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Court of AppealDismissedCivil Appeal No E046 of 2021· [2021] KECA 104 (KLR)

Kihara v Ajele & 2 others (Civil Appeal E046 of 2021) [2021] KECA 104 (KLR)

Court of Appeal of Kenya
22 October 2021
2,031 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Court of Appeal dismissed a stay application because the applicant couldn't prove the winning party couldn't repay the money if the appeal succeeded.

What this practically means

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Executive summary

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The Court of Appeal in Nairobi, composed of J. Mohammed, A. Mbogholi Msagha and H.A. Omondi, JJ.A, in a single judgment of the court, dismissed a Notice of Motion dated 13th August, 2021 brought under Rule 5(2)(b) of the Court of Appeal Rules, 2010 by an intended appellant (a sitting Member of Parliament) seeking stay of execution of orders and a decree given on 19th December, 2019 in proceedings arising out of Nakuru Election Petition No. 2 of 2008, concerning disputed taxed costs. The applicant also sought variation of conditional stay orders issued by the High Court on 24th June, 2021 (which required payment of half of Kshs.7,523,107 within 45 days and a bank guarantee for the balance, with stay limited to one year) and an injunction restraining auction of proclaimed goods. The court set out the settled twin test: the applicant must show the appeal is arguable and that it would be rendered nugatory if stay is refused. On the first limb the court found arguable points concerning the taxed sum and the failure of notice of delivery of the ruling. However, on the second limb it held that the applicant had unilaterally deposited a bank guarantee for the entire sum in lieu of the required cash payment without seeking leave to vary the High Court's terms, and had not demonstrated that the 3rd respondent would be unable to reimburse the decretal sum if the appeal succeeded. The application was accordingly dismissed, with costs ordered to abide the outcome of the appeal. The decision binds subordinate courts and the High Court on the application of the nugatory limb where the respondent's ability to repay is not put in issue.

Key legal issues

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01

Whether the intended appeal is arguable

Holding

Yes — the memorandum of appeal raised arguable points concerning the taxed sum and the failure of notice of delivery of the ruling; a single bona fide arguable ground suffices

Reasoning

The court reiterated that an arguable appeal is not one that must succeed but one that merits full consideration and is not frivolous or idle. On perusal of the application and memorandum of appeal it found some arguable points concerning the taxed sum and the failure of notice of delivery of the ruling, thereby satisfying the first limb.

p. 4
02

Whether the appeal would be rendered nugatory if the stay is not granted

Holding

No — the applicant failed to demonstrate that the 3rd respondent would be unable to reimburse the decretal sum; the second limb was not satisfied

Reasoning

The court noted the applicant had varied the High Court's conditions without leave (depositing a bank guarantee for the whole sum instead of paying half in cash) and had not shown the respondent lacked means to repay. Her claims of bankruptcy, destitution and jeopardy to her parliamentary seat did not discharge the evidential burden of proving irrecoverability of the decretal sum.

p. 5

Legal principles established

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  • Rule 5(2)(b) applications are interlocutory preservation tools to protect the substratum of an intended appeal
  • An applicant under Rule 5(2)(b) must establish the twin principles of an arguable appeal and that the appeal will be rendered nugatory if stay is not granted
  • Once an applicant shows a reasonable fear that a respondent cannot repay the decretal sum, the evidential burden shifts to the respondent to disclose his resources

Court orders

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  1. 1.Dismissal of the Notice of Motion dated 13th August, 2021
  2. 2.Costs to abide the outcome of the appeal

Authorities

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Legislation

  • Court of Appeal Rules, 2010Rule 5(2)(b)
  • Court of Appeal Rules, 2010Rule 75
  • Civil Procedure ActSection 1A
  • Appellate Jurisdiction ActSection 3A
  • Constitution of Kenya, 2010Article 164(3)
  • Advocates ActSections 37 & 40

Cases cited (15)

  • Deynes Muriithi & 4 Others v LSK & Another
    [2016] eKLR, Civil Application 12/15
  • Teachers Service Commission v Kenya National Union of Teachers & 3 Others
    Sup. Court App 16/2015 [2015] eKLR
  • Alfred Mincha Ndubi v Standard Limited
    [2020] eKLR
  • Ishmael Kangunyi Thande v Housing Finance Company of Kenya Limited
    Civ. Appl. No. Nai 157/2006
  • Multi Media University & Another v Prof. Gitile N. Naituli
    [2014] eKLR
  • Stanley Kangethe Kinyanjui v Tony Ketter & Others
    [2013] eKLR
  • Wasike v Swala
    [1984] 591
  • Attorney General v Okiya Omtata & Anor
    [2019] eKLR
  • Co-operative Bank of Kenya Ltd v Banking Insurance and Finance Union Kenya
    [2014] eKLR
  • George O. Gache & Anor v Judith Akinyi Bonyo & Others
    Kisumu Civil Appeal 74/2016
  • Reliance Bank Limited v Norlake Investment Limited
    [2002] 1 EA 227
  • Oraro & Rachier Advocates v Co-operative Bank of Kenya
    [1999] LLR 1118
  • African Safari Club Limited v Safe Rentals Limited
    Nai. Civ. App 53/2010
  • Africa Eco Camps v Exclusive African Treasures Ltd
    [2014] eKLR
  • National Credit Bank v Aquinas Francis Wasike and Another
On appeal from
High Court of Kenya (Nakuru)
Nakuru Election Petition No. 2 of 2008 (associated proceedings)
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules, 2010; Section 3A of the Appellate Jurisdiction Act; Section 1A of the Civil Procedure Act (Cap 21)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Kihara v Ajele & 2 others (Civil Appeal E046 of 2021) [2021] KECA 104 (KLR)", Case Analysis (2021). Civil Appeal No E046 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/104/eng@2021-10-22

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.