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ELCOtherNot stated in the excerpt (suit filed by Plaint dated 17th November 2025)· [2026] KEELC 1237 (KLR)

Njoroge & 4 others v Ndeffo Company Ltd & 12 others (Environment and Land Case E110 of 2025) [2026] KEELC 1237 (KLR)

Environment and Land Court
3 March 2026
2,076 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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Kenya's Environment and Land Court struck out a shareholder dispute over a company's directors, confirming company governance cases belong in the High Court, not the ELC.

What this practically means

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Executive summary

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This is a ruling of the Environment and Land Court at Nakuru (M. A. Odeny, J) dated 3rd March 2026 on a Notice of Preliminary Objection dated 4th December 2025 raised by the 13th Defendant. The Plaintiffs, shareholders of Ndefio Company Ltd, had filed a Plaint seeking, among other reliefs, a declaration that the 2nd to 11th Defendants breached their statutory duties as directors, an order compelling production of the company's financial records, land records and statutory documents for inspection and audit, an order directing the Registrar of Companies to convene a lawful AGM for election of new directors and appointment of an auditor, a forensic audit into misappropriation, illegal land allocations and unlawful disposals, and general damages for breach of fiduciary duty, oppression and mismanagement. The 13th Defendant objected that the court lacked jurisdiction over shareholding and directorship disputes, which are a preserve of the High Court's Commercial Division, and that the Plaintiffs lacked locus standi under the rule in Salomon v Salomon and Sections 238-239 of the Companies Act. The Plaintiffs argued the ELC has jurisdiction under Article 162(2)(b) and Section 13 of the ELC Act since the dispute concerns land, and that the objection was a delaying tactic. Applying the Mukisa Biscuit test and the Lillian S principle, the court held that the prayers sought were corporate governance remedies falling within the High Court's jurisdiction and that the ELC lacked jurisdiction. The preliminary objection was allowed and the suit struck out with costs. No pronouncement was made on the locus standi, derivative-suit or separate personality grounds.

Key legal issues

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01

Whether the ELC has jurisdiction over a suit by shareholders seeking declarations on directors' duties, production of company records, convening of an AGM and forensic audit of a company

Holding

The court lacks jurisdiction; the prayers fall within the High Court's jurisdiction

Reasoning

The court examined the prayers in the Plaint, which sought declarations of breach of directors' statutory duty, production of company financial records, an order compelling the Registrar of Companies to convene an AGM for election of directors, a forensic audit of misappropriation, and general damages for breach of fiduciary duty, oppression and mismanagement. These are corporate governance disputes reserved for the High Court. The mere involvement of land and of a land-owning company does not confer jurisdiction on the ELC.

p. 5
02

Whether the preliminary objection met the Mukisa Biscuit threshold

Holding

It did; the objection raised a pure point of law on jurisdiction

Reasoning

Applying the Mukisa Biscuit test as restated in Hassan Ali Joho v Suleiman Said Shahbal, the court accepted that a preliminary objection must be a pure point of law argued on the assumption that the facts pleaded by the other side are correct. Jurisdictional objections qualify. The court found the objection competent and determined it on that basis without ascertaining any facts.

p. 4

Legal principles established

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  • A preliminary objection must raise a pure point of law on the assumption that all facts pleaded by the other side are correct
  • Jurisdiction is everything; a court without jurisdiction must down its tools
  • Where the orders sought concern company management, shareholding and directorship, the ELC lacks jurisdiction even where the subject matter involves land

Court orders

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  1. 1.The Preliminary Objection dated 4th December 2025 is allowed as prayed
  2. 2.The suit is struck out
  3. 3.Costs of the suit awarded to the 13th Defendant

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 162(2)(b)
  • Environment and Land Court Act, No. 19 of 2011Section 13(2)
  • Companies Act, 2015Sections 238 and 239

Cases cited (18)

  • Awino & Another v Mburu & 10 Others
    (Environment & Land Petition 004 of 2023) [2023] KEELC 678 (KLR) (9 February 2023) (Ruling)
  • Manchester Outfitters Limited & 2 Others v Galot Holdings Limited & 3 Others
    (Environment and Land Case 358 of 2012) [2025] KEELC 6626 (KLR) (2 October 2025) (Ruling)
  • Salomon v Salomon & Company Ltd
    [1897] AC 22
  • Grewal v Grewal & Another
    (Commercial Case E437 of 2023) [2024] KEHC 3742 (KLR) (Commercial and Tax) (12 April 2024) (Ruling)
  • Owners of the Motor Vessel Lilian S v Caltex Oil Kenya Ltd
    [1989] KLR 1
  • Mukisa Biscuit v West End
    [1969] EA 696
  • John Mundia Njoroge & 9 Others v Cecilia Muthoni Njoroge & Another
    [2016] eKLR
  • Jasbir Singh Rai and 3 Others v Tarlochan Singh Rai and 4 Others
    [2014] eKLR
  • Oraro v Mbaja
    [2005] KEHC 3182 (KLR)
  • Motex Knitwear Mills Limited v Gopitex Knitwear Mills Limited
    [2007] KEHC 2421 (KLR)
  • Dynamic Engineering Ltd v Muthkara Ltd
    [2020] eKLR
  • Co-operative Bank v Patrick Kang'ethe
    [2017] eKLR
  • Suzanne Achieng Butler v Redhill Heights Investment Ltd
    [2016] eKLR
  • Kobia v M'Rukaria
    [2020] eKLR
  • Ghelani Metals v Elesh Ghelani Pate
    [2017] eKLR
  • Multichoice Kenya Ltd v Wananchi Group Ltd
    [2020] eKLR
  • Hassan Ali Joho & Another v Suleiman Said Shahbal & 2 Others
    [2014] eKLR
  • Phoenix of EA Company Limited v Thiga T/A Newspaper Service
    (Civil Appeal 244 of 2010) [2019] KECA 767 (KLR)
Jurisdiction invoked
Article 162(2)(b) of the Constitution; Section 13 of the Environment and Land Court Act, No. 19 of 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, "Njoroge & 4 others v Ndeffo Company Ltd & 12 others (Environment and Land Case E110 of 2025) [2026] KEELC 1237 (KLR)", Case Analysis (2026). Not stated in the excerpt (suit filed by Plaint dated 17th November 2025). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/1237/eng@2026-03-03

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