[2024] KEELRC 993 (KLR)
The court determined that the interest on the lump sum pension awarded to the applicant should be calculated at the court rate of 12% per annum from the date of filing the suit (16/6/2007) until the date of payment (13/8/2020), as the judgment did not direct that interest be compounded. The court rejected the...
Source-derived case information.
- Citation
- [2024] KEELRC 993 (KLR)
- Parties
- Applicant: Obadiah Mutisya Kitonyi; Respondent: The Hon Attorney General
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 1001 of 2014
- Procedural Posture
- Cause / Post Judgment Ruling on Computation of Interest
- Outcome
- Application for compound interest dismissed; interest awarded at court rate as per respondent's tabulation.
- Judges
- MN Nduma
- Legal Topics
- Pension Entitlements, Interest on Judgment Debt, Public Service Retirement Benefits
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Obadiah Mutisya Kitonyi
Applicant
The Hon Attorney General
Respondent
Procedural Posture
Cause / Post Judgment Ruling on Computation of Interest
Legal Issues
- 1 Whether the interest on the lump sum pension should be calculated at court rates or compounded as claimed by the applicant.
- 2 What is the correct period for which interest on the lump sum pension is payable.
Ratio Decidendi
The court determined that the interest on the lump sum pension awarded to the applicant should be calculated at the court rate of 12% per annum from the date of filing the suit (16/6/2007) until the date of payment (13/8/2020), as the judgment did not direct that interest be compounded. The court rejected the applicant's claim for compound interest and for interest beyond the date of payment, finding that the respondent's tabulation was consistent with the judgment and applicable law. The operative legal principle is that interest on judgment debts is payable at the court rate unless the court expressly orders otherwise, and compound interest is not presumed. The court upheld the...
Court Disposition
Application for compound interest dismissed; interest awarded at court rate as per respondent's tabulation.
Orders
- Interest payable on the lump sum pension is Kshs. 2,474,335.19 at 12% per annum from 16/6/2007 to 13/8/2020.
- No compound interest is payable.
Full Case Text
Judgment text and source record
29 paragraphs
Kitonyi v Attorney General (Cause 1001 of 2014) [2024] KEELRC 993 (KLR) (11 April 2024) (Ruling)
Neutral citation: [2024] KEELRC 993 (KLR)
Republic of Kenya
In the Employment and Labour Relations Court at Nairobi
Cause 1001 of 2014
MN Nduma, J
April 11, 2024
Between
Obadiah Mutisya Kitonyi
Claimant
and
The Hon Attorney General
Respondent
Ruling
1. The court delivered judgement on 6th April 2018 in favour of the claimant and directed the respondent as follows: -a.Calculate and pay the Plaintiff, Lump sum pension due and owing to the Plaintiff from the date he attained the retirement age of fifty five (55) years.b.Continue to pay the Plaintiff monthly pension in terms of the Applicable law and regulations.c.Pay interest on the Lump sum pension awarded in (a) above from the date of filling the suit till payment in full.d.The Defendant to pay costs of the suit. (emphasis added)
2. The court has considered the tabulation and submissions filed by the Claimant and the Respondent.
3. Both parties in the tabulation agreed that the total lumpsum payable was Kshs. 1, 586, 112. 30/=.
4. The court is satisfied that the total Lump sum was paid to the Claimant on 13/8/2020 and that the suit was filed on 16/6/2007.
5. Interest is therefore to be calculated for a period of 13 years as from 16/7/2007 to 13/8/2020.
6. The Respondent has calculated interest payable at the court rate from date of judgement till payment in full as follows: -a.1, 586,112. 30/= (paid Lump sum) x 12% (court rate) x 13 (accrued years) 100Total Ksh. 2,474,335. 188/=.
7. The claimant has on the other hard calculated the interest payable on the Lump sum from 6/7/2007 using a compound interest of 12% to date of the tabulation being 6/12/2023.
8. The claimant found that the total interest payable on the Lump sum paid is Kshs. 7,848,050. 78.
9. The court faults the calculation by the claimant in that the court directed that interest be paid on the Lump sum payable from date of filling suit till payment in full. The court is satisfied that the Lump sum of Ksh.1,586,112. 30/= was fully paid on 13/8/2020 as indicated by the respondent.
10. The court found that the interest on the Lumpsum was to be paid at court rates up to 13/8/2020 and not up to 6/12/2022 as submitted by the claimant.
11. Furthermore, the court did not direct that interest on the Lump sum be compounded as per the tabulations by the claimant in their submissions which resulted in an erroneous tabulation of a total of Kshs. 7,884,050. 78 interest payable.
12. The court agree and upholds the tabulation submitted by the respondent as follows: -Ksh.1,586,112. 30 (lump sum already paid) x 12% (court rate) x 13 (accrued years) divided by 100: bringing a total of Kshs. 2,474,335. 188 as interest payable in terms of the Judgement of the court delivered on 6/4/2018.
13. Accordingly, the court finds that interest payable in terms of the Judgment of the court dated 6/4/2018 is Kshs. 2,474,335. 188=.
It is so ordered.
DATED AND DELIVERED AT NAIROBI THIS 11TH DAY OF APRIL, 2024Hon. Justice Nduma NderiJUDGEAppearance:Beatrice Akumo for RespondentRatemo Oira for ClaimantCourt Assistant: Mr. Kemboi