HHI Management Services Limited v Okeyo & another (Civil Application E341 of 2024) [2025] KECA 501 (KLR) (21 March 2025) (Ruling)

Facts

HHI Management Services Limited filed an application seeking to stay the proceedings in the Employment and Labour Relations Court (ELRC) Cause No. E970 of 2023, alleging that the court's ruling against arbitration clauses in the employment contract was inconsistent with constitutional provisions and previous court decisions.

Issues

1. Whether arbitral clauses in employment contracts are enforceable.
2. Whether the ELRC erred by effectively rewriting the contract between the parties.
3. Whether the ELRC erred in concluding that arbitral law in Kenya is primarily intended for commercial disputes.
4. Whether the ELRC erred in finding that the inclusion of arbitration clauses in employment contracts is atypical and less favourable than litigation.

Reasoning

The court found that the applicant failed to show arguable grounds for appeal and that the matter should not be stayed. The court also concluded that the ELRC did not err in its interpretation of the arbitration clauses and the dispute resolution mechanism.

Outcome

Appeal dismissed

Authorities cited