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ELRCAllowedCause E020 of 2024 (test suit for Cause E019 of 2024)

Muiru v Kenya National Library Services; County Government of Nyeri (Third party) (Cause E018 of 2024) [2025] KEELRC 2126 (KLR)

Employment and Labour Relations Court
18 July 2025
1,780 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that when a national agency's functions move to a county, unpaid salary arrears owed before the transfer remain recoverable — both entities must pay.

What this practically means

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Executive summary

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This ELRC judgment at Nyeri, delivered by Onesmus N Makau J on 18th July 2025, concerned salary arrears arising from a CBA concluded between the claimant's union (KUCFAW) and the respondent covering 2013-2017, claimed before the claimant's transfer to the County Government of Nyeri (joined as third party) with effect from 1st July 2023 following the transfer of Library Services under Legal Notice No.142 of 2019. The claimant sought Kshs.465,683 plus costs and interest. The respondent denied liability, asserting SRC non-approval of the sums, limitation under section 90 of the Employment Act, and that the suit belonged in the magistrates' court given the claimant's salary level. The third party admitted the transfer but denied privity to the employment terms and liability for pre-transfer arrears. The suit proceeded as a test suit for Cause E019 of 2024. The court found the claimant covered by the CBA and accepted his computation of Kshs.701,552 in arrears, of which Kshs.235,869 was paid, leaving Kshs.465,863 outstanding; it held the respondent never paid these arrears. On liability, applying Article 187(2) of the Constitution, the court noted the IPA of 15th November 2023 was silent on existing liabilities and provided an alternative dispute forum, and therefore declined to decide which entity should solely pay, holding the respondent and the third party jointly and severally liable. The court awarded the arrears, costs, and interest at court rate from filing until payment in full.

Questions the Court framed

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

  1. 1.Whether the claimant had outstanding salary arrears before his transfer to the third party, and if so, how much
  2. 2.Who is liable to pay the claimant the arrears sought

Key legal issues

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01

Whether the claimant had outstanding CBA salary arrears before his transfer to the third party

Holding

Yes - the respondent never paid the CBA salary arrears of Kshs.465,863 which are still owing

Reasoning

A CBA dated 10th July 2019 concluded between KUCFAW and the respondent covered the period July 2013 to June 2017 and remained in force until amended. The claimant was covered from 1st July 2013 until 1st March 2019 when he was promoted. The court accepted his computation of Kshs.701,552 in arrears, of which Kshs.235,869 was paid in 2019 and 2020, leaving Kshs.465,863 outstanding. The conciliator had also recommended payment of that sum.

p. 4
02

Who is liable to pay the arrears - the respondent or the third party (County Government of Nyeri)

Holding

Both the respondent and the third party are liable jointly and severally

Reasoning

Article 187(2) of the Constitution requires that resources necessary for a transferred function be transferred. The best way to effect transfer of liabilities was by executing an IPA, but the parties eschewed existing liabilities in the IPA dated 15th November 2023. Because the IPA provided an alternative forum for settling transfer disputes, the court declined to determine which entity should solely bear liability and instead held both liable jointly and severally.

p. 4

Legal principles established

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  • Where a function or power is transferred from one level of government to another, arrangements must ensure that resources necessary for the performance of the function, including existing liabilities, are transferred
  • Where the instrument of transfer (IPA) is silent on existing liabilities and provides an alternative forum for such disputes, the transferring entity and the receiving county remain jointly and severally liable to the employee

Court orders

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  1. 1.The respondent and the third party are held liable jointly and severally to pay the claimant salary arrears of Kshs.465,863 which accrued before his services were transferred to the third party
  2. 2.The claimant is awarded costs of the suit
  3. 3.Interest on the awarded sum at court rate from the date of filing the suit until payment in full

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act; transfer of functions under Article 187 of the Constitution considered

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.

Having considered the evidence before me, I find and hold that the respondent never paid the claimant his CBA salary arrears of Kshs.465,863 which is still owing.
p. 4liability for unpaid CBA arrears
I will therefore not make a determination of who between the respondent and the third party should pay the salary arrears to the claimant. I will hold the two liable jointly and severally.
p. 4joint and several liability of national and county entities on transfer of functions
The claimant is also awarded costs and interest at court rate from the date of filing the suit till payment in full.
p. 4final orders - costs and interest

Issues in the judgment

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minor

The claim is pleaded as Kshs.465,683 but the court's findings and award consistently use Kshs.465,863 - an apparent typographical discrepancy in the judgment

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, "Muiru v Kenya National Library Services; County Government of Nyeri (Third party) (Cause E018 of 2024) [2025] KEELRC 2126 (KLR)", Case Analysis (2025). Cause E020 of 2024 (test suit for Cause E019 of 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2126/eng@2025-07-18

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