Rafiki Microfinance Bank Limited & another v Daniel Kakui Kioko & 5 others; Benjamin Ndula Ndaka & 4 others (Interested parties) [2022] KEELC 614 (KLR)
The bottom line
#Kenya's Environment and Land Court ruled that people claiming ownership rights over land must join a case as parties, not mere 'interested parties', and cannot revive rejected injunctions.
What this practically means
#Executive summary
#Key legal issues
#Whether the Applicants qualify as interested parties
They do not; they claim proprietary rights over the suit property and therefore cannot be enjoined as interested parties.
The court reviewed the plaint in this suit (removal of a caution and transfer of the property to the 2nd Plaintiff) and the plaint in Makueni HCCC No. 4 of 2018 (challenging charge instruments and seeking transfer of the property to the Applicants). It found the claims, though remotely tracing to the proposed 5th Defendant, do not share a common origin, and the Applicants seek to agitate property rights, which excludes them from the definition of interested parties.
Whether stay of proceedings should be granted
Stay was refused; no overlap of substantive issues exists and the Applicants lack locus in this cause of action.
The court applied Halsbury's Laws of England on the gravity of a stay, holding the power must be exercised sparingly and only in exceptional cases. The Environment and Land Court and the High Court share parallel jurisdictions. The High Court case is commercial in nature (challenging charge instruments) while this suit concerns registration of the Plaintiffs as proprietors, so there is no overlap of substantive issues and the cause of action here is not frivolous.
Whether the Applicants have a prima facie case for injunctive relief
No; the identical injunction prayer was previously dismissed and is res judicata.
The court noted that it had delivered a ruling on 30th August 2017 dismissing a similar application by the Applicants, which has never been reviewed or set aside on appeal. Relying on the Court of Appeal's decision in Uhuru Highway Development Limited v Central Bank of Kenya, it held that wider principles of res judicata apply to interlocutory applications within a suit and there must be an end to applications of a similar nature.
Legal principles established
#- An interested party is a person with a close connection to the subject matter of a suit who claims no rights over it; a person claiming rights over the subject matter must apply to be joined as plaintiff or defendant.
- Stay of proceedings is a serious judicial action exercisable sparingly and only in exceptional circumstances.
- Res judicata applies to interlocutory applications within a suit; there must be an end to applications of a similar nature.
Court orders
#- 1.The Notice of motion dated 2nd December, 2020 is dismissed
- 2.Costs of the application to the Respondents
- Jurisdiction invoked
- Sections 1A, 1B and 3A of the Civil Procedure Act; Order 1 Rule 10(2), (4) and Order 40 Rule 1 of the Civil Procedure Rules, 2010
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Rafiki Microfinance Bank Limited & another v Daniel Kakui Kioko & 5 others; Benjamin Ndula Ndaka & 4 others (Interested parties) [2022] KEELC 614 (KLR)", Case Analysis (2022). Not stated in the judgment (Notice of motion dated 2nd December, 2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/614/eng@2022-03-22
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.