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ELCOther· [2026] KEELC 2787 (KLR)

Mugwe v Imara Capital Limited & another (Environment and Land Appeal E074 of 2024) [2026] KEELC 2787 (KLR)

Environment and Land Court
12 May 2026
AKA. Y. Koross
802 words in judgment
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The bottom line

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Kenya's Environment and Land Court confirmed it cannot hear disputes over charges and mortgages over land, transferring the case to the High Court.

What this practically means

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Executive summary

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The Environment and Land Court at Machakos (A. Y. Koross, J) delivered a ruling in an appeal in which the identities and case number are not disclosed in the judgment text. Before hearing the appeal, the court considered its own jurisdiction. It analysed Articles 165 and 162(2)(b) of the Constitution, concluding that the High Court and the ELC have exclusive jurisdiction over their respective matters and neither may entertain the other's disputes. Guided by the Court of Appeal decision in Co-operative Bank of Kenya Limited v Patrick Kangethe Njuguna, the court held that the ELC's jurisdiction over contract disputes is confined to contracts incidental to the use of land, and does not extend to mortgages, charges, collection of dues and rents, which fall within the High Court's civil jurisdiction. On reviewing the lower court record and the parties' submissions, the court found that the central dispute concerned an alleged charge over Mavoko Block 3/26860, whether its creation as security was fraudulent, and the 1st respondent's exercise of its statutory power of sale. Holding that the matter fell outside its jurisdiction, the court downs its tools but, to serve the ends of justice, ordered the file transferred to the Machakos High Court for placement before the Presiding Judge for directions. No costs order was made; the appeal was not determined on the merits.

Key legal issues

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01

Whether the ELC has jurisdiction over a dispute concerning a charge over land and alleged fraud in its creation

Holding

No - the dispute relates to a charge and exercise of statutory power of sale, which falls within the High Court's civil jurisdiction, not the ELC

Reasoning

Relying on Co-operative Bank of Kenya Limited v Patrick Kangethe Njuguna, the court noted that although the ELC may hear contract disputes, such contracts must be incidental to the use of land. A charge creates a security relationship for repayment of money advanced and has nothing to do with the use of land. The central dispute here concerned an alleged charge over Mavoko Block 3/26860 and whether its creation was fraudulent, with the 1st respondent exercising statutory power of sale.

p. 2

Legal principles established

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  • The High Court and the ELC have exclusive jurisdiction over their respective matters; neither may entertain the other's disputes
  • ELC jurisdiction over contract disputes is limited to contracts incidental to the use of land, excluding mortgages, charges, collection of dues and rents
  • A court without jurisdiction must down its tools

Court orders

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  1. 1.This file is hereby transferred to the Machakos High Court
  2. 2.The deputy registrar of this court is directed to transmit this file to the deputy registrar of the High Court, Machakos, for onward placement before the Presiding Judge, High Court, on an appropriate date for directions

Authorities

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Legislation

  • Constitution of KenyaArticle 162(2)(b)
  • Constitution of KenyaArticle 165(5)
  • Environment and Land Court ActSection 13
  • Land ActSection 2
  • Land ActSection 80

Cases cited (1)

  • Co-operative Bank of Kenya Limited v Patrick Kangethe Njuguna & 5 others
    [2017] KECA 79 (KLR)
Jurisdiction invoked
Articles 165 and 162(2)(b) of the Constitution of Kenya

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, "Mugwe v Imara Capital Limited & another (Environment and Land Appeal E074 of 2024) [2026] KEELC 2787 (KLR)", Case Analysis (2026). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/2787/eng@2026-05-12

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