Wangai v Egerton University (Cause 224 of 2017) [2025] KEELRC 3702 (KLR) (19 December 2025) (Ruling)
- Court
- Employment & Labour Relations Court
- Case number
- 3702
- Citation
- [2025] KEELRC 3702 (KLR)
- Decided
- 19 December 2025
PAYE tax was validly deducted from the sum payable to the Claimant by the Respondent in terms of the consent order. The Respondent shall pay interest on the principal amount for a period of 9 months at 14% p.a. and costs to the Claimant.
Facts
Claimant Peter Wangai sued Egerton University for unpaid salaries and interest. The parties executed a consent decree in September 2021, agreeing to pay the sum of Kshs. 16,772,916.35 over 33 months. The Respondent withheld PAYE tax and failed to pay compound salaries.
Issues
- Validity of PAYE tax deduction
- Full satisfaction of the consent decree
- Interest on unpaid amounts
Reasoning
The Court found that the consent order required the Respondent to pay the sum within 33 months, and the Respondent unilaterally extended the payment period. The Court declared that PAYE tax was validly deducted and ordered interest and costs.
Outcome
The Respondent's application was partly granted, with the Court declaring the validity of the PAYE tax deduction and ordering interest and costs.
Orders
- PAYE tax deducted from the sum payable to the Claimant
- Interest on the principal amount for a period of 9 months at 14% p.a.
- Costs to be taxed in favour of the Claimant
Remedies
- Interest on the principal amount for a period of 9 months at 14% p.a.
- Costs to be taxed in favour of the Claimant
Authorities cited
Legislation (2)
- Employment Act
- Income Tax Act
Cases cited (1)
- Andrew Mukite Saisi v. Tracker Group of Companies
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