https://new.kenyalaw.org/akn/ke/judgment/keelrc/2026/1999
The court held that a balance had to be struck between the Applicant’s right of appeal and the Respondents’ right to enjoy the fruits of judgment. Taking into account the Applicant’s status as a public institution and the exemption from deposit of security under Order 42 Rule 8, the court accepted a bank guarantee...
Source-derived case information.
- Citation
- [2026] KEELRC 1999 (KLR)
- Parties
- Applicant: University Of Nairobi; Respondent: Peter Nduu Wambua & 21 others & 21 others & 21 others & 21 others
- Court
- Employment and Labour Relations Court
- Jurisdiction
- Kenya
- Case Number
- Appeal E427 of 2025
- Procedural Posture
- Employment and Labour Relations Court Appeal / Ruling on Application for Stay of Execution Pending Appeal
- Outcome
- Application allowed on conditions
- Judges
- ["DKN Marete"]
- Legal Topics
- Stay of Execution, Security for Due Performance, Appeal Pending Appeal, Gratuity Award, Bank Guarantee, Public Bodies and Security Exemption
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
University Of Nairobi
Applicant
Peter Nduu Wambua & 21 others & 21 others & 21 others & 21 others
Respondent
Procedural Posture
Employment and Labour Relations Court Appeal / Ruling on Application for Stay of Execution Pending Appeal
Legal Issues
- 1 Whether the Applicant met the threshold for stay of execution pending appeal
- 2 Whether substantial loss was demonstrated
- 3 Whether security for due performance was required and what form it should take
Ratio Decidendi
The court held that a balance had to be struck between the Applicant’s right of appeal and the Respondents’ right to enjoy the fruits of judgment. Taking into account the Applicant’s status as a public institution and the exemption from deposit of security under Order 42 Rule 8, the court accepted a bank guarantee as adequate security and allowed stay on terms.
Court Disposition
Application allowed on conditions
Orders
- The Appellant/Applicant shall within thirty (30) days issue a bank guarantee for Ksh. 24,030,225.00 as security for the decretal/judgment sum.
- The Appellant/Applicant shall within forty-five (45) days make, file and serve the Record of Appeal.
Full Case Text
Judgment text and source record
1 paragraphs
University of Nairobi v Wambua & 21 others (Appeal E427 of 2025) [2026] KEELRC 1999 (KLR) (15 July 2026) (Ruling) Neutral citation: [2026] KEELRC 1999 (KLR) Republic of Kenya In the Employment and Labour Relations Court at Nairobi Appeal E427 of 2025 DKN Marete, J July 15, 2026 Between University Of Nairobi Applicant and Peter Nduu Wambua & 21 others & 21 others & 21 others & 21 others Respondent Ruling 1.This is the application dated 10th December, 2025 and seeks stay of execution of the judgment delivered on 18th November, 2025 in CMELRC No. 1587A of 2019. 2.The application is based on grounds that in the judgment of the trial court, the Claimants were awarded a payment of gratuity at 31% for every year worked all amounting to Ksh. 48,060,445.00 with interest and costs with 45 days for compliance by the Applicant. This lapsed on 2nd January, 2026. 3.The Respondent’s oppose the application for being an non starter and or abuse of the process of court. Besides, they posit that the Applicant has not advanced any reasons for justifying a stay of the judgment of court entered regularly after taking evidence and deliberating on the filed documents while applying the provisions of the relevant law as expressed in the Employment Act, 2007 and the Labour Relations Act, 2007. 4.Other issues raised in opposition to the application come out thus;i.That the application has not been brought out in good faith and is a tactic by the Applicant to elongate litigation as no reasons have been adduced to demonstrate the prejudice on the part of the Applicant if the orders sought are not granted.ii.No offer of security has been made thereby disentitling the Applicant to the orders sought.iii.This court should not entertain the Applicant but should listen to and safeguard the Respondent’s interests having waited for this judgment since 2018 in retirement.iv.This amounts to discrimination in that other retirees have been paid at the rate of 31% of basic salary on departure. 