[2023] KEELRC 1194 (KLR)
The court found that the only statutory deduction applicable to the judgment sum of Ksh. 199,019 was PAYE, calculated at Ksh. 40,391.57, as required by law. The respondent's claim to deduct a loan balance was unsupported, as the claimant had provided unchallenged evidence of full repayment. The total due to the...
Source-derived case information.
- Citation
- [2023] KEELRC 1194 (KLR)
- Parties
- Applicant: Naftary Ndambiri Karama; Respondent: Grain Industries Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Mombasa
- Jurisdiction
- Kenya
- Case Number
- Cause 24 of 2020
- Procedural Posture
- Miscellaneous Application / Ruling on Post Judgment Application for Determination of Statutory Deductions and Outstanding Dues
- Outcome
- application allowed
- Judges
- M Mbarũ
- Legal Topics
- Statutory Deductions, Paye Tax, Judgment Enforcement, Employee Loans, Costs of Suit
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Naftary Ndambiri Karama
Applicant
Grain Industries Limited
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Post Judgment Application for Determination of Statutory Deductions and Outstanding Dues
Legal Issues
- 1 What is the correct amount of PAYE deductible from the judgment sum awarded to the claimant.
- 2 Whether the respondent was entitled to deduct a loan balance from the claimant's award.
- 3 What is the outstanding amount due to the claimant after statutory deductions and prior payments.
Ratio Decidendi
The court found that the only statutory deduction applicable to the judgment sum of Ksh. 199,019 was PAYE, calculated at Ksh. 40,391.57, as required by law. The respondent's claim to deduct a loan balance was unsupported, as the claimant had provided unchallenged evidence of full repayment. The total due to the claimant, after deducting PAYE and accounting for agreed costs and prior payments, was Ksh. 48,426. The respondent's failure to respond or attend court left the claimant's assertions uncontroverted. The court also found the claimant entitled to costs for the application, assessed at Ksh. 20,000, due to the respondent's inaction necessitating the proceedings.
Court Disposition
application allowed
Orders
- The dues owing to the claimant are assessed at Ksh. 48,426 to be paid by the respondent.
- The respondent shall pay the claimant costs for this application assessed at Ksh. 20,000 all-inclusive.
Full Case Text
Judgment text and source record
27 paragraphs
Karama v Grain Industries Limited (Cause 24 of 2020) [2023] KEELRC 1194 (KLR) (11 May 2023) (Ruling)
Neutral citation: [2023] KEELRC 1194 (KLR)
Republic of Kenya
In the Employment and Labour Relations Court at Mombasa
Cause 24 of 2020
M Mbaru, J
May 11, 2023
Between
Naftary Ndambiri Karama
Claimant
and
Grain Industries Limited
Respondent
Ruling
1. The claimant filed application dated March 23, 2022 seeking for orders that;This court do hereby issue an order determining how much is deductible from the sum awarded on 03/12/2021
2. The application is supported by the claimant’s affidavit and on the grounds that judgment herein was delivered for the claimant against the respondent for the sum of Ksh. 199,019 less PAYE by February 1, 2022 failing which interests to be payable thereon at court rates from the date of filing the suit till paid in full. the respondent was also directed to pay costs.
3. The parties have failed to agree on the amount deductible from the judgment award and hence seek the intervention of the court. the respondent issued the claimant with cheque for Ksh. 280,130 a difference of Ksh. 110,002 meaning the deduction is Ksh. 88,997. This translates to a PAYE and withholding tax which is not due. the respondent also indicated that they deducted a loan balance which the claimant had not cleared but the claimant has since cleared such loan and sent communication to the respondent.
4. The claimant served the respondent with the instant application and there is no response.
5. The claimant attended court and made submissions that the judgement award was Ksh. 199,019 and costs were agreed upon at Ksh. 170,108 total being 369,149.
6. The claimant has attached his tabulations to his supporting affidavit that from the award of Ksh. 199,019 costs were agreed at Ksh. 170,180 and he has only been paid Ksh. 280,130 leaving less PAYE and total due is Ksh. 40,068. 78.
7. On December 3, 2021 the court delivered judgment herein in the following terms;1. Payment of Ksh. 199,019 (less PAYE) by 01. 02. 2022 failing interest to be payable thereon at court rates from the date of filing the suit till payment in full;2. The respondent to pay the claimant’s costs of the suit;3. …
8. On the judgment sum of Ksh. 199,019 the due PAYE is Ksh. 40,391. 57 as required under the provisions of section 49(2) of the Employment Act, 2007 that;(2)Any payments made by the employer under this section shall be subject to statutory deductions.On the total sum awarded less PAYE, the total due is Ksh. 158,628. The parties have since agreed on costs all at Ksh. 170,108. The award plus total dues is Ksh. 328,736. Of this amount, the claimant has been paid Ksh. 280,310. Total balance due is Ksh. 48,426.
9. The claimant in his affidavit asserts that he had a loan to Ajab Sacco which he has since repaid in full. pursuant to section 19(1)(h) of the Employment Act, 2007 an employer is allowed to deduct any outstanding loan or other facilities advanced to the employee at the end of employment. The employer has the duty to keep work records relating to such amounts deducted from an employee’s salary. Without the respondent attending or filing any replying affidavit to challenge the averments by the claimant that he has since repaid his loan in full, the court is left with no other evidence to challenge the same.
10. On the court award, the dues owing shall be paid at Ksh. 48,426.
11. The claimant is seeking costs for filing this application which is necessitated by the respondent. indeed, despite the respondent being served, there is no attendance. The claimant is entitled to his costs assessed at Ksh. 20,000 all-inclusive for these proceedings.
12. Accordingly, application dated March 23, 2022 is found with merit and the dues owing to the claimant assessed at Ksh. 48,426; costs at Ksh. 20,000.
DELIVERED IN OPEN COURT AT MOMBASA THIS 11TH DAY OF MAY, 2023. M. MBARŨJUDGEIn the presence of:Court Assistant: Japhet Muthaine……………………………………………… and ……………………………………