Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELCPartially AllowedELC LC No. E023 of 2025· [2026] KEELC 4288 (KLR)

Bungoma Teachers Housing & Investment Co-operative Society Ltd v Bonito Properties Ltd (Land Case E023 of 2025) [2026] KEELC 4288 (KLR)

Environment and Land Court
1 July 2026
3,980 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~16 min to read original · ~4 min brief

The bottom line

#

A Kenyan court blocked cooperative officials from withdrawing a Kshs. 47 million rent case under outside pressure, and let the members themselves join the fight.

What this practically means

#

Executive summary

#
This Environment and Land Court ruling at Bungoma dealt with two applications in a suit by Bungoma Tourist Housing Cooperative Society (BUTICOH) against its tenant over unpaid rent arrears of about Kshs. 47,250,170/= for premises known as Bungoma Township/457 (Bungoma Tourist Hotel). The intended interested parties, members of the cooperative, sought joinder and a stay of any withdrawal or compromise of the suit, alleging that officials were colluding to withdraw the claim without members' authority. The Plaintiff, through new advocates appointed after a 15/5/2026 resolution, sought to withdraw the suit with no orders as to costs following an out-of-court settlement. The Defendant filed a preliminary objection arguing that jurisdiction lay with the Cooperatives Tribunal under Section 76 of the Co-operative Societies Act. The court dismissed the preliminary objection, holding that the dispute is between a society as landlord and a tenant, not an internal cooperative dispute, and is properly before the ELC. It found the members had an identifiable stake in the suit land and outcome, and granted leave to Smith Waswa, Victor Kakenyi Nduma, Fadhila Shiundu Nalyanya and Zaddock Wekulo Makhani to join as interested parties and file pleadings within 14 days. Noting that the Chairman had retracted his support for the withdrawal, apologized for misleading the court, and that evidence showed pressure from the Director of Cooperatives, Bungoma County, to withdraw the suit, the court declined to mark the suit as withdrawn. Costs of the applications were to be in the cause. Judgment delivered virtually on 1 July 2026 by K. Bor, J.

Key legal issues

#
01

Jurisdiction vis-à-vis the Co-operative Societies Act

Holding

The preliminary objection fails because Section 76 disputes are those among members or between the society and another cooperative society; this landlord-tenant dispute is outside that purview.

Reasoning

Section 76 of the Co-operative Societies Act vests jurisdiction over internal cooperative disputes in the Cooperatives Tribunal. The court held that the present dispute is between the society as landlord and its tenant over unpaid rent for the suit premises, a land and environment matter within the court's mandate. The objection accordingly failed.

p. 15
02

Joinder of interested parties

Holding

The intended interested parties, being bona fide members with a stake in the suit land, were granted leave to join.

Reasoning

Applying Order 1 Rule 10(2) of the Civil Procedure Rules and Thiga v Ngenda, the court found the applicants had a direct identifiable stake: the suit land belonged to the members and the outcome would affect their rights, particularly given evidence that officials sought to withdraw the suit without members' authority amid pressure from the Director of Cooperatives.

p. 16
03

Withdrawal of the suit

Holding

The application for withdrawal was refused because the resolution was doubtful and the chairman retracted his support.

Reasoning

The withdrawal was said to be based on a members' resolution of 15/5/2026, but the Chairman swore a subsequent affidavit retracting his position, apologizing to the court, and stating the decision did not reflect the vast majority of members. Evidence showed the Director of Cooperatives pressured officials to withdraw after the court ordered payment of Kshs. 47,250,170/= in rent arrears. The court doubted whether the resolution was taken by all members.

p. 14

Legal principles established

#
  • A dispute between a cooperative society acting as landlord and a tenant which is neither a cooperative society nor a member of the society falls outside Section 76 of the Co-operative Societies Act and is properly before the Environment and Land Court.
  • An intended interested party must demonstrate an identifiable stake in the proceedings and that it would be adversely affected by the outcome.

Court orders

#
  1. 1.The preliminary objection on jurisdiction dated 22/6/2026 fails and is dismissed
  2. 2.Leave granted to Smith Waswa, Victor Kakenyi Nduma, Fadhila Shiundu Nalyanya and Zaddock Wekulo Makhani to join the suit as interested parties
  3. 3.The joined interested parties to file the appropriate pleadings within 14 days
  4. 4.The court declines to mark the suit as withdrawn with no orders as to costs
  5. 5.Costs of the applications to be in the cause
Jurisdiction invoked
Environment and Land Court Act; the court held the dispute is between a cooperative society as landlord and a tenant falling outside Section 76 of the Co-operative Societies Act

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Bungoma Teachers Housing & Investment Co-operative Society Ltd v Bonito Properties Ltd (Land Case E023 of 2025) [2026] KEELC 4288 (KLR)", Case Analysis (2026). ELC LC No. E023 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/4288/eng@2026-07-01

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