Bin Daud Limited v Mitoko & another (Environment and Land Case E227 of 2023) [2025] KEELC 7128 (KLR)
The bottom line
#A Kenyan court refused a tenant more time to pay Kshs 4 million rent, saying that dispute belongs to arbitration, not the courtroom.
What this practically means
#Executive summary
#Key legal issues
#Whether the court should extend time for the applicant to pay 6 months advance rent of Kshs. 4,020,000/-
No - the application for extension of time was dismissed as the issue of rent payment falls within the reference to arbitration
The lease dated 22nd April, 2020 was admitted. The applicant admitted inability to pay rent due on 1st April, 2025 due to economic conditions. The court noted a prior ruling of 3rd October, 2024 referred the matter to arbitration while directing continued payment of rent. Since rent payment terms are within the arbitration, any extension request should be made to the arbitrator, not the court.
Whether prayers 2 and 3 (suspension of proclamation and repossession notices) remained live
They were overtaken by events as the auctioneers had already attached the properties on 9th July, 2025
The 1st defendant/respondent deposed in a supplementary affidavit that on 9th July, 2025 Vintage Auctioneers attached the properties at the suit property, the applicant having leased the premises to a third party. The court thus found prayers 2 and 3 moot and confined itself to the extension-of-time prayer.
Whether the court was functus officio having delivered the ruling of 3rd October, 2024
The court did not rule on functus officio as a bar but held that issues arising on the subject matter belong to the arbitrator
The respondents contended the court was functus officio on rent having referred the matter to arbitration. The court perused its ruling of 3rd October, 2024, noted it had directed continued payment of rent and referred disputes to arbitration, and held that any issue on the subject matter, including extension of rent payment, should be raised before the arbitrator.
Legal principles established
#- Where lease terms including rent payment are the subject of arbitration, the court will not comment further or grant reliefs touching those terms; such issues belong to the arbitrator
Court orders
#- 1.Prayers 2 and 3 of the notice of motion dated 15th May, 2025 declared overtaken by events and not granted
- 2.The notice of motion dated 15th May, 2025 is dismissed
- 3.Costs of the application awarded to the defendants/respondents
- Jurisdiction invoked
- Sections 1A, 1B, 3 and 3A of the Civil Procedure Act; Section 13 of the Environment and Land Court Act; Order 40 Rule 2 and Order 50 Rule 1 of the Civil Procedure Rules; Section 7 of the Arbitration Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Bin Daud Limited v Mitoko & another (Environment and Land Case E227 of 2023) [2025] KEELC 7128 (KLR)", Case Analysis (2025). Notice of motion dated 15th May, 2025 (Environment & Land suit, court number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/7128/eng@2025-10-20
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.