https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/1301

Kenya Engineering Workers Union v M/S Roofings Kenya Limited (Cause E039 of 2025) [2026] KEELRC 1301 (KLR) (18 May 2026) (Ruling) Neutral citation: [2026] KEELRC 1301 (KLR) Republic of Kenya In the Employment and Labour Relations Court at Mombasa Cause E039 of 2025 M Mbarũ, J May 18, 2026 Between Kenya Engineering Workers Union Claimant and M/S Roofings Kenya Limited Respondent Ruling 1.This ruling is issued post judgment delivered on 23 October 2025, with orders that:a.Upon the Recognition Agreement dated 7 December 2021, the claimant is justified in seeking a CBA with the respondent.b.Parties shall conclude CBA negotiations for the unresolved items of general wage increase for 2022 and 2023 based on the 10% offered by the respondent;c.House allowance shall be applied at 15% of the basic wage based on the current wages paid;d.The redundancy rate shall be applied at 15 days for every year worked in accordance with section 40 of the Employment Act;e.Parties shall resume negotiations on this basis and report to the court within 30 days on 3 December 2025;f.To maintain industrial peace, each party is to meet its costs. 2.The outstanding items were that:a.Parties shall conclude CBA negotiations for the unresolved items of general wage increase for 2022 and 2023 based on the 10% offered by the respondent;b.Parties shall resume negotiations on this basis and report to the court within 30 days on 3 December 2025; 3.The court secured the assistance of the Labour Officer, Mombasa (CLO) to attend at the shop floor and do a fact finding upon the response, declaring a redundancy pursuant to the judgment and urging the court that it was not possible to negotiate the CBA as operations had since closed. 4.There is a report of the CLO dated 10 March 2026. There is confirmation that the respondent has since closed operations and has a skeleton staff to manage the closure of operations. From the total 130 employees, 109 were affected by the declared redundancy. There is a remainder of 28 whose sole duty is to close operations.The redundancy notice was issued and took effect on 1 January 2026. 5.Regarding the items identified by the court in the judgment and in the CLO report, the claimant submitted that the report cannot assist the court, as the items identified for negotiations were based on the respondent’s offer to increase the general wage by 10%, which the claimant accepted. This will thus be streamlined in the CBA, which is now frustrated by the redundancy declaration. 6.Before the termination of employment, the grievants had a legitimate and valid expectation that the offered general wage increment would be by 10%. This was to address the 2022 and 2023 timelines, long before the redundancy was declared. 7.The respondent submitted that it has since closed its operations. There is no valid CBA enforceable by the claimant, and the demand for a 15% general wage increment is not justified. 8.There is no valid CBA binding the parties. Under section 59(5) of the Labour Relations Act, a party cannot seek to enforce a CBA that is not registered. The report by the CLO acknowledges that operations have since closed, and the skeleton staff left on site are only meant to close operations. Determination 9.The judgment herein acknowledged that there is an existing Recognition Agreement between the parties. This allows the claimant to seek a CBA with the respondent. 10.On this basis, the parties engaged in negotiations but could not agree on several items, including the general wage increment. The claimant proposed a general wage increase was 15%, and the respondent offered a 10% general wage increase.The period for the CBA negotiations remained 2022 and 2023.Redundancy was only declared and took effect on 1 January 2026. 11.Under a CBA and in accordance with the Recognition Agreement, the basis of this agreement is to secure terms and conditions of employment and ensure peace on the shop floor. The CBA negotiations are taken under the appreciation that the employees have offered their labour and the employer has remained in operation. The employees become unionised to negotiate collectively. The employer seeks to equalise the shop floor by having standard terms and conditions of employees who undertake similar duties of equal value as required under section 26 of the Employment Act. This is the essence of Article 41 of the Constitution. 12.Hence, where there is a CBA covering 2022 and 2023, the payments and benefits there are due in arrears.In this case, no CBA was concluded and registered with the court. 13.The proposals between the parties, including a 10% general wage increment, were frustrated by the redundancy declaration. 14.However, the other benefits accruing under the subject judgment delivered on 23 October 2025 are due in arrears and go back to the date of employment of the grievants terminated. 15.The matter of revoking the Recognition Agreement before the National Labour Board is irrelevant to the extent that, from 2021 to date, the Recognition Agreement between the parties has remained valid. Under such recognition, there exists no CBA. None has been concluded and registered with the court. 16.Upon the declaration of redundancy, the claimant can only address the issues emerging therefrom in the context that there is no CBA addressing the payment of terminal dues, but under the Recognition Agreement, the respondent is duty-bound to make such payments based on the applicable law and findings from the judgment delivered on 23 October 2025. This will suffice. 17.The shop floor has since changed post judgment. The negotiations, directed on 23 October 2025 to conclude a CBA, based on the CLO report, became moot.The court cannot issue orders that are unlikely to be obeyed. 18.The Recognition Agreement was declared valid in the judgment delivered on 23 October 2025. Regarding the general wage increment, without a registered CBA, pursuant to section 59(5) of the Labour Relations Act, the claim for a general wage increment cannot be applied.Orders accordingly. DELIVERED IN OPEN COURT AT NAIROBI, THIS 18TH DAY OF MAY 2026M. MBARŨJUDGEIn the presence of:Court Assistants: Catherine, Kemboi and Omar……………………………………………… and…………………………………..…………..