Capiteus Investments Limited v Mugambi (Civil Appeal E649 of 2025) [2025] KEHC 18198 (KLR) (Civ) (4 December 2025) (Judgment) Neutral citation: [2025] KEHC 18198 (KLR) REPUBLIC OF KENYA IN THE HIGH COURT AT NAIROBI (MILIMANI LAW COURTS) CIVIL CIVIL APPEAL E649 OF 2025 WM MUSYOKA, J DECEMBER 4, 2025 BETWEEN CAPITEUS INVESTMENTS LIMITED ................................................ APPELLANT AND LIZA MURUGI MUGAMBI ................................................................ RESPONDENT (Appeal from the judgement and decree of Hon. N. Nkurunah, Adjudicator, of 17th November 2023, in Nairobi SCCC No. E5625 of 2023) Judgment of the Small Claims Court delivered outside the statutory sixty-day period is a nullity and cannot found a competent appeal on the merits. The appeal arose from a judgment of the Small Claims Court awarding the respondent Kshs 201,000 for motor vehicle repair costs. On appeal, the High Court did not determine the merits of the dispute but considered the question of jurisdiction. The court held that under section 34(1) of the Small Claims Court Act, an adjudicator was required to hear and determine a claim within sixty days of filing, failing which the court lost jurisdiction. As the judgment had been delivered outside the statutory period, it was a nullity and incapable of sustaining an appeal on the merits. The High Court consequently vacated the proceedings and judgment of the Small Claims Court and ordered that the suit be transferred to the Magistrate’s Court for hearing and final determination. Reported by James Nginya Jurisdiction – Jurisdiction of Small Claims Court – statutory timeline for determination of claims – requirement that a claim be heard and determined within sixty days of filing – effect of delivery of judgment outside the statutory period – whether such judgment was a nullity – whether an appeal founded on an invalid judgment was competent – Small Claims Court Act, Cap. 10A, section 34(1). Brief facts The respondent, Liza Murugi Mugambi, filed a claim before the Small Claims Court seeking Kshs. 201,000 as reimbursement for repair expenses incurred on a motor vehicle she had purchased from Capiteus Investments https://new.kenyalaw.org/akn/ke/judgment/kehc/2025/18198/eng@2025-12-04 1
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Limited. After hearing evidence from both parties, the Small Claims Court entered judgment in favour of the respondent. Aggrieved by that decision, Capiteus Investments Limited appealed to the High Court, which did not consider the merits of the dispute. Instead the High Court found that the Small Claims Court had delivered its judgment outside the mandatory 60-day period prescribed by section 34(1) of the Small Claims Court Act, thereby acting without jurisdiction. As a result, the judgment was declared a nullity, the appeal on merits was deemed incompetent, and the matter was transferred to the Magistrates’ Court for hearing and determination afresh. Issues Whether the Small Claims Court had jurisdiction to determine the claim outside the sixty-day period prescribed under section 34(1) of the Small Claims Court Act?. Relevant provisions of the Law Small Claims Court Act Section 34 (1)All proceedings before the Court on any particular day so far as is practicable shall be heard and determined on the same day or on a day to day basis until final determination of the matter which shall be within sixty days from the date of filing the claim. Held 1. The claim, at the Small Claims Court, was founded on the Small Claims Court Act, Cap 10A, Laws of Kenya. section 34(1) of the Small Claims Court Act granted the adjudicator a 60-day jurisdiction, from the date of filing, to hear and determine the claim. That would mean any determination, made outside the 60 days, would be null and void, and any appeal, founded on it, would be incompetent, except to the extent that it raises a question of jurisdiction. 2. The claim, in Nairobi SCCCOMM No. E5025 of 2023, was filled on August 1, 2023. 60 days, from August 1 ,2023, lapsed on or before October 1,2023. The final determination, by the trial court, came on November 17, 2023. That was way outside the 60 days allowed by section 34(1) of the Small Claims Court Act, and that determination was a nullity. Consequently, the instant appeal, challenging that invalid judgement, on merits, would be incompetent. 3. The lapse of the jurisdiction, did not render the suit invalid or non-viable. Given that the suit was filed within limitation, the same would still be viable, and can be entertained by the other courts with jurisdiction, such as the Magistrate Court and the High Court. 4. The dispute, before the Small Claims Court, hinged on terms of a contract, around breach. Under the , Cap 22, Laws of Kenya, the limitation period for such claims is 6 years. The breach allegedly occurred in 2023, and the suit was initiated the same year. Appeal allowed Orders i. The proceedings and judgment of the Small Claims Court vacated. ii. The suit was transferred from the Small Claims Court to the Magistrate’s Court at Milimani Commercial Courts for hearing and final determination. Citations Cases None referred to. Statutes Kenya https://new.kenyalaw.org/akn/ke/judgment/kehc/2025/18198/eng@2025-12-04 2
