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Supreme CourtDismissedPetition (Application) E007 of 2025

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

Supreme Court of Kenya
23 May 2025
1,608 words in judgment
View original judgmentRead on Kenya LawDownload the judgment (PDF) Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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Supreme Court cannot stop High Court cases; it only handles appeals from the Court of Appeal.

What this practically means

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The Supreme Court dismissed EPCO Builders' request to halt a High Court insolvency case. The Court ruled it lacks power to stop proceedings in lower courts like the High Court or Magistrates' Courts. Its authority under Article 163(4) of the Constitution is limited to appeals from the Court of Appeal. The application was premature, as EPCO should first seek relief from the Court of Appeal. Costs will be decided later based on the appeal's outcome.

Executive summary

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This is a ruling on an application by EPCO Builders Limited seeking a stay of proceedings in Nairobi High Court Insolvency Petition No 007 of 2019 and a temporary injunction restraining the respondent from advertising or prosecuting the petition, pending the hearing of its appeal before the Supreme Court. The applicant argued that the Court of Appeal erred in allowing insolvency proceedings to proceed despite a disputed debt and an arbitration clause, and that the appeal raised constitutional issues under Articles 10, 50, and 159 of the Constitution. The respondent opposed the application, contending that the appeal did not raise constitutional issues and that the applicant was engaging in delay tactics. The Supreme Court dismissed the application, holding that it lacked jurisdiction to stay proceedings in the High Court. The court emphasized that under Article 163(4) of the Constitution, its jurisdiction is limited to appeals from the Court of Appeal, and it can only grant stays of proceedings in the Court of Appeal, not in subordinate courts. The court cited Dande & 3 others v Director of Public Prosecutions & 2 others to support this position, noting that it cannot 'frog-leap' the Court of Appeal to provide relief to a party before the High Court. The court did not assess the merits of the appeal's arguability or whether it would be rendered nugatory, as the jurisdictional issue was dispositive. Costs of the motion were ordered to abide by the outcome of the appeal.

Questions the Court framed

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

  1. 1.Whether the Supreme Court has jurisdiction to grant a stay of proceedings in the High Court pending the hearing of an appeal before the Supreme Court.
  2. 2.Whether the appeal is arguable and would be rendered nugatory if the stay is not granted.
  3. 3.Whether the applicant has met the threshold for conservatory orders.

Key legal issues

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01

Whether the Supreme Court has jurisdiction to stay High Court proceedings pending an appeal before it.

Holding

The Supreme Court lacks jurisdiction to stay proceedings in the High Court; its jurisdiction under Article 163(4) only extends to appeals from the Court of Appeal, and it can only stay proceedings in the Court of Appeal.

Reasoning

The court reasoned that its jurisdiction under Article 163(4) is limited to appeals from the Court of Appeal. Therefore, it can only grant a stay of proceedings in the Court of Appeal, not in the High Court. The court cited Dande & 3 others v Director of Public Prosecutions & 2 others [2022] KESC 23 (KLR) to emphasize that the Supreme Court cannot 'frog-leap' the Court of Appeal to provide relief to a party before the High Court. The application sought to stay High Court proceedings, which is beyond the court's jurisdiction.

02

Whether the appeal is arguable and would be rendered nugatory if the stay is not granted.

Holding

The court did not reach the merits of the arguability or nugatory aspects because it found it lacked jurisdiction to grant the stay sought.

Reasoning

The court applied the principles from Munya v Kithinji & 2 others [2014] KESC 30 (KLR) and Stanley Kang'ethe Kinyanjui v Tony Ketter & 5 others [2013] eKLR to assess the application, but ultimately dismissed it on jurisdictional grounds without determining whether the appeal was arguable or would be rendered nugatory.

Legal principles established

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  • Supreme Court jurisdiction under Article 163(4) only covers appeals from the Court of Appeal, not lower courts.
  • The Supreme Court can only stay proceedings in the Court of Appeal, not in the High Court or Magistrates' Courts.
  • An arguable appeal must present at least one plausible issue for full hearing, not necessarily one that will succeed.
  • The Supreme Court cannot 'frog-leap' the Court of Appeal to provide relief to a party before a lower court.
  • Jurisdictional issues are decided first, before assessing whether an appeal is arguable or would be rendered nugatory.

Court orders

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  1. 1.The applicant's notice of motion dated 5 March 2025 is hereby dismissed.
  2. 2.Costs of the motion shall abide by the outcome of the appeal.

