Mulekyo and Company Advocates v Athi Water Works Development Agency; Cooperative Bank of Kenya Limited (Garnishee) (Environment & Land Miscellaneous Case E097 of 2022) [2024] KEELC 443 (KLR)
The bottom line
#A Kenyan court ruled that a government agency's bank accounts can be attached to pay a debt, ordering Co-operative Bank to release Ksh 17.4 million.
What this practically means
#Executive summary
#Key legal issues
#Whether the judgment debtor's status as a National State Agency whose funds are subject to the Consolidated Fund and the Controller of Budget bars garnishee attachment
The court rejected the objection, holding that being a government agency is not a reason to escape satisfying legal liabilities, since the Respondent is a body corporate established under section 65(1) of the Water Act 2016 capable of suing and being sued.
The court reasoned that entities are deemed government entities for various reasons and that such status has never been accepted as a ground for escaping legal liabilities. The Respondent is a water works development authority established under the Water Act 2016 and a body corporate. Execution is lawful, and the decree holder should not be deprived of the fruits of the decree except for good reasons.
Whether the garnishee order should be made absolute
Yes. There was an unsatisfied certificate of taxation for Ksh 17,389,089.20, judgment against the Respondent, and the garnishee confirmed availability of sufficient funds.
Under Order 23 of the Civil Procedure Rules, a decree holder may seek attachment of debts owed to the judgment debtor by a third party. The judgment debtor did not deny owing the decretal sum; the garnishee admitted the accounts were well funded and sufficient to pay the decretal sum. No sufficient reason appeared for the order not to be made absolute.
Legal principles established
#- A judgment debtor's status as a government agency does not by itself shield its accounts from attachment in garnishee proceedings.
- A decree holder should not be deprived of the fruits of a decree except for good reasons, and a subsisting decree stands good until set aside.
Court orders
#- 1.An order directing the garnishee to release the sum of Ksh 17,389,089.20 to the decree holder held at Cooperative Bank, Account number (particulars withheld) and (particulars withheld) within thirty days
- 2.Each party to bear its own costs of the application
- Jurisdiction invoked
- Sections 1A, 1B and 3A of the Civil Procedure Act and Order 23(1), 23(2), 23(3) and 51 of the Civil Procedure Rules
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Mulekyo and Company Advocates v Athi Water Works Development Agency; Cooperative Bank of Kenya Limited (Garnishee) (Environment & Land Miscellaneous Case E097 of 2022) [2024] KEELC 443 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/443/eng@2024-01-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.