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ELCPartially AllowedELC MISC E131 of 2019· [2026] KEELC 4749 (KLR)

Anthony Burugu & Co Advocates v Electro Watts Ltd (Environment and Land Miscellaneous Application 131 of 2019) [2026] KEELC 4749 (KLR)

Environment and Land Court
15 July 2026
2,111 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

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A Kenyan court stopped execution of a decree against a client's machinery, but only because he agreed to deposit the full amount owed in a joint account within 45 days.

What this practically means

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Executive summary

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This Environment and Land Court ruling at Nairobi, delivered by Mohammed N. Kullow, J on 15th July 2026, dealt with a notice of motion dated 12th May 2026 in ELC MISC E131 of 2019, an advocate-client dispute. The applicant sought a stay of execution of a decree issued on 25th March 2026, a finding that legal fees had been fully paid, an order compelling the advocates to release Ksh.3,681,358.00, and costs. The applicant, a client, deponed that the advocates held a deposit of Ksh.5,700,000 in a land sale transaction over LR 209/12817, used Ksh.2,200,000, and failed to account for the balance, yet sought to proclaim the client's property. The advocates opposed, asserting that funds in a joint interest account with Gumbo Advocates were security for costs awarded to Consolidated Bank in HCCC No. 98 of 2018, that certificates of taxation totalled Ksh.7,571,350.60 with only Ksh.5,958,019.95 paid, leaving Ksh.1,613,330.65 outstanding, and that a taxed bill of Ksh.934,887.50 remained owed. The court applied the Order 42 Rule 6(2) conditions as explained in Vishram Ravji Halai, holding that the sale of productive farming machinery before an intended appeal would constitute substantial loss, that the delay from March to May 2026 was not inordinate, and that security could be ordered. The court granted a conditional stay: the decretal sum and taxed costs must be deposited in a joint interest-earning account within forty-five days, failing which the stay lapses automatically. Costs were made to abide the outcome of the intended appeal. The substantive disputes over fees and held monies were not determined.

Key legal issues

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01

Whether substantial loss was demonstrated

Holding

The court found substantial loss established because the attached assets were productive machinery whose sale before the appeal would be difficult to recover

Reasoning

The court reasoned that execution proceedings had commenced through auctioneers and that attachment of movable assets was imminent. If the goods, described as productive farming machinery and equipment used in the Applicant's business, were attached and sold before the intended appeal was heard, recovery of such assets might prove difficult or impossible, and their sale by public auction constituted a sufficient basis for finding substantial loss.

p. 8
02

Whether there was unreasonable delay

Holding

The delay between the decree of 25th March 2026 and the application of 13th May 2026 was held not to be inordinate

Reasoning

The decree sought to be stayed was issued on 25th March 2026 and the application was filed on 13th May 2026. The court took the view that approximately seven weeks did not amount to inordinate delay, satisfying the second condition for the grant of stay under Order 42 rule 6(2).

p. 8
03

Whether sufficient cause existed to grant stay

Holding

Having found prompt filing, demonstrated substantial loss and an ability to order security, the court held sufficient cause existed and granted a conditional stay

Reasoning

The court balanced the competing rights of the parties, holding that the ends of justice would be better served by a conditional stay rather than immediate execution. It relied on the overriding objective in Sections 1A and 1B of the Civil Procedure Act and imposed the deposit of the decretal sum in a joint interest-earning account as security, with automatic lapse on default.

p. 9

Legal principles established

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  • Execution of a lawful decree does not automatically amount to substantial loss; a successful litigant is entitled to the fruits of his judgment
  • An applicant for stay must show that the application was brought without undue delay, that substantial loss may result, and must give security for due performance of the decree

Court orders

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  1. 1.A stay of execution of the ruling and all consequential orders arising from the ruling delivered on 25th May 2025 pending the hearing and determination of an intended appeal
  2. 2.The stay is conditional upon the Applicant depositing the entire decretal sum and taxed costs, if any, in an interest earning joint account in the names of the parties' advocates within forty-five days from the date hereof
  3. 3.In default of compliance with order (ii) within the stipulated period, the stay shall automatically lapse without further order of the court
  4. 4.Costs of the application shall abide the outcome of the intended appeal
Jurisdiction invoked
Inherent discretion of the High Court under Order 42 Rule 6(2) of the Civil Procedure Rules read with the overriding objective in Sections 1A and 1B of the Civil Procedure Act

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, "Anthony Burugu & Co Advocates v Electro Watts Ltd (Environment and Land Miscellaneous Application 131 of 2019) [2026] KEELC 4749 (KLR)", Case Analysis (2026). ELC MISC E131 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/4749/eng@2026-07-15

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