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ELRCPartially AllowedCause No E167 of 2024· [2025] KEELRC 3693 (KLR)

Musau v Adrian Kenya Limited (Cause E167 of 2024) [2025] KEELRC 3693 (KLR)

Employment and Labour Relations Court
19 December 2025
1,641 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ordered an employer to pay a former executive Kshs.2,423,900 under a signed mutual separation agreement, plus interest and costs.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent as Group Commercial Director on a fixed one-year contract commencing 1st August 2023 at a consolidated gross monthly salary of Kshs.654,631.63, sued for Kshs.2,423,900/= due under a Mutual Separation Agreement dated 22nd December 2023, effective 7th December 2023. He pleaded that he worked only four months, was paid Kshs.220,000/= only, and that the Respondent failed to pay the agreed separation package of Kshs.2,423,900/= payable in four equal instalments. He sought a declaration of entitlement to that sum, damages for unlawful retention, costs and interest. The Respondent filed a Statement of Response but did not appear at the hearing on 15th July 2025 and led no evidence; only the Claimant filed submissions. The court, per Agnes Kitiku Nzei J, held that unrebutted evidence stands but the Claimant still had to prove his claim on a balance of probabilities, following Janet Kaphiphe Ouma v Marie Stopes International Kenya, Edward Muriga v Nathaniel D. Schulter, Interchemie E.A. Limited v Nakuru Veterinary Centre and Chrispine Otieno Caleb v Attorney General. The signed employment contract and the Mutual Separation Agreement proved the claim. Judgment was entered for the Claimant for Kshs.2,423,900/= with interest at court rates from the date of judgment. The claim for damages for unlawful retention was declined, retention of the first three instalments not being inordinate and no damage being proved. The court declined to subject the award to Section 49(2) Employment Act deductions since these were contractually accounted for. Costs were awarded to the Claimant with interest from the date of taxation.

Key legal issues

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01

Effect of respondent's failure to call evidence

Holding

Unrebutted claimant's evidence stands, but the claimant still bears the burden of proof on a balance of probabilities, which the Claimant discharged

Reasoning

The court relied on Janet Kaphiphe Ouma v Marie Stopes and Interchemie E.A. Limited v Nakuru Veterinary Centre, noting that unrebutted pleadings remain mere allegations. The Claimant produced a signed employment contract and the Mutual Separation Agreement, proving the employment relationship and the agreed separation package of Kshs.2,423,900/= on a balance of probabilities.

p. 3
02

Entitlement to the separation package under the Mutual Separation Agreement

Holding

The Claimant proved entitlement to Kshs.2,423,900/= under the Agreement, being the net sum after contractual deductions

Reasoning

The Mutual Separation Agreement dated 22nd December 2023, effective 7th December 2023, obliged the Employer to pay a separation package of KES2,423,900/= in four equal instalments per Schedule 1, being net amounts for unpaid salaries, December days worked, leave and notice, less amounts already paid. No payment was made despite clearance.

p. 4
03

Statutory deductions on the awarded sum

Holding

Section 49(2) Employment Act deductions were not applied since deductions were already contractually accounted for

Reasoning

The awarded sum was net of amounts payable under the Mutual Separation Agreement, with statutory deductions already shown as taken into account by the parties in arriving at the net separation package, so further deductions were unnecessary.

p. 4
04

Damages for unlawful retention of dues

Holding

Claim declined because the retention was brief and no damage was proved

Reasoning

The suit was filed weeks after the last instalment fell due; retention of the first three instalments was not inordinate and no damage was demonstrated. The cause of action arose on default of the first instalment.

p. 5

Legal principles established

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  • A party who does not adduce evidence leaves the opposing party's evidence uncontroverted, but the claimant must still prove the claim on a balance of probabilities

Court orders

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  1. 1.Judgment entered for the Claimant against the Respondent for Kshs.2,423,900/= with interest at court rates from the date of judgment
  2. 2.Refusal of the claim for damages for unlawful retention of lawful dues
  3. 3.No statutory deductions applied to the awarded sum pursuant to Section 49(2) of the Employment Act
  4. 4.The Claimant awarded costs of the suit plus interest at court rates, interest on costs calculated from the date of taxation

Authorities

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Legislation

  • Evidence ActSections 107 and 108
  • Employment ActSection 49(2)

Cases cited (4)

  • Janet Kaphiphe Ouma & Another – vs – Marie Stopes International Kenya
    Kisumu HCCC No. 68 of 2007
  • Edward Muriga (Through Stanely Muriga – vs – Nathaniel D. Schulter
    Civil Appeal No. 23 of 1997
  • Interchemie E.A. Limited – vs – Nakuru Veterinary Centre Limited
    (Milimani) HCCC No. 165B of 2000
  • Chrispine Otieno Caleb – vs – Attorney General
    [2014] KEHC 8485 (KLR)
Jurisdiction invoked
Original employment and labour relations jurisdiction (Employment and Labour Relations Court)

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, "Musau v Adrian Kenya Limited (Cause E167 of 2024) [2025] KEELRC 3693 (KLR)", Case Analysis (2025). Cause No E167 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/3693/eng@2025-12-19

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