Nyongesa v My Credit Ltd & another (Civil Suit E011 of 2026) [2026] KEMC 679 (KLR)
The bottom line
#A Bungoma magistrate dismissed a borrower's bid to stop repossession of his vehicle, holding that admitting loan default without proving illegality defeats an injunction.
What this practically means
#Executive summary
#Key legal issues
#Whether the Applicant established a prima facie case for an interlocutory injunction
No. The Applicant admitted defaulting on the loan, did not demonstrate illegality or any vitiating factor in the loan agreement, and a mere dispute over the outstanding amount does not ground an injunction
The Applicant conceded the default and the charge of the suit motor vehicle as security. The 1st Respondent produced a Loan Account Statement showing the sum claimed was per the agreement's terms, inclusive of interest and tracking fees. Citing Mrao Ltd, a prima facie case requires an apparent infringement of a right with probability of success; a dispute over quantum, per Sammy Japheth Kavuku v Equity Bank, does not suffice.
Whether the court can order restructuring of the loan arrears over three months
No. Such relief can only be granted by consent of the parties; the court cannot rewrite a lawful contract
The Applicant asked for three months to clear arrears, but the court held that restructuring a loan is a matter reserved for negotiation between lender and borrower, and granting the prayer would amount to rewriting the agreement, which the court has no power to do, citing National Bank of Kenya Ltd v Pipeplastic Samkolit (K) Ltd & Another.
Whether the court should consider irreparable injury and balance of convenience
No. Having failed on the first hurdle, consideration of the remaining pillars was rendered moot
Applying Nguruman Limited v Jan Bonde Nielsen, the three requirements are separate, distinct and sequential hurdles. Since the Applicant failed to establish a prima facie case with probability of success, the court declined to engage in what it termed an academic exercise by considering the remaining conditions.
Legal principles established
#- An applicant for an interlocutory injunction must surmount the three Giella/Nguruman hurdles sequentially; failure on the first renders the rest moot
- A dispute as to the amount outstanding is not a basis for an injunction to restrain a lender from recovering its money unless the amount claimed is excessive per the terms of the agreement
- A court cannot rewrite a lawful contract voluntarily entered into between parties
Court orders
#- 1.The Applicant's Application dated 14th January 2026 is dismissed with costs to the 1st Respondent
- Jurisdiction invoked
- Sections 1A, 1B, 3 and 3A, Order 2 Rule 2 and Order 51 Rule 1 of the Civil Procedure Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Nyongesa v My Credit Ltd & another (Civil Suit E011 of 2026) [2026] KEMC 679 (KLR)", Case Analysis (2026). Civil Suit No E011 of 2026. Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2026/679/eng@2026-03-17
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.