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ELCAllowedMRG ELCLOS E014 OF 2026· [2026] KEELC 5073 (KLR)
In re Gitau & another (Land Originating Summons E014 of 2025) [2026] KEELC 5073 (KLR)
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·~1 min to read original · ~4 min briefThe bottom line
#A Kenyan court allowed a trustee to borrow KES 11 million against trust land because completing a stalled project benefits the minor beneficiaries.
What this practically means
#Executive summary
#This ex-parte originating summons dated 14 May 2026 was brought under Section 56 of the Trustee Act (Cap 167) and the inherent jurisdiction of the Environment and Land Court at Murang'a. The 1st Applicant, a trustee of estate property, sought four orders: authority to charge the property known as Loc.11/Maragi/1953 to the Respondent, Hazina Sacco Society Ltd, for a sum not exceeding Kshs. 11,000,000; a direction that the borrowed funds be applied to complete a stalled residential/commercial construction on plot No. 71 in Chieko Santon Kasarani; authorization to sign and execute all requisite legal charges, instruments of charge and loan agreements; and costs in the cause. The motion was supported by ten grounds and the affidavit of the 1st Applicant sworn on 14 May 2026, the gist being that charging the suit land and borrowing was necessary to revive the stalled project, and that the revival would benefit the minors who are the beneficiaries of the trust and be in their best interest. Justice M.N. Gicheru, in a brief ex-parte ruling, found the motion to have merit and allowed it in terms of prayers 1, 2, 3 and 4, and so ordered. The ruling was delivered virtually at Murang'a on 30 July 2026, with counsel for both parties absent.
Key legal issues
#01
Whether the court should authorize a trustee to charge trust land to secure a loan
Holding
The application was allowed; the trustee was authorized to charge the property and execute the loan documents.
Reasoning
The court considered the grounds and the supporting affidavit of the 1st Applicant, which showed that charging the suit land and obtaining the loan was necessary to revive a stalled construction project, and that the revival was for the benefit of the minors and in their best interest as beneficiaries of the trust.
p. 2
Legal principles established
#- A trustee may apply under Section 56 of the Trustee Act for the court's authority to charge trust property, and such authority may be granted where the borrowing benefits the trust estate and its beneficiaries (minors).
Court orders
#- 1.Authority granted to the 1st Applicant as trustee to charge Loc.11/Maragi/1953 to Hazina Sacco Society Ltd for a sum not exceeding Kshs. 11,000,000
- 2.Direction that the borrowed funds be utilized for completion of the construction on plot No. 71 in Chieko Santon Kasarani
- 3.Authority for the 1st Applicant to sign and execute all requisite legal charges, instruments of charge and loan agreements
- 4.Costs of the application to be in the cause
- Jurisdiction invoked
- Section 56 of the Trustee Act (Cap 167) and the inherent jurisdiction of the Court
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "In re Gitau & another (Land Originating Summons E014 of 2025) [2026] KEELC 5073 (KLR)", Case Analysis (2026). MRG ELCLOS E014 OF 2026. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/5073/eng@2026-07-30
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.