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ELCOther· [2025] KEELC 6580 (KLR)

M'big Limited v Co-operative Bank of Kenya Limited & Nakuru County Government

Environment and Land Court
2 October 2025
6,426 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~26 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court confirmed it can hear land disputes that include money claims, as long as land is the real heart of the case.

What this practically means

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Executive summary

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M'big Limited (the Plaintiff) sued Co-operative Bank of Kenya Limited (1st Defendant) and the Nakuru County Government (2nd Defendant) arising from its purchase by auction of LR Nos. 1144/522 and 1144/583 Naivasha Town in June 2017, sold by Garam Investments Auctioneers under the 1st Defendant's statutory power of sale. The 2nd Defendant, as head lessor, refused consent to transfer citing unpaid rates and a 2% fee, and the Plaintiff sought, among numerous reliefs, injunctions over charged Bungoma properties, a declaration that the sale was frustrated and void, a refund of Kshs. 95,000,000, consequential monetary compensation, and orders compelling issuance of consents and discharge of charges. After hearing PW1, the court raised, suo moto, the question whether the dispute was commercial and belonged to the High Court, having regard to Co-operative Bank v Patrick Kang'ethe Njuguna, and stood the matter down for submissions. All parties addressed the predominant purpose test. The Defendants argued the suit predominantly concerned enforcement of statutory power of sale and commercial claims, beyond ELC jurisdiction, and that a court without jurisdiction could not transfer a suit, which was a nullity ab initio. The Plaintiff contended the predominant issues were the frustrated land sale and refusal of consent to transfer. Holding that the prayers form the heart of the suit, and applying the predominant purpose test, the court found the genesis and objective of the dispute deeply rooted in land, with monetary claims merely consequential. It distinguished the Kang'ethe Njuguna case and held the ELC has jurisdiction. It made no orders as to costs.

Key legal issues

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01

Jurisdiction of the Environment and Land Court over a suit arising from an auction sale of land pursuant to a statutory power of sale and refusal of consent to transfer

Holding

The court has jurisdiction; the predominant purpose of the suit is a land dispute, and the case is distinguishable from Co-operative Bank v Patrick Kang'ethe Njuguna which concerned a charge and exercise of a chargee's power of sale.

Reasoning

Applying the predominant purpose test, the court examined the prayers in the further amended re-amended plaint. It found the genesis and ultimate objective of the suit deeply rooted in a land dispute: the prayers sought to stop sale of parcels, declare a land sale void, compel transfer of land and discharge land-related securities, all matters directly concerned with title to land. The monetary claims were consequential to the failed land transaction, not the primary cause of action, so the High Court would lack subject-matter jurisdiction.

p. 11
02

Whether a court lacking jurisdiction may transfer a suit to a court of competent jurisdiction (raised by the parties but not ultimately necessary)

Holding

Not determined, as the court found it had jurisdiction; the parties addressed rival positions on transfer versus striking out.

Reasoning

The 1st and 2nd Defendants argued that a suit filed without jurisdiction is a nullity ab initio and must be struck out rather than transferred, relying on Equity Bank v Bruce Mutie Mutuku and Phoenix of E.A. Assurance v S.M. Thiga. The Plaintiff argued the court could transfer a 'mixed-grill' case. Having found jurisdiction, the court did not rule on this question.

p. 12

Legal principles established

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  • The prayers sought by a plaintiff define the scope of the suit and are central to determining whether the court has jurisdiction over the dispute.
  • Where monetary claims are consequential to a failed land transaction, the predominant purpose of the suit is a land dispute within the ELC's jurisdiction.

Court orders

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  1. 1.A finding that the court has jurisdiction to hear and determine the suit, it being distinguishable from the Patrick Kang'ethe Njuguna case
  2. 2.No orders as to costs

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 162(2)(b), 162(3), 165(5)
  • Environment and Land Court ActSection 13(1), 13(2), 13(5)
  • Land ActSection 101
  • Civil Procedure ActSections 1B and 3A

Cases cited (15)

  • Co-operative Bank of Kenya Limited v Patrick Kang'ethe Njuguna & 5 Others [2017] eKLR
    [2017] KECA 79 (KLR)
  • Suzanne Achieng Butler & 4 Others v Redholl Heights Investments Limited & Another (2016) eKLR
  • Kinyua Koech Ltd & 2 Others v Nairobi Homes (Mombasa) Limited & 11 Others
    Civil Appeal No. 40 of 2014
  • Mohammed Ali Baadi & Others v The Hon. Attorney General & 11 Others (2018) eKLR
  • In re Estate of Prisca Ong'ayo Nande (Deceased) [2020] KEHC 6553 (KLR)
    [2020] KEHC 6553 (KLR)
  • Frikogen Limited v Margdaline Khamitwa Musotsi (2024) eKLR
  • Peter Mutisya Musembi & Another v National Bank of Kenya (2014) eKLR
  • Kisauni Bridge Limited v Kenya Urban Roads Authority & Another (2019) eKLR
  • TSS Investments Limited & Another v NIC Bank Limited (2019) eKLR
  • Lydia Nyambura Mbugua v Diamond Trust Bank Kenya Ltd [2018] eKLR
  • Thomas Mutuku Kasue v Housing Finance Company Ltd (HFC) & another [2021] KEELC 4524 (KLR)
    [2021] eKLR
  • Equity Bank Limited v Bruce Mutie Mutuku t/a Diani Tour & Travel [2016] KECA 250 (KLR)
    [2016] KECA 250 (KLR)
  • Bank of Africa Kenya Limited & another v TSS Investment Limited & 2 others [2024] KECA 410 (KLR)
    [2024] KECA 410 (KLR)
  • Republic v Chengo & 2 others (Petition 5 of 2015) [2017] KESC 15 (KLR)
    [2017] KESC 15 (KLR)
  • Phoenix of E.A. Assurance Company Limited v S. M. Thiga t/a Newspaper Service [2019] KECA 767 (KLR)
    [2019] KECA 767 (KLR)
Jurisdiction invoked
Article 162(2)(b) of the Constitution of Kenya, 2010 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, "M'big Limited v Co-operative Bank of Kenya Limited & Nakuru County Government", Case Analysis (2025). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/6580/eng@2025-10-02

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