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Court of AppealDismissedNakuru Civil Appeal (from Nakuru High Court Civil Case No. 79 of 2016)· [2025] KECA 85 (KLR)

Mjengo Limited v Menengai Oil Refineries Limited

Court of Appeal of Kenya
24 January 2025
4,066 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~16 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal dismissed a distributor's appeal, confirming a Kshs. 38.7 million debt because unpleaded counter-claims and unproven special damages cannot win cases.

What this practically means

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Executive summary

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This was a first appeal from the judgment of the High Court at Nakuru (Nakuru High Court Civil Case No. 79 of 2016, delivered 22nd May 2019), in which the respondent manufacturer recovered Kshs. 38,703,041 from the appellant distributor for unpaid goods supplied in August and September 2011. The appellant advanced ten grounds, summarised as: lack of strict proof of special damages; whether the commission it formerly received was contractual or ex-gratia; promissory estoppel; the fatality of its failure to counter-claim; adequacy of the respondent's proof; and alleged selectivity by the trial judge in evaluating evidence. The Court of Appeal, per a unanimous bench of Warsame, Mativo and Gachoka, JJ.A, reaffirmed that a first appeal is a retrial but that appellate courts should not lightly disturb trial findings of fact. It held that the special damages were specifically pleaded in the plaint and strictly proved through invoices that the appellant's witness did not object to; that the appellant's failure to plead a counter-claim or set-off for the alleged commission was fatal, a court not being able to grant an unpleaded counter-claim; and that the questions whether the commission was contractual and whether promissory estoppel applied were thereby rendered otiose, the court declining to act in vain. It further held that the elements of promissory estoppel were absent on the facts, and that the trial judge had considered all the evidence. The appeal was dismissed with costs to the respondent.

Key legal issues

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01

Proof of special damages

Holding

The respondent's claim for Kshs. 38,703,041 was specifically pleaded in the plaint and strictly proved through uncontroverted invoices, delivery notes and testimony; the trial court's finding was affirmed.

Reasoning

The plaint particularised the supply of goods, their value, the refusal to pay and the interest claim. The invoices were produced by the respondent's managing director and accountant, and the appellant's witness expressly did not object to them in cross-examination, rendering them uncontroverted. The court therefore found the required standard of proof met and affirmed the trial judge.

p. 5
02

Failure to file a counter-claim or set-off

Holding

The appellant's failure to plead a counter-claim or set-off for commission was fatal; an unpleaded claim cannot support a defence or found relief.

Reasoning

Relying on Nairobi City Council v Thabiti Enterprises, the court held a court should not grant a counter-claim unless pleaded. Even if the commission had been contractual, the respondent could not be condemned for breach because the appellant never counter-claimed. The trial court's hands were tied by the absence of supporting pleadings.

p. 5
03

Contractual status of commission and promissory estoppel

Holding

These issues were rendered otiose by the findings on pleading and proof; and in any event the elements of promissory estoppel did not exist on the facts.

Reasoning

Having affirmed the findings on special damages and the fatal absence of a counter-claim, the court declined to determine whether the commission was contractual or ex-gratia, as it would serve no utilitarian purpose. On promissory estoppel, the termination of the ex-gratia scheme was communicated, the appellant continued trading, and no clear and unequivocal promise intended to create legal relations and acted upon to detriment existed.

p. 7
04

Selectivity in evaluation of evidence

Holding

The learned judge considered all the evidence; the ground of selectivity failed.

Reasoning

A judgment need not be a transcript of proceedings; it must embody all material evidence. The appellate court must juxtapose the evidence against the judgment to determine whether there is a basis for interference. Having read the evidence and the impugned judgment, the court was satisfied the judge considered all the evidence tendered.

p. 6

Legal principles established

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  • Special damages must be both specifically pleaded and strictly proved before a court can award them; they cannot be inferred from the act in question.
  • A court cannot grant relief on a counter-claim or set-off that has not been pleaded; failure to counter-claim is fatal to a defendant's unpleaded demand.
  • On a first appeal, the court is obligated to re-evaluate all the evidence and arrive at its own independent conclusions, while bearing in mind it did not see or hear the witnesses.
  • A trial court must evaluate all the evidence and its conclusion must account for all the evidence; failure to deal with a material fact amounts to misdirection justifying appellate interference only if material to the judgment.

Court orders

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  1. 1.Dismissal of the appeal
  2. 2.Costs of the appeal awarded to the respondent
On appeal from
High Court of Kenya at Nakuru
Nakuru High Court Civil Case No. 79 of 2016
Jurisdiction invoked
First appeal to the Court of Appeal under the Court of Appeal jurisdiction (appellant sought to set aside the High Court judgment; the judgment itself does not quote the specific provision)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Mjengo Limited v Menengai Oil Refineries Limited", Case Analysis (2025). Nakuru Civil Appeal (from Nakuru High Court Civil Case No. 79 of 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/85/eng@2025-01-24

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