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ELCStruck OutNotice of Motion dated 10/3/2025 (arising from appeal dated 7/3/25, against Milimani CM Misc. Application No. E351 of 2025)· [2025] KEELC 4388 (KLR)

Ngugi v Sedco Consultants Ltd & 2 others (Environment and Land Appeal E049 of 2025) [2025] KEELC 4388 (KLR)

Environment and Land Court
12 June 2025
JKJ. G. Kemei
4,008 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court struck out a property dispute appeal, ruling that mortgage and charge disputes belong in the High Court, not the ELC.

What this practically means

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Executive summary

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The applicant, Margaret Wambui Ngugi, moved the Environment and Land Court by notice of motion dated 10/3/2025 seeking stay of execution and stay of proceedings of exparte orders issued on 18/2/2025 in Milimani Chief Magistrate's Court Miscellaneous Application No. E351 of 2025, an injunction restraining the 1st and 2nd respondents from taking over management of L.R. Nos. 23364/27-31 Kasarani Vision Plaza, and alternatively supervisory orders calling for the lower court file. The orders complained of granted police assistance to the 1st respondent, a property management agent contracted by a receiver manager appointed by KCB Bank, to take over management of the suit properties. The 1st respondent opposed, contending the properties had been sold to the 3rd respondent in exercise of the bank's statutory power of sale, that the applicant had no proprietary interest, and that nothing remained to stay. The Court framed jurisdiction as the threshold issue. Relying on Mary Wambui Munene, Jamal Salim and Co-operative Bank v Kangethe Njuguna, it held that a charge is a disposition in land rather than a land use, and that where the dominant issue concerns charges and mortgages, primary jurisdiction lies with the High Court, particularly as the validity of the receivership and the 2022 auction sale were already the subject of HCCC No. E263 of 2022. The Court therefore downed its tools for want of jurisdiction and struck out both the application dated 10/3/2025 and the appeal dated 7/3/2025, with each party bearing its own costs.

Key legal issues

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01

Whether the ELC has jurisdiction over an appeal and application arising from orders for police assistance in enforcement of a charge/receivership dispute

Holding

The Court lacks jurisdiction; the dispute is commercial, rooted in the exercise of statutory power of sale and a charge, so the High Court has primary jurisdiction

Reasoning

The suit properties were sold to the 3rd respondent through exercise of the bank's statutory power of sale; the 1st respondent acted as agent of a receiver appointed under the charge. Following Co-operative Bank v Kangethe Njuguna, a charge is a disposition in land, not land use, so the dispute does not fall within Section 13 of the ELCA. The validity of the receivership is a matter for the High Court, which is already seized of HCCC No. E263 of 2022 involving the same transaction.

p. 8

Legal principles established

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  • Where the dominant issue in a dispute revolves around charges and mortgages, primary jurisdiction rests with the High Court, not the ELC
  • A court without jurisdiction must halt proceedings immediately
  • Jurisdiction cannot be conferred by consent or acquiescence of the parties and may be raised at any stage

Court orders

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  1. 1.The application dated the 10/3/25 and the appeal dated 7/3/25 be and are hereby struck out
  2. 2.Each party to bear their own costs

Authorities

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Legislation

  • Constitution of KenyaArticle 162(1) and 162(2)(b)
  • Environment and Land Court ActSection 13
  • Land ActSections 2 and 92
  • Civil Procedure RulesOrder 37; Order 42 Rule 6(2)
  • Auctioneers RulesRule 9
  • Auctioneers Act
  • Management Estate Agents Act (Cap. 533)
  • Insolvency Act
  • Companies Act

Cases cited (4)

  • Mary Wambui Munene v Peter Gichuki Kingara and Six Others
    Petition No. 7 of 2013 [2014] eKLR
  • Jamal Salim v Yusuf Abdulahi Abdi & another
    Civil Appeal No. 103 of 2016 [2018] eKLR
  • Adero & Another v Ulinzi Sacco Society Limited
    [2002] 1 KLR 577
  • Co-operative Bank of Kenya Limited v Patrick Kangethe Njuguna & 5 others
    [2017] eKLR
On appeal from
Milimani Chief Magistrate's Court
Miscellaneous Application No. E351 of 2025 - Sedco Consultants Limited & Others v Lery Enterprises Company Ltd & Others
Jurisdiction invoked
Article 162(2)(b) of the Constitution and Section 13 of the Environment and Land Court Act

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, "Ngugi v Sedco Consultants Ltd & 2 others (Environment and Land Appeal E049 of 2025) [2025] KEELC 4388 (KLR)", Case Analysis (2025). Notice of Motion dated 10/3/2025 (arising from appeal dated 7/3/25, against Milimani CM Misc. Application No. E351 of 2025). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/4388/eng@2025-06-12

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