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ELCDismissedELC No. 615 of 2013· [2026] KEELC 4046 (KLR)

Kolile v Equity Bank (K) Ltd & another (Environment and Land Case 615 of 2023) [2026] KEELC 4046 (KLR)

Environment and Land Court
2 July 2026
MOM. A. ODENY
2,329 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan court refused to undo a settlement agreement, confirming that signed consent orders are binding unless you can prove fraud, mistake or coercion.

What this practically means

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Executive summary

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This ruling of the Environment and Land Court at Nakuru disposed of a notice of motion dated 17th November, 2025 by the 1st Defendant/Applicant seeking review, variation and/or setting aside of a consent order recorded on 19th September, 2024 and of the orders of 3rd November, 2025, together with costs. The Applicant, through its Legal Officer Beatrice Muraguri, contended that its advocates recorded the consent under a fundamental mistake, being unaware that final judgment had been delivered on 29th June, 2022; that the consent introduced fresh obligations (filing of documents, appointment of an auditor and meeting audit costs) not contained in the judgment; that the Respondent committed material non-disclosure; and that the court had become functus officio, retaining jurisdiction only over execution. The Respondent countered that the consent arose from the Applicant's failure to implement the judgment within prescribed timelines, did not create new obligations, had been partially implemented, and that the Applicant's advocates (Mburu Maina & Company) had actively participated in the contempt proceedings and were fully aware of the judgment; he also faulted the Applicant's unexplained delay of over a year in moving the court. The court applied the Brook Bond Liebig/Mallya and Hirani v Kassam line of authority and the NSSF v Michael Mwalo decision, holding that a consent order binds unless procured by fraud, collusion or misapprehension of material facts. It found counsel had authority and knowledge, rejected the functus officio argument by affirming the court's residual jurisdiction to record post-judgment implementation consents, and dismissed the application with costs to the Respondent on 2nd July, 2026.

Key legal issues

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01

Whether the consent order of 19th September, 2024 should be set aside on grounds of mistake and non-disclosure

Holding

The consent order was properly entered by counsel with authority and full knowledge of the judgment; no fraud, misrepresentation, mistake or coercion was shown, so it stands.

Reasoning

The court found that the firm of Mburu Maina & Company Advocates came on record by Notice of Change of Advocates dated 23rd January, 2024, appeared in the contempt proceedings, and its advocate had authority to record the consent. The claim that counsel was unaware of the judgment was characterised as selective amnesia and an afterthought. No evidence of fraud, misrepresentation, mistake or coercion was adduced, and the application was filed after an unexplained delay of over one year.

p. 9
02

Whether the court became functus officio after delivering judgment and lacked jurisdiction to record the consent and issue consequential orders

Holding

The court retains residual jurisdiction to record post-judgment consents and ensure implementation of decrees; functus officio does not bar such implementation.

Reasoning

The court held that recording a consent on the specific details of implementing its own judgment is within its power, provided the agreement is not repugnant to justice, morality or the law. The consent here did not create new obligations but facilitated implementation of the judgment through an audit of the loan account following the applicant's non-compliance with the judgment timelines and the ruling of 16th July, 2024.

p. 9

Legal principles established

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  • A consent judgment or order is binding and can only be interfered with on grounds such as fraud, collusion, misapprehension or ignorance of material facts
  • A consent judgment will only be impeached on grounds that would justify rescinding a contract, such as fraud, collusion or an agreement contrary to the policy of the court
  • A court retains residual jurisdiction to record post-judgment consents on the implementation of its judgment

Court orders

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  1. 1.The application dated 17th November, 2025 is dismissed
  2. 2.Costs of the application awarded to the Respondent

Authorities

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Legislation

  • Civil Procedure RulesOrder 19 Rule 3 (I)
  • Civil Procedure RulesOrder 45 Rule 1

Cases cited (5)

  • Raila Odinga V IEBC & 3 Others
    [2013] eKLR
  • Samuel M. N. Mweru & Others V National Land Commission & 2 Others
    [2020] eKLR
  • Brook Bond Liebig (T) Limited vs MALLYA
    [1975] E.A
  • Hirani vs Kassam
    [1952], 19 E.A.C.A 131
  • Board of Trustees National Social Security Fund V Michael Mwalo
    [2015] KECA 782 (KLR)
Jurisdiction invoked
Inherent and residual jurisdiction of the Environment and Land Court to set aside/review its own consent orders (Order 45 Rule 1, Civil Procedure Rules)

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, "Kolile v Equity Bank (K) Ltd & another (Environment and Land Case 615 of 2023) [2026] KEELC 4046 (KLR)", Case Analysis (2026). ELC No. 615 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/4046/eng@2026-07-02

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