Peter Kilatya v Bamburi Cement Limited [2019] KEELRC 1386 (KLR)

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