Koira Limited v El-Busaidy & 2 others Administrators of the Estate of Sir Ali Salim El Busaidi) & another (Environment & Land Case 288 of 2012) [2025] KEELC 346 (KLR)
The bottom line
#A Kenyan court refused to release rent held in a joint account because the tenant company hadn't first proven it wasn't behind on rent.
What this practically means
#Executive summary
#Key legal issues
#Whether the funds in the joint interest-earning account should be released to the plaintiff
The application for release of the funds was dismissed because the plaintiff did not establish that it is free of rent arrears.
The 28th February 2014 order tied the deposit of net monthly rent to the final determination of the suit, which occurred upon the Court of Appeal's judgment of 14th April 2023. The deposit therefore lapsed and the funds represent accrued rent. Because the landlord-tenant relationship persisted and the plaintiff remained in occupation in arrears, it could not claim the monies without first proving it is not in rent arrears.
Costs of the application
Costs awarded to the 1st defendant, to be paid by the plaintiff.
Under section 27 of the Civil Procedure Act, costs follow the event unless the court for good cause otherwise orders. The plaintiff's application having failed, the 1st defendant was awarded costs.
Legal principles established
#- Interlocutory orders, including an order for conditional deposit of funds into a joint account, lapse upon the delivery of the final judgment determining the suit.
- A lessee in occupation remains bound by the implied covenant to pay rent under section 66(1)(a) of the Land Act notwithstanding ongoing litigation with the landlord.
Court orders
#- 1.The plaintiff's application dated the 24th July 2024 has no merits and is dismissed.
- 2.The 1st defendant's costs to be paid by the plaintiff.
- Jurisdiction invoked
- Sections 1A, 1B and 3 of the Civil Procedure Act and Order 51 Rule 1 of the Civil Procedure Rules (application), arising in ELC Civil Suit No. 288 of 2012
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Koira Limited v El-Busaidy & 2 others Administrators of the Estate of Sir Ali Salim El Busaidi) & another (Environment & Land Case 288 of 2012) [2025] KEELC 346 (KLR)", Case Analysis (2025). ELC Civil Suit No. 288 of 2012 (Notice of Motion dated 24th July 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/346/eng@2025-02-05
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.