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ELCDismissedNot stated in judgment· [2025] KEELC 7704 (KLR)

Ardhilink Limited v Equity Bank Limited & another (Environment and Land Case E023 of 2025) [2025] KEELC 7704 (KLR)

Environment and Land Court
6 November 2025
MOMOGENI
6,081 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~24 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court confirmed it can hear cases challenging a bank's property auction process, so borrowers can stop sales in that court.

What this practically means

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Executive summary

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The 1st Defendant raised a preliminary objection dated 28/03/2025 contending that the Environment and Land Court lacked jurisdiction over the Plaintiff's suit, arguing that the dispute concerned a charge and statutory power of sale - a commercial relationship reserved for the High Court - relying on Co-operative Bank of Kenya Limited v Patrick Kangethe Njuguna. The Plaintiff had sued after its three charged parcels (Ruiru/Ruiru East Block 1/1858, Ruiru East Juja East Block 2/41219 and 2/41220), securing loans of Kshs 8,000,000 and 10,000,000, were advertised for auction on 21/02/2025 without, it alleged, the 90-day notice under Section 90(2)(b), the 40-day notice under Section 96(2), the 45-day redemption notice under Rule 15(d) of the Auctioneers Rules, or a forced sale valuation under Section 97(2) of the Land Act; it sought a permanent injunction. The Plaintiff countered that under Section 13(2)(d) of the ELC Act a charge is an instrument granting an enforceable interest in land. Justice Mogeni applied Owners of the Motor Vessel 'Lillian S', distinguished the Kangethe decision, and followed Lydia Nyambura Mbugua and Thabiti Capital, holding that where the dominant issue is the legality of the sale process, notices or valuation under the Land Act, the ELC has exclusive jurisdiction under Sections 104-106 and 150 of the Land Act, the High Court being barred by Article 165(5)(b). The preliminary objection was dismissed with no order as to costs.

Key legal issues

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01

Whether the ELC has jurisdiction over a suit challenging the legality of statutory notices and the exercise of statutory power of sale

Holding

Yes - the ELC has jurisdiction; a charge is an interest in land and the sale process is governed by the Land Act and Land Registration Act which vest jurisdiction in the ELC

Reasoning

The Court traced jurisdiction to Article 162(2)(b) and Section 13 of the ELC Act, noting Section 13(2)(d) covers contracts and instruments granting an enforceable interest in land. A charge is defined in Section 2 of the Land Act as an interest in land. Sections 104-106 empower the ELC over charge disputes, and Section 150 grants exclusive jurisdiction. Following Lydia Nyambura Mbugua and Thabiti Capital, the dominant issue is the propriety of the sale process, not mere accounts.

p. 12
02

Whether the preliminary objection properly raises jurisdiction

Holding

The objection failed because the dominant issue in the suit falls squarely within the ELC's jurisdiction

Reasoning

Applying Owners of the Motor Vessel 'Lillian S', the Court was obliged to decide jurisdiction first on the material before it. The Plaintiff's complaint challenged non-service of the 90-day, 40-day and 45-day notices, absence of forced sale valuation, and irregular advertisement - all matters under Part VII of the Land Act, over which the ELC has exclusive jurisdiction.

p. 11

Legal principles established

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  • A charge is an instrument creating an interest in land, and disputes challenging the process of a chargee's exercise of statutory power of sale, including validity of statutory notices and valuation, fall within the jurisdiction of the Environment and Land Court
  • Section 150 of the Land Act confers exclusive jurisdiction on the ELC over disputes concerning land under the Act, including the chargee's power of sale under Section 96
  • Where a dispute presents mixed issues, the predominant or dominant issue determines jurisdiction; purely commercial disputes over accounts without remedies regarding the charged land belong to the High Court

Court orders

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  1. 1.The Notice of Preliminary Objection dated 28/03/2025 is dismissed
  2. 2.No order as to costs
Jurisdiction invoked
Article 162(2)(b) of the Constitution read with Section 13 of the Environment and Land Court Act and Sections 2, 104, 105, 106 and 150 of the Land 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, "Ardhilink Limited v Equity Bank Limited & another (Environment and Land Case E023 of 2025) [2025] KEELC 7704 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/7704/eng@2025-11-06

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