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ELRCPartially AllowedNot stated in the judgment

Ado & another v Mandera Water & Sewerage Company Limited & 2 others (Employment and Labour Relations Petition E150 of 2021) [2025] KEELRC 2771 (KLR)

Employment and Labour Relations Court
9 October 2025
858 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~3 min to read original · ~4 min brief

The bottom line

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The Employment Court in Nairobi awarded two former board members Kshs 980,000 in allowances, less than they claimed, because regulations cap how many meetings count.

What this practically means

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Executive summary

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This ruling resolves the computation directed by the court's ruling of 25th October 2024, which required the parties to compute the allowances and benefits payable to the Applicants under the Public Finance Management Act, the Salaries and Remuneration Commission Guidelines communicated vide letter dated 16th April 2014, and Government Circular MSPS.2/1A VOL111/1A (119) dated 2nd August 2023, and to file a consent for adoption. The Applicants' advocates proposed computations by letter dated 6th November 2024; the Respondents neither replied nor filed their own computation. The court accordingly proceeded to determine the correct computation itself. Relying on section 75(3) of the Water Act and the Water Services Regulatory Board Corporate Guidelines for water services 2018, the court held that committees shall sit no more than 4 times a financial year and boards no more than 6 times a year. From June 2020 to June 2023 the Applicants were therefore entitled to 19 full board meetings and 12 committee sittings, not the 20 and 14 they tabulated. Applying the SRC rates of Kshs 15,000/= for a chairperson and Kshs 10,000/= for members, the 1st Applicant was awarded Kshs 550,000/= and the 2nd Applicant Kshs 430,000/=, totaling Kshs 980,000/=, plus costs of the petition. The court declared the matter finally determined. The claim succeeded in substance but at a reduced quantum, so the outcome is best classified as partially allowed.

Questions the Court framed

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

  1. 1.Whether the parties' failure to agree on a consent computation required the court to determine the correct allowances payable
  2. 2.How many full board meetings and committee sittings the Applicants were entitled to from June 2020 to August 2023 under the Water Act and the Water Services Regulatory Board Corporate Governance Guidelines
  3. 3.What rates of allowances applied under the Salaries and Remuneration Commission Guidelines of 16th April 2014
  4. 4.The total amounts payable to each Applicant

Key legal issues

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01

Number of board and committee sittings payable

Holding

The Applicants were entitled to 19 full board meetings and 12 committee sittings between June 2020 and August 2023, not the 20 and 14 tabulated by the Applicants.

Reasoning

Regulation 3.7.2 of the Corporate Guidelines for water services 2018 caps committee sittings at 4 per financial year, and Regulation 3.7.3 caps board meetings at 6 per year. Full board meetings fell every two months (18 from June 2020 to June 2023, plus one in August before expiry = 19). Committee meetings fell every three months (12), with no further sitting possible before contract expiry in August 2023.

p. 2
02

Rates of allowances

Holding

The Salaries and Remuneration Guidelines of 16th April 2014 applied, stipulating Kshs 15,000/= for a chairperson and Kshs 10,000/= for members.

Reasoning

The court applied the SRC Guidelines communicated vide letter dated 16th April 2014, as directed in its earlier ruling, together with Government Circular MSPS.2/1A VOL111/1A (119) dated 2nd August 2023. The chairperson rate of Kshs 15,000/= applied to the 1st Applicant as chair of the two committees, and the member rate of Kshs 10,000/= to the 2nd Applicant and to full board sittings.

03

Respondent's non-participation in the computation

Holding

Having failed to respond to the Applicants' proposed computations or file its own, the Respondents were treated as not objecting, and the court proceeded on the Applicants' tabulation as adjusted by law.

Reasoning

The Applicants' advocates wrote to the Respondents' advocates on 6th November 2024 attaching proposed computations; there was no response and no independent computation was filed. The court therefore determined the matter on the Applicants' tabulation, subject to correction against the regulatory caps on meeting frequency.

p. 2

Legal principles established

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  • Where regulations prescribe the number of meetings, the party alleging fewer meetings occurred bears the burden of proving it; failing proof, the statutory/regulatory entitlement is payable.
  • The applicable allowance rates were those in the Salaries and Remuneration Commission Guidelines of 16th April 2014: Kshs 15,000/= for chairperson and Kshs 10,000/= for members.

Court orders

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  1. 1.The court found and held that the amounts due to the Applicants is Kshs 980,000/=, comprising Kshs 550,000/= for the 1st Applicant and Kshs 430,000/= for the 2nd Applicant
  2. 2.The petitioners shall have the costs of the petition
  3. 3.The petition is marked finally determined by the court

The bench

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

Wrote the judgment

Jurisdiction invoked
Jurisdiction not expressly stated; ruling flows from the court's prior directions of 25th October 2024 in the pending petition, referencing the Public Finance Management Act and the Water Act

Relief refused

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The Applicants' tabulated computation of Kshs 1,100,000/= plus taxed costs of Kshs 231,550/= (total Kshs 1,331,550/=) was not adopted in full

The court recalculated entitlement at 19 full board meetings and 12 committee sittings rather than the 20 and 14 claimed, reducing the total to Kshs 980,000/=

p. 2

Costs

The petitioners shall further have the costs of the petition.

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.

The court therefore finds and holds that the amounts due to the Applicants is Kshs 980,000/= .
p. 3Final finding on quantum
This order therefore concludes this matter and the petition is marked finally determined by the court.
p. 3Disposition - final determination
The petitioners shall further have the costs of the petition.
p. 3Costs order
This therefore meant that unless the Respondent could prove that the meetings were less than the required ones by the regulations the Applicants were entitled to those meetings and sittings per year.
p. 2Burden of proof on meeting attendance
Regulation 3.7.2 provides that the committees shall not have more than 4 sittings in a financial year.
p. 2Regulatory cap on committee sittings

Issues in the judgment

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minor

The court's identity and the case number are not stated in the judgment; the signature block describes the judge as 'PRESIDING JUDGE-APPEALS DIVISION', which is inconsistent with a first-instance petition determination, and the reference to 'the petition' is unexplained.

minor

The judgment inconsistently refers to the applicants as 'Applicants' and 'petitioners'.

minor

The judgment states the Applicants' services were terminated in June 2020 while earlier directions contemplate allowances from June 2020 to August 2023, and the tabulation period description is internally inconsistent.

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, "Ado & another v Mandera Water & Sewerage Company Limited & 2 others (Employment and Labour Relations Petition E150 of 2021) [2025] KEELRC 2771 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2771/eng@2025-10-09

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