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ELCDismissedELCLOS E022 OF 2025· [2026] KEELC 2025 (KLR)

City Estate Corporation Limited v Standard Chartered Investment Services Limited & 2 others (Enviromental and Land Originating Summons E022 of 2025) [2026] KEELC 2025 (KLR)

Environment and Land Court
13 April 2026
MKMohammed N. Kullow
1,252 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The applicant, by originating summons dated 3rd April 2025, sought a declaration that a loan secured by a charge dated 25th March 1981 registered against LR NO 1870/V/118 IR.NO 35334 had been fully settled, and orders compelling the respondents to execute and deliver a discharge of charge, failing which the Deputy Registrar be authorised to execute it, plus costs. The applicant asserted the loan was cleared and that the respondents' failure to discharge the charge, citing lack of records, was unlawful. The respondents, through the replying affidavit of Evelyn Wanjiru Gachanja, denied holding title to the suit property, denied any records of the alleged borrowing, and deponed that the 3rd respondent keeps no transaction records beyond 7 years and was unconvinced of the applicant's ownership. The court framed one substantial issue: whether the application was merited. It accepted, on uncontroverted documentary evidence, that a charge existed. However, on repayment, the court found the 1992 letter and the forwarding cheque letter did not demonstrate clearance of the outstanding amounts, and no bank statements corroborated payment. Applying Section 107(1) of the Evidence Act and the balance-of-probabilities standard as set out in Miller v Minister of Pensions (approved in D.T. Dobie v Wanyonyi Wafula Chabukati), the court held the applicant failed to discharge the burden of proof. It further agreed with the respondent that limitation barred the claim dating from 1992, citing Mehta v Shah and Gathoni v Kenya Co-operative Creameries on the protective purpose of limitation enactments. The application was dismissed with costs to the respondents.

Key legal issues

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01

Whether the applicant proved that the loan secured by the 1981 charge was fully repaid

Holding

No - the applicant failed to discharge the burden of proof on a balance of probabilities

Reasoning

The charge instrument dated 25th March 1981 was not controverted and the court accepted a charge existed. However, the letter of 24th April 1992 and the forwarding letter did not demonstrate that the outstanding amounts were cleared, and no bank statements were produced to corroborate payment into the respondent's account. Absent evidence from the lender that the loan was cleared, the declaration sought could not issue.

p. 4
02

Whether the claim is time-barred

Holding

Yes - the claim dating from 1992 is barred by limitation, which prejudices the respondent who no longer holds records

Reasoning

The respondent deponed that it keeps no transaction records beyond 7 years and holds no records of the alleged borrowing. Agreeing with the respondent, the court applied the purpose of limitation enactments as stated in Mehta v Shah and Gathoni v Kenya Co-operative Creameries - to prevent stale claims and protect defendants who have lost evidence for their defence after a long lapse of time.

p. 5

Legal principles established

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  • He who alleges must prove; a party asserting a legal right or liability dependent on facts must prove those facts (Section 107(1) Evidence Act)
  • The standard of proof in civil cases is a balance of probabilities; where evidence is equally unconvincing, the party bearing the burden of proof loses
  • Limitation statutes protect defendants from stale claims after they have lost evidence for their defence

Court orders

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  1. 1.The application dated 3rd April 2025 is hereby dismissed
  2. 2.Costs to be borne by the Respondents
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over suits relating to charges on land (LR NO 1870/V/118 IR.NO 35334); no specific constitutional/statutory provision cited in the judgment

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, "City Estate Corporation Limited v Standard Chartered Investment Services Limited & 2 others (Enviromental and Land Originating Summons E022 of 2025) [2026] KEELC 2025 (KLR)", Case Analysis (2026). ELCLOS E022 OF 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/2025/eng@2026-04-13

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