Salim v Petro Soko Limited; Ecobank Kenya Limited (Interested Party) (Environment & Land Case E85 of 2024) [2025] KEELC 3894 (KLR)
The bottom line
#Kenya's Environment and Land Court refused to protect property in a loan dispute, ruling the case was commercial and belonged in the High Court.
What this practically means
#Executive summary
#Key legal issues
#Jurisdiction of the ELC to grant interim measures under Section 7 of the Arbitration Act
The ELC has jurisdiction, as constitutional successor to the pre-2010 High Court in land disputes, notwithstanding the Arbitration Act's reference to the High Court
The Arbitration Act is a pre-2010 statute referring to the High Court. Article 162 established the ELC as a court of equal status with jurisdiction over environment and land matters. Relying on Mungai Ngaruiya v Maha Properties, the court held that for land disputes the ELC is the successor institution, so references to the High Court in the Arbitration Act encompass the ELC.
Whether the dispute falls within the ELC's constitutional jurisdiction
No - the dispute is purely a commercial dispute over a charge and loan repayment, outside Article 162(2)(b)
The court examined the agreement and found the transfer to the Defendant was security/cosmetic, the Defendant merely an agent in procuring the loan, and the dominant issue the repayment of charge monies to the Interested Party. Following Cooperative Bank v Njuguna, a charge creates rights limited to realization of the security and has nothing to do with use of land, so the dispute is commercial and outside ELC jurisdiction.
Whether interim orders could issue where the court lacks jurisdiction over the entire suit
No - a court must assess jurisdiction over the entire claim even at interlocutory stage before granting interim orders
Although the court could in a suitable case exercise Section 7 powers, the duty to evaluate jurisdiction over the entire suit at the interlocutory stage means interim orders cannot issue in a suit over which the court lacks jurisdiction. Hence the injunction and inhibition were refused and the suit transferred.
Legal principles established
#- The ELC, as a court of equal status to the High Court, has jurisdiction under Section 7 of the Arbitration Act to grant interim measures of protection pending arbitration in land-related disputes
- A charge securing repayment of money does not concern the use and occupation of or title to land and therefore does not fall within Article 162(2)(b) jurisdiction
Court orders
#- 1.The suit is transferred to the High Court at Malindi for hearing and final disposal
- Jurisdiction invoked
- Article 162(2)(b) of the Constitution of Kenya, 2010 and Section 13 of the Environment and Land Court Act; Section 7 of the Arbitration Act, 1995 invoked for interim measures
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Salim v Petro Soko Limited; Ecobank Kenya Limited (Interested Party) (Environment & Land Case E85 of 2024) [2025] KEELC 3894 (KLR)", Case Analysis (2025). ELC Case, plaint dated 20/8/2024 (Notice of Motion dated 20/8/2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/3894/eng@2025-05-20
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.