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Court of AppealPartially AllowedCivil Application No. E012 of 2023 (Mombasa)

Kenya Fishing Industries Corporation v Kalolwanga Engineering Services (Civil Application E088 of 2023) [2024] KECA 1575 (KLR)

Court of Appeal
8 November 2024
2,245 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal allowed a fishing vessel to be detained only if a disputed USD 10,600 charge isn't paid, balancing both sides' hardships.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Mombasa (Ole Kantai, Laibuta and Odunga, JJ.A) on a notice of motion dated 21st September 2023 brought by Kenya Fishing Industries Corporation under rule 5(2)(b) of the Court of Appeal Rules. The applicant, a state corporation operating the Liwatoni fishing port, sought a stay of execution of a ruling of Hon. Justice Wangare Macharia delivered on 13th September 2023 in Mombasa JR Misc. Application No. E007 of 2023, in which the High Court granted the respondent leave to commence judicial review and ordered the release of the fishing vessel FV Sea Mfalme, which the applicant alleged owed port charges in excess of USD 99,082. The applicant argued that release of the vessel before determination of the substantive judicial review application and a pending Admiralty Cause would render its intended appeal nugatory. The respondent countered that the orders were negative in nature, directed at the Kenya Ports Authority, and that the claim was limited to about USD 10,600 per the applicant's own demand letter. The court restated the twin rule 5(2)(b) test: the appeal must be arguable and, absent stay, rendered nugatory, both limbs being mandatory. It found a single arguable point - that the Judicial Review Court lacked jurisdiction to release a vessel subject of a maritime lien - and, applying proportionality under sections 3A and 3B of the Appellate Jurisdiction Act, granted a conditional stay: the vessel's release is stayed pending the intended appeal unless the respondent deposits USD 10,600 with the applicant, in which case the stay stands vacated. Costs were made costs in the intended appeal. The court apologised for the delay in delivery of the ruling.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the intended appeal is arguable under the first limb of rule 5(2)(b)
  2. 2.Whether, if the stay sought is not granted, the intended appeal will be rendered nugatory under the second limb of rule 5(2)(b)
  3. 3.What relief, if any, is proportionate in the circumstances of both parties

Key legal issues

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01

Whether the intended appeal was arguable

Holding

The intended grounds - that the Judicial Review Court lacked jurisdiction to release a vessel subject of a maritime lien, and that orders at leave stage compromised the substantive motion - were arguable.

Reasoning

The court found the applicant intended to argue that the Judge erred in granting release orders in a judicial review application and that those orders compromised the pending substantive motion. It held these were not frivolous but bona fide issues worthy of consideration, satisfying the first limb of rule 5(2)(b), since a single arguable point suffices.

p. 4
02

Whether the intended appeal would be rendered nugatory absent a stay

Holding

Not wholly: the claim was for a determinable sum of money (USD 10,600 per the demand letter), so damages could compensate; but halting the respondent's fishing activities would be unjust.

Reasoning

The court weighed the risk that the vessel might leave the jurisdiction or be disposed of, against the injustice of halting the respondent's fishing activities. It noted the demand letter claimed only USD 10,600, a determinable sum the respondent could pay, and applied the proportionality principle under sections 3A and 3B of the Appellate Jurisdiction Act, crafting a conditional stay.

p. 4
03

Nature and conditions of rule 5(2)(b) jurisdiction

Holding

The jurisdiction is original, independent and discretionary; it is a procedural innovation for preservation of the subject matter and arises only where a notice of appeal has been lodged; both limbs must be demonstrated.

Reasoning

Relying on established Court of Appeal case law, the court restated that rule 5(2)(b) jurisdiction is original, independent and discretionary, designed for interlocutory preservation of the appeal's subject matter, triggered by lodgement of a notice of appeal, and requiring demonstration of both arguability and nugatory-ness before relief can issue.

p. 3

Legal principles established

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  • An applicant for relief under rule 5(2)(b) must demonstrate both that the appeal is arguable and that it will be rendered nugatory if stay is not granted; a single arguable point suffices.
  • An 'arguable' appeal is not one that will necessarily succeed, but one raising a bona fide issue worth of consideration by the Court.
  • An appeal is rendered nugatory where the resulting effect is likely to be irreversible or, if reversible, where damages will not reasonably compensate the aggrieved party.
  • In exercising rule 5(2)(b) discretion, the court must pursue the overriding objective and put the hardships of both parties on the scales, applying proportionality.

Court orders

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  1. 1.Stay of release of the subject motor vessel pending the hearing and determination of the intended appeal or the appeal (if already filed), unless the respondent deposits with the applicant USD 10,600
  2. 2.If the respondent deposits USD 10,600 with the applicant, the stay shall stand vacated
  3. 3.Costs of the application to be in the intended appeal

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority
majority
majority
On appeal from
High Court of Kenya, Mombasa
Mombasa JR Misc. Application No. E007 of 2023
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules; overriding objective under sections 3A and 3B of the Appellate Jurisdiction Act

Relief refused

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Blanket stay of the High Court orders as sought, without conditions

The court instead granted a conditional stay balancing the hardship of both parties, since the claim was for a determinable sum of money the respondent could pay

p. 4

Costs

The costs will be in the intended appeal.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

Both limbs must be demonstrated before a party can obtain relief under rule 5(2) (b)
p. 3Twin test for rule 5(2)(b) relief
demonstration of one arguable point will sufice
p. 3Single arguable point sufficient
an appeal/intended appeal is said to be rendered nugatory where the resulting efiect is likely to be irreversible or, if it is not reversible, whether damages will reasonably compensate the party aggrieved
p. 3Meaning of nugatory
In the premises, the order that commends itself to us, and which we hereby make, is that there be a stay of release of the subject motor vessel pending the hearing and determination of the intended appeal or the appeal (if already filed), unless the respondent deposits with the applicant USD 10,600. Should the respondent deposit the said sum with the applicant, the stay would stand vacated.
p. 4Final orders - conditional stay
The costs will be in the intended appeal.
p. 4Costs

Issues in the judgment

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minor

The judgment does not state the case number of the present application; it is inferred from context only, and the coram lists judge G.V. Odunga without the 'Judge of Appeal' designation line order typical of the Court.

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, "Kenya Fishing Industries Corporation v Kalolwanga Engineering Services (Civil Application E088 of 2023) [2024] KECA 1575 (KLR)", Case Analysis (2024). Civil Application No. E012 of 2023 (Mombasa). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/1575/eng@2024-11-08

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