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ELCStruck OutELC Suit (Plaint dated 27th February 2015), Kerugoya· [2025] KEELC 7861 (KLR)

Kamau v Standard Chartered Bank Limited & 2 others (Environment and Land Case 24 of 2015) [2025] KEELC 7861 (KLR)

Environment and Land Court
12 November 2025
JMJ. M. Mutungi
5,700 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~23 min to read original · ~4 min brief

The bottom line

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A 30-year-old land auction case failed because it was filed in the wrong Kenyan court, and each side paid its own costs.

What this practically means

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Executive summary

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The Plaintiff sued over the sale by public auction of land parcel Ngariama/Lower Ngariama/514 in Kirinyaga County, advertised and sold on 18th November 1993 by the 1st Defendant bank through the 2nd Defendant auctioneers, and bought by the 3rd Defendant. He alleged he was not indebted, that no valid statutory notice was issued, and that the bank's admitted 'system error' which failed to credit Kshs 50,516.15 to his account from 19th April 1991 caused an apparent default; the bank later compensated him with Kshs 159,390. He sought declarations, nullification of the 3rd Defendant's title, damages of Kshs 6,000,000 and general damages for loss of user. The defendants denied fraud; the 3rd Defendant claimed indefeasible title as a bona fide purchaser. The 1st and 2nd Defendants additionally argued the suit was statute barred and that the ELC lacked jurisdiction. In submissions they contended that enforcement of a charge and bank-customer account disputes are commercial matters for the High Court. The Court agreed, relying on Court of Appeal authority that the dominant issue was the lawfulness of the exercise of statutory power of sale under the charge, which does not concern use, occupation of, or title to land. Holding that it had no jurisdiction, the Court struck out the suit with no order as to costs, each party bearing their own costs. Part-heard evidence taken earlier by Cherono, J was not determined on the merits.

Key legal issues

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01

Whether the ELC has jurisdiction over a dispute as to the lawfulness of a chargee's exercise of statutory power of sale coupled with an alleged banking error

Holding

The Court held it lacks jurisdiction; the dispute is commercial (enforcement of a charge and bank-customer account operations) and belongs to the High Court.

Reasoning

Relying on Court of Appeal authority (Owners of the Motor Vessel 'Lilian S', Co-operative Bank v Kangethe Njuguna, Bank of Africa v TSS Investment), the Court found the dominant issue was the lawful exercise of a chargee's power of sale and the operation of the Plaintiff's bank account, which do not relate to the environment, use, occupation of, or title to land. Continuing would be an exercise in futility, so the Court downed its tools and struck out the suit.

p. 10
02

Whether the dispute touches on title to land

Holding

Although the suit property and its transfer to the 3rd Defendant were mentioned, the real contest was not title but the lawfulness of the sale under the charge.

Reasoning

The Court noted the Plaintiff challenged the sale as fraudulent and unlawful due to the bank's admitted system error, not on grounds impeaching the title itself. Following Co-operative Bank v Kangethe Njuguna, the creation and realization of a charge has nothing to do with the use of land, so the matter falls outside Section 13(2) of the ELC Act.

p. 10

Legal principles established

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  • Jurisdiction is the pedestal upon which judicial authority is exercised; where a Court lacks jurisdiction it must down its tools
  • A jurisdictional issue can be raised by any party at any stage, or by the Court suo motu

Court orders

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  1. 1.The Plaintiff's suit is struck out
  2. 2.No order as to costs; each party to bear their own costs of the suit
Jurisdiction invoked
Article 162(2)(b) of the Constitution and Section 13 of the Environment and Land Court Act, 2011

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, "Kamau v Standard Chartered Bank Limited & 2 others (Environment and Land Case 24 of 2015) [2025] KEELC 7861 (KLR)", Case Analysis (2025). ELC Suit (Plaint dated 27th February 2015), Kerugoya. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/7861/eng@2025-11-12

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