The bench

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

Martha Karambu Koome
M. K. KoomeCJ
Currently serving
majority

Wrote the judgment

majority
Smokin Charles Wanjala
S. C. WanjalaSCJ
Currently serving
majority
Njoki Susanna Ndungu
Njoki NdunguSCJ
Currently serving
majority
William Ouko
W. OukoSCJ
Currently serving
majority
On appeal from
Court of Appeal of Kenya
Jurisdiction invoked
Article 163(4)(a) of the Constitution of Kenya

Relief refused

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Stay of further proceedings in Nairobi High Court Insolvency Petition No 007 of 2019

The Supreme Court lacks jurisdiction to stay proceedings in the High Court; it can only stay proceedings in the Court of Appeal.

Temporary injunction restraining the respondents from advertising or prosecuting the insolvency petition

The court cannot frog-leap the Court of Appeal to provide relief to a party before the High Court.

Costs

Costs of the motion shall abide by the outcome of the appeal.

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.

this court can only grant an order of stay of a decree or order of the Court of Appeal or stay of further proceedings in the Court of Appeal but not of proceedings pending hearing in the Magistrate’s Court
p. 5 Jurisdiction of the Supreme Court to grant stays
The court cannot frog-leap the Court of Appeal to provide relief to a party before the High Court.
p. 5 Limitation of Supreme Court's jurisdiction
An arguable appeal is not one that must necessarily succeed, but one that presents at least one plausible issue to warrant full consideration at the hearing.
p. 4 Definition of an arguable appeal
The applicant’s notice of motion dated 5 March 2025 is hereby dismissed.
p. 5 Final order dismissing the application
Costs of the motion shall abide by the outcome of the appeal.
p. 5 Costs order

Key timeline

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2019
Insolvency Petition No 007 of 2019 filed in Nairobi High Court against EPCO Builders Limited.
2025-03-05
EPCO Builders filed notice of motion in Supreme Court seeking stay of High Court proceedings.
2025
Supreme Court dismissed the application, ruling it lacked jurisdiction to stay High Court proceedings.

Practical implications

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For lawyers

Jurisdictional limits on Supreme Court stays

When seeking a stay pending appeal to the Supreme Court, ensure the proceedings you want halted are in the Court of Appeal, not a lower court. Filing a stay application in the Supreme Court for High Court or Magistrates' Court proceedings will be dismissed for lack of jurisdiction. Direct clients to first exhaust remedies in the Court of Appeal before approaching the Supreme Court.

For businesses

Insolvency cases must proceed in High Court

If your company faces an insolvency petition in the High Court, you cannot ask the Supreme Court to stop it directly. You must first appeal to the Court of Appeal and seek a stay there. Delaying tactics by jumping to the Supreme Court will fail, wasting time and costs. Focus on resolving the dispute in the proper court hierarchy.

For individuals

Know which court can help you

If you are involved in a case in the High Court or Magistrates' Court and want to stop it pending an appeal, you must go to the Court of Appeal, not the Supreme Court. The Supreme Court only handles appeals from the Court of Appeal. Filing in the wrong court will get your application dismissed, so consult a lawyer to identify the correct court for your situation.

Frequently asked questions

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Can the Supreme Court of Kenya stop a High Court case?+

No, the Supreme Court cannot stop a High Court case. Under Article 163(4) of the Constitution, it only handles appeals from the Court of Appeal. To halt High Court proceedings, you must first appeal to the Court of Appeal and seek a stay there.

What is an arguable appeal in Kenya?+

An arguable appeal in Kenya is one that presents at least one plausible issue that deserves full consideration at the hearing. It does not have to succeed, but must raise a genuine legal question, not just delay tactics.

How do I stay insolvency proceedings in Kenya?+

To stay insolvency proceedings in a Kenyan High Court, you must file an appeal in the Court of Appeal and apply for a stay there. The Supreme Court cannot grant such a stay because it only handles appeals from the Court of Appeal.

What does 'frog-leap' mean in Kenyan Supreme Court cases?+

'Frog-leap' refers to a party trying to bypass the Court of Appeal and go directly to the Supreme Court for relief in a lower court case. The Supreme Court has ruled it cannot do this, as its jurisdiction is limited to appeals from the Court of Appeal.

Later judgments citing this (2)

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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 Sugar International Company Limited v EPCO Builders Limited & 2 others", Case Analysis (2025). Petition (Application) E007 of 2025. Source: https://new.kenyalaw.orghttps://new.kenyalaw.org/akn/ke/judgment/kesc/2025/32/eng@2025-05-23

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