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ELCPartially AllowedNot stated in judgment (Busia ELC suit; suit transferred to the High Court)· [2025] KEELC 1468 (KLR)

Gestered Professional Services v KCB Kenya Limited & another (Environment & Land Case E014 of 2024) [2025] KEELC 1468 (KLR)

Environment and Land Court
25 March 2025
3,206 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that when a land-bank dispute is really about how much money is owed, the High Court—not the Land Court—decides, so the case was transferred rather than thrown out.

What this practically means

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Executive summary

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The 1st Defendant, Kenya Commercial Bank (K) Ltd, raised a preliminary objection dated 2nd August 2024 challenging the Environment and Land Court's jurisdiction over a suit by Gestered Professional Services Ltd arising from a Kshs.20,000,000 loan secured by a charge over L.R No Bukhayo/Mundika/2538. The plaintiff sought a permanent injunction restraining alienation of the property and an order compelling the bank to render accounts and avail an updated account statement. Relying principally on the Court of Appeal decision in Co-operative Bank of Kenya v Patrick Kangethe Njuguna, the 1st Defendant argued that disputes over sums due under a charge fall within the High Court's civil jurisdiction, not the ELC's. The plaintiff countered that the predominant issue was the exercise of statutory power of sale over registered land, invoking Lydia Nyambura Mbugua and provisions of the Land Act, Land Registration Act and the ELC Act. Boaz N. Olao J held that Munyao Sila J in Lydia Nyambura Mbugua had distinguished, not dissented from, Co-operative Bank v Kangethe Njuguna, by which the court was bound. The predominant issue was the settlement of accounts, which is the preserve of the High Court, although the ELC retained jurisdiction over the injunction prayer. Declining to strike out the plaint, and persuaded by Dominic v County Government of Narok, the court exercised its discretion to transfer the suit to the High Court for further directions, with mention before Musyoka J on 14th May 2025, and made no order as to costs.

Key legal issues

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01

Whether the ELC has jurisdiction over a dispute based on a charge where the predominant issue is accounts

Holding

The court lacks jurisdiction over the prayer for accounts and updated statements; that remedy is the preserve of the High Court, and the injunction prayer merely ancillary to it.

Reasoning

Relying on the binding Court of Appeal decision in Co-operative Bank of Kenya v Patrick Kangethe Njuguna, the court held that the cause of action was not the charge instrument but the amounts due and owing thereunder. The plaintiff's own pleading showed the core dispute was the correct sum payable to redeem the charged property. Though the court agreed with Munyao Sila J that the Co-operative Bank decision was not universally ousting ELC jurisdiction, it was bound by it and could not dissent. The dominant issue being accounts, the High Court has jurisdiction.

p. 5
02

Whether Munyao Sila J in Lydia Nyambura Mbugua dissented from Co-operative Bank v Kangethe Njuguna

Holding

No; the judge was only distinguishing the facts of that case, not dissenting from it.

Reasoning

Counsel for the plaintiff argued that Munyao Sila J dissented from the Court of Appeal in Co-operative Bank v Kangethe Njuguna. The court rejected this, reasoning that a subordinate court judge could not dissent from a decision of a superior court. In Lydia Nyambura Mbugua the substantive remedies sought (nullity of a sale and injunction) were matters within the ELC's preserve, and the issue of accounts did not arise; the facts were therefore distinguishable from the present case.

p. 4
03

Whether the suit should be struck out or transferred

Holding

The suit should be transferred to the High Court rather than struck out, since the ELC has jurisdiction over the injunction prayer and the two courts have concurrent jurisdiction over parts of the dispute.

Reasoning

While accepting that a suit filed in a court without jurisdiction is a nullity and cannot be transferred (Equity Bank v Bruce Mutie Mutuku), the court found this suit was not such a case: the ELC could grant the injunction but not the accounts. This is a case of concurrent jurisdiction where the predominant issue lies with the High Court. Persuaded by F. Gikonyo J in Dominic v County Government of Narok, the court exercised its discretion to defer to the High Court in the interests of justice rather than dismiss the suit.

p. 6

Legal principles established

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  • Where the predominant issue in a dispute involving a charge is a question of accounts or the tabulation of sums owing, jurisdiction lies with the High Court, not the Environment and Land Court.
  • In construing whether the ELC has jurisdiction, the consideration must be the dominant issue in the dispute and whether it relates to the environment and the use and occupation of, and title to, land.
  • A court may decline to exercise a jurisdiction it has, deferring to a court with concurrent jurisdiction over the primary subject matter, in the interests of the integrity of judicial processes.

Court orders

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  1. 1.This suit be and is hereby transferred to the High Court for further directions as to hearing.
  2. 2.Mention before Musyoka J on 14th May 2025 for those directions.
  3. 3.There shall be no orders as to costs.

Authorities

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Legislation

  • Constitution of Kenya 2010Article 162(2)
  • Constitution of Kenya 2010Article 165(3)
  • Constitution of Kenya 2010Article 165(5)
  • Constitution of Kenya 2010Article 159(2)(c)
  • Constitution of Kenya 2010Article 260
  • Environment and Land Court Act No 19 of 2011Sections 2 and 13
  • Land Act 2012Section 150
  • Land Registration Act 2012Section 101
  • Civil Procedure ActSection 18

Cases cited (9)

  • Co-operative Bank Of Kenya -v- Patrick Kangethe Njuguna & 5 Others
    C.A. Civil Appeal No 83 of 2016 [2017] eKLR
  • Samuel Kamau Macharia -v- Kenya Commercial Bank & 2 Others
    2012 eKLR
  • Lydia Nyambura Mbugua -v- Diamond Trust Bank Kenya Ltd & Another
    2018 eKLR
  • Suzanne Achieng Buttler & 4 Others -v- Redhill Heights Investments Ltd & Another
    2016 eKLR
  • Bank Of Africa Kenya Ltd -v- John Ndungu Gachara
    2002 eKLR
  • Joel Kyatha Mbaluka T/a Mbaluka Associates Advocates -v- Daniel Ochieng Ogola T/a Ogola Okello & Co Advocates
    C.A. Civil Appeal No 250 of 2017 [2019 eKLR]
  • Equity Bank Ltd -v- Bruce Mutie Mutuku T/a Diani Tour & Travel
    2016 eKLR
  • Dominic & 3 Others -v- County Government Of Narok & Another
    Petition No E002 of 2023 [2023 KEHC 17908 KLR]
  • Gilbert Anyango Oduory & Rester Nafula Oduory -v- NCBA Bank Kenya Ltd & Auckland Agencies Auctioneers
    Busia ELC Case No E030 of 2024
Jurisdiction invoked
Article 162(2) of the Constitution of Kenya 2010 and Sections 2 and 13 of the Environment and Land Court Act (in issue on a preliminary objection challenging jurisdiction)

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, "Gestered Professional Services v KCB Kenya Limited & another (Environment & Land Case E014 of 2024) [2025] KEELC 1468 (KLR)", Case Analysis (2025). Not stated in judgment (Busia ELC suit; suit transferred to the High Court). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/1468/eng@2025-03-25

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