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ELCAllowed· [2025] KEELC 4028 (KLR)

Ituiku Farmers Co Ltd v Misoi & 2 others (Environment & Land Case 58 of 2017) [2025] KEELC 4028 (KLR)

Environment and Land Court
20 May 2025
2,562 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan land court paused enforcement of a ruling forcing a company to transfer 82 hectares, because the land might be sold to third parties before the appeal is heard.

What this practically means

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Executive summary

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The Plaintiff/Applicant, Ituiku Farmers Co. Ltd, filed a Notice of Motion dated 23rd December 2024 seeking a stay of execution of the judgment and decree of the Environment and Land Court delivered on 16th December 2024, in which its suit claiming ownership and eviction over Narok/Cis-Mara/Ololulunga/137 (82 hectares) was dismissed and the Defendants' counter-claim for specific performance was allowed, compelling the Plaintiff to obtain Land Control Board consent to transfer the land. The application, supported by an affidavit of the company's chairman Geofirey Mungai Kabua, was opposed by Elijah Misoi for the Defendants, who argued the application was premature since no execution had commenced, and that no draft memorandum of appeal or proof of substantial loss had been attached. The Defendants and their advocate failed to attend mention and filed no submissions. The court, applying Order 42 Rule 6(2) of the Civil Procedure Rules and the Butt v Rent Restriction Tribunal principles, found that the risk of subdivision and sale to third parties would render the intended appeal nugatory, amounting to substantial loss; that the application was filed within seven days, without unreasonable delay; and that the Applicant was willing to furnish security. Relying on RWW v EKW, Silverstein v Chesoni, Elena D. Korir v Kenyatta University and related authorities, the court allowed the application, granted a stay pending appeal, directed a deposit of Ksh.500,000/= as security within 30 days, with the stay lapsing automatically upon default, and awarded costs of the application to the Plaintiff/Applicant. (Approximately 260 words.)

Key legal issues

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01

Whether the Plaintiff/Applicant demonstrated substantial loss

Holding

Substantial loss was demonstrated because transfer and subdivision of the suit land to third parties would render the intended appeal nugatory

Reasoning

The Defendants were in occupation and, upon obtaining Land Control Board consent, might subdivide and sell portions to third parties. If the appeal succeeded, recovery of the land would be difficult and costly. The court therefore held that the Plaintiff would suffer substantial loss if stay was not granted.

p. 5
02

Whether the application was filed without unreasonable delay

Holding

Yes - the judgment was delivered on 16th December 2024 and the application filed on 23rd December 2024

Reasoning

The court found the seven-day interval fell within the specified time for filing an appeal, hence no unreasonable delay.

p. 5
03

Whether security for the due performance of the decree was provided

Holding

Yes - the Applicant offered to abide by reasonable conditions; the court fixed Ksh.500,000/= as security

Reasoning

The court noted the Applicant's averment of willingness to abide by conditions and exercised its discretion to fix a monetary deposit, with the stay lapsing automatically if not complied with.

p. 6
04

Whether an intended appeal exists despite absence of a draft memorandum of appeal

Holding

The filed Notice of Appeal sufficed to show intent to appeal; absence of a draft memorandum was not fatal

Reasoning

Relying on Equity Bank Ltd v West Link MBO Ltd and Paul Wanjohi Mathenge v Duncan Gichane Mathenge, the court held that a lawfully filed notice of appeal deems an appeal to exist and failure to attach a draft memorandum is not fatal.

p. 5

Legal principles established

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  • No order for stay of execution shall be made unless substantial loss is shown, the application is made without unreasonable delay, and security is given
  • Demonstrating substantial loss is the cornerstone of an application for stay of execution pending appeal
  • Filing an appeal is not an automatic stay of the judgment appealed against
  • The primary purpose of a stay is to preserve the subject matter of the appeal

Court orders

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  1. 1.Stay of execution of the judgment and decree dated 16th December 2024, including order (II) for specific performance, granted pending the hearing and determination of the intended appeal (prayer No. 1 of the application, allowed as prayer No. 4)
  2. 2.Plaintiff/Applicant to deposit Ksh.500,000/= in court as security for the due performance of the decree appealed from, within 30 days
  3. 3.Stay to lapse automatically upon failure to deposit the security as directed
  4. 4.Costs of the application to the Plaintiff/Applicant

Authorities

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Legislation

  • Civil Procedure Rules, 2010Order 42 Rule 6(1)
  • Civil Procedure Rules, 2010Order 42 Rule 6(2)
  • Civil Procedure RulesOrder XLI Rule 4(2)(b)

Cases cited (8)

  • Runda Water Ltd & Another vs Timothy John Nicklin & another
    [2017] eKLR
  • RWW vs EKW
    [2019] eKLR
  • Butt vs Rent Restriction Tribunal
    [1979]
  • Equity Bank Limited v West Link MBO Limited
    Civil Application No NAI 78 of 2011 (UR. 53/2011)
  • Paul Wanjohi Mathenge v Duncan Gichane Mathenge
    [2013] eKLR
  • Silvestein vs N. Chesoni
    [2002] KLR 867
  • Elena D. Korir vs Kenyatta University
    [2012] eKLR
  • Halal & another v Thornton & Turpin Ltd
Jurisdiction invoked
Order 42 Rule 6(1) & (2) of the Civil Procedure Rules, 2010 (stay of execution pending appeal)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Ituiku Farmers Co Ltd v Misoi & 2 others (Environment & Land Case 58 of 2017) [2025] KEELC 4028 (KLR)", Case Analysis (2025). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/4028/eng@2025-05-20

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