Mason Services Ltd v Kengen Staff Retirement Benefits Scheme (Environment and Land Appeal E278 of 2025) [2026] KEELC 4449 (KLR)
The bottom line
#Kenya's High Court refused to let a judgment debtor replace a cash deposit with a car log book as security, because no financial evidence was provided.
What this practically means
#Executive summary
#Key legal issues
#Functus officio
The court was not functus officio; it retained jurisdiction to review its conditional stay order since no final determination had been made
The functus officio doctrine bars a court from reopening a matter after final determination. Because the 9th February 2026 order was an interlocutory conditional stay pending appeal, and the appeal itself remains undetermined, the court retains seisin over the issue of security and could properly entertain the review application despite the Respondent's objection.
Sufficient reason under Order 45 and Order 42 Rule 6(2) security
Financial incapacity was not established, so it could not constitute sufficient reason to substitute the monetary security with a vehicle log book
Order 42 Rule 6(2) requires security for due performance of the decree. The applicant sought to swap the ordered deposit of Kshs 2,018,809.45 for a log book, citing inability to raise the sum. The court held the claim of incapacity was unsubstantiated by books of accounts, bank statements or any documentary evidence, so the burden of proof was not discharged and no sufficient cause was shown.
Suitability of a motor vehicle as security
A motor vehicle, being a depreciating and perishable asset, cannot serve as reliable security for a money decree
Although the vehicle's valuation (Kshs 7,000,000) far exceeded the decretal sum, the court reasoned that by the time the appeal is heard and determined the vehicle may have depreciated, been wasted or been completely damaged in an accident, leaving the Respondent without effective security should the appeal fail. Stay must preserve the subject matter without depriving the successful litigant of the fruits of judgment.
Legal principles established
#- A court that has not made a final determination on an appeal is not functus officio and may entertain a review of its interlocutory orders
- An applicant claiming inability to furnish monetary security bears the burden of proving the financial constraints with documentary evidence
- A motor vehicle is not a reliable form of security for a money decree because it is a depreciating asset that may be lost or damaged before the appeal is determined
Court orders
#- 1.The Notice of motion application dated 24th February 2026 lacks merit and is hereby dismissed
- 2.Costs to the Respondent which shall be in the cause
- Jurisdiction invoked
- Inherent jurisdiction over its own interlocutory orders; review invoked under Order 45 Rule 1 of the Civil Procedure Rules, 2010
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Mason Services Ltd v Kengen Staff Retirement Benefits Scheme (Environment and Land Appeal E278 of 2025) [2026] KEELC 4449 (KLR)", Case Analysis (2026). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/4449/eng@2026-07-13
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.