Guaranty Trust Bank (Kenya) Limited v Mohamed (As the Personal Representative of the Estate of the Late Yusuf Mohamud Mohamed - Deceased) & another (Environment and Land Miscellaneous Case E067 of 2025) [2026] KEELC 1491 (KLR)
The bottom line
#A Kenyan court ruled that banks must ask the High Court, not the Land Court, for permission to sell mortgaged property below its forced-sale value.
What this practically means
#Executive summary
#Key legal issues
#Whether the Environment and Land Court has jurisdiction to sanction sale of charged property below the forced sale value
It does not; the dispute concerns realization of a charge, a commercial relationship reserved for the High Court
Jurisdiction flows from the Constitution or statute. The ELC's mandate under Article 162(2)(b) and section 13(5) of the ELC Act is limited to disputes relating to the environment and the use and occupation of, and title to, land. The Court of Appeal in Co-operative Bank v Kangethe Njuguna authoritatively held that mortgages and charges fall outside this scope, and that decision binds this court. The plaintiff's request was merely for sanction to realize security upon default, which has nothing to do with use and occupation of, or title to, land. The court therefore respectfully disagreed with Lydia Nyambura Mbugua and struck out the Originating Summons.
Legal principles established
#- The ELC lacks jurisdiction over disputes concerning mortgages and charges; realization of security is a commercial matter for the High Court
Court orders
#- 1.The Plaintiff's Originating Summons is struck out for want of jurisdiction
- 2.No orders as to costs
- Jurisdiction invoked
- Article 162(2)(b) of the Constitution and section 13(5) of the Environment and Land Court Act, 2011
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Guaranty Trust Bank (Kenya) Limited v Mohamed (As the Personal Representative of the Estate of the Late Yusuf Mohamud Mohamed - Deceased) & another (Environment and Land Miscellaneous Case E067 of 2025) [2026] KEELC 1491 (KLR)", Case Analysis (2026). ELCL MISC/E067/2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/1491/eng@2026-03-05
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.