Paulo v Citi Motors Limited (Commercial Case E194 of 2026) [2026] SCC 112 (KLR)
The bottom line
#A Mombasa court protected a car buyer from dealer interference after the dealer failed to secure required PSV insurance on time.
What this practically means
#Executive summary
#Key legal issues
#Prima facie case
Established - the Respondent delayed taking out a PSV insurance cover until after the suit was filed.
The court found the applicant had since 20/3/2025 asked the Respondent to change the insurance of the motor vehicle from a private cover to a PSV cover, which was initially done but later lapsed, necessitating the application. The Respondent only remedied the situation on 5/3/2026, after the suit was filed, leading the court to reject the claim of good faith.
Serious issue to be tried / irreparable harm
Loss of user of the vehicle as an uber raised a serious issue to be tried.
The applicant showed she was unable to use the motor vehicle as an uber as intended because the PSV licence was not taken out, and apprehended arbitrary conduct by the Respondent in demanding an extra Kshs.16,000 without justification. The court accepted loss of user as a serious issue to be tried per the Dickways Construction authority.
Balance of convenience
Tilted in favour of the Claimant, who stood to suffer greater hardship.
The court considered the Respondent's annexures an afterthought and an attempt to belatedly save face, and on a balance of convenience found the Claimant stood to suffer greater hardship were the application disallowed. Preservation of the status quo in the interest of justice favoured granting the injunction.
Legal principles established
#- An injunction is an equitable and discretionary remedy granted when the subject matter requires protection and maintenance of the status quo.
Court orders
#- 1.A temporary injunction restraining Citi Motors Limited, their agents, servants and/or any person acting under their authority or instructions from interfering with the quiet possession of motor vehicle KDS982 A Nissan Dayz pending hearing and determination of the suit
- Jurisdiction invoked
- Not stated in the judgment (interlocutory application in a suit before the Small Claims Court)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Paulo v Citi Motors Limited (Commercial Case E194 of 2026) [2026] SCC 112 (KLR)", Case Analysis (2026). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/scc/2026/112/eng@2026-03-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.