Shah & Shah (Suing for and on behalf of the Estate of Rajnikant Devchand Shah - Deceased) & 4 others v Kenya Railways Corporation Limited & 4 others (Environment and Land Case E007 of 2022) [2026] KEELC 5040 (KLR)
The bottom line
#The Environment and Land Court refused to stop execution of a Kshs 138.5 million judgment against Kenya Railways because no substantial loss on appeal was shown.
What this practically means
#Executive summary
#Key legal issues
#Delay in filing the stay application
The application was filed without unreasonable delay - judgment was delivered 29/4/2026, notice of appeal filed 5/5/2026, application filed 9/6/2026
The court observed there was no contention by the respondents that the application was not made timeously; the notice of appeal was lodged on 5/5/2026 and the application on 9/6/2026, within reasonable time of the judgment and the expiry of the 60-day stay.
Security for costs
Willingness to furnish security suffices at this stage; the court may order security on its own motion or on application by either party
Relying on the Butt v Rent Restrictions Tribunal guidelines, the court held that failure to furnish security is not fatal because the court can order security upon application by either party or on its own motion; failure to provide security as ordered would cause a stay to lapse.
Substantial loss
The applicant failed to demonstrate substantial loss; loss of use of property decreed to the plaintiffs cannot found a stay, and there was no evidence of the plaintiffs' inability to refund the decretal sum
The court held the applicant cannot decry loss of use of property which the judgment of 29/4/2026 declared belongs to the plaintiffs. The audited accounts showing profits of the 4th and 5th plaintiffs were uncontradicted by any contrary evidence of inability to repay the decretal sum of Kshs. 138,522,675.02. Combined with the 60-day stay already granted by the trial judge, the discretion was not exercised in the applicant's favour.
Legal principles established
#- Failure to furnish security or to provide material demonstrating willingness to furnish security is not fatal to a stay application because the court can order security on its own motion or on application by either party
- Execution is a lawful process; it is not enough to seek stay merely because execution is imminent - the applicant must show execution will irreparably affect the essential core of its success on appeal
Court orders
#- 1.The application dated 3/6/2026 is dismissed with costs to the respondents
- On appeal from
- Environment and Land Court
- Jurisdiction invoked
- Order 42 Rule 6 of the Civil Procedure Rules
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Shah & Shah (Suing for and on behalf of the Estate of Rajnikant Devchand Shah - Deceased) & 4 others v Kenya Railways Corporation Limited & 4 others (Environment and Land Case E007 of 2022) [2026] KEELC 5040 (KLR)", Case Analysis (2026). Kitale ELC No. E007 of 2026. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/5040/eng@2026-07-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.