Odhiambo & 10 others v Branch Microfinance Bank Limited (Commercial Claim E13069 of 2024) [2025] SCC 56 (KLR)
The bottom line
#A Kenyan Small Claims Court dismissed a consultancy fee claim because the consultant never proved they met the contract's payment conditions before invoicing.
What this practically means
#Executive summary
#Key legal issues
#Pleadings bound the parties
The issue of the lawfulness of termination was not pleaded and the court declined to determine it
The Respondent argued at length on lawfulness of termination in submissions and the issue appeared in demand letters, but the Statement of Claim pleaded only non-payment. The court held that submissions and demand letters are not pleadings and declined to go on a frolic beyond the four corners of the pleadings.
Whether breach by non-payment was proved
Not proved; the invoices were raised prematurely before conditions precedent were satisfied
Under clause 4 and clause 6 of the agreement read with the Statement of Work, payment required onboarding at least 300 new customers, invoices raised at the end of July 2024, and submission and approval of a monthly report. The Claimants' WhatsApp extract was unverifiable and no monthly report or approval was proved, so the invoices were premature and the claim premature.
Evidentiary burden under section 30 of the Act
Section 30 applies only to admissibility; the burden of proof under the Evidence Act still applies
The court held that although section 30 of the Act frees the court from strict evidentiary rules, that applies to admissibility of evidence only. Sections 107(1) and 109 of the Evidence Act place the burden of proving asserted facts on the asserting party.
Legal principles established
#- Submissions and demand letters are not pleadings; parties cannot raise new issues for determination through them
- A stand-alone disputed invoice is not sufficient to prove a debt; supporting evidence of performance or delivery is required
- The party who asserts the affirmative of an issue bears the legal burden of proof, notwithstanding section 30 relaxation of evidentiary rules
- Courts will not rewrite contracts between parties; they are bound by the terms of their contracts
Court orders
#- 1.The Claimants' claim is dismissed with costs of Kshs. 30,000/= to the Respondent
- Jurisdiction invoked
- Small Claims Court Act, section 30 (parties consented to be heard and determined under section 30 of the Act)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Odhiambo & 10 others v Branch Microfinance Bank Limited (Commercial Claim E13069 of 2024) [2025] SCC 56 (KLR)", Case Analysis (2025). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/scc/2025/56/eng@2025-07-01
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.