the respondent was granted the opportunity to be heard, hence the right to a fair hearing was satisfied.
p. 7fair hearing
The salary arrears award is set aside and substituted with Kshs. 505,000 as per the demand letter.
p. 10salary arrears
Costs of the appeal to the respondent.
p. 11appeal costs

Issues in the judgment

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minor

The grounds of appeal and submissions are internally inconsistent on the quantum of the trial court judgment: 'delivered on 8th September 2023 against Appellant of kshs.895,383/=' versus the recorded award of Kshs.894,383.91

minor

The appellant's prayer for costs contradicts itself, seeking that the appeal be allowed 'with costs to the Respondent' although the respondent opposed the appeal

minor

The parties' roles are inconsistently described; the memorandum of claim is said to be the 'Claimant's/Appellant's case' even though the appellant before this court was the respondent/employer before the trial court

minor

Paragraph numbering repeats; two consecutive paragraphs are both numbered 39

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, "Mathenge t/a Imperial Water Services v Juma (Appeal E210 of 2023) [2025] KEELRC 2048 (KLR)", Case Analysis (2025). ELRC Appeal No. E210 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2048/eng@2025-07-04

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