Julius John Malaba t/a Abdallah Hardware Store v My Credit Limited (Civil Miscellaneous E196 of 2026) [2026] KEMC 314 (KLR)
The bottom line
#A Kenyan magistrate blocked a lender from selling a borrower's truck because the lender skipped the required statutory default notice before repossession.
What this practically means
#Executive summary
#Key legal issues
#Prima facie case
Established - the plaintiff showed the lender's employee witnessed and endorsed the third party's arrangement to service the loan, so those payments must be recognised
Although the defendant denied privity with Roseline Akula Yengo, the sale agreement was signed by the defendant's own branch manager, Purity Shitakwa, showing awareness and endorsement of the repayment arrangement. Failure to acknowledge those payments and discount them infringed the plaintiff's right to fairness in the administration of his loan account, making it impossible to determine true arrears.
Irreparable loss
Established because the defendant failed to act fairly by ignoring repayments and could not show service of the statutory default notice
Damages would normally be adequate since the vehicle's value is known, but that only holds where the lender has acted fairly. The defendant produced no reminders or statutory notices on record; only the auctioneer's notice under Rule 15 existed, which presupposes prior compliance with the lender's own statutory notice under section 67 of the Movable Property Security Rights Act. Its absence jeopardises the entire repossession.
Balance of convenience
Tilted in favour of the plaintiff following the findings on the first two limbs
The court weighed the risk of injustice to both parties. Given its findings on prima facie case and irreparable loss, it held the risk of injustice weighs heavily against the plaintiff if the injunction were declined.
Restructuring of loan repayments by instalments
Refused - the court cannot rewrite a contract for the parties
Prayer (7) sought an order allowing the plaintiff to liquidate the loan by monthly instalments of Kshs. 30,000/=. The court held it lacks power to impose new contractual terms on the parties, citing Wanyama v Malava Financial Services Association.
Legal principles established
#- Grant of a temporary injunction rests on the Giella principles of prima facie case, irreparable harm and balance of convenience, to be surmounted sequentially
- Payments made to a lender's account under an arrangement the lender's branch manager witnessed and endorsed are prima facie valid and must be factored into the loan account
- A lender must serve statutory notice of default under section 67 of the Movable Property Security Rights Act before repossession; failure jeopardises the repossession process
- The court cannot rewrite a contract for the parties
Court orders
#- 1.Release of motor vehicle registration No. KCF 247L lorry/truck on a running attachment (prayer 3)
- 2.The OCS Bungoma police station or any officer of equivalent rank to enforce the orders (prayer 4)
- 3.Injunction restraining the defendant from selling, auctioning, alienating, wasting or interfering with motor vehicle registration No. KCF 247L pending hearing and determination of the suit (prayer 5)
- 4.The defendant to render and deliver to the plaintiff a true and correct account in respect of the loan account (prayer 6)
- 5.Costs of the application to be in the cause
- Jurisdiction invoked
- Original civil jurisdiction of the magistrates' court over the suit; interlocutory application dated 10/6/2026
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Julius John Malaba t/a Abdallah Hardware Store v My Credit Limited (Civil Miscellaneous E196 of 2026) [2026] KEMC 314 (KLR)", Case Analysis (2026). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2026/314/eng@2026-07-13
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.