Zyke Limited v I &M Bank Limited & another; Kibera Development Company Limited (Intended Interested Party) (Environment and Land Case E288 of 2024) [2025] KEELC 7259 (KLR)
The bottom line
#Kenya's Environment and Land Court joined an auction purchaser to a land dispute and froze rental income in a joint escrow account pending trial.
What this practically means
#Executive summary
#Key legal issues
#Joinder of the auction purchaser as a necessary party
The Applicant was joined, having demonstrated a proximate, identifiable stake as purported beneficial owner of the suit property sold at public auction.
Applying Order 1 Rule 10(2), the CCK and Muruatetu tests and Skov Estate, the court found the Applicant's interest identifiable and proximate: the Plaintiff's suit challenges the very auction at which the Applicant bought the property. The Plaintiff itself conceded the Applicant was a necessary party. Denial of joinder would prejudice the Applicant, who would be affected by any order over the property.
Deposit of rental income into the Applicant's sole account
Refused; granting it would pre-judge the validity of the auction at the interlocutory stage.
The court reasoned that allowing the Applicant to collect rent singly would amount to a final declaration that the auction was lawful before trial. Though a prima facie case existed, the relief sought was final in character and inappropriate at this stage.
Alternative escrow order for rental income
Granted; all rental income from 19/6/2024 to be deposited into a joint escrow interest-bearing account pending hearing of the suit.
The court found a prima facie case and that the balance of convenience favoured the Applicant, who had paid the full purchase price but could not enjoy the property while the Plaintiff, aggrieved by the chargee's exercise of the statutory power of sale, continued to collect the rent. Preservation pending trial was equitable.
Legal principles established
#- A party with a demonstrable stake who will be affected by the court's decision is entitled to be joined so the court can effectually and completely adjudicate on all questions.
- An interlocutory court cannot grant an order that amounts to a final determination, such as allowing the auction purchaser to solely collect rent before the validity of the auction is determined.
Court orders
#- 1.Kibera Development Company Limited shall be joined in the suit as the 3rd Defendant.
- 2.The Plaintiff and 1st and 2nd Defendants are directed to serve the 3rd Defendant with their pleadings within 14 days from the date of the Ruling.
- 3.The 3rd Defendant is at liberty to file their statements and documents (if any) within 14 days from the date of service.
- 4.All rental income from the suit premises from 19/6/2024 onwards shall be deposited into a joint escrow interest-bearing bank account managed by the Plaintiff and the 3rd Defendant/Interested Party until the hearing and judgement of the Plaintiff's suit.
- 5.Each party to bear its own costs.
- Jurisdiction invoked
- Sections 1A, 1B, 3A and 63(e) of the Civil Procedure Act and Orders 1 Rule 10(2), (4), 7(25) and Order 51 of the Civil Procedure Rules
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Zyke Limited v I &M Bank Limited & another; Kibera Development Company Limited (Intended Interested Party) (Environment and Land Case E288 of 2024) [2025] KEELC 7259 (KLR)", Case Analysis (2025). Chamber Summons application dated 27/01/2025 (suit number not stated in the judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/7259/eng@2025-10-21
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.