Erinpet Enterprises Ltd v Equity Bank (Kenya) Ltd & 2 others (Environment and Land Case 21 of 2022) [2026] KEELC 5301 (KLR)
The bottom line
#Kenya's Environment and Land Court ruled it cannot hear cases about loan defaults and property sold to recover debt—those belong in the High Court.
What this practically means
#Executive summary
#Key legal issues
#Jurisdiction of the ELC over loan and charge disputes
The ELC has no jurisdiction; the suit was struck out
The cause of action originated from default on a Kshs.26,000,000 loan facility secured by a charge over Karatina/Township/Block 1/428. Relying on Court of Authority precedent, the court held that a charge is a financial transaction and disposition of security, not a land-use dispute. The central issue was the debt; the land was merely security. Even if the realisation of security was muddled, the High Court has jurisdiction, so the court struck out the suit with costs.
Nature of a charge under the Land Act
A charge operates solely as security and does not transfer interests or rights in land
Section 2 of the Land Act defines a charge as an interest in land securing payment of money, and Section 80 provides that a charge operates solely as security without transferring interests in land. On default, the lender's remedies under Sections 90-96 arise, and disputes over those remedies lie in the High Court.
Legal principles established
#- Disputes concerning charged land fall within the civil and commercial jurisdiction of the High Court, not the ELC
- A mortgage or charge is a financial transaction and a disposition of security, not a matter concerning land use, so the ELC's mandate does not extend to it
- The ELC may assume jurisdiction only where the primary issue shifts from the loan itself to a substantive land dispute, such as a challenge to the fundamental validity of the title
- A court must down its tools the moment it holds the opinion that it is without jurisdiction
Court orders
#- 1.The Plaintiff's suit is struck out with costs
- Jurisdiction invoked
- Article 162(2)(b) jurisdiction of the Environment and Land Court considered; Section 13 of the Environment and Land Court Act (jurisdiction) read against the Land Act, Sections 2, 80 and 90-96
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Erinpet Enterprises Ltd v Equity Bank (Kenya) Ltd & 2 others (Environment and Land Case 21 of 2022) [2026] KEELC 5301 (KLR)", Case Analysis (2026). ELC NO E021 OF 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/5301/eng@2026-08-06
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.