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ELCPartially AllowedNotice of Motion dated 9th July 2024 (arising from Environment & Land Court Civil Case No. 334 of 2015)· [2025] KEELC 3533 (KLR)

Kariuki v Tofina Rom Builders Limited & another (Environment and Land Case Civil Suit 334 of 2015) [2025] KEELC 3533 (KLR)

Environment and Land Court
30 April 2025
1,996 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

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The court paused enforcement of a Kshs 10.9 million judgment on land, but only because the losing party deposited the principal amount and will provide a bank guarantee within 45 days.

What this practically means

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Executive summary

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The 1st and 2nd Applicants/Defendants moved the Environment and Land Court by Notice of Motion dated 9th July 2024 under Order 42 of the Civil Procedure Rules seeking stay of execution of the judgment of Lady Justice A. Omollo delivered on 24th April 2024 in Environment & Land Court Civil Case No. 334 of 2015, in which the Plaintifi/Respondent was awarded Kshs. 8.7 million principal with interest at 14% per annum, total decretal amount Kshs. 10,962,000. The Applicants, who had already deposited the principal sum into the Respondent's account and filed a Notice of Appeal dated 3rd May 2024 challenging only the interest award, argued substantial loss, absence of delay and willingness to offer a bank guarantee, relying on Butt v Rent Restriction Tribunal, Nesco Services, Tropical Commodities, National Industrial Credit Bank v Wasike, Gianfranco Manenthi and James Wangalwa. The Respondent opposed via grounds of opposition and submissions, arguing the application was premature as no execution had been initiated, that substantial loss and refund capacity had not been established, and citing RWW v EKW on the purpose of a stay. The court framed two issues: whether stay pending appeal was merited, and whether to order security. Applying RWW v EKW and Ndolo v Asiyo on the pivotal role of a Notice of Appeal, Justice Omollo found no inordinate delay and held that payment of the principal demonstrated good faith and ability to pay, making a stay in the interests of justice. On security, invoking the Gianfranco Manenthi decision and the parties' overriding interests, the court ordered a bank guarantee of Kshs 10,962,000 within 45 days, failing which the stay lapses. The application was allowed in terms of prayer 3, with costs of the application to the Plaintifi.

Key legal issues

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01

Whether the conditions for stay of execution pending appeal under Order 42 Rule 6(2) were met

Holding

The court found no inordinate delay and held that the filing of the Notice of Appeal together with payment of the principal sum demonstrated good faith and ability to pay, justifying a stay

Reasoning

The court noted the Notice of Appeal was filed, establishing intention to appeal and conferring jurisdiction. The Applicants had deposited Kshs.8,700,000/= being the principal sum, leaving only interest in dispute. Payment of the principal was treated as evidence of good faith and ability to repay should the appeal fail, so on balance the interests of justice favoured granting the stay to allow the appeal to be ventilated.

p. 4
02

Whether and in what form security for due performance of the decree should be ordered

Holding

The court, exercising its discretion, ordered security in the form of a bank guarantee for Kshs 10,962,000 to be deposited within 45 days, failing which the stay lapses

Reasoning

Relying on Gianfranco Manenthi, the court held that security is discretionary and for the court to determine. The Applicants had offered a bank guarantee in submissions. Balancing the parties' interests and the overriding objective, the court ordered a bank guarantee for the full decretal amount including interest, to protect the Respondent if the appeal fails, with the stay lapsing on default.

p. 5

Legal principles established

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  • A validly filed Notice of Appeal confers jurisdiction on the court to grant a stay pending appeal, subject to proof of substantial loss under Order 42 Rule 6(2)
  • The purpose of a stay of execution pending appeal is to preserve the subject matter so that a successful appeal is not rendered nugatory
  • Security for due performance of the decree is a matter for the court's discretion, not the applicant's willingness

Court orders

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  1. 1.Stay of execution of the judgment delivered on 24th April 2024 in Environment & Land Court Civil Case No. 334 of 2015 and any order arising therefrom, pending the hearing and determination of the intended appeal (prayer 3 granted)
  2. 2.Applicants to deposit with the Plaintifi/Respondent a bank guarantee in the sum of Kshs 10,962,000 within 45 days
  3. 3.In default of deposit of the bank guarantee, the order of stay lapses
  4. 4.Costs of the application to the Plaintifi

Authorities

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Legislation

  • Civil Procedure RulesOrder 42 Rule 6 / 6(2)
  • Civil Procedure Actoverriding objective

Cases cited (8)

  • Butt v Rent Restriction Tribunal
    [1979]
  • Nesco Services Limited v CM Construction (EA) Limited
    [2019] eKLR
  • Tropical Commodities Suppliers Limited v International Credit Bank Limited
    [2004] 2EA
  • National Industrial Credit Bank v Aquinas Francis Wasike & Another
    (2006) eKLR
  • Gianfranco Manethi & Another v Africa Merchant Assurance Co Limited
    (2019) eKLR
  • James Wangalwa v Agnes Naliaka Cheseto
    [2012] eKLR
  • RWW v EKW
    [2019] eKLR
  • Ndolo v Asiyo & another
    (Environment & Land Case 1295 of 2013) [2023] KEELC 16754 (KLR)
On appeal from
Environment & Land Court
Civil Case No. 334 of 2015
Jurisdiction invoked
Order 42 of the Civil Procedure Rules (stay of execution pending appeal) plus all enabling provisions of the law

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Kariuki v Tofina Rom Builders Limited & another (Environment and Land Case Civil Suit 334 of 2015) [2025] KEELC 3533 (KLR)", Case Analysis (2025). Notice of Motion dated 9th July 2024 (arising from Environment & Land Court Civil Case No. 334 of 2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/3533/eng@2025-04-30

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