Michael Moragia Nyachae v Sansora Bakery Limited
The bottom line
#Kenya's Employment Court struck out an employer's counterclaim because most of it belonged in other courts, but allowed a narrower employment-only version.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.Whether the Respondent's counterclaim raises matters outside this Court's jurisdiction and should be struck out
- 2.Whether the counterclaim is defective for non-joinder of persons and entities against whom adverse allegations are made
Key legal issues
#Jurisdiction over counterclaim reliefs belonging to other forums
Portions of the counterclaim concerning land sale, rent and lease matters fall outside the ELRC's competence and were struck out
The court noted the amended defence included a counterclaim whose reliefs relate to lease of property, value of property space let out and a purported fraudulent sale of property belonging to entities not before the Court. It held the interests of justice required the counterclaim to focus only on claims competent for the ELRC, requiring amendment.
Non-joinder of parties
The court did not expressly rule on non-joinder as a standalone ground; the striking out rested on jurisdiction over the reliefs claimed
Although the Claimant argued the counterclaim was fatally defective for non-joinder of entities such as Sansora Group Limited and Development Bank of Kenya, the disposition rested on the counterclaim containing reliefs for another forum, with leave to re-file an employment-only counterclaim.
Legal principles established
#- A counterclaim containing reliefs for another forum should be confined to claims competent for the court's jurisdiction; the offending portions may be struck out
Court orders
#- 1.The Respondent's counterclaim is struck out with no order as to costs
- 2.A counterclaim solely in respect of the employment dispute may be filed within 14 days
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Article 162(2) of the Constitution of Kenya (labour and employment relations jurisdiction)
Relief refused
#Costs of the preliminary objection
Court struck out the counterclaim but declined costs
Costs
No order as to costs
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
There would be need for the Respondent to amend its counterclaim and accordingly I strike it out albeit with no order as to costs.
A counterclaim solely in respect of the employment dispute may be filed within 14 days of today.
Fraudulent acquisition of company property can be framed in a way that fits within the confines of Article 162(2) of the Constitution of Kenya and the Employment Laws in Kenya.
Issues in the judgment
#Judgment dated 2026 though cause is numbered 2025
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Michael Moragia Nyachae v Sansora Bakery Limited", Case Analysis (2026). Cause No. E015 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/2635/eng@2026-09-29
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.