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Court of AppealAllowedCivil Application No. E187 of 2025 (as referred to in the judgment; application dated 25th October 2024)· [2025] KECA 1974 (KLR)

Kenya Bureau of Standards v Centurion Engineers & Builders Limited

Court of Appeal
21 November 2025
1,335 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal paused a Kshs 384 million instalment payment order against KEBS until it decides whether the High Court had power to make it.

What this practically means

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Executive summary

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This is a single-judgment decision of a three-judge bench of the Court of Appeal at Nairobi (S. Gatembu Kairu, Jamila Mohammed and A.O. Muchelule, JJ.A) dated 21st November 2025 on a notice of motion dated 25th October 2024 by the Kenya Bureau of Standards seeking stay of execution of a High Court ruling of 18th October 2024 (Mabeya, J.) in HCC Misc Application No. 506 of 2012. That ruling, made on the respondent decree-holder's Notice of Motion of 27th September 2024, ordered the applicant to liquidate a decretal sum of Kshs. 384,960,776.75 arising from an arbitral award (previously reinstated by the Court of Appeal after a successful set-aside appeal) by instalments, with a default provision for cross-examination of the applicant's Chief Executive Officer on its means. The applicant, having obtained leave and filed a Notice of Appeal, contended that the Judge acted without jurisdiction by granting instalment orders of his own motion absent an application by the judgment debtor under Order 21 Rule 12. Applying the established principles in Stanley Kangethe Kinyanjui v Tony Ketter & 5 Others, the Court held the intended appeal arguable on the jurisdiction question and, weighing the amount involved and public interest, found the applicant deserving of the discretion. The Court stayed the ruling and orders of 18th October 2024 pending hearing and determination of the appeal, with costs of the application to abide the appeal's outcome.

Key legal issues

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01

Arguability of the intended appeal

Holding

The intended appeal is arguable, particularly on whether the High Court Judge could, without being moved by an application of the judgment debtor, order satisfaction of the decretal amount by instalments.

Reasoning

The applicant argued that the High Court overreached by granting instalment-payment orders that were neither pleaded nor prayed for, and that under Order 21 Rule 12 of the Civil Procedure Rules the Judge lacked jurisdiction to act of his own motion absent an application by the judgment debtor. The Court, applying the principle that an arguable appeal need not succeed, found this a bona fide ground raising questions of the High Court's jurisdiction and therefore sufficient to satisfy the first limb of the rule 5(2)(b) test.

p. 2
02

Nugatory-ness and exercise of discretion

Holding

Given that the High Court's jurisdiction in making the impugned orders is challenged, the amount involved, and public interest, the Court exercised its discretion in favour of the applicant and granted the stay.

Reasoning

Applying the Kinyanjui principles on nugatory-ness, including reversibility of what is sought to be stayed, the Court weighed the challenge to the High Court's jurisdiction, the substantial decretal sum of over Kshs. 384 million payable from public funds by instalments, and the public interest. It was persuaded that declining the stay would render the appeal nugatory and that this was a proper case to exercise discretion in the applicant's favour, staying the High Court's instalment-payment ruling pending the appeal.

p. 3

Legal principles established

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  • An arguable appeal need not be one that must necessarily succeed; it suffices that a bona fide ground of contest is raised on which the court of first instance's jurisdiction is challenged.
  • Whether an appeal will be rendered nugatory depends on whether what is sought to be stayed is reversible or whether damages would reasonably compensate the aggrieved party, and each case turns on its own facts.
  • Where an applicant alleges that an appeal will be rendered nugatory on account of a respondent's impecunity, the onus shifts to the respondent to rebut the claim by evidence.

Court orders

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  1. 1.Prayer 3 of the application dated 25th October 2024 granted: the ruling and order of the High Court delivered on 18th October 2024 in HCC Misc Application No. 506 of 2012 stayed pending the hearing and determination of the applicant's appeal
  2. 2.Costs of the application to abide the outcome of the appeal
On appeal from
High Court
HCC Misc Application No. 506 of 2012
Jurisdiction invoked
Inherent appellate jurisdiction of the Court of Appeal to grant stay pending appeal (rule 5(2)(b) jurisdiction, though not expressly cited in the judgment); application hinged on a filed Notice of Appeal following leave to appeal granted by the High 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 Bureau of Standards v Centurion Engineers & Builders Limited", Case Analysis (2025). Civil Application No. E187 of 2025 (as referred to in the judgment; application dated 25th October 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/1974/eng@2025-11-21

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