Directline Assurance Company Limited v Ngugi (Civil Appeal E508 of 2024) [2025] KEHC 15262 (KLR) (27 October 2025) (Judgment) Neutral citation: [2025] KEHC 15262 (KLR) REPUBLIC OF KENYA IN THE HIGH COURT AT NAIROBI (MILIMANI LAW COURTS) CIVIL APPEAL E508 OF 2024 WM MUSYOKA, J OCTOBER 27, 2025 BETWEEN DIRECTLINE ASSURANCE COMPANY LIMITED .......................... APPELLANT AND PIUS KIOI NGUGI .............................................................................. RESPONDENT (Appeal from the judgement and decree, of Hon. G. Simatwo, Adjudicator/ Resident Magistrate, of 12th January 2025, in Milimani SCCC No. E2418 of 2023) JUDGMENT 1. This appeal arises from a matter filed under the Small Claims Court Act, Cap 10A, Laws of Kenya. The claim, at the Small Claims Court, was filed on 30th May 2023. The judgement on it was delivered on 12th January 2024. Under Section 34 (1) of the Small Claims Court Act, the Small Claims Court has a 60-day jurisdiction, to hear and determine the claims filed before it. That would mean that, upon expiry of that 60-day mandate, jurisdiction would be lost, and any determination outside that 60 days would be invalid. 2. The claim at the Small Claims Court, which gave rise to these appeal proceedings, was filed on 30th May 2023. 60 days from 30th May 2023 lapsed on or about 30th July 2023. The Small Claims Court could only hear and determine the claim within that 60-day window. Anything done after expiration of the 60 days would be a nullity. The determination on 12th January 2024 came way outside the 60 days, and it was, therefore, a nullity. 3. The judgement, delivered by the trial court, was in favour of the respondent, and against the appellant. As the judgement was null, for the reasons given above, the instant appeal cannot be viable, as it challenges that judgement on its merits, rather than on grounds of jurisdiction. https://new.kenyalaw.org/akn/ke/judgment/kehc/2025/15262/eng@2025-10-27 1
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4. What suffers deficiency is the Small Claims Court, in terms of jurisdiction, upon expiration of the 60day period. The claim itself would be unaffected. It is a civil claim, filed within the requisite limitation period. Loss of jurisdiction, by the Small Claims Court, under the Small Claims Court Act, does not render the suit incompetent. The claim would still be viable and competent, and can be determined by other civil courts, like the Magistrate’s Court and the High Court, for those other courts would still have jurisdiction, over civil claims of the nature of the claim that was before the Small Claims Court. 5. The claim cannot, however, be handled by the Magistrate’s Court or the High Court, as a claim in the Small Claims Court. It has to be transferred out of the Small Claims Court, to the Magistrate’s Court or the High Court, for those courts to assume jurisdiction over, and dispose of it. I have jurisdiction, under Article 165(5) of the Constitution, to supervise what happens at both the Small Claims Court and the Magistrate’s Court. I can give directions, with respect to matters filed in those courts, inclusive of ordering transfer of the matters from one court to the next. 6. Consequently, I do hereby order transfer of the claim at the Small Claims Court, to the Chief Magistrate’s Court, at the Milimani Commercial Court, for hearing and final disposal. I do so in exercise of the power that section 18 of the Civil Procedure Act, Cap 21, Laws of Kenya, vests in me as a Judge of the High Court. This appeal is disposed of in those terms. Orders accordingly. DELIVERED, VIA EMAIL, DATED AND SIGNED IN CHAMBERS, AT BUSIA, ON THIS 27TH DAY OF OCTOBER 2025. WM MUSYOKA JUDGE Mr. Arthur Etyang, Court Assistant, Busia. Mr. Michael Onyango, Court Assistant, Milimani, Nairobi. Advocates Ms. Kahiti, instructed by COOTOW & Associates, Advocates for the Appellant. Mr. Nabende, instructed by Blayer & Company, Advocates for the Respondent. https://new.kenyalaw.org/akn/ke/judgment/kehc/2025/15262/eng@2025-10-27 2
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