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ELCStruck OutNot stated in the judgment· [2026] KEELC 2770 (KLR)

Aberdare Maize Milling Company Limited v National Bank of Kenya & 2 others (Environment and Land Case E018 of 2025) [2026] KEELC 2770 (KLR)

Environment and Land Court
29 April 2026
EME. K. Makori
2,429 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~10 min to read original · ~4 min brief

The bottom line

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A Kenyan land court threw out a borrower's case against a bank because stopping an auction over a debt belongs in the High Court, not the Environment and Land Court.

What this practically means

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Executive summary

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The Plaintiff filed a Notice of Motion dated June 9, 2025 seeking orders compelling the 1st Defendant (a bank) to produce a true loan account and statement, and restraining the 2nd Defendant from auctioning Land Parcel Nyeri Municipality Block 1/445 along Nyeri-Mathari Road. The Plaintiff, which had obtained loan facilities from the bank in 2009 secured by a charge over the suit property, alleged defective statutory notices, undervaluation of the property, unauthorised variation of interest rates contrary to section 44 of the Banking Act, and refusal by the bank to consent to a sale to a ready buyer. The 1st Defendant, through Judy Chege, Manager, Remedial & Recoveries, replied that the Plaintiff had defaulted since 2009, owing over Kshs.71 million by December 2012, that statutory three-month notices had been issued, and that the securities should be realised to recover the debt. The Court, on its own directive, called for submissions on jurisdiction. Applying the predominant purpose test and Article 162(2)(b) of the Constitution, section 13 of the Environment and Land Court Act and section 150 of the Land Act, and following Owners of the Motor Vessel 'Lillian S', Co-operative Bank v Kangethe Njuguna, Bank of Africa v TSS Investment, Butler v Redhill Heights and Lydia Nyambura Mbugua v Diamond Trust Bank, E. K. Makori J held that the dispute concerned recovery of an outstanding debt through the statutory power of sale, not the environment or the use, occupation of, or title to land. The Court therefore lacked jurisdiction, downed its tools, and struck out the application dated 9th June 2025 (misdescribed in the orders as 2024) together with the entire suit, with costs.

Key legal issues

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Whether the Environment and Land Court has jurisdiction over a suit seeking production of a loan account and an injunction against the exercise of a statutory power of sale

Holding

The Court lacks jurisdiction; the dominant issue is recovery of an outstanding debt through the statutory power of sale, not the environment or the use, occupation of, or title to land

Reasoning

The Court applied the predominant purpose test. The plaintiff's suit sought to restrain the bank's statutory power of sale over charged land and to compel production of loan accounts. Following Co-operative Bank v Kangethe Njuguna, Bank of Africa v TSS Investment and Butler v Redhill Heights, enforcement of a charge to recover a debt is a commercial dispute within the High Court's civil jurisdiction, not within Article 162(2)(b). Accordingly the application and suit were struck out.

p. 6

Legal principles established

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  • Jurisdiction is everything; a court without jurisdiction must down tools at the earliest opportunity
  • Disputes whose dominant purpose is enforcement of a charge/statutory power of sale to recover a debt fall outside the ELC's jurisdiction; mortgages and charges fall within the civil jurisdiction of the High Court
  • Where a dispute presents mixed issues, the predominant purpose test determines the court with jurisdiction

Court orders

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  1. 1.The application dated 9th June 2025 and the entire suit are struck out with costs

Authorities

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Legislation

  • Constitution of KenyaArticle 162(2)(b), Article 165(5)
  • Environment and Land Court ActSection 13(2)
  • Land ActSections 90(2), 150
  • Banking Act, Cap 488, Laws of KenyaSection 44

Cases cited (6)

  • Owners of the Motor Vessel “Lillian S” v Caltex Oil (Kenya) Ltd
    [1989] eKLR
  • Co-operative Bank of Kenya Limited v Patrick Kangethe Njuguna & 5 others
    [2017] KECA 79 (KLR)
  • Karisa Chengo & 2 others v Republic
    [2015] KECA 756 (KLR)
  • Bank of Africa Kenya Limited & another v TSS Investment Limited & 2 others
    [2024] KECA 410 (KLR)
  • Suzanne Achieng Butler & 4 others v Redhill Heights Investments Limited & another
    [2016] KEHC 1313 (KLR)
  • Lydia Nyambura Mbugua v Diamond Trust Bank Kenya Limited & another
    [2018] eKLR
Jurisdiction invoked
Article 162(2)(b) of the Constitution of Kenya; section 13 Environment and Land Court Act; section 150 Land 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, "Aberdare Maize Milling Company Limited v National Bank of Kenya & 2 others (Environment and Land Case E018 of 2025) [2026] KEELC 2770 (KLR)", Case Analysis (2026). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/2770/eng@2026-04-29

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