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ELCPartially AllowedEnvironment and Land Case Civil Suit 23 of 2018· [2026] KEELC 5514 (KLR)

Ngumbau Investments Ltd t/a Courtyard Hotel v Kitele Investments Ltd & another

Environment and Land Court
22 September 2026
2,422 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court lifted attachment of a hotel's TVs and cutlery but let execution continue on everything else because ownership wasn't proven.

What this practically means

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Executive summary

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This ruling by A. Y. Koross, J of the Environment and Land Court at Machakos determines an objection to attachment filed under Order 22 Rules 51 and 52 of the Civil Procedure Rules by Courtyard Hotel (the objector), a company whose properties were proclaimed for attachment by Moran Auctioneers in execution of a decree against the plaintiff/judgment debtor. The objector sought a permanent injunction, a declaration that the proclaimed properties belonged to it, and lifting of the proclamation. The decree holders opposed, arguing the objector was a corporate alter ego of the judgment debtors, that the deponent was a minority shareholder without authority, and that the vehicle KCN 222E belonged to the 3rd defendant in the counterclaim. The court held that the permanent injunction prayer was misplaced in objection proceedings; that the burden lay on the objector to prove ownership, which a certificate of incorporation alone could not discharge; that documentary evidence (a vehicle search and CR12) showed the vehicle belonged to a judgment debtor and the judgment debtor owned 99% of the objector; that the deponent's authority was a factual matter not dependent on shareholding; and that veil-lifting could only be determined on a formal application under Order 22 Rule 35. The motion succeeded only in respect of the 40 TV sets and assorted kitchen cutlery, whose attachment was lifted, with a 7-day stay to allow payment or an arrangement, and no orders as to costs.

Key legal issues

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01

Whether the objector discharged its burden of proving ownership of the attached properties

Holding

The objector failed; a certificate of incorporation alone was insufficient, and its receipts proved ownership of only the 40 TV sets and assorted kitchen cutlery; the vehicle KCN 222E belongs to the judgment debtor

Reasoning

The objector relied on a certificate of incorporation and asset register assertions, which the court held insufficient to prove ownership. The decree holders' documentary evidence, including a motor vehicle search and a CR12, showed the vehicle belonged to the 3rd defendant in the counterclaim and that the plaintiff/judgment debtor owned 99% of the objector. Scrutiny of the objector's receipts established ownership of only two categories of attached items. The objector was also found guilty of material non-disclosure.

02

Whether a minority shareholder could swear affidavits for the objector

Holding

Yes; authority to swear an affidavit is a factual matter not dependent on shareholding, and the decree holders did not dislodge the deponent's assertion of authority

Reasoning

The decree holders argued Alice Mueni Kingo'o, a minority shareholder, lacked authority to swear affidavits for the objector. The court held that authorisation is a question of fact, not of shareholding proportion; a deponent's sworn assertion of authority suffices unless challenged by contrary evidence, which the decree holders did not adduce. The court relied on Spire Bank Limited v Land Registrar & 2 others.

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Whether the corporate veil could be pierced within objection proceedings

Holding

No; the issue can only be determined through a formal application under Order 22 Rule 35, not on affidavit evidence in an objection

Reasoning

The objector argued that lifting the corporate veil required a formal application rather than affidavit evidence. The decree holders did not address this procedural point but advocated piercing on affidavit material. The court agreed that only a formal application under Order 22 Rule 35, providing for oral examination of a judgment debtor or its officers, could determine veil-lifting, and confined its analysis accordingly.

p. 4
04

Whether permanent injunctive relief was available in objection proceedings

Holding

No; the prayer was misplaced and inappropriate in proceedings governed by Order 22 Rule 51

Reasoning

As a preliminary finding, the court held that the motion's invocation of Order 22 Rule 51 confines the relief available to objection to attachment; a claim for permanent injunction does not fit within that framework and was therefore struck out of consideration before the analysis.

Legal principles established

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  • An objector under Order 22 Rule 51 must prove he is not the judgment debtor, that attachment was levied against his property, and that he has a legal or equitable interest in the attached property
  • The burden of proof in objection proceedings lies on the objector to establish his right to have the attached property released
  • Authority to swear an affidavit on behalf of a company is a factual matter not dependent on shareholding proportion; a sworn declaration of authority suffices unless displaced by contrary evidence
  • Lifting the corporate veil in execution proceedings can only be determined through a formal application under Order 22 Rule 35 of the Civil Procedure Rules

Court orders

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  1. 1.The proclamation for attachment and sale of assets on the 40 TV sets and assorted kitchen cutlery listed in the proclamation of attachment dated 16 April 2026, is lifted
  2. 2.Temporary stay of execution proceedings for 7 days for the judgment debtors to pay the judgment debt or enter an arrangement on how to pay, failing which execution may proceed as already commenced, except for the 40 TV sets and assorted kitchen cutlery
  3. 3.No orders as to costs

Authorities

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Legislation

  • Civil Procedure ActSections 1A, 1B, 3A and 44
  • Civil Procedure RulesOrder 22, Rules 51, 52 and 35

Cases cited (3)

  • Southern Bell Limited v National Social Security Fund Board of Trustees & 4 others
    [2023] KECA 1170 (KLR)

    Conditions an objector must satisfy to bring himself within Order 22 Rule 51(1)

  • Precast Portal Structures v Kenya Pencil Company Ltd & 2 others
    [1993] KEHC 100 (KLR)

    Burden of proof on the objector and circumstances for release from or dismissal of an objection

  • Spire Bank Limited v Land Registrar & 2 others
    [2019] KECA 530 (KLR)

    Authority to swear an affidavit on behalf of a company is factual and does not depend on shareholding

Jurisdiction invoked
Order 22 Rules 51 and 52 of the Civil Procedure Rules; Sections 1A, 1B, 3A and 44 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, "Ngumbau Investments Ltd t/a Courtyard Hotel v Kitele Investments Ltd & another", Case Analysis (2026). Environment and Land Case Civil Suit 23 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/5514/eng@2026-09-22

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