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ELCStruck OutEnvironment & Land Case (unspecified number), Kericho· [2026] KEELC 3098 (KLR)

Salat v Kanuli Information Technology Solutions Limited & 4 others (Environment and Land Case E045 of 2025) [2026] KEELC 3098 (KLR)

Environment and Land Court
21 May 2026
6,288 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court struck out a borrower's suit over a bank's sale of charged land, ruling the dispute belongs in the High Court.

What this practically means

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Executive summary

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The 2nd Defendant raised a preliminary objection seeking striking out of the Plaintiff's suit arising from the auction of L.R. Kericho/Chepsir/S.S 311, charged to secure a guarantee of Kshs. 5,600,000 over a Kshs. 11,200,000 facility granted to the 1st Defendant. The Plaintiff challenged the demand for Kshs. 32,998,454.42, the validity of statutory notices, the sale at Kshs. 13,000,000 against an alleged market value of Kshs. 32,500,000, and sought cancellation of the 5th Defendant's title or damages. The objection advanced four grounds: abuse of process as relitigation of issues from Kericho HC Case No. 5 of 2018 and E011 of 2024; want of jurisdiction because the predominant dispute was commercial; statutory and equitable bars (innocent purchaser under section 99 of the Land Act, issue estoppel, laches); and costs. The Court framed four issues. On jurisdiction, applying Co-operative Bank v Kangethe Njuguna and P.J. Dave Flowers v Limuru Hills, it held the dominant issue was a question of accounts - a commercial dispute outside the ELC's jurisdiction, which is confined to disputes connected to the use of land. On abuse of process, the Court declined the ground because establishing it required examination of pleadings and a ruling in prior suits, i.e. factual inquiries beyond a preliminary objection. The statutory and equitable bar ground was not reached. The 5th Defendant's sub judice submissions were disregarded since the preliminary objection did not raise that ground and new issues cannot be introduced in submissions. The preliminary objection was upheld and the suit struck out with costs to the 2nd and 5th Defendants.

Key legal issues

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01

Jurisdiction of the ELC over disputes on enforcement of a charge and statutory power of sale

Holding

The Court lacks jurisdiction because the dominant issue is a question of accounts, a commercial dispute reserved for the High Court

Reasoning

Relying on Co-operative Bank v Kangethe Njuguna and P.J. Dave Flowers v Limuru Hills, the court held that a charge creates no dispute connected to the use of land; contracts within ELC jurisdiction must be incidental to use of land and exclude mortgages and charges. Reading the Plaint, the dominant issue was whether the Bank lawfully demanded Kshs. 32,998,454.42 from a guarantor limited to Kshs. 5,600,000, with all other prayers hinged on that determination - a commercial question of accounts.

p. 12
02

Whether the suit is an abuse of process / relitigation of determined issues

Holding

This ground failed because it required factual inquiry beyond a preliminary objection

Reasoning

The 2nd Defendant's abuse-of-process ground rested on the pleadings and ruling in Kericho HC Case No. 5 of 2018 and Kericho HC Case No. E011 of 2024. To sustain it, the Court would have to examine those pleadings and the ruling - factual investigations incompatible with the nature of a preliminary objection, which must raise pure points of law without disputed facts.

p. 13
03

Whether the statutory and equitable bar (innocent purchaser, issue estoppel, laches) ground could stand

Holding

Not determined, being unnecessary after the jurisdiction finding

Reasoning

Ground (3) raised the 5th Defendant's protection as an innocent purchaser under section 99 of the Land Act, issue estoppel and laches. Since the Court had already found that it lacked jurisdiction, the question did not require determination.

p. 13
04

Whether the sub judice argument raised only by the 5th Defendant could be entertained

Holding

No - the preliminary objection did not raise sub judice, and new issues cannot be introduced in submissions

Reasoning

The Court noted the 2nd Defendant's preliminary objection did not plead sub judice. Citing FMS v MAS and Republic v Chairman Public Procurement Administrative Review Board ex parte Zapkass, it held that submissions are not pleadings and new issues raised in submissions are best ignored.

p. 13

Legal principles established

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  • A preliminary objection must raise a pure point of law and cannot depend on factual inquiries or evidence
  • New issues raised for the first time in submissions should be disregarded as submissions are not pleadings
  • Disputes on the exercise of a statutory power of sale and accounts under a charge fall within the High Court's civil jurisdiction, not the ELC

Court orders

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  1. 1.The 2nd Defendant's Preliminary Objection dated 15th October, 2025 is upheld as merited
  2. 2.The suit is struck out
  3. 3.Costs of the suit and the preliminary objection awarded to the 2nd and 5th Defendants
Jurisdiction invoked
Environment and Land Court Act, section 13; Article 162(2)(b) of the Constitution considered on a preliminary objection

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, "Salat v Kanuli Information Technology Solutions Limited & 4 others (Environment and Land Case E045 of 2025) [2026] KEELC 3098 (KLR)", Case Analysis (2026). Environment & Land Case (unspecified number), Kericho. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/3098/eng@2026-05-21

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