Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
Court of AppealDismissedCivil Application 13 of 2019· [2022] KECA 672 (KLR)

Mulewa v Kenya Anti-Corruption Commission & another

Court of Appeal
8 July 2022
2,053 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

#

Kenya's Court of Appeal refused to halt the forfeiture of unexplained assets worth millions, ruling that money damages could adequately compensate the applicant if his appeal later succeeded.

What this practically means

#

Executive summary

#
This is a ruling of the Court of Appeal at Mombasa (Kairu, Mbogholi-Msagha and Nyamweya, JJA) on a Notice of Motion dated March 14, 2019 by James Mwathethe Mulewa seeking stay of execution of a High Court judgment (Ogola J, September 18, 2017) in which Kshs 63,688,794 in bank deposits and two parcels of land were found to be unexplained assets, with forfeiture ordered to the Government. The application was brought under Rule 5(2)(b) of the Court of Appeal Rules, 2010 pending an intended appeal in which the Applicant alleged denial of fair hearing under Article 50 and section 55(5) of the Anti-Corruption and Economic Crimes Act, contending the High Court rendered final judgment without first establishing a prima facie case. Although the Notice of Appeal was lodged out of time, no strike-out application was filed under Rule 84, so the court proceeded to the merits. Applying Stanley Kangethe Kinyanjui v Tony Ketter, the court found the appeal arguable on the section 55(5) procedure question, but held the second limb failed: recoveries of approximately Kshs 20 million had already been made, the State could restitute, and damages would adequately compensate the Applicant. The prayers relating to the April 13, 2011 interim orders were refused as overtaken by events, with the High Court identified as the proper forum. The application was dismissed with no order as to costs.

Key legal issues

#
01

Arguability of the intended appeal

Holding

The intended appeal was arguable because it raised the procedure under section 55(5) of the Anti-Corruption and Economic Crimes Act for unexplained-wealth suits.

Reasoning

The court applied the Kinyanjui v Ketter first limb: only one arguable ground is needed and arguability does not mean the appeal must succeed. The Applicant's challenge to the trial court's procedure - rendering final judgment without first establishing a prima facie case under section 55(5) - was held to merit consideration by the Court.

p. 3
02

Nugatory-ness and reversibility

Holding

The appeal would not be rendered nugatory because substantial recoveries had already been made and damages would adequately compensate the Applicant.

Reasoning

The court noted recoveries of approximately Kshs 20 million out of approximately Kshs 74 million, that the State has means to restitute, and no suggestion the 1st Respondent could not make good a damages award. The second limb of the stay test therefore failed.

p. 4
03

Interim orders of April 13, 2011

Holding

Prayers for release or vacation of the interim orders failed; they were overtaken by events and the High Court is the proper forum.

Reasoning

Most properties subject to the interim orders were also the subject of the impugned judgment and execution proceedings, so the orders were overtaken by events. Any application to vacate them lies in the High Court, not this Court on a Rule 5(2)(b) application.

p. 4

Legal principles established

#
  • Under Rule 5(2)(b), an applicant for stay need only demonstrate one arguable ground of appeal, and an arguable appeal is not necessarily one that will succeed.
  • Whether an appeal will be rendered nugatory depends on whether what is sought to be stayed is reversible, or if not, whether damages will reasonably compensate the aggrieved party; public interest is an additional element.
  • Where no application to strike out an out-of-time Notice of Appeal is filed under Rule 84, the court may proceed to determine the merits of a Rule 5(2)(b) application.

Court orders

#
  1. 1.The Notice of Motion dated March 14, 2019 is dismissed
  2. 2.No order as to costs

Authorities

#

Legislation

  • Constitution of Kenya, 2010Article 50
  • Anti-Corruption and Economic Crimes Actsection 55(5)
  • Anti-Corruption and Economic Crimes Actsection 55
  • Court of Appeal Rules, 2010Rule 5(2)(b)
  • Court of Appeal Rules, 2010Rule 75
  • Court of Appeal Rules, 2010Rule 84

Cases cited (3)

  • Halai & another v Thornton & Turpin (1963) Ltd.
    [1990] KLR 365; Civil Application 15 of 1990; [1990] KECA 17 (KLR)

    Confirmation that Rule 5(2)(b) jurisdiction requires a Notice of Appeal lodged within 14 days under Rule 75

  • Stanley Kangethe Kinyanjui v Tony Ketter & 5 others
    [2013] eKLR; Civil Application 31 of 2013; [2013] KECA 378 (KLR)

    Twin principles for stay: arguable appeal and whether the appeal would be rendered nugatory

  • Gatirau Peter Munya v Dickson Mwenda Kithinji & 2 others
    [2014] eKLR; Application No. 5 of 2014

    Addition of public interest as an element in stay applications

On appeal from
High Court at Mombasa
Mombasa HCCC Misc Application No 93 of 2011 (O.S)
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules, 2010

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Mulewa v Kenya Anti-Corruption Commission & another", Case Analysis (2022). Civil Application 13 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2022/672/eng@2022-07-08

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