[2025] KEELRC 2066 (KLR)
The court determined that the number of years of service for the purpose of severance pay is 10 years, as per the schedule filed and referenced in the judgment, not 11 years as claimed by the applicant. The court clarified that compensation should be Kshs. 106,191.00, calculated on the gross salary for three months,...
Source-derived case information.
- Citation
- [2025] KEELRC 2066 (KLR)
- Parties
- Applicant: Kenya Engineering Workers Union; Respondent: M/S Insteel (K) Limited; Applicant: Peter Makedi
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Employment and Labour Relations Cause E654 of 2020
- Procedural Posture
- Employment and Labour Cause / Ruling on Computation of Dues and Objections to Tabulation
- Outcome
- Application allowed in part; tabulation disputes resolved as per court's findings.
- Judges
- MN Nduma
- Legal Topics
- Severance Pay Calculation, Compensation Awards, Interest on Judgment Debt, Service Years Dispute
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kenya Engineering Workers Union
Applicant
M/S Insteel (K) Limited
Respondent
Peter Makedi
Applicant
Procedural Posture
Employment and Labour Cause / Ruling on Computation of Dues and Objections to Tabulation
Legal Issues
- 1 Whether the applicant is entitled to severance pay calculated for 10 or 11 years of service.
- 2 Whether compensation should be Kshs. 106,191.00 or Kshs. 106,188.00.
- 3 From what date and at what rate should interest on the judgment sum be calculated.
Ratio Decidendi
The court determined that the number of years of service for the purpose of severance pay is 10 years, as per the schedule filed and referenced in the judgment, not 11 years as claimed by the applicant. The court clarified that compensation should be Kshs. 106,191.00, calculated on the gross salary for three months, less PAYE. Interest is to be applied at the court rate, initially 12% and later 14% from the date the new rate was gazetted, not from the date of termination. The court resolved all disputes on tabulation in accordance with the evidence and the judgment, directing the claimant union to remit all unpaid dues to the applicant forthwith.
Court Disposition
Application allowed in part; tabulation disputes resolved as per court's findings.
Orders
- Severance/gratuity pay to be calculated for 10 years only.
- Compensation to be paid at Kshs. 106,191.00 less PAYE.
Full Case Text
Judgment text and source record
27 paragraphs
Kenya Engineering Workers Union v M/S Insteel (K) Limited; Makedi (Applicant) (Employment and Labour Relations Cause E654 of 2020) [2025] KEELRC 2066 (KLR) (10 July 2025) (Ruling)
Neutral citation: [2025] KEELRC 2066 (KLR)
Republic of Kenya
In the Employment and Labour Relations Court at Nairobi
Employment and Labour Relations Cause E654 of 2020
MN Nduma, J
July 10, 2025
Between
Kenya Engineering Workers Union
Claimant
and
M/S Insteel (K) Limited
Respondent
and
Peter Makedi
Applicant
Ruling
1. The Claimant union represented all grievants in this matter and obtained judgment against the Respondent on 15th December 2022. The Claimant union calculated and paid the decretal sum in respect of all the grievants except one Mr. Peter Makedi; the applicant herein who disputes the amount payable to him in terms of the judgment.
2. The Applicant in his submissions told court that he agrees with the tabulation by the Claimant union as follows:i.Basic wage Ksh. 27,229. 00ii.House allowance Kshs. 8,168. 00iii.Salary arrears Kshs. 10,804. 00iv.Overtime pay Kshs. 16,476. 00v.Leave pay Kshs. 26,735. 00vi.Recognition long service award Kshs. 8,602. 00vii.Notice pay Kshs. 35,397. 00
3. The Applicant disagreed with the Claimant union’s tabulation in the following respects:-i.Severance pay: Applicant’s figure is Kshs. 388,367. 00 whereas that by the Claimant Union is Kshs. 217,000. 00.
4. The difference is informed by the fact that the Applicant stated that he worked for 11 years and not 10 years that is used by the Claimant to calculate the severance pay.
5. Furthermore, the Applicant disagrees with calculation of interest at 14% stating that it should be done from date of termination which was 18/10/2019.
6. Finally, the Applicant disputes the calculation of compensation stating that it should be Kshs. 106,191. 00 and not Kshs. 106,188. 00. The court resolves this unnecessary dispute as follows:i.CompensationThe Applicant was awarded 3 months’ compensation. Compensation is calculated on gross salary and is then payable less PAYE. Applicant’s gross salary is (27,229 + 8,168) Kshs. 35,397 x3) Kshs. 106,191. 00. ii.Interest as per the judgement is at court rates from 18th October 2019. The court rate was initially at 12% but was changed to 14% and the rate should therefore apply from the date the rate was gazetted and not before.iii.The number of years are as per the schedule filed before court and referred to in the judgment at paragraph 53 as set out at page 86 (Annexture 9) to the statement of claim. The number of years shown there are 10 years and not 11 years. This figure was not disputed or amended before judgment of the court.
7. Therefore severance/gratuity pay is to be calculated for a period of 10 years and not 11 years.
8. This concludes this matter and the Claimants’ union is to remit all dues unpaid to the Applicant yet forthwith.
It is so ordered.
DATED AT NAIROBI THIS 10TH DAY OF JULY 2025. MATHEWS NDUMAJUDGEAppearance:Mr. Peter Oduor Makedi in personMr. Odera for Claimant unionMr. Kemboi – Court Assistant