Sabina Gathoni Wambui & another v Alios Finance Kenya Ltd [2021] KEELRC 568 (KLR)

Summary at a glance

Facts

The deceased, John Kiunuhe Njenga, was employed by Alios Finance Kenya Ltd as a Credit Manager. He was to receive a net salary of Ksh.150,000 per month and was covered by an insurance policy. On November 24, 2013, he was involved in a car accident while driving home from work and died. The Respondent took out an insurance policy with CIC General Insurance Limited that only covered accidents on duty.

Issues

• Contractual obligation to provide insurance policy
• Statutory obligation to provide housing accommodation
• Insurance policy coverage

Reasoning

The Court holds that there was no privity of contract between the deceased and the Respondent's putative insurers, CIC General Insurance Ltd. The Court also finds that the Respondent failed to provide the deceased with reasonable housing accommodation or to pay the deceased such sufficient sum, as rent, as would have enabled the deceased to obtain reasonable accommodation.

Outcome

The Court orders the Respondent to pay the Claimants Ksh.202,500 as the deceased's accrued but unpaid house allowance for nine months, Ksh.16,560,000 as loss suffered by the deceased's estate, and costs of the claim and interest at Court rates.

Orders

• It is hereby declared that the Respondent is in breach of the provisions of the Employment Act and the law by failing to provide the deceased with reasonable housing accommodation or to pay the deceased such sufficient sum, as rent, as would have enabled the deceased to obtain reasonable accommodation.

Remedies

• Ksh.202,500 as the deceased's accrued but unpaid house allowance for nine months
• Ksh.16,560,000 as loss suffered by the deceased's estate
• Costs of the claim and interest at Court rates

Authorities cited