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ELCStruck OutNot stated in judgment (Plaint dated 8th February 2000; Further Amended Plaint dated 18th March 2024)· [2026] KEELC 844 (KLR)

Agrafin Management Services Limited v Agricultural Finance Corporation & 4 others (Environment and Land Case 496 of 2017) [2026] KEELC 844 (KLR)

Environment and Land Court
18 February 2026
2,778 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 Environment and Land Court struck out a 24-year-old land lawsuit because disputes about charges and mortgage enforcement belong in the High Court.

What this practically means

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Executive summary

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The Plaintiff, Agrafin Management Services Limited, sued the Agricultural Finance Corporation, Ntikya Enterprises Limited, the Attorney General and the Commissioner of Lands challenging a charge dated 26th April 1989 over L.R. No. 8480/2 (I.R. 43657), Kasarani, Nairobi, and the subsequent 2003 public auction and transfer of the property to the 2nd Defendant for Kshs. 70,000,000/=. The Plaintiff denied ever borrowing from or contracting with the 1st Defendant, distinguishing itself from Agrarian Building Society, and alleged the charge and sale were fraudulent and unlawful, seeking nullification of the charge and transfer, restoration of title or damages pegged on a valuation of Kshs. 2.2 billion. The 1st Defendant maintained the charge was lawfully created under the Agricultural Finance Corporation Act and the statutory power of sale duly exercised; the 2nd Defendant pleaded bona fide purchaser status; the 4th and 5th Defendants disclaimed any role beyond administrative registration. The Court framed jurisdiction as the overriding issue, applying the dominant-issue test from Co-operative Bank of Kenya Limited v Patrick Kangethe Njuguna, and held that whether the charge existed, was valid, or was enforceable is a commercial and contractual inquiry reserved for the High Court, not a dispute over use, occupation of or title to land under Article 162(2)(b). Concluding that the entire dispute was pegged on the charge, the Court held it lacked jurisdiction, downed its tools, struck out the Plaint and Further Amended Plaint in their entirety, and ordered each party to bear its own costs.

Key legal issues

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01

Whether the Environment and Land Court has jurisdiction over a dispute pegged on the existence, validity and enforcement of a charge

Holding

The Court lacks jurisdiction; the dominant issue is the charge, a commercial and contractual dispute reserved for the High Court, not a dispute over use, occupation of, or title to land.

Reasoning

Relying on Co-operative Bank of Kenya Limited v Patrick Kangethe Njuguna, the Court held that the determining factor is the dominant issue in dispute. Whether a charge existed, was validly created or enforceable is a substantive determination touching contractual and commercial relations. The sale, transfer and registration all flowed from an alleged statutory power of sale dependent on the charge. Ascertainment of the charge's existence lies outside the ELC's constitutional and statutory mandate under Article 162(2)(b) and Section 13 of the Environment and Land Court Act.

p. 6
02

Whether the Court can interrogate the sale, transfer or title without first determining the charge

Holding

No. The sale, transfer and registration were pleaded by all parties as flowing from an exercise of statutory power of sale, whose existence and crystallization depend entirely on the charge.

Reasoning

The Court found the dispute wholly pegged on the charge, not merely incidental to it. It could not determine the reliefs sought without resolving the charge questions first, and undertaking that inquiry would exceed its mandate. Accordingly, having found lack of jurisdiction, the Court declined to make any findings on the merits.

p. 5

Legal principles established

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  • The dominant-issue test determines jurisdiction between the High Court and the Environment and Land Court: disputes relating to mortgages, charges, banking securities and their enforcement fall within the civil jurisdiction of the High Court even though such instruments relate to land.

Court orders

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  1. 1.The Court downed its tools upon finding it lacks jurisdiction to entertain and determine the dispute.
  2. 2.The Plaint dated 8th February 2000 and the Further Amended Plaint dated 18th March 2024 were struck out in their entirety for want of jurisdiction.
  3. 3.Each party shall bear its own costs.
Jurisdiction invoked
Article 162(2)(b) of the Constitution and Section 13 of the Environment and Land Court 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, "Agrafin Management Services Limited v Agricultural Finance Corporation & 4 others (Environment and Land Case 496 of 2017) [2026] KEELC 844 (KLR)", Case Analysis (2026). Not stated in judgment (Plaint dated 8th February 2000; Further Amended Plaint dated 18th March 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/844/eng@2026-02-18

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