Rafiki Microfinance Bank Limited & another v Daniel Kakuki Kioko & 3 others [2019] KEELC 808 (KLR)
The bottom line
#A Kenyan court lifted a caution blocking a bank auction purchase but refused to force immediate registration, saying the full case must first be heard.
What this practically means
#Executive summary
#Key legal issues
#Whether the caution by the 1st to 3rd Defendants should be lifted
Yes - the caution was lodged to protect purported purchasers' interests with no affidavit evidence supporting them, and nothing stopped the lawful auction and purchase after the earlier applications were dismissed
The court found that the earlier injunctive and stay applications had been dismissed, paving the way for the 6th September 2018 public auction at which the 2nd Applicant purchased the suit parcel. Prima facie nothing obstructed the sale. Since the cautionists produced no affidavit evidence of any purchasers' interest, the caution lacked foundation and prayer 1 was granted.
Whether mandatory interim orders (transfer and registration of the parcel) could issue
No - mandatory orders at the interim stage require special circumstances and clear cases; none were demonstrated, and the order would determine the suit and compromise the pending HCCC No. 4 of 2018
Relying on the principles in DNM v JK and Kenya Breweries v Washington Okeyo as submitted by the parties, the court held that a mandatory injunction at the interlocutory stage requires special circumstances over and above a prima facie case. The applicants failed to show such circumstances, and granting the transfer orders would pre-empt the hearing on merits and render the pending related suit nugatory.
Legal principles established
#- A caution lodged without supporting affidavit evidence of the interest claimed has no basis to remain on the register
- Mandatory injunctions should not be granted at the interlocutory stage absent special circumstances, in clear cases
Court orders
#- 1.The Land Registrar, Makueni County, is ordered to lift the caution placed over parcel MAKUENI/UNOA/2798 by the 1st, 2nd and 3rd Defendants (prayer 1 granted)
- 2.Prayer 3 on costs granted
- 3.Prayer 2 (order compelling the Land Registrar to sign transfer documents and register the parcel in favour of the 2nd Plaintiff) refused
- Jurisdiction invoked
- Section 73(1) of the Land Registration Act, sections 98, 1A and 3A of the Civil Procedure Act and Order 51 Rule 1 of the Civil Procedure Rules
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Rafiki Microfinance Bank Limited & another v Daniel Kakuki Kioko & 3 others [2019] KEELC 808 (KLR)", Case Analysis (2019). Not stated in the judgment excerpt (Notice of Motion dated 28th May 2019 in a suit at Makueni). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/808/eng@2019-11-13
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.