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ELCStruck OutNot stated in judgment· [2025] KEELC 6373 (KLR)

Rockon Construction Company Limited v NCBA Bank Kenya Plc (Land Case E368 of 2024) [2025] KEELC 6373 (KLR)

Environment and Land Court
18 June 2025
547 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~2 min to read original · ~4 min brief

The bottom line

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The Environment and Land Court struck out a borrower's suit, confirming that disputes over a bank's statutory power of sale belong in the High Court.

What this practically means

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Executive summary

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This ruling of the Environment and Land Court decided a preliminary objection dated 27th September 2024 challenging the court's jurisdiction. The Plaintiff, a borrower, sought injunctive orders restraining the Defendant (lender/chargee) from selling or transferring three charged properties - Dundori/Lanet Block 2/1588 (Ndege), Ngong/Ngong/41223 and Naivasha/Mwichiriringiri Block 4/3415 - pending hearing of its application. The Plaintiff admitted defaulting on loan repayments due to financing challenges, alleging it expected payments from Machakos County, and sought time to regularise the loan. The Defendant objected that the dispute did not concern ownership or use of land but was a commercial dispute over the exercise of a statutory power of sale over charged property, a matter for the High Court, citing Republic v Karisa Chengo & 2 others (2017) eKLR. The court, relying on Owners of the Motor Vessel 'Lillian S' v Caltex Oil (Kenya) Ltd and Cooperative Bank of Kenya v Patrick Kangethe Njuguna (2017) eKLR, observed that the Plaintiff did not challenge the charges or the sale process itself, only the failure to grant additional time to repay. Since determination would require dealing with instalments and accounting - settled as the preserve of the Commercial Division of the High Court - the court held it lacked jurisdiction, struck out the suit and awarded costs to the Defendant. Ruling delivered via Microsoft Teams on 18th June 2025 by Judy Omange, Judge.

Key legal issues

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Whether the Environment and Land Court has jurisdiction over a commercial dispute regarding the statutory power of sale over charged land

Holding

The court has no jurisdiction; the dispute touches on loan repayment and accounting, not ownership or use of land, and belongs to the High Court Commercial Division

Reasoning

The Plaintiff did not challenge the legality of the charges or the process of sale; its only grievance was the refusal of additional time to clear the loan. Determining questions of instalments and accounting falls outside the court's mandate under Article 162(2), and following Owners of the Motor Vessel 'Lillian S', the court must down tools once it finds it lacks jurisdiction.

p. 2

Legal principles established

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  • The Environment and Land Court lacks jurisdiction over disputes concerning exercise of a statutory power of sale and accounting on charged property, which fall within the High Court's commercial jurisdiction

Court orders

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  1. 1.The suit is struck out with costs

Authorities

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Cases cited (3)

  • Owners of the Motor Vessel "Lillian S" v Caltex Oil (Kenya) Ltd
    [1989] eKLR
  • Republic Vs Karisa Chengo & 2 others
    (2017) eKLR
  • Cooperative Bank of Kenya –v- Patrick Kangethe Njuguna
    (2017) eKLR
Jurisdiction invoked
Jurisdiction of the Environment and Land Court under Article 162(2) of the Constitution as read with the Environment and Land Court Act (not expressly quoted; jurisdiction was the contested issue)

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, "Rockon Construction Company Limited v NCBA Bank Kenya Plc (Land Case E368 of 2024) [2025] KEELC 6373 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/6373/eng@2025-06-18

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