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Court of AppealDismissedCivil Application E063 of 2025

Dodhia & another v Wafula (Derivatively on behalf of Trans-Nzoia Investment Company Limited) & 6 others; Trans-Nzoia Investments Company Limited (Affected Party)

Court of Appeal
10 December 2025
2,474 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~10 min to read original · ~4 min brief

The bottom line

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The Court of Appeal refused to pause enforcement of a Kitale land ruling, finding the winning company's actions could be reversed if the appeal later succeeds.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal (Warsame, Mativo and Gachoka, JJA) giving reserved reasons for its 26th November 2025 dismissal of a Notice of Motion dated 27th September 2025 under Rule 5(2)(b) of the Court of Appeal Rules, 2022, seeking stay of execution of the judgment and decree of Nzili, J of the Environment and Land Court at Kitale in ELC No. 74 of 2019. The decree, following a derivative suit by the 1st respondent on behalf of Trans-Nzoia Investments Company Limited, declared the company the rightful owner of Land Parcel No. Kitale Municipality Block 4/494 (Kitale Hotel), annulled the transfers to the 6th and 7th respondents as fraudulent and unlawful, ordered the 7th respondent to transfer the property to the company, and directed the 6th and 7th respondents to hand over vacant possession, failing which eviction would issue. The applicants argued the intended appeal was arguable on limitation and fraud grounds and that execution would render it nugatory, particularly given the property was charged to M-Oriental Bank for Kshs. 51,000,000. The Court found the appeal arguable but held the applicants failed the nugatory limb: any action taken by the affected party was reversible, the affected party did not intend to dispose of the property, and the applicants were effectively seeking reversal of the decree at an interlocutory stage. The motion was dismissed with costs to the 1st, 4th and 5th respondents.

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 Rule 5(2)(b)
  2. 2.Whether the intended appeal would be rendered nugatory if stay of execution is not granted

Key legal issues

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01

Whether the intended appeal is arguable

Holding

The appeal was held arguable on the ground that the judge erred in finding fraud proved to the higher standard

Reasoning

The Court noted the 14 grounds in the draft memorandum, including the contention that the judge erred in finding fraud proved to a standard higher than the civil standard. Applying the principle that an arguable appeal need not necessarily succeed, the Court declined to hold the appeal frivolous and found the first prerequisite satisfied.

p. 4
02

Whether the appeal would be rendered nugatory without stay

Holding

The applicants failed to demonstrate nugatory-ness; the decree was reversible and the affected party did not intend to dispose of the property

Reasoning

The Court found that whatever action the affected party takes is reversible if the appeal succeeds, since counsel for the affected party indicated no intention to dispose of the suit property. The applicants were effectively seeking a reversal of the trial court's orders at an interlocutory stage, which would determine the appeal substantively without hearing both sides. The second prerequisite therefore failed.

p. 5

Legal principles established

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  • To succeed on a Rule 5(2)(b) stay application, an applicant must satisfy the twin conjunctive principles that the appeal is arguable and would be rendered nugatory if stay is not granted
  • An arguable appeal is not one that will necessarily succeed
  • 'Nugatory' bears its full meaning - worthless, futile or invalid, and also trifling; reversibility or compensability by damages is the test
  • A stay applicant cannot obtain at the interlocutory stage what amounts to a reversal of the decree, as that would determine the appeal substantively without a hearing

Court orders

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  1. 1.The Notice of Motion dated 27th September 2025 seeking stay of execution is dismissed
  2. 2.Costs of the application awarded to the 1st, 4th and 5th respondents

The bench

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

Mohamed Abdulahi Warsame
M. A. WarsameJA
Currently serving
majority
majority
majority
On appeal from
Environment and Land Court of Kenya at Kitale
ELC No. 74 of 2019
Jurisdiction invoked
Articles 159(2)(d) and 164 of the Constitution; Sections 3 and 3A of the Appellate Jurisdiction Act; Rule 5(2)(b) of the Court of Appeal Rules, 2022

Relief refused

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Stay of execution and/or implementation of the decree of the ELC at Kitale pending the intended appeal

Applicants failed to satisfy the second twin principle - the appeal would not be rendered nugatory since any action taken is reversible

p. 5

Costs

Dismissed with costs to the 1st, 4th, and 5th respondents

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.

To succeed in an application for stay of execution, an applicant must satisfy the following twin conjunctive principles under Rule 5 (2) (b) of this Court’s Rules; the appeal is arguable; and would be rendered nugatory if stay is not granted.
p. 4Twin principles for stay under Rule 5(2)(b)
Whether or not an appeal will be rendered nugatory depends on whether or not what is sought to be stayed if allowed to happen is reversible; or if it is not reversible whether damages will reasonably compensate the party aggrieved.
p. 5Meaning of nugatory
the applicants are in essence inviting us to reverse the orders of the trial court at this interlocutory stage of the proceedings. If allowed to stand, the appeal would in actuality, be determined substantively without hearing both sides on the issues raised in the appeal.
p. 5Stay cannot be used to reverse the decree at interlocutory stage
In view of the above, we have come to the inescapable conclusion that the Notice of Motion dated 27th September 2025 lacks merit. It is hereby dismissed with costs to the 1st, 4th, and 5th respondents.
p. 5Final orders - dismissal of the motion
in exercising our discretionary jurisdiction the bigger picture we should focus on is to preserve the ends of justice which includes letting a deservedly winning party enjoy the fruits of their judgment.
p. 5Discretion guided by ends of justice

Issues in the judgment

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minor

Date of transfer to 6th respondent stated as 2006 in background but decree declares 17th April 1996 transfer fraudulent

minor

Court sits at Eldoret but judgment delivered at Nakuru

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, "Dodhia & another v Wafula (Derivatively on behalf of Trans-Nzoia Investment Company Limited) & 6 others; Trans-Nzoia Investments Company Limited (Affected Party)", Case Analysis (2025). Civil Application E063 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/2201/eng@2025-12-10

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