Ndungi v Mwaniki t/a Ngugi Mwaniki & Company Advocates (Environment and Land Miscellaneous Case E151 of 2025) [2026] KEELC 4127 (KLR)
The bottom line
#A Kenyan court refused to immediately refund KShs 1 million held by an advocate, saying the money must stay as security until the advocate's fees are formally assessed.
What this practically means
#Executive summary
#Key legal issues
#Purpose for which the Kshs. 1,000,000/= was remitted to the Respondent advocate
The RTGS narrations showed the funds were paid as part of the purchase price for onward transmission to the vendor's advocates; the Respondent had no written authority to apply or retain them as security for fees
The Court found the RTGS transfer forms expressly referenced the subject property as the purpose of payment. The Respondent produced no material demonstrating the Applicant authorised use of the funds for legal fees or retention as security. However, because a bill of costs claiming Kshs. 1,144,572/= was pending taxation in ELC Misc. E397 of 2025, the Court found it premature to order a refund, and directed that the funds be retained as security pending taxation.
Scope of an advocate's right of lien over client funds
The general lien does not extend to funds received for a specific purpose that has failed to be executed
Relying on John Karungai Nyamu v Muu & Associates Advocates as quoted in Simon Njumwa Maghanga v Joyce Jeptarus Kagongo, the Court held that an advocate has no right to hold monies that came to him for onward transmission as a lien. The lien applies only to funds and property coming into the advocate's hands in his general professional capacity, not to funds remitted for onward transmission to a third party.
Whether the Court could determine fees in these proceedings
No; taxation before a taxing officer is the proper process under Section 13 of the Advocates Act
Section 13 of the Advocates Act requires advocate-client costs to be taxed by a taxing officer. Since the advocate-client bill of costs was already filed and pending in ELC Misc. E397 of 2025, any determination of fees in this suit would be premature. The Respondent remains entitled to have his fees assessed through taxation.
Legal principles established
#- An advocate's general lien does not extend to monies received for a specific purpose of onward transmission to a third party
Court orders
#- 1.The originating summons dated 27th May 2025 is declined pending the taxation and determination of ELC Misc. E397 of 2025
- 2.The Respondent is to retain custody of the sum of Kshs. 1,000,000/= as security pending the taxation and finalisation of the bill of costs in ELC Misc. E397 of 2025
- 3.Each party to bear its own costs
- Jurisdiction invoked
- Order 52 Rule 4 of the Civil Procedure Rules, 2010
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ndungi v Mwaniki t/a Ngugi Mwaniki & Company Advocates (Environment and Land Miscellaneous Case E151 of 2025) [2026] KEELC 4127 (KLR)", Case Analysis (2026). Originating Summons dated 27th May 2025 (suit number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/4127/eng@2026-06-19
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.