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ELCPartially AllowedEnvironment and Land Case 89 of 2015

Registered Trustees of Moi University Pension Scheme v Attorney General & 4 others

Environment and Land Court
1 October 2026
2,754 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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The Environment and Land Court paused a land title cancellation, but only after the losing party deposited Kshs. 5 million as security.

What this practically means

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Executive summary

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The 4th defendant, Fresh 'N' Nice, through its director Mustafa Abdi Aman, moved the court by Notice of Motion dated 14th May 2026 seeking a stay of execution of the judgment delivered on 30th April 2026 by Obaga J (differently constituted) and the subsequent decree, pending an intended appeal to the Court of Appeal. The judgment had allowed the plaintiff's claim against the 1st to 4th defendants, including a declaration that the creation of parcel Eldoret Municipality Block 7/320 was procured through fraud, an injunction against the 4th defendant, and an order directing the County Land Registrar to cancel the 4th defendant's title and revert the land to the plaintiff's parcel Block 7/304. The plaintiff opposed, contending no substantial loss was demonstrated, that any registration could be reversed on appeal, and that stay would bar development of a prime Eldoret CBD property worth over Kshs. 70 million generating an estimated Kshs. 100 million annually for pensioners; alternatively it sought security of Kshs. 15 million. The court identified two issues: whether stay could issue, and costs. Applying Order 42 Rule 6(2), it found substantial loss demonstrated since execution would cancel the applicant's title and destroy the substratum of the appeal; the application was filed within 14 days, without delay; and on security, the court exercised its discretion in the applicant's favour, ordering a deposit of Kshs. 5 million within 30 days, failing which the stay would lapse automatically. Each party was to bear its own costs of the application.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether an Order for Stay of Execution can issue against judgment issued on 30th April, 2026 and the resultant decree.
  2. 2.Who shall bear the costs of the present application.

Key legal issues

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01

Whether the applicant demonstrated substantial loss

Holding

Substantial loss demonstrated because execution would cancel the applicant's title and destroy the subject matter of the appeal

Reasoning

The court perused the judgment of 30.04.2026 and noted that Order No. 5 directed the County Land Registrar to cancel the applicant's title to Block 7/320 and revert it to the plaintiff. If executed, the subject matter of the intended appeal would cease to exist and the plaintiff could develop the land, physically altering the status quo pending appeal.

p. 5
02

Whether the application was filed without unreasonable delay

Holding

Filed within 14 days of judgment; no inordinate delay

Reasoning

Judgment was delivered on 30th April 2026 and the application filed on 14th May 2026, a period of 14 days. The court found the application was filed promptly and timeously, satisfying the second condition under Order 42 Rule 6(2).

03

Whether security for costs was provided

Holding

Stay granted on condition the applicant deposits Kshs. 5 million as security within 30 days

Reasoning

The applicant had not expressed willingness to deposit security, but the court exercised its discretion in its favour, imposing a condition of Kshs. 5 million, rejecting the plaintiff's proposed Kshs. 15 million as exorbitant. Failure to comply would cause the stay to lapse automatically.

p. 6

Legal principles established

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  • No appeal operates as an automatic stay; stay preserves the substratum of the appeal and prevents it being rendered nugatory.
  • Substantial loss means real loss of worth or value, not nominal loss, and must be demonstrated, not merely alleged.
  • Security under Order 42 guarantees due performance of the decree, not punishment of the judgment debtor.

Court orders

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  1. 1.An order of stay of execution issued staying the judgment delivered on 30th April, 2026 and the subsequent decree pending the hearing and determination of the appeal to the Court of Appeal.
  2. 2.The 4th Defendant/Applicant directed to deposit Kshs. 5,000,000/= in court or in a Joint Bank Account held in the names of the Advocates for the 4th Defendant and for the Plaintiff as security for costs for the due performance of the decree within 30 days from the date of the Ruling.
  3. 3.Failure by the applicant to comply with order (b), order (a) shall automatically lapse.
  4. 4.Each party to bear their own costs of the Application.

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Environment and Land Court jurisdiction under the Environment and Land Court Act; application under Order 42 Rule 6(2) of the Civil Procedure Rules, 2010

Relief refused

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Plaintiff's proposed security of Kshs. 15 million

Court found the proposed sum exorbitant and instead ordered Kshs. 5 million

p. 6

Costs

Each party to bear their own costs of the Application.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

It is settled law that no appeal shall operate as an automatic stay of execution. The purpose of an order of stay of execution is to preserve the substratum of appeal and ensure that the appeal is not rendered nugatory.
p. 3purpose of stay of execution
Substantial loss is what has to be prevented by preserving the status quo because such loss would render the Appeal nugatory.
p. 4definition of substantial loss (quoting Mukuma vs Abuoga)
The onus of demonstrating and proving the said requirements on a balance of probabilities lies on the applicant in compliance with the provisions of sections 107,108,109 and 110 of the Evidence Act.
p. 3burden of proof on stay applicant
An order of stay of execution be and is hereby issued staying the judgment delivered on 30th April, 2026 and the subsequent decree pending the hearing and determination of the appeal to the Court of Appeal.
p. 6final orders - stay granted
Each party to bear their own costs of the Application.
p. 6costs order

Issues in the judgment

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minor

Date discrepancy in disposition

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, "Registered Trustees of Moi University Pension Scheme v Attorney General & 4 others", Case Analysis (2026). Environment and Land Case 89 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/6108/eng@2026-10-01

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