North Stream Limited v Registered Trustees of the Comboni Sisters (Enviromental and Land Originating Summons E063 of 2024) [2025] KEELC 3061 (KLR)
The bottom line
#A Nairobi tenant facing arbitration over its lease can stay on the property for up to a year, but must keep paying rent while the dispute is resolved.
What this practically means
#Executive summary
#Key legal issues
#Interlocutory injunction restraining eviction pending arbitration
Granted for up to one year, since the Applicant is in occupation, has invested on the land, and eviction would threaten the subject matter of arbitration
Applying Giella v Cassman Brown and section 7 of the Arbitration Act, the court held that the dispute over occupation is governed by the Lease and is before the arbitrator. Since the Applicant is already on the land and has invested there, evicting it while rent arrears and lease termination are contested before the arbitrator would place the arbitration's subject matter under threat. A holding injunction preserves the status quo without encroaching on the tribunal's decision-making power.
Mandatory injunction for eviction at interlocutory stage
Refused; the Respondent did not satisfy the test that a mandatory injunction is granted only in clear cases or special circumstances
Relying on Kenya Breweries Ltd v Washington Okeyo quoting Halsbury's Laws, a mandatory injunction is not normally granted on interlocutory application absent special circumstances. The Respondent's claim rested on alleged rent arrears and a termination notice whose validity is unresolved before the arbitrator, so the case was not clear enough to justify so drastic an interlocutory remedy.
Legal principles established
#- Courts may grant interim measures of protection under section 7 of the Arbitration Act to preserve the subject matter of a dispute pending arbitration, applying the Giella v Cassman Brown principles and the Safaricom v Ocean View criteria
Court orders
#- 1.Pending the hearing and final determination of the arbitral proceedings and for not more than one year, a temporary injunction issued restraining the Respondent from evicting the Applicant, demolishing structures, harassing, alienating, transferring, disposing of, or otherwise interfering with Land Reference No. 4857/22, Nairobi, including sale, auction, or appointment of receivers
- 2.The Applicant directed to continue paying rent to the Landlord or, in the alternative, deposit it in a joint interest earning account pending outcome of the arbitral proceedings
- 3.Each party to bear their own costs
- Jurisdiction invoked
- Section 7 of the Arbitration Act (interim measures by court)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "North Stream Limited v Registered Trustees of the Comboni Sisters (Enviromental and Land Originating Summons E063 of 2024) [2025] KEELC 3061 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/3061/eng@2025-04-02
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.