Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
Caselaw
AI-generated case brief
Case Brief · caselaw.co.ke
ELCDismissedELC Case No. E337 of 2026· [2026] KEELC 5876 (KLR)

Joyce Waigumo Gachuhi & Another v Kenya Women Microfinance Bank PLC

Environment and Land Court of Kenya
24 September 2026
LKL. G. Kimani
3,443 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

#

The Environment and Land Court refused to stop the auction of a Nairobi property, ruling that a mere loan-account dispute cannot block a bank's power of sale.

What this practically means

#

Executive summary

#
The Plaintiffs, Joyce Waigumo Gachuhi (registered owner of LR No. 13658/28, Nairobi, said to be her matrimonial home and held in trust for her son) and Joy Shelter (K) Limited (the borrower), moved the Environment and Land Court by Notice of Motion dated 22nd July 2026 under Order 40 of the Civil Procedure Rules and Section 3A of the Civil Procedure Act, seeking a temporary injunction to restrain Kenya Women Microfinance Bank PLC from selling, auctioning or interfering with the suit property, which had been advertised for auction on 31st July 2026 by Timeless Dolphin Auctioneers. The property was charged as security for a Kshs. 200,000,000 facility advanced to the 2nd Plaintiff in 2015. The Applicants asserted they had paid Kshs. 422,146,367.92 and that only Kshs. 3,167,549.66 was due, alleging unlawful penalties and charges. The Defendant, through a replying affidavit of Marion Wasike and grounds of opposition, traced the lending history including a further charge, top-up facility, 2021 restructuring and a Deed of Settlement acknowledging indebtedness of Kshs. 165,738,800.27, asserted compliance with statutory notices, and contended the Applicants lacked disclosure, came with unclean hands, delayed, and that an accounting dispute cannot restrain a statutory power of sale. Interim orders issued on 30th July 2026. Applying Giella, Mrao and Nguruman, the Court held the Applicants failed to establish a prima facie case: the Deed of Settlement was not shown to have been set aside, the alleged illegal charges were unparticularised, no defect in the statutory notices or competing valuation was demonstrated. Following the sequential approach in Nguruman and Akute v Pop, the Court did not consider the remaining limbs. The application was dismissed, the interim orders discharged, and costs awarded to the Defendant. The Court noted the chargee's right of sale remains subject to the Land Act.

Key legal issues

#
01

Whether the Applicants established a prima facie case with a probability of success

Holding

No - the Applicants did not demonstrate an apparently infringed right; the Deed of Settlement acknowledging indebtedness was not shown to have been set aside, and the alleged illegal charges were unparticularised

Reasoning

The Court found the lending relationship and charge undisputed. The Applicants' claim of full repayment rested on aggregate payments which, without examination of interest, restructuring and appropriation, could not establish discharge. Their conduct in acknowledging arrears and seeking restructuring was inconsistent with full discharge. No defect in statutory notices or competing valuation was shown.

p. 13
02

Whether the remaining Giella limbs (irreparable loss, balance of convenience) should be considered

Holding

No - the test is sequential; failure on the first limb disposes of the application

Reasoning

Relying on Nguruman and Akute v Pop, the Court held the three hurdles must be considered distinctly, sequentially and logically without leap-frogging. Having failed at the prima facie stage, the Applicants' application could not succeed regardless of the other limbs.

p. 13

Legal principles established

#
  • A dispute regarding the precise amount due under a charge does not, by itself, constitute sufficient grounds for restraining a chargee from exercising its statutory power of sale.
  • The three Giella requirements are distinct and sequential; failure at the first limb ends the inquiry.
  • A chargee's right to realise security remains subject to compliance with the Land Act and all other applicable law.

Court orders

#
  1. 1.The Notice of Motion dated 22nd July 2026 fails and is hereby dismissed.
  2. 2.The interim orders issued by this Court on 30th July 2026 are hereby discharged and vacated.
  3. 3.The costs of the Notice of Motion dated 22nd July 2026 are awarded to the Defendant/Respondent.

Authorities

#

Legislation

  • Civil Procedure RulesOrder 40 Rules 1, 2, 3 and 4
  • Civil Procedure ActSection 3A
  • Civil Procedure ActSection 63(c)
  • Environment and Land Court ActSection 13
  • Land Actgeneral compliance with power of sale

Cases cited (4)

  • Giella v Cassman Brown & Co Ltd
    [1973] EA 358

    Settled conditions for interlocutory injunctions: prima facie case, irreparable injury, balance of convenience

  • Mrao Ltd v First American Bank of Kenya Ltd & 2 Others
    (Civil Appeal 39 of 2002) [2003] KECA 175 (KLR)

    Restatement of injunction principles and definition of a prima facie case

  • Nguruman Limited v Jan Bonde Nielsen & 2 Others
    [2014] KECA 606 (KLR)

    The three injunction requirements are distinct and sequential

  • Akute v Pop & 8 Others
    [2025] KEELC 5327 (KLR)

    Where no prima facie case is established, irreparable injury and balance of convenience need not be considered

Jurisdiction invoked
Section 63(c) of the Civil Procedure Act read with Order 40 of the Civil Procedure Rules; Section 13 of the Environment and Land Court Act

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Joyce Waigumo Gachuhi & Another v Kenya Women Microfinance Bank PLC", Case Analysis (2026). ELC Case No. E337 of 2026. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/5876/eng@2026-09-24

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