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ELCPartially AllowedApplication dated 2/7/2025 in a suit filed 23/7/2025 (ELC Kitale)· [2025] KEELC 7213 (KLR)

Flow Farm Limited v Organics 4 Orphans International (Thive for Good East Africa) (Environment and Land Case E034 of 2025) [2025] KEELC 7213 (KLR)

Environment and Land Court
22 October 2025
2,861 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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The court temporarily blocked a land repossession, but only because the buyer committed to clear all unpaid instalments within 30 days.

What this practically means

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Executive summary

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This is an interlocutory ruling by the Environment and Land Court at Kitale on the applicant's notice of motion dated 2/7/2025 seeking a temporary injunction to restrain the respondent from enforcing an addendum sale agreement dated 9/8/2024 over L.R. No. 2116/1090 (IR No. 57922), including taking possession, pending the hearing of the suit. The suit itself seeks a declaration that the addendum is unconscionable, oppressive, null and void, and an injunction against its enforcement. The parties had first contracted on 31/7/2023 for the sale of the property at Kshs. 30,200,000/= with a 90-day completion period, part-funded by a financier; the applicant paid Kshs. 16,420,229/= and defaulted, leading to the addendum of 9/8/2024 extending completion to November 2026 with monthly instalments and default penalties. The respondent terminated under Clause 5.1 by notice dated 8/7/2025, invoking forfeiture of 50% of principal payments. The respondent opposed the application, invoking the sanctity of contracts, unclean hands, and authorities against judicial rewriting of contracts. Applying the Giella/Mrao and Nguruman principles, the court found an arguable question as to whether the rescission and repossession notice complied with the law, found potential irreparable loss from eviction before trial, and held the balance of convenience favoured the status quo. A conditional temporary injunction was granted, subject to the applicant clearing all pending instalments and rent within 30 days, failing which the orders lapse.

Key legal issues

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01

Prima facie case for temporary injunction

Holding

The applicant raised an arguable question whether the rescission and repossession notice complied with the law, satisfying the prima facie threshold

Reasoning

The court found that whether the termination notice under Clause 5.1 of the addendum and the repossession notice complied with statutory requirements under the Land Act raised an arguable question. The applicant did not dispute the earlier breach, but the lawfulness of the termination notice itself remained contested.

p. 6
02

Irreparable harm and balance of convenience

Holding

Eviction before trial would cause loss not readily compensable, and the balance of convenience favours maintaining the status quo

Reasoning

The court reasoned that if the termination notice were effected and the applicant evicted before the suit was heard, the loss would be difficult to quantify. Maintaining the status quo pending full hearing best preserves the subject matter, subject to the applicant meeting outstanding payment obligations.

p. 6
03

Effect of unclean hands on equitable relief

Holding

Equitable relief was granted but conditioned on the applicant curing its default

Reasoning

The respondent argued the applicant came to equity with unclean hands after breaching the contract despite extensions. The court accepted the clean-hands principle but balanced it against the arguable illegality of the termination notice, granting relief only on conditions requiring the applicant to clear pending instalments and rent.

p. 5
04

Jurisdiction over unconscionability claims in land sale contracts

Holding

The court has jurisdiction under Sections 40 and 42 of the Land Act to examine punitive or unconscionable terms in the addendum agreement

Reasoning

Sections 40 and 42 of the Land Act render inoperative contractual terms that conflict with those statutory protections. The court held this empowers it to examine whether the addendum's penalty clauses were oppressive, unconscionable, or a departure from the first agreement, a question for the full hearing.

p. 4

Legal principles established

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  • Courts do not rewrite contracts but enforce them as written unless vitiated by illegality, fraud, undue influence, public policy or unconscionability
  • A person approaching equity must fulfil all or substantially all outstanding obligations before insisting on rights
  • The court, by dint of Sections 40 and 42 of the Land Act, has jurisdiction to examine whether an addendum agreement suffers from unconscionability or punitive terms

Court orders

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  1. 1.Temporary injunction granted restraining the defendant from enforcing the agreement dated 9/8/2024, including taking possession of L.R. No. 2116/1090 (IR No. 57922), pending hearing and determination of the suit
  2. 2.Injunction conditional upon the applicant clearing all pending monthly instalments and rental payments up to date within 30 days from the date of the ruling; in default the orders shall lapse
Jurisdiction invoked
Sections 38, 150, 39, 40, 41 and 42 of the Land Act; Section 101 of the Land Registration Act; Section 13 of the Environment and Land Court Act; Order 40 Rules 1 and 2 of the Civil Procedure Rules as read with Section 63(a) 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, "Flow Farm Limited v Organics 4 Orphans International (Thive for Good East Africa) (Environment and Land Case E034 of 2025) [2025] KEELC 7213 (KLR)", Case Analysis (2025). Application dated 2/7/2025 in a suit filed 23/7/2025 (ELC Kitale). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/7213/eng@2025-10-22

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