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Supreme CourtStruck OutPetition E007 of 2025

Kwale International Sugar Company Limited v EPCO Builders Limited & 2 others

Supreme Court of Kenya
5 December 2025
1,605 words in judgment
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AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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Mentioning the Constitution doesn't give the Supreme Court jurisdiction—the case must truly be about constitutional law.

What this practically means

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The Supreme Court of Kenya struck out an appeal because the real dispute was a commercial debt and insolvency, not a constitutional issue. The appellant claimed a fair hearing violation, but the Court found the lower courts were simply applying insolvency law. Incidental references to the Constitution do not give the Supreme Court jurisdiction under Article 163(4)(a). The Court will look at the whole record to decide the true nature of the dispute.

Executive summary

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This was a preliminary objection ruling by the Supreme Court of Kenya on whether it had jurisdiction under Article 163(4)(a) of the Constitution to hear an appeal arising from a commercial debt and insolvency dispute. The appellant, Benson Nzuka Musili, had appealed against a Court of Appeal decision that dismissed his appeal from the High Court, which had refused to strike out an insolvency petition filed by the 1st respondent, Ramji Devji Varsani. The appellant argued that the Court of Appeal's failure to conclusively determine whether the debt was genuinely disputed violated his right to a fair hearing under Article 50 of the Constitution, thereby clothing the appeal with a constitutional dimension. The 1st respondent filed a preliminary objection challenging the Supreme Court's jurisdiction, arguing that the dispute was fundamentally a commercial and insolvency matter, not a constitutional one. The Supreme Court upheld the preliminary objection, finding that the core of the dispute was a private commercial debt and the application of insolvency law. The Court held that the appellant's references to constitutional provisions were incidental and did not transform the appeal into one involving the interpretation or application of the Constitution. The Court distinguished the John Florence Maritime case and applied its holding in Lawrence Nduttu that a mere allegation of a constitutional issue is insufficient to invoke its jurisdiction. Consequently, the Court struck out the petition of appeal for want of jurisdiction and awarded costs to the 1st respondent.

Questions the Court framed

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

  1. 1.Whether this Court possesses the jurisdiction to entertain the instant appeal under Article 163(4)(a) of the Constitution.

Key legal issues

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01

Whether the Supreme Court has jurisdiction under Article 163(4)(a) to hear an appeal where the core dispute is a commercial debt and insolvency proceedings, but the appellant alleges a violation of the right to a fair hearing under Article 50.

Holding

The Court lacks jurisdiction because the substratum of the litigation was the application of insolvency law, not constitutional interpretation; the alleged procedural unfairness was a function of insolvency procedure and did not rise to a fundamental breach of the right to a fair trial.

Reasoning

The Court examined the entire record and found that the dispute originated from a construction contract and insolvency petition. The Court of Appeal's judgment primarily applied the Insolvency Act and jurisprudence on arbitration clauses and winding-up petitions. The appellant's references to Articles 50 and 159(2)(c) were incidental to the core commercial dispute. The Court distinguished the John Florence Maritime case, noting that the deferral of a decision on the debt's disputability to a full trial was a function of insolvency procedure, not a fundamental breach of fair trial rights. The Court reiterated its holding in Lawrence Nduttu that a mere allegation of a constitutional issue is insufficient; the issue must have been litigated and determined in the courts below.

Legal principles established

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  • Mere mention of a constitutional provision in pleadings is not enough to invoke the Supreme Court's jurisdiction.
  • The constitutional issue must have been actually litigated and decided in the lower courts.
  • Incidental references to the Constitution do not transform a commercial or insolvency appeal into a constitutional one.
  • The Supreme Court examines the entire record to determine the true substratum of the dispute.
  • Article 163(4)(a) jurisdiction is reserved for cases involving interpretation or application of the Constitution as a core issue.
  • A party cannot create Supreme Court jurisdiction by dressing a private law dispute in constitutional language.

Court orders

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  1. 1.The Notice of Preliminary Objection dated 25th March 2025 filed by the 1st respondent is upheld.
  2. 2.The Petition of Appeal dated 5th March 2025 is hereby struck out for want of jurisdiction.
  3. 3.The sum of Kshs. 6,000/- deposited as security for costs upon lodging of this appeal be refunded to the depositor.
  4. 4.Costs of the Petition of Appeal and this Preliminary Objection are awarded to the 1st respondent.

