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Small ClaimsPartially AllowedNot stated in the judgment

Oyuchi v Magut (Commercial Case E731 of 2026) [2026] SCC 209 (KLR)

Small Claims Court
14 August 2026
MAME Aligula
1,089 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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An Eldoret court awarded a landowner Kshs.150,000 she was owed but rejected her bigger claims because she couldn't prove who breached the lease.

What this practically means

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Executive summary

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The Claimant sued for Kshs.400,000/-, costs, and loss of expected profits of Kshs.200,000/- arising from two land lease agreements (4th September 2025 and 31st October 2025), each for Kshs.100,000/-, for the purpose of planting sugarcane. Each agreement contained a clause requiring the defaulting party to refund double the amount paid. The Claimant alleged that on going to prepare the land she found a third party claiming to have leased the same parcel from the Respondent, who promised a refund but failed to pay in full. The Respondent denied breaching, asserting the Claimant herself breached by demanding a refund, but admitted refunding Kshs.50,000/- and that Kshs.150,000/- remained outstanding. The matter proceeded by way of pleadings and documents under Section 30 of the Small Claims Court Act. The Court held that the evidence was insufficient to establish on a balance of probabilities which party breached the agreements, so the double-refund clause could not be invoked and the claim for Kshs.400,000/- failed. The Respondent's admission of the Kshs.150,000/- balance, corroborated by the M-Pesa statement, made that sum recoverable. The lost-profits claim failed for want of any cogent evidence of the profits or their computation. Judgment was entered for the Claimant for Kshs.150,000/-, with costs of Kshs.32,000/- and interest, and a 30-day stay was granted. Claims for the double refund and lost profits were dismissed.

Key legal issues

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01

Whether the Claimant proved her claim on a balance of probabilities

Holding

The claim was proved only to the extent of the admitted outstanding sum of Kshs.150,000/-; the claims for Kshs.400,000/- and Kshs.200,000/- failed

Reasoning

Both lease agreements and payment of Kshs.100,000/- under each were undisputed. However, evidence was insufficient to establish which party breached, so the double-refund clause could not be invoked. The Respondent admitted a balance of Kshs.150,000/- and the M-Pesa statement corroborated the refund of Kshs.50,000/-, making the admitted sum recoverable. The lost-profits claim lacked any documentary or cogent proof.

p. 2
02

Who should bear the costs of the claim

Holding

The Claimant was entitled to the costs of the claim, quantified at Kshs.32,000/-, plus interest

Reasoning

The Respondent admitted owing Kshs.150,000/-, compelling the Claimant to institute proceedings to recover the amount due; the Claimant therefore succeeded at least in part and was entitled to costs.

p. 3

Legal principles established

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  • The burden of proving breach in order to invoke a contractual double-refund/penalty clause rests on the party seeking to invoke it, on a balance of probabilities
  • An amount expressly admitted by a party is recoverable even where the responsible party for breach is not established
  • Claims for lost expected profits require cogent evidence of the profits and the basis of their computation

Court orders

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  1. 1.Judgment entered in favour of the Claimant against the Respondent for Kshs.150,000/- being the admitted outstanding amount
  2. 2.The claim for Kshs.400,000/- is otherwise dismissed
  3. 3.The claim for loss of expected profits in the sum of Kshs.200,000/- is dismissed for want of proof
  4. 4.The claimant shall have costs of ksh 32,000/- and interest of the suit
  5. 5.Stay of 30 days is granted
Jurisdiction invoked
Small Claims Court Act, Section 30 (disposal on pleadings and documents)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Oyuchi v Magut (Commercial Case E731 of 2026) [2026] SCC 209 (KLR)", Case Analysis (2026). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/scc/2026/209/eng@2026-08-14

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