[2019] KEELRC 1386 (KLR)
The court held that, in the absence of express language to the contrary, interest awarded in employment and labour disputes is to be calculated on a simple interest basis. The court emphasized that this is the traditional and standard approach in the Employment and Labour Relations Court, distinguishing it from...
Source-derived case information.
- Citation
- [2019] KEELRC 1386 (KLR)
- Parties
- Applicant: Peter Kilatya; Respondent: Bamburi Cement Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Mombasa
- Jurisdiction
- Kenya
- Case Number
- Cause 333 of 2014
- Procedural Posture
- Review Application / Post Judgment Application for Clarification of Interest Computation
- Outcome
- Application for review dismissed; clarification granted that interest is to be calculated on a simple interest basis.
- Judges
- J Rika
- Legal Topics
- Interest on Judgment Debt, Review of Judgment, Employment Relationship, Post Judgment Applications
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Peter Kilatya
Applicant
Bamburi Cement Limited
Respondent
Procedural Posture
Review Application / Post Judgment Application for Clarification of Interest Computation
Legal Issues
- 1 Whether the interest awarded on the principal sum should be calculated as simple or compound interest.
- 2 Whether the court should review its judgment to clarify the mode of interest computation.
Ratio Decidendi
The court held that, in the absence of express language to the contrary, interest awarded in employment and labour disputes is to be calculated on a simple interest basis. The court emphasized that this is the traditional and standard approach in the Employment and Labour Relations Court, distinguishing it from commercial contexts where compound interest may be appropriate. The court found the applicant's request for clarification unnecessary and reiterated that the judgment should be satisfied using simple interest at 14% per annum from 21st April 1998 on the principal sum of Kshs. 99,943. The application for review was therefore resolved by confirming the mode of interest computation as...
Court Disposition
Application for review dismissed; clarification granted that interest is to be calculated on a simple interest basis.
Orders
- Judgment shall be satisfied based on simple interest rate at 14% per annum from 21st April 1998 on the principal sum of Kshs. 99,943.
Full Case Text
Judgment text and source record
17 paragraphs
REPUBLIC OF KENYA
IN THE INDUSTRIAL COURT AT MOMBASA
CAUSE NUMBER 333 OF 2014
BETWEEN
PETER KILATYA ...............................................................CLAIMANT
VERSUS
BAMBURI CEMENT LIMITED..................................RESPONDENT
RULING
1. This dispute was initiated at the High Court Mombasa in the year 2004. It was transferred to the E&LRC Mombasa in 2014, and determined in a Judgment delivered on 28th June 2017.
2. Instead of assisting themselves by implementing Judgment the Parties disagreed on a minor issue, on whether interest of the principal amount of Kshs. 99,943, granted at 14% per annum from 21st April 1998, should be calculated based on simple or compound rate of interest.
3. The Claimant filed an Application on 21st March 2018, asking the Court to review its Judgment and indicate whether interest is on compound or simple rate.
4. The answer is that interest was granted, as traditionally is, in the Judgments of the E&LRC, based on simple interest. The Claimant, whose Advocates have obtained other Judgments from the Court, ought to be aware that interest, unless otherwise stated in the Judgment, is made based on simple interest.
5. To be clear, the Claimant was granted a principal sum of Kshs. 99, 943. Interest is calculated from 21st April 1998, which at 14% per annum, is Kshs. 13,992. Every year, there would be an interest of Kshs. 13,992. Compound interest would be based on the principal amount and cumulative interest. Interest from previous years would earn interest on subsequent years. This sort of computation may apply with respect to bank interest rates, and other commercial transactions, underpinned by usurious contracts. The employer-employment relationship, is a special relationship which is not based on usury. It is not based on greed. The Claimant should be grateful to the Court that he has interest from 1998, and not from the date of Judgment. Why does he wish to prolong this dispute, with this unnecessary application? Parties must assist the Judiciary not only in ensuring old disputes are expeditiously heard, and determined, but also by avoiding reopening of closed files.
6. Judgment shall be satisfied based on simple interest rate.
Dated and delivered at Mombasa this 13th day of June 2019.
James Rika
Judge