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ELCAllowedNot stated in the judgment (Notice of Motion dated 10th November 2025)· [2026] KEELC 4781 (KLR)

Bana v Maalim alias Omar Ahmed Mohamed (Environment and Land Case E130 of 2025) [2026] KEELC 4781 (KLR)

Environment and Land Court
24 July 2026
1,428 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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A Kenyan court froze property dealings and ordered sale proceeds held in an escrow account because an investor proved a valid development partnership.

What this practically means

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Executive summary

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The Applicant, Zakaria Mohamed Sheikh Bana, moved the Environment and Land Court at Mombasa by Notice of Motion dated 10th November 2025 seeking interlocutory orders against the Respondent, Osman Maalim alias Omar Ahmed Mohammed, pending hearing of the main suit. He sought to restrain the Respondent from selling, transferring, charging, leasing or otherwise dealing with units on Mombasa/Block/XVII/IIIO without disclosure and written consent, an order compelling preservation of sale proceeds in an escrow/joint account, an order for maintenance of accurate sale and expenditure records, and restraint against interference with his contractual and proprietary interests. The Applicant claimed he invested Kshs. 40,000,000/= under a Share Development Agreement dated 7th February 2022 for a 50:50 profit share; the Respondent refunded only Kshs. 30,000,000/= and refused to render accounts. The Respondent denied the investment figure, asserting the true contribution was Kshs. 35,672,400/=, alleging withdrawals from development funds, breach of the agreement, and that the Applicant took a shop and apartment worth Kshs. 8,300,000/= without payment. Applying the Giella v Cassman Brown principles, the court found the application neither vexatious nor frivolous, held that a prima facie case with likelihood of success was demonstrated since the Respondent did not deny the partnership agreement, found irreparable loss and balance of convenience in the Applicant's favour, and granted the orders sought, including an escrow account in the names of both parties' advocates for deposit of sale proceeds, with mention on 29th September 2026 and hearing on 19th December 2026. Costs were ordered to be in the cause.

Key legal issues

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01

Prima facie case with likelihood of success

Holding

The Applicant demonstrated a prima facie case based on the Share Development Agreement dated 7th February 2022 under which he invested Kshs. 40,000,000/= for a 50:50 profit share; the Respondent did not deny the agreement's existence.

Reasoning

The court found that the parties entered a Share Development Agreement for development of the suit property into apartments, a penthouse and shops with equal profit sharing. The Respondent's replying affidavit disputed the amounts contributed but did not deny the existence of the partnership agreement. Combined with the risk of losing the investment, this satisfied the first and second Giella limbs, and the balance of convenience favoured the Applicant.

p. 3
02

Irreparable loss and balance of convenience

Holding

The Applicant would suffer irreparable loss by losing his investment in the project, and the balance of convenience favours him.

Reasoning

The court held that without an injunction the Applicant would lose his investment of Kshs. 40,000,000/= in the development, which cannot adequately be compensated. On the third Giella limb, the court found the inconvenience of refusal would fall on the Applicant, tipping the balance of convenience in his favour and justifying grant of the restraining and preservation orders sought.

p. 3

Legal principles established

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  • The principles for an interlocutory injunction are the Giella v Cassman Brown test: prima facie case, irreparable injury, and balance of convenience if in doubt.
  • A party who does not deny the existence of a partnership/share development agreement, where the applicant has invested substantial sums, demonstrates a prima facie case with a likelihood of success.

Court orders

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  1. 1.Orders sought in the Notice of Motion dated 10th November 2025 granted, restraining the Respondent from dealing with units on Mombasa/Block/XVII/IIIO and from interfering with the Applicant's proprietary and contractual interests pending hearing and determination of the main suit
  2. 2.The Applicant and the Respondent to open an escrow account in a bank of repute in the names of the advocates for the two parties and deposit the proceeds of sale therein pending hearing and determination of the case
  3. 3.Matter to proceed for hearing on 19th December 2026
  4. 4.Mention on 29th September 2026
  5. 5.Costs be in the cause

Authorities

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Cases cited (1)

  • Giella v Casman Brown
    (1973) D.A. 358
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over the suit property Mombasa/Block/XVII/IIIO (interlocutory application in a pending main suit); no specific constitutional or statutory provision cited.

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, "Bana v Maalim alias Omar Ahmed Mohamed (Environment and Land Case E130 of 2025) [2026] KEELC 4781 (KLR)", Case Analysis (2026). Not stated in the judgment (Notice of Motion dated 10th November 2025). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/4781/eng@2026-07-24

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