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Court of AppealAllowedNot stated in the judgment· [2021] KECA 110 (KLR)

Patrick Ochieno Abachi & 4 others v Ethics & Anti-corruption Commission & 2 others

Court of Appeal of Kenya
22 October 2021
2,491 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~10 min to read original · ~4 min brief

The bottom line

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The Court of Appeal paused the forfeiture of assets the High Court found unexplained, protecting the family home and funds until the full appeal is heard.

What this practically means

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Executive summary

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The applicants moved the Court of Appeal under Rule 5(2)(b) of the Court of Appeal Rules, and Sections 3A, 3B and 5 of the Appellate Jurisdiction Act, for stay of execution of a judgment and decree of the High Court (Mumbi Ngugi, J) dated 10th May 2021, by which they were found to hold unexplained assets under Section 55 of the Anti-Corruption and Economic Crimes Act and those assets, including land, vehicles, bank accounts and cash of about Kshs. 1,990,000, were ordered forfeited to the State. They feared imminent public auction that would transfer properties, including the family home, to third parties, rendering their intended appeal nugatory. The Ethics and Anti-Corruption Commission opposed, contending the appeal was frivolous and that the State could restitute the applicants if they succeeded. The 2nd and 3rd respondents supported the application, relying on their cross-appeal. Applying the two-limb test restated in Chris N. Bichage Vs. Richard Nyagaka Tongi, the court found the appeal arguable - only one arguable ground is needed - and held the nugatory limb satisfied because sale to third parties would destroy the substratum of the appeal and cross-appeals, while caveats registered by the Commission meant it would suffer no prejudice from waiting. The application was allowed, stay of execution granted pending the appeal, with costs in the appeal.

Key legal issues

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01

Whether the intended appeal is arguable

Holding

The applicants demonstrated an arguable appeal; a single arguable ground suffices and need not be one that will succeed.

Reasoning

The court reviewed the six grounds of appeal, including the construction of Section 55 of the Anti-Corruption and Economic Crimes Act and alleged denial of fair hearing under Article 50. Applying the settled standard, it found the grounds raised fundamental and cogent questions sufficient to meet the arguability limb without deciding their merits.

p. 5
02

Whether the appeal would be rendered nugatory absent stay

Holding

Yes. Sale of the assets, including the family home and funds, to third parties would make reversal difficult and destroy the substratum of the appeal and cross-appeals.

Reasoning

Execution by public auction was imminent; registration of the properties in third parties' names would make reversal difficult. The 1st respondent had registered caveats over the assets, so it would suffer no prejudice waiting until the appeal is determined. Cross-appeals by the 2nd and 3rd respondents also impugned the same judgment, reinforcing the need to preserve the substratum.

p. 5

Legal principles established

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  • An applicant under Rule 5(2)(b) must satisfy both limbs: an arguable appeal and that the appeal will be rendered nugatory absent stay.
  • Both limbs must be demonstrated; demonstrating only one is insufficient.

Court orders

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  1. 1.Stay of execution of the judgment and decree of the High Court dated 10th May 2021 pending the hearing and determination of the appeal
  2. 2.Costs of the application to be in the appeal
On appeal from
High Court of Kenya
Not stated in the judgment
Jurisdiction invoked
Sections 3A, 3B and 5 of the Appellate Jurisdiction Act and Rules 5(2)(b), 41, 42, 43 and 47 of the Court of Appeal Rules

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, "Patrick Ochieno Abachi & 4 others v Ethics & Anti-corruption Commission & 2 others", Case Analysis (2021). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/110/eng@2021-10-22

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