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ELCStruck OutELC Case No. E011 of 2023 [Kericho]· [2025] KEELC 671 (KLR)

Cherogoe & another v Engen Kenya Limited & another (Environment & Land Case E011 of 2023) [2025] KEELC 671 (KLR)

Environment and Land Court
20 February 2025
7,198 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~29 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court struck out a suit blocking a land sale, confirming disputes over bank charges belong in the High Court.

What this practically means

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Executive summary

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The Plaintiffs/Applicants moved the court by Notice of Motion dated 20th November 2023 seeking an injunction restraining the Defendants from selling LR No. Kericho/Kipchimchim/2722 and an order compelling the 1st Defendant to supply a current statement of account and valuation report, pending determination of a suit seeking a declaration that the intended sale was illegal. The 1st Defendant had advanced a loan of Kshs. 2,150,000/= in 2001 secured by a charge over the suit property and had advertised it for sale on 23rd November 2023 to recover Kshs. 38,186,020/=. The Defendants filed two preliminary objections: one under Section 34 of the Civil Procedure Act (matters relating to the decree in Kericho ELC Case No. 14 of 2013 consolidated with Civil Suit No. 92 of 2009 should be raised therein), and a second challenging the ELC's jurisdiction on the ground that disputes over charges fall within the High Court's jurisdiction. Following Co-operative Bank of Kenya Ltd v Patrick Kangethe Njuguna, the court held that the dominant issue in the plaint was the impending sale arising from default on a loan, that a charge is a disposition rather than a use of land, and that the ELC's jurisdiction does not extend to mortgages, charges or collection of dues. It also disregarded new issues raised in submissions, including allegations of fraud and guarantor status, holding that submissions are not pleadings. The preliminary objection on jurisdiction was upheld and the entire suit was struck out with costs, rendering it unnecessary to determine Section 34, the application, or the injunction.

Key legal issues

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01

Whether the ELC has jurisdiction over a dispute concerning exercise of statutory power of sale over a charged property

Holding

The court lacks jurisdiction; the suit is substantially a commercial dispute over a loan and charge, which falls within the High Court's jurisdiction.

Reasoning

Relying on Co-operative Bank of Kenya Ltd v Patrick Kangethe Njuguna, the court held that a charge is a disposition of land, not a use of land, and that ELC jurisdiction over contracts under Section 13 of the ELC Act covers only contracts incidental to the use of land, not mortgages, charges, or collection of dues. The dominant issue in the plaint was the impending sale flowing from default on a loan, making it a commercial dispute for the High Court under Article 165(3).

p. 15
02

Whether new issues raised in submissions (two title deeds, guarantor status, fraud) could be considered

Holding

No; such issues were not pleaded and were disregarded.

Reasoning

The court noted that a perusal of the pleadings showed the issues raised in the plaintiffs' submissions — existence of two title deeds, guarantor status of the 1st plaintiff and fraud — were not pleaded. Citing FMS v MAS and the ex parte Zapkass decision, the court held that submissions are not pleadings and new issues raised by way of submissions are best ignored.

p. 14

Legal principles established

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  • The Environment and Land Court's jurisdiction does not extend to mortgages, charges or collection of rent and/or dues; such disputes fall within the High Court's civil jurisdiction
  • New issues cannot be raised in submissions; submissions are not pleadings
  • Costs follow the event under Section 27 of the Civil Procedure Act

Court orders

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  1. 1.This suit is hereby struck out with costs
  2. 2.The Preliminary Objection having been upheld, it shall not be necessary to determine the application
Jurisdiction invoked
Article 162(2)(b) of the Constitution of Kenya; Section 13 of the Environment and Land Court Act

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, "Cherogoe & another v Engen Kenya Limited & another (Environment & Land Case E011 of 2023) [2025] KEELC 671 (KLR)", Case Analysis (2025). ELC Case No. E011 of 2023 [Kericho]. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/671/eng@2025-02-20

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