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ELCDismissedNot stated in judgment· [2025] KEELC 6956 (KLR)

Milele Funeral Burial & Benevolent Services Limited v Business Partners International Kenya (II) Limited & another (Environment and Land Case E037 of 2025) [2025] KEELC 6956 (KLR)

Environment and Land Court
8 October 2025
1,595 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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The Environment and Land Court in Malindi dismissed a borrower's bid to stop a property sale, ruling that disputes over charges and loan defaults belong in the High Court.

What this practically means

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Executive summary

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The Plaintiff/Applicant moved the Environment and Land Court at Malindi by a Notice of Motion dated May 16, 2025 seeking injunctive orders to restrain the 1st Defendant/Respondent from exercising its statutory power of sale over Land Reference Number KILIFI/VIPINGO/642. The property secured a loan of Kshs. 26,400,000/= advanced under a Loan Agreement dated May 27, 2021 and a First Ranking Legal Charge registered on June 2, 2021. As at May 20, 2025, the outstanding balance was Kshs. 39,266,517.21 and the debt was admittedly overdue. The Respondent relied on statutory notices issued under Section 90 of the Land Act. A preliminary objection was raised that the ELC lacked jurisdiction because the dispute concerned a chargee's statutory power of sale, which lies within the High Court's civil jurisdiction. Relying on Owners of the Motor Vessel 'Lillian S' v Caltex Oil and Co-operative Bank of Kenya Ltd v Patrick Kangethe Njuguna, the court held that a charge is a disposition creating an interest in land for securing money, not land use, and that disputes over charges and statutory sales fall outside ELC jurisdiction. The court also noted that a similar injunction application had been dismissed in the Lower Court on February 6, 2024 by Hon. J.M. Nangea (CM). Declining to consider the merits of the injunction, the court dismissed the application dated May 16, 2025 with costs.

Key legal issues

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01

Whether the Environment and Land Court has jurisdiction over a dispute concerning a chargee's exercise of statutory power of sale under a charge

Holding

No - such disputes fall within the civil jurisdiction of the High Court; the ELC lacks jurisdiction and must down tools.

Reasoning

Relying on Co-operative Bank of Kenya Ltd v Patrick Kangethe Njuguna, the court held that a charge is a disposition (an interest in land securing money), not land use. The cause of action was the amounts owing under the charge and the statutory notices, not the instrument itself. ELC jurisdiction over contracts must relate to land use; mortgages and charges fall to the High Court. Jurisdiction is everything; without it, the court must halt proceedings.

p. 4
02

Whether the Applicant met the threshold for an interlocutory injunction

Holding

Not determined - futile to consider once jurisdiction was found wanting.

Reasoning

Having determined that it lacked jurisdiction, the court declined to consider the merits of the injunction application, holding it would be futile to do so. The application was dismissed with costs.

p. 4

Legal principles established

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  • Jurisdiction is conferred by the Constitution or statute, cannot be conferred by agreement or judicial craft, and a court without jurisdiction must halt proceedings
  • A charge creates an interest in land for securing repayment of money; the creation and enforcement of a charge (including statutory power of sale) does not constitute land use and falls outside ELC jurisdiction

Court orders

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  1. 1.The Notice of Motion application dated May 16, 2025 is dismissed with costs

Authorities

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Legislation

  • Land ActSection 2
  • Land ActSection 80
  • Land Act (No. 6 of 2012)Section 90
  • Environment and Land Court ActSection 13
  • Constitution of KenyaArticle 260

Cases cited (2)

  • Owners of the Motor Vessel "Lillian S" v Caltex Oil (Kenya) Ltd
    [1989] eKLR
  • Co-operative Bank of Kenya Ltd v Patrick Kangethe Njuguna and 5 others
    [2017] eKLR
Jurisdiction invoked
Article 162(2)(b) Constitution / Environment and Land Court Act, Section 13 (jurisdiction considered and found absent - matter falls within High Court civil jurisdiction)

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, "Milele Funeral Burial & Benevolent Services Limited v Business Partners International Kenya (II) Limited & another (Environment and Land Case E037 of 2025) [2025] KEELC 6956 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/6956/eng@2025-10-08

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