5.The 22nd Respondent also comes in to oppose the application on somewhat similar grounds. These are;i.The application is fatally defective, mischievous and an abuse of the process of court in that the Appellant has not demonstrated the strength and likelihood of the appeal being successful.ii.The appeal before this court has no chances of success.iii.The appeal cannot be rendered nugatory by a money decree being satisfied where substantial loss is not demonstrated as in this case.iv.The right of appeal ought to be balanced with the right of the decree holder to enjoy the fruits of their judgment.v.Should this court be inclined to allow the appeal, it should order the Applicant to pay half of the decretal amount to the Respondent and deposit the other half in court. 6.The Appellant/Applicant in their written submissions dated 4th February, 2026 submits in support of the application. They seek to rely on the authority of Order 42 Rule 6(2) of the Civil Procedure Rules which provides for the prerequisite of an order for stay of execution as follows;No order for stay of execution shall be made unless;a.The court is satisfied that substantial loss may result to the applicant..;b.The application has been made without unreasonable delay; andc.Such security as the court orders has been given. 7.This is besides reliance on the authority of Gatirau Peter Munya v Dickson Mwenda Kithinji & 2 others (2014) eKLR where the court on the subject, observed as follows;Before a court grants an order for stay, the Appellant or intending Appellant must satisfy the court that;i.That the Appeal is arguable appeal and not frivolous.ii.That the appeal would be rendered nugatory if the stay orders are not granted.iii.That it would be in the public interest to do so. 8.The Appellant/Applicant moves on to submit in favour of having met these prerequisites for grant of stay of execution and grounds it all with Order 42 Rule 8 which expressly exempts public bodies from the requirement to deposit security. In all, the Applicant’s seeks that the court as a last resort accepts a bank guarantee for half the decretal sum or thereabout as security. 9.The Respondents’ in their written submissions dated 4th February, 2026 reiterate and emphasize their case on balancing the right of appeal against the equal important principle that successful litigants should not be denied or deprived of the fruits of their judgment for no sufficient cause. 10.It is their further submission that the Appellant/Applicant’s confession that the university is on its knees financially and is an indication of their state of affairs and this prompts the need to be wary of the risks to the Respondents in the event of an issue of stay of execution without adequate security. This would amount to grave injustice. This also takes into account that in all applications for stay, security for the due performance of the decree is mandatory. The Respondents in the alternative are agreeable to the issue of a bank guarantee for the entire judgment sum of Ksh. 48,060,445.00. This would satiate the interest of the Respondents pending the outcome of the appeal. 11.A balancing act would in the circumstances come out in the case of the Appellant/Applicant. Taking into account the circumstances of the application and in consideration of the provisions of Order 42, Rule 8 that exempts public institutions from a deposit of security, this court accepts the Applicant’s offer of a bank guarantee for half the decretal or judgment sum, whichever is the earlier.I am therefore inclined to allow the application and order as follows;i.That the Appellant/Applicant be and is hereby ordered to, in thirty (30) days issue a bank guarantee for the amount of Ksh.24,030,225.00 as security for the decretal on judgment sum.ii.The Appellant/Applicant is awarded forty-five (45) days to make, file and serve a Record of Appeal in this cause.iii.Mention on 30th September, 2026 for confirmation of compliances and directions of this court.iv.Each party shall bear their costs of this application. DELIVERED, DATED AND SIGNED THIS 15TH DAY OF JULY 2026.D. K. NJAGI MARETEJUDGEAppearancesMr. Omondi instructed by Mereka & Company Advocates for the Appellant/Applicant.Miss Kimani instructed Nyabena Alfred & Company Advocates for the 22nd RespondentMiss Achila holding brief for Mr. Onenga instructed by OCO Law & Company Advocates for the other Respondents