Njuguna & 13 others v Faidisha Pamoja Housing Co-operative Society Limited & 5 others (Environment & Land Case E049 of 2020) [2025] KEELC 2872 (KLR)
The bottom line
#The Environment and Land Court struck out land buyers' bid to stop a lender selling their plots, ruling that loan and charge disputes belong in the High Court.
What this practically means
#Executive summary
#Key legal issues
#Jurisdiction of the ELC over disputes concerning charges and statutory power of sale
The court lacks jurisdiction; the dispute is commercial in nature as the plaintiffs have no apparent claim against the chargee and only complain of fraud by the 1st defendant's officials
The undisputed facts were that the 1st defendant obtained a loan of Kshs. 5,400,000/= secured by a charge over the suit property registered in its name, and defaulted. The plaintiffs did not contest the legality of the chargee's power of sale against the 1st defendant; their complaint was fraud by the 1st defendant's officials. Following Cooperative Bank v Kangethe, such charge-related disputes fall outside the ELC's land-use jurisdiction and belong to the High Court.
Whether the plaintiffs met the threshold for a temporary injunction
Not determined - the application was struck out for want of jurisdiction before reaching the merits
Having found that it lacked jurisdiction, the court did not consider the Giella-style thresholds of prima facie case, irreparable harm and balance of convenience. The jurisdictional question was resolved first, in line with the principle that jurisdiction is everything and must be established before a court takes any further step.
Legal principles established
#- Jurisdiction flows from the Constitution or statute and a court cannot arrogate to itself jurisdiction it does not have
- Disputes arising in respect of charges/mortgages and exercise of statutory power of sale do not fall within the ELC's jurisdiction, which is limited to matters incidental to land use; such matters fall within the High Court's jurisdiction
Court orders
#- 1.Struck out the plaintiffs' application dated 2nd July 2024 for want of jurisdiction
- 2.Costs of the application to the 2nd defendant
- Jurisdiction invoked
- Environment and Land Court Act - jurisdiction limited to disputes incidental to land use; court found matter commercial and outside its jurisdiction
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Njuguna & 13 others v Faidisha Pamoja Housing Co-operative Society Limited & 5 others (Environment & Land Case E049 of 2020) [2025] KEELC 2872 (KLR)", Case Analysis (2025). Not stated in the judgment (Notice of Motion dated 2nd July 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/2872/eng@2025-03-26
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.