Equity Bank Kenya Limited & 3 others v Murithi Imanyara & 2 others
The bottom line
#Kenya's Court of Appeal allowed former Equity Bank employees' suit over share benefits to proceed, ruling fraud claims are not blocked by time limits.
What this practically means
#Executive summary
#Key legal issues
#Whether the respondents' claim was time barred under the Limitation of Actions Act
The claim fell within the section 20(1) exception for fraudulent breach of trust, so the limitation periods did not apply and the High Court was correct to find the suit was not time barred.
The plaint pleaded particulars of fraudulent misrepresentation, concealment and non-disclosure by the trustees, and alleged the trustees acted willfully and with full knowledge. The Court, examining the context of the accusations, found the pleadings disclosed a fraudulent breach of trust to which the trustees were party or privy. Such actions by a beneficiary under a trust are excluded from the limitation periods prescribed by the Act under section 20(1), which distinguishes fraudulent breach of trust from ordinary breach of trust subject to the six-year period under section 4(1)(e).
Whether the respondents' suit should have been struck out under Order 2 Rule 15(1) of the Civil Procedure Rules
The High Court properly exercised its discretion in declining to strike out the suit because the plaint raised triable causes of action deserving of a hearing.
The strike-out jurisdiction is draconian, to be exercised only where a suit is so hopeless that it plainly and obviously discloses no reasonable cause of action and is beyond redemption by amendment. The Court endorsed DT Dobie & Co. (K) Ltd v Muchina and agreed with the learned Judge that the plaintiffs had a clear and precise grievance, alleged double standards in the payment of similar claims, and therefore merited a full hearing. The appellants' submissions were geared to defending the merits rather than demonstrating hopelessness.
Legal principles established
#- Where a plaint pleads particulars of fraudulent misrepresentation, concealment and non-disclosure amounting to fraudulent breach of trust, the claim falls within the exception in section 20(1) of the Limitation of Actions Act and is not time barred.
- The power to strike out a suit is draconian and should only be exercised where a suit is so hopeless that it plainly and obviously discloses no reasonable cause of action.
- On a first appeal, the Court of Appeal must reconsider and evaluate the whole evidence and draw its own conclusions, making due allowance for not having seen or heard the witnesses.
Court orders
#- 1.Appeal dismissed
- 2.Costs shall abide the outcome of the main suit
- On appeal from
- High Court
- Jurisdiction invoked
- First appeal to the Court of Appeal under Rule 31(1)(a) of the Court of Appeal Rules, 2022
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Equity Bank Kenya Limited & 3 others v Murithi Imanyara & 2 others", Case Analysis (2025). First Appeal from the High Court ruling of 4th July 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/273/eng@2025-02-21
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.