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1. Limitation of Actions Act (Cap 22) In general — (Cited) 2. Small Claims Court Act (Cap 10A) section 34(1) — (Interpreted) Advocates Mr. Mwangi for the appellant. Mr. Njeru for the respondent. JUDGMENT 1. The claim, at the Small Claims Court, was by the respondent, for Kshs. 201,000.00, with respect to costs or expenses for repairs efiected on a motor vehicle, that the respondent had bought from the appellant. The appellant filed a response, denying the claim, and apparently making a counterclaim for Kshs. 668,352, which was not supported by any pleadings. 2. A trial was conducted. The respondent testified and called 2 witnesses. The appellant called 1 witness. Judgement was delivered, on November 17, 2023, in favour of the respondent. 3. The appellant was aggrieved, hence the instant appeal. The grounds are that the special damages awarded were not specifically pleaded nor proved; the expert opinion of an unqualified person was wrongly admitted; the trial court purported to amend a sale agreement post execution and performance of the said agreement; and the evidence by the appellant was ignored. 4. Directions were given on May 2, 2025, for disposal of the appeal, by way of written submissions. I have seen, in the record, written submissions by the appellant, which I have read and considered. 5. I shall determine the appeal herein, not on the basis of merit, but jurisdiction. 6. The claim, at the Small Claims Court, was founded on the Small Claims Court Act, Cap 10A, Laws of Kenya. Section 34(1) of the Small Claims Court Act grants the adjudicator a 60-day jurisdiction, from the date of filing, to hear and determine the claim. That would mean any determination, made outside the 60 days, would be null and void, and any appeal, founded on it, would be incompetent, except to the extent that it raises a question of jurisdiction. 7. The claim, in Nairobi SCCCOMM No. E5025 of 2023, was filed on August 1, 2023. 60 days, from 1st August 2023, lapsed on or before October 1, 2023. The final determination, by the trial court, came on November 17, 2023. That was way outside the 60 days allowed by section 34(1) of the Small Claims Court Act, and that determination was a nullity. Consequently, the instant appeal, challenging that invalid judgement, on merits, would be incompetent. 8. The lapse of the jurisdiction, did not render the suit invalid or non-viable. Given that the suit hereby was filed within limitation, the same would still be viable, and can be entertained by the other courts with jurisdiction, such as the Magistrate Court and the High Court. 9. The dispute, before the Small Claims Court, hinged on terms of a contract, around breach. Under the Limitation of Actions Act, Cap 22, Laws of Kenya, the limitation period for such claims is 6 years. The breach herein allegedly occurred in 2023, and the suit was initiated the same year. 10. Consequently, I do hereby order transfer of the said suit, out of the Small Claims Court, to the Magistrate Court, at the Milimani Commercial Courts, for hearing and final disposal. To facilitate that process, I do hereby vacate the proceedings that were conducted by the Small Claims Court. The appeal is hereby resolved in those terms. Orders accordingly. https://new.kenyalaw.org/akn/ke/judgment/kehc/2025/18198/eng@2025-12-04 3
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DELIVERED, VIA EMAIL, DATED AND SIGNED IN CHAMBERS, AT BUSIA, ON THIS 4TH DAY OF DECEMBER 2025. WM MUSYOKA JUDGE Mr. Arthur Etyang, Court Assistant, Busia. Mr. Michael Onyango, Court Assistant, Milimani, Nairobi. Advocates Mr. Mwangi, instructed by Odhiambo Nyawade & Mwangi, Advocates for the appellant. Mr. Njeru, instructed by Mola Kimosop & Njeru, Advocates for the respondent. https://new.kenyalaw.org/akn/ke/judgment/kehc/2025/18198/eng@2025-12-04 4
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