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ELCPartially AllowedNotice of Motion dated 16th April, 2025 (in suit with judgment delivered 10/2/2025)· [2025] KEELC 5749 (KLR)

Murira & 26 others v China Communications Construction Company Limited (Environment and Land Case 2 of 2020) [2025] KEELC 5749 (KLR)

Environment and Land Court
31 July 2025
2,069 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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What this practically means

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Executive summary

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The Defendant, China Communications Construction Company Limited, moved the Court by Notice of Motion dated 16th April 2025 under Order 42 Rule 6(1) and (2) of the Civil Procedure Rules and Sections 1A, 1B and 3A of the Civil Procedure Act, seeking stay of execution of a judgment delivered on 10th February 2025 (and reviewed on 12th March 2025) by Justice Gicheru, which directed it to pay the Plaintiffs Ksh. 32,122,100 with interest and costs, and further seeking stay of taxation proceedings. The Defendant, which had filed a Notice of Appeal, argued it would suffer substantial loss as any refund would be difficult to recover, offered to deposit 50% of the decretal sum as security, and denied admitting liability for damage to the Plaintiffs' houses. The Plaintiffs opposed, contending the conditions for stay were unmet, that taxation was independent of the appeal, and that the Defendant, a foreign company facing adverse Tax Tribunal findings of over Ksh. 1 billion, might leave the jurisdiction. M.D. Mwangi J framed two issues: whether the threshold for stay was met, and whether taxation proceedings should be stayed. Applying Halai v Thornton & Turpin, Butt v Rent Restriction Tribunal and Machira v East African Standard, the court found the application merited but granted a conditional stay: the Defendant to deposit 50% of the decretal amount into a joint interest-earning account within 45 days, failing which the stay lapses automatically. The prayer to stay taxation was refused as overtaken by events. Each party was ordered to bear its own costs.

Key legal issues

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01

Threshold for stay of execution pending appeal under Order 42 Rule 6(2)

Holding

The application was merited, filed without undue delay, and stay was granted conditionally on a 50% deposit into a joint interest-earning account

Reasoning

The court applied Order 42 Rule 6(2) conditions as articulated in Halai v Thornton & Turpin and Butt v Rent Restriction Tribunal, balancing the Defendant's appellate right against the Plaintiffs' entitlement to enjoy the fruits of judgment. The application was filed without undue delay; substantial loss was addressed through a 50% deposit as security, failing which the stay lapses automatically.

p. 5
02

Stay of taxation proceedings

Holding

Refused as overtaken by events since a decision had already been rendered on the Party and Party Bill of Costs

Reasoning

Because the court had already rendered a decision on the Party and Party Bill of Costs, there was nothing left to stay in the taxation proceedings; the prayer had been rendered moot by intervening events.

p. 6

Legal principles established

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  • An applicant for stay of execution must establish sufficient cause, substantial loss, absence of undue delay, and furnish security; the court's discretion should be exercised so as not to render a successful appeal nugatory.

Court orders

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  1. 1.Conditional stay of execution of the judgment delivered on 10/2/2025 and consequential orders/decree pending appeal, on condition that the Defendant deposits 50% of the decretal amount in an interest-earning account jointly held by the Plaintiffs' and Defendant's Counsel within 45 days, failing which the stay lapses automatically and the Plaintiffs may execute
  2. 2.Refusal of stay of taxation proceedings as overtaken by events
  3. 3.Each party to bear its own costs of the Application

Authorities

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Legislation

  • Civil Procedure RulesOrder 42 Rule 6(1) and (2)
  • Civil Procedure ActSections 1A, 1B and 3A

Cases cited (4)

  • Halai & another v Thornton & Turpin (1963) Ltd
    [1990] KECA 65 (KLR)
  • Butt v Rent Restriction Tribunal
    [1979] KECA 22 (KLR)
  • Machira t/a Machira & Co Advocates v East African Standard
    [2002] KEHC 1167 (KLR)
  • China Communications Construction Company Limited v Commissioner of Intelligence Strategic Operations, Investigations and Enforcement
    (Appeal E267 of 2023) [2024] KETAT 1202 (KLR) (9 August 2024)
Jurisdiction invoked
Order 42 Rule 6(1) and (2) of the Civil Procedure Rules and Sections 1A, 1B and 3A of the Civil Procedure 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, "Murira & 26 others v China Communications Construction Company Limited (Environment and Land Case 2 of 2020) [2025] KEELC 5749 (KLR)", Case Analysis (2025). Notice of Motion dated 16th April, 2025 (in suit with judgment delivered 10/2/2025). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/5749/eng@2025-07-31

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