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ELCAllowed· [2026] KEELC 1588 (KLR)

Nyiro Homes Limited v Prime Bank Limited & another (Environment and Land Case E516 of 2025) [2026] KEELC 1588 (KLR)

Environment and Land Court
19 March 2026
7,118 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~28 min to read original · ~4 min brief

The bottom line

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Nairobi's land court stopped a bank from auctioning property sold to a buyer who had already paid a deposit with the bank's consent.

What this practically means

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Executive summary

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The Plaintiff, a purchaser under an agreement for sale dated 19th November 2024 over Land Reference No. 209/7507 (Conversion No. Nairobi/Block 2/68), moved the Court by Notice of Motion dated 8th October 2025 seeking a temporary injunction restraining the 1st Defendant bank (chargee) and the 2nd Defendant (vendor/executor) from selling, auctioning or alienating the suit property pending the hearing of the main suit, which seeks, inter alia, specific performance. The purchase price was Kshs 105,000,000, with a 10% deposit of Kshs 10,500,000 paid. Completion was contingent on rectification of the Grant of Probate to reflect the 2nd Defendant's full name, 'Varun Sharma Rajinder', and issuance of a converted title. The 1st Defendant, having initially consented to the sale and endorsed the agreement, withdrew its consent by letter dated 26th August 2025 and advertised the property for auction. It objected that the Court lacked jurisdiction and that the Plaintiff lacked locus standi, being neither chargor nor party to the charge or sale agreement. The Court framed two issues: competence of the Motion and whether the injunction threshold was met. It held that jurisdiction flows from Article 162(2)(b) of the Constitution and Section 13 of the Environment and Land Court Act, and that the predominant issue concerned interests in land. The Plaintiff's standing was upheld at the interlocutory stage. Applying Giella vs Cassman Brown sequentially as affirmed in Nguruman, the Court found a prima facie case, irreparable injury incapable of compensation in damages, and balance of convenience favouring preservation. The Motion was allowed with a temporary injunction restraining any sale, alienation or enforcement of the charge pending determination of the suit; costs were in the cause.

Key legal issues

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01

Jurisdiction of the ELC over a dispute involving exercise of a chargee's statutory power of sale

Holding

The objection fails; the predominant issue is the propriety of the threatened alienation of land in the face of an existing consented sale agreement and a claim for specific performance, which falls within ELC jurisdiction.

Reasoning

The court traced its mandate to Article 162(2)(b) of the Constitution and Section 13 of the Environment and Land Court Act, covering disputes over title to and interests in land. Even where a charge is involved, the court must look to the predominant issue in the pleadings, which here is preservation of the suit property pending determination of the plaintiff's contractual and equitable rights in land.

p. 10
02

Locus standi of a purchaser under a sale agreement consented to by the chargee

Holding

The plaintiff, who paid a deposit under the sale agreement executed with the chargee's written consent, has standing at the interlocutory stage; whether the claims succeed is a matter for trial.

Reasoning

The plaintiff is not a stranger to the charge relationship. Its claim is anchored on a sale agreement with the 2nd Defendant over the suit property, under which it paid a deposit and seeks specific performance, with the chargee's express written consent pleaded. Those assertions were held plainly sufficient to confer standing for protective relief at the interlocutory stage.

p. 10
03

Whether a prima facie case was established for a temporary injunction

Holding

Yes. The executed agreement for sale bearing the chargee's written consent, payment of the deposit, and pending rectification proceedings disclosed a genuine and arguable controversy requiring full ventilation at trial.

Reasoning

Applying the Mrao definition of a prima facie case and the Nguruman clarification, the court found that the exhibited agreement, the chargee's executed consent on page 20, proof of the 10% deposit, and the pending rectification of the grant disclosed an alleged right calling for investigation and protection, not a frivolous or fanciful claim.

p. 12
04

Irreparable harm and balance of convenience

Holding

Irreparable injury was demonstrated because an auction sale would permanently defeat the specific performance claim, and the balance of convenience favours preserving the suit property.

Reasoning

The threatened injury was not an abstract loss of commercial opportunity: the plaintiff had an existing agreement, a paid deposit and a pending specific performance claim. Once the property passed to a third party through auction, the claimed right might be permanently defeated and the main suit rendered illusory, which damages cannot remedy; preservation maintains the substratum of the dispute.

p. 12

Legal principles established

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  • Jurisdiction must be determined at the earliest opportunity; a court without jurisdiction must down its tools.
  • The ELC's jurisdiction extends to disputes concerning contracts and instruments that create or affect interests in land, even where a charge is involved; the predominant issue in the pleadings governs.
  • A purchaser under a sale agreement with chargee's consent has sufficient standing at the interlocutory stage to seek protective relief over the suit property.
  • The three Giella requirements must be satisfied sequentially.
  • A specific-performance claim over an identified parcel of land constitutes irreparable injury if the property is sold at auction, as damages cannot adequately compensate.

Court orders

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  1. 1.A temporary injunction restraining the Defendants, their agents, servants or otherwise, from offering for sale, selling by private treaty or public auction, exercising the statutory power of sale, taking possession of, alienating or dealing with Land Reference No. 209/7507 (Conversion No. Nairobi/Block 2/68), or enforcing any rights under the Charge, pending hearing and determination of the suit
  2. 2.Costs shall be in the cause

Authorities

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Legislation

  • Civil Procedure ActSections 3A and 63
  • Civil Procedure Rules, 2010Order 40 Rules (1) & (2); Order 51 Rule (1)
  • Constitution of KenyaArticle 162(2)(b)
  • Environment and Land Court ActSection 13
  • Land ActSections 90 and 96(2)
  • Land Registration ActSection 61(2)
  • Land Registration (General) RegulationsRegulation 58
  • Auctioneers' Rules, 199745 days' redemption notice and notification of sale

Cases cited (11)

  • Giella vs Cassman Brown & Co. Ltd
    [1973] EA 358
  • Owners of the Motor Vessel "Lillian S" vs Caltex Oil (Kenya) Ltd
    [1989] KLR 1
  • Samuel Kamau Macharia & another vs Kenya Commercial Bank Ltd & 2 Others
    [2012] eKLR
  • Nguruman Limited vs Jan Bonde Nielsen & 2 Others
    [2014] eKLR
  • Mrao Ltd vs First American Bank of Kenya Ltd & 2 Others
    [2003] eKLR
  • Gulf African Bank Limited vs Mohamid Sheikh Hussein
    [2018] eKLR
  • Moss Enterprises Limited vs Notem Auctioneers & Another
    [2021] eKLR
  • Menengai Stores Limited vs Blue Nile Wire Products Limired & Another
    [2024] KEELC 4957 (KLR)
  • Macho & Another vs Athuman & 2 Others
    [2025] KECA 2078
  • Marteve Guest House Ltd vs Njenga & 3 Others
    [2022] KECA 539 (KLR)
  • Mbuthia vs Jimba Credit finance Corporation & another
    (1988)
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, "Nyiro Homes Limited v Prime Bank Limited & another (Environment and Land Case E516 of 2025) [2026] KEELC 1588 (KLR)", Case Analysis (2026). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/1588/eng@2026-03-19

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