The bench

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

Philomena Mbete Mwilu
P.M. MwiluDCJ
Currently serving
majority

Wrote the judgment

majority
Njoki Susanna Ndungu
Njoki NdunguSCJ
Currently serving
majority
Isaac Lenaola
I. LenaolaSCJ
Currently serving
majority
William Ouko
W. OukoSCJ
Currently serving
majority
On appeal from
Court of Appeal of Kenya
Civil Appeal No. 208 of 2020
Jurisdiction invoked
Article 163(4)(a) of the Constitution

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.

The Notice of Preliminary Objection dated 25th March 2025 filed by the 1st respondent is upheld.
p. 4 Jurisdiction - Preliminary Objection upheld
The Petition of Appeal dated 5th March 2025 is hereby struck out for want of jurisdiction.
p. 4 Jurisdiction - Appeal struck out
the mere allegation in pleadings by a party that clothes an appeal with the attributes of constitutional interpretation or application is insufficient
p. 3 Jurisdiction - Constitutional threshold under Article 163(4)(a)
The constitutional issue must have been the subject of litigation and determination in the courts below.
p. 3 Jurisdiction - Requirement for constitutional issue to be litigated below

Key timeline

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2025-03-05
Petition of Appeal lodged by Benson Nzuka Musili at the Supreme Court.
2025-03-25
1st respondent files Notice of Preliminary Objection challenging the Court's jurisdiction.
2025-03-25
Supreme Court upholds the preliminary objection and strikes out the appeal for want of jurisdiction.

Practical implications

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For lawyers

Don't rely on constitutional window-dressing

When drafting appeals to the Supreme Court, ensure the core issue genuinely involves interpretation or application of the Constitution. Merely adding a fair hearing claim under Article 50 to a commercial dispute will not trigger Article 163(4)(a) jurisdiction. The Court will scrutinize the whole record. If the lower courts resolved the case on statutory grounds (e.g., Insolvency Act), your appeal belongs in the Court of Appeal, not the Supreme Court.

For businesses

Insolvency disputes stay commercial

If you are involved in a winding-up petition or debt recovery case, understand that the Supreme Court will not entertain it just because you argue your fair hearing rights were violated. The core dispute remains commercial. To challenge an insolvency decision, you must exhaust the normal appellate route (High Court to Court of Appeal) and only appeal to the Supreme Court if a genuine constitutional issue was litigated and determined below.

For individuals

Fair hearing claims have limits

If you believe a court violated your right to a fair hearing in a commercial case, you cannot automatically jump to the Supreme Court. The Supreme Court only hears cases that are fundamentally about the Constitution. For example, if the lower courts applied insolvency procedure correctly, the Supreme Court will not step in. You should first raise the fair hearing issue in the lower courts and get a ruling on it to preserve any constitutional argument.

Frequently asked questions

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Can I appeal to the Supreme Court of Kenya just by mentioning the Constitution in my case?+

No. The Supreme Court requires that the constitutional issue was actually litigated and decided in the lower courts. Simply mentioning Articles 50 or 159 in your pleadings is not enough if the real dispute is about a debt or insolvency.

What is the Supreme Court's jurisdiction under Article 163(4)(a) in Kenya?+

Article 163(4)(a) allows appeals from the Court of Appeal in cases involving the interpretation or application of the Constitution. The constitutional issue must be the main subject of the litigation, not just an incidental reference. The Court will examine the entire record to decide.

Does a fair hearing violation in insolvency proceedings give the Supreme Court jurisdiction in Kenya?+

Not automatically. In this case, the Supreme Court held that procedural fairness in insolvency is a matter of insolvency law, not a fundamental constitutional breach. Unless the lower courts actually ruled on a constitutional right, the Supreme Court lacks jurisdiction.

How do I challenge a winding-up petition in Kenya?+

You can challenge a winding-up petition in the High Court by arguing the debt is genuinely disputed. Appeals go to the Court of Appeal. Only if the Court of Appeal decides a true constitutional question can you seek leave to appeal to the Supreme Court. Most insolvency disputes remain commercial.

Later judgments citing this (3)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Kwale International Sugar Company Limited v EPCO Builders Limited & 2 others", Case Analysis (2025). Petition E007 of 2025. Source: https://new.kenyalaw.orghttps://new.kenyalaw.org/akn/ke/judgment/kesc/2025/73/eng@2025-12-05

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