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ELCPartially AllowedNot stated in the judgment· [2025] KEELC 7826 (KLR)

Wafula (Derivatively on behalf of Trans Nzoia Investment Company Limited) v Walubengo & 6 others; Trans Nzoia Investment Co Ltd (Affected Company) (Environment and Land Case 74 of 2019) [2025] KEELC 7826 (KLR)

Environment and Land Court
12 November 2025
3,296 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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A Kenyan court threw out a decree and eviction notices because the winning party skipped mandatory steps before executing judgment.

What this practically means

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Executive summary

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The 6th and 7th defendants, through an application dated 21/7/2025 supported by Manasse Nyaga Njenga, sought a declaration that the decree extracted by the plaintiff following the judgment of 18/6/2025 was incompetent, because costs had not been taxed, the draft decree was never shared with or approved by them, and execution commenced without leave of court; they also sought setting aside of the execution application and bailiff's warrants. The plaintiff, through advocate Majune Kraido, opposed the application, conceding non-compliance with Order 21 Rule 8 of the Civil Procedure Rules and Section 94 of the Civil Procedure Act but arguing the decree matched the judgment and no prejudice was caused. The court traced the history: the initial plaintiff had sued derivatively under the Companies Act, with leave granted on 1/10/2020, and the judgment of 18/6/2025 vested the suit property in the affected company, awarding the plaintiff only costs. The court held that the plaintiff's derivative cause of action ended with the judgment; only the company's statutory organs, through a board resolution, could advance the decree. Leave under Section 94 was a condition precedent to execution before taxation of costs, and its breach was not a curable technicality under Article 159. The advocate had no authority to act for the company, and the eviction notices did not comply with Sections 152A–152I of the Land Act. The court allowed the application, recalled and declared the decree, execution application and eviction notices null and void, and awarded costs to the 6th and 7th defendants.

Key legal issues

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01

Irregular extraction of decree without approval or leave

Holding

The decree was a nullity because it was not shared for approval with the 6th and 7th defendants and was executed without leave before taxation of costs

Reasoning

Order 21 Rule 8 requires a draft decree to be submitted for approval by parties or the Deputy Registrar, and Section 94 makes leave a condition precedent where costs are unassessed. The respondent's advocate conceded non-compliance. The court held non-compliance was not a curable technicality under Article 159 or Sections 1A and 1B, and declared the decree and consequential orders null and void.

p. 6
02

Capacity of a derivative plaintiff to execute the decree

Holding

The plaintiff's cause of action ended with the judgment; only the company's organs (directors, general meeting) could advance the decree except as to costs decreed to the plaintiff

Reasoning

Leave under Sections 238 and 239 of the Companies Act was derivative; judgment vested the suit property in the company. Directors owe duties under Section 143 to promote the company's success. The plaintiff could not arrogate to himself the powers of directors or decide the mode, agent and cost of execution without a board resolution or leave of court.

p. 4
03

Authority of the advocate and validity of eviction notices

Holding

The advocate had no authority to act for the affected company, and the eviction notices were invalid as they were not issued by the company or its authorized agents in compliance with Sections 152A–152I of the Land Act

Reasoning

No board resolution or written authority attached; no law firm formally came on record for the company. Companies act through their organs. The notices to tenants were issued by a party without mandate, contrary to the Land Act eviction procedure, so they are not what the law envisages and were invalidated.

p. 6

Legal principles established

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  • Leave of court is a condition precedent to execution where costs have not been assessed
  • A company can act post-judgment only through its statutory organs, namely the directors and general meeting; a derivative plaintiff's mandate ends with judgment
  • Non-compliance with mandatory execution procedures is not a curable technicality under Article 159 of the Constitution
  • A party executing before taxation of costs risks waiver of those costs; Section 94 protects judgment debtors from multiple executions

Court orders

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  1. 1.The decree issued on 18/6/2025 and all its consequential orders are recalled, invalidated, and declared null and void
  2. 2.The application lodged for execution on 21/7/2025 is invalidated for non-compliance with the law
  3. 3.The eviction notices flowing from the said decree are invalidated
  4. 4.Costs to the 6th and 7th defendants

Authorities

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Legislation

  • Civil Procedure ActSection 94
  • Civil Procedure ActSections 1A and 1B
  • Civil Procedure ActSection 38
  • Civil Procedure ActSection 2 (definition of decree holder)
  • Civil Procedure ActSection 143 (note: judgment cites this as Companies Act provision)
  • Civil Procedure RulesOrder 21 Rules 7, 8, 9, 10, 11
  • Civil Procedure RulesOrder 22 Rules 29 and 30
  • Land ActSections 152, 152A–152I
  • Companies Act Cap 486Sections 143, 238, 239, 242
  • Constitution of KenyaArticle 159

Cases cited (6)

  • Multitrade Industrial Supplies Ltd & Others -vs- ABC Bank IPC
    [2022] KEHC 162314 [KLR]
  • Vincent Edward Njoroge -vs- Kenol Kobil Ltd
    [2018] eKLR
  • Kartar Singh Dhupar & Co. Ltd -vs- Lianard Holdings Ltd
    [2017] eKLR
  • Walter Omondi & Others -vs- English Pressers Ltd
    Nairobi ELRC Case No. 1605 of 2018
  • Florence Cherugut -vs- Cheptum Mulei Hunah
    Kitale ELC No. 140 of 2018
  • Apollo Mulianga Ekesa -vs- Life Care Hospital Ltd
    Bungoma HCCC No. 2 of 2018
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court; Civil Procedure Act (Sections 38, 94) and Civil Procedure Rules (Order 21 Rule 8, Order 22), Companies Act (Sections 143, 238, 239, 242)

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, "Wafula (Derivatively on behalf of Trans Nzoia Investment Company Limited) v Walubengo & 6 others; Trans Nzoia Investment Co Ltd (Affected Company) (Environment and Land Case 74 of 2019) [2025] KEELC 7826 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/7826/eng@2025-11-12

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