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ELCPartially AllowedELCC NO. E106 OF 2021· [2025] KEELC 5936 (KLR)

Omuse & 8 others v Sauti Savings & Credit Co-operative Society Limited & 9 others (Environment and Land Case E106 of 2021) [2025] KEELC 5936 (KLR)

Environment and Land Court
12 August 2025
3,354 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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A Kenyan court refused to halt enforcement of a judgment worth over KShs. 81 million because no decree existed and ordered the disputed funds released to the plaintiffs.

What this practically means

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Executive summary

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This ruling of the Environment and Land Court (Mbogo, J) determines two competing notices of motion arising from a judgment delivered on 31st January 2025 by Oguttu Mboya, J, awarding the plaintiffs sums per plot against the defendants. The 1st defendant, under Order 42 Rule 6 of the Civil Procedure Rules, sought stay of execution of the judgment and decree pending an intended appeal to the Court of Appeal, arguing the decretal sum (said to exceed KShs. 81,700,000/-) was colossal, would cripple its sacco business and would be irrecoverable from the plaintiffs if the appeal succeeded. The plaintiffs opposed, contending no arguable appeal or substantial loss was demonstrated, no security had been provided, and that the court was functus officio since a 30-day stay granted at judgment had lapsed. By a separate motion the plaintiffs sought release of KShs. 11,400,000/- held at NCBA Bank and KShs. 28,500,000/- held at DTB Bank in joint advocate accounts pursuant to a consent of 14th June 2023, for proportional distribution. The court framed two issues: whether stay should issue pending appeal, and whether the plaintiffs were entitled to release of the monies. Applying the three conditions in Order 42 Rule 6(2), the court found the 1st defendant had produced no drawn decree and no evidence of an execution process underway, so no substantial loss was demonstrated; stay was refused and the motion dated 19th March 2025 dismissed. Consequently, the plaintiffs' motion dated 20th March 2025 was allowed: the advocate firms were released from the professional undertaking, both sums plus accrued interest were released to the plaintiffs' advocates for proportional distribution, and the plaintiffs were awarded costs of both applications.

Key legal issues

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01

Whether stay of execution pending appeal should be granted under Order 42 Rule 6

Holding

Stay refused; the conditions were not met because no decree was drawn and no execution process was underway

Reasoning

The court applied the three conditions in Order 42 Rule 6(2): substantial loss, absence of undue delay and security. It found no evidence of a decree drawn or of any execution process initiated by the plaintiffs, so the claimed substantial loss was merely presumed. The court held it would be restrained to grant stay where no decree has been drawn, and the applicant had not shown the need for the orders at that stage.

p. 6
02

Whether the monies held in the two joint advocate accounts should be released to the plaintiffs

Holding

Release ordered; without a decree justifying stay there was no reason to stop the plaintiffs accessing the monies

Reasoning

Having declined stay, the court found the funds deposited pursuant to the consent of 14th June 2023 could not be retained as security against an execution that did not exist. The advocates' firms were released from the professional undertaking and directed to release the sums in the NCBA and DTB accounts, plus interest, to the plaintiffs' advocates for proportional distribution to the 1st to 9th plaintiffs.

p. 6
03

Whether the court is functus officio on the issue of stay of execution having granted 30 days stay at judgment

Holding

The court entertained the stay application, accepting that functus officio applies to the merits of a final judgment, not post-judgment incidental applications

Reasoning

The plaintiffs argued the court lacked jurisdiction since the 30-day stay granted at judgment had lapsed. The 1st defendant countered that functus officio applies only to the merits of the final judgment and not to post-judgment incidental or consequential applications. The court proceeded to determine the application on its merits without expressly ruling on the functus officio point, implicitly rejecting the objection.

p. 5

Legal principles established

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  • Stay of execution pending appeal cannot be granted where no decree has been drawn and no execution process is shown to be underway
  • Stay of execution preserves the substratum of the case so that a successful appeal is not rendered nugatory

Court orders

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  1. 1.The notice of motion dated 19th March, 2025 seeking stay of execution pending appeal is dismissed
  2. 2.The law firm of Wesonga Wamalwa & Kariuki Associates Advocates and the law firm of Abdulrahman, Saad and Associates Advocates are released from the professional undertaking contained in the Consent dated 14th June, 2023
  3. 3.The amount of KShs. 11,400,000/- plus interest accrued thereon held at NCBA Bank Account No. 6923890018 is released to the plaintiffs' advocates to distribute proportionally to the 1st to 9th plaintiffs
  4. 4.The amount of KShs. 28,500,000/- plus interest accrued thereon held at DTB Bank Account No. 0052100001 is released to the plaintiffs' advocates to distribute proportionally to the 1st to 9th plaintiffs
  5. 5.The plaintiffs are entitled to costs of the two applications

Authorities

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Legislation

  • Civil Procedure RulesOrder 42 Rule 6
  • Civil Procedure RulesOrder 51 Rule 1
  • Civil Procedure ActSection 1A
  • Civil Procedure ActSection 1B
  • Civil Procedure ActSection 3A

Cases cited (8)

  • James Wangalwa & another v Agnes Naliaka Cheseto
    [2012] eKLR
  • Tropical Suppliers Ltd & Others v International Credit Bank Ltd (in liquidation)
    [2004] EA 331
  • National Industrial Credit Bank Ltd v Aquinas Francis Wasike & anor
    [2006] eKLR
  • Gianfranco Manethi & anor v Africa Merchant Assurance Co. Ltd
    [2019] eKLR
  • Raila Odinga & 2 others v IEBC and 3 others
    [2013] eKLR
  • Machira t/a Machira & Co. Advocates v East Africa Standard (No.2)
    (2002) KLR 63
  • Andrew Kuria Njuguna v Rose Kuria
    (Nairobi Civil Case 224 of 2001) unreported
  • Consolidated Marine vs Nampijja & Another
    Civil App.No.93 of 1989 (Nairobi)
Jurisdiction invoked
Order 42 Rule 6 and Order 51 Rule 1 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, "Omuse & 8 others v Sauti Savings & Credit Co-operative Society Limited & 9 others (Environment and Land Case E106 of 2021) [2025] KEELC 5936 (KLR)", Case Analysis (2025). ELCC NO. E106 OF 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/5936/eng@2025-08-12

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