Nicmac Crest Limited v Ng’ang’a & another (Environment and Land Miscellaneous Application E010 of 2025) [2025] KEELC 2977 (KLR)
The bottom line
#Kenya's High Court froze land sales to protect a buyer's arbitration claim, but gave the parties 60 days to start the arbitration.
What this practically means
#Executive summary
#Key legal issues
#Whether interim injunctive relief under Section 7 of the Arbitration Act should issue pending arbitration
Yes. The applicant established an arbitration agreement, that the subject matter was under threat of disposal, and that preservation of the subdivided parcels was required; the injunction in terms of prayer 4 issued with arbitration to commence within 60 days.
The court applied Section 7 of the Arbitration Act and the criteria in Safaricom v Ocean View Beach Hotel: existence of an arbitration agreement, threat to the subject matter, the appropriate protective measure, and its duration. The parties had covenanted to arbitrate; the respondents had subdivided the land, sold three parcels and terminated the agreement. The court declined to delve into the merits, holding the subdivisions to be the subject matter of arbitration and that sale of the remainder would render any award nugatory.
Whether the applicant's alleged delay and non-compliance with pre-arbitral negotiation procedures defeated the application
No. The applicant had engaged the respondents through several meetings via advocates, so the argument that the applicant had gone to slumber did not hold water.
The respondents argued the applicant came to equity with unclean hands, never issued a written dispute notification, and that the contract had been terminated leaving nothing to arbitrate. The court held that the applicant's engagement in meetings through its advocate rebutted the indolence claim, and that pre-arbitral and termination issues were for the arbitrator.
Legal principles established
#- The High Court may grant interim measures of protection under Section 7 of the Arbitration Act before or during arbitral proceedings to preserve the subject matter of arbitration.
- Where the subdivided subject matter of arbitration may be sold to third parties, an interim injunction is warranted to prevent the arbitral process and any award being rendered nugatory.
Court orders
#- 1.A temporary injunction restraining the Respondents from selling, disposing, alienating, transferring and/or sub-dividing or in any other way interfering with the suit parcels pending the hearing and determination of the arbitration (allowed in terms of prayer 4)
- 2.Arbitral proceedings to be commenced within 60 days of the date of the ruling
- 3.Costs of the Application to abide the arbitral proceedings
- 4.Mention on June 16, 2025 to confirm compliance and progress
- Jurisdiction invoked
- Section 7(1) of the Arbitration Act 1995, Rule 2 of the Arbitration Rules 1997 and Article 159(2) of the Constitution of Kenya
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Nicmac Crest Limited v Ng’ang’a & another (Environment and Land Miscellaneous Application E010 of 2025) [2025] KEELC 2977 (KLR)", Case Analysis (2025). Chamber Summons dated 29/01/2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/2977/eng@2025-04-01
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.