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Court of AppealAllowedApplication dated 19th December 2024 (Civil Application, intended appeal from High Court Petition No. E307 of 2023)

Milestone Games Limited v Consumer Federation of Kenya & 7 others (Civil Application E717 of 2024) [2025] KECA 453 (KLR)

Court of Appeal
7 March 2025
1,224 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~5 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal paused a High Court betting-advertising case so Milestone Games can appeal its exclusion, confirming stays are granted only in exceptional situations.

What this practically means

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Executive summary

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This was an interlocutory application dated 19th December 2024 in the Court of Appeal by Milestone Games Limited, an intended appellant aggrieved by a ruling of the High Court (L.N. Mugambi, J) dated 4th October 2024 refusing to join it as an interested party in, or to set aside, a consent order of 16th January 2024 in Petition No. E307 of 2023. The consent order required the Betting Control and Licensing Board to enforce its directives of 11th August 2023, requiring all gaming operators to cease using the speed dial advertising feature. Milestone Games sought a stay of further proceedings in the High Court petition pending its intended appeal, contending it had an identifiable legal stake, that the consent order would affect its business of over 126 employees and its sporting contracts, and that its right to a fair hearing was compromised. The Communication Authority of Kenya opposed, arguing no arguable appeal or nugatory impact, while noting it did not object to the applicant's joinder. Counsel for the applicant relied on Pravin Bowry v John Ward on joinder principles. The Court applied the twin test from Stanley Kang'ethe Kinyanjui v Tony Keter (arguability and nugatory impact) and the exceptional nature of stay of proceedings per Kenya Wildlife Service v James Mutembei. Finding the intended appeal arguable and likely to be rendered nugatory without a stay, the Court allowed the application, stayed the High Court proceedings until the appeal is determined, directed priority hearing, and made no order as to costs. This ruling binds the High Court, which may not resume the petition until the appeal is concluded.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the applicant's intended appeal is arguable
  2. 2.Whether, if stay of the High Court proceedings is not granted, the intended appeal will be rendered nugatory

Key legal issues

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01

Test for granting stay of proceedings pending appeal

Holding

The Court applied the twin test of an arguable appeal and nugatory impact, and emphasised that stay of proceedings is exceptional.

Reasoning

The Court, at the interlocutory stage, confined itself to whether the intended appeal was arguable on even one point and whether refusal of stay would render it nugatory, citing Stanley Kang'ethe Kinyanjui v Tony Keter. It also invoked Kenya Wildlife Service v James Mutembei for the proposition that staying proceedings is a serious, exceptional measure touching fair hearing and expeditious disposal rights. On the draft memorandum of appeal and the applicant's admitted position in the regulated industry, both limbs were satisfied.

p. 3
02

Arguability of the intended appeal on the right to be heard before orders affecting the applicant

Holding

The intended appeal was not frivolous; it raised arguable issues on the applicant's identifiable legal stake and right to a hearing.

Reasoning

The Court noted the grounds in the draft memorandum of appeal, the admission that the applicant is one of about 100 gaming operators to whom the 11th August 2023 letter was addressed, and that the applicant uses speed dial on its browsers. It also weighed the risk to over 126 jobs, sporting contracts and clients, concluding the appeal would be rendered nugatory without the stay.

p. 3

Legal principles established

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  • An applicant for stay of proceedings must demonstrate that the appeal is arguable, even on one point only, and that the appeal will be rendered nugatory if stay is not granted.
  • Stay of proceedings is granted only in exceptional instances, upon sufficient cause, and not where the applicant merely seeks to delay or obstruct justice.
  • Staying proceedings impacts a litigant's right to a fair hearing and to expeditious disposal of the matter.

Court orders

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  1. 1.Stay of proceedings in High Court Petition No. E307 of 2023 in the Constitutional and Human Rights Division at Milimani until the appeal has been heard and determined
  2. 2.The intended appeal to be fixed for hearing on a basis of priority as an interlocutory appeal
  3. 3.No order as to costs

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority
majority
majority
On appeal from
High Court of Kenya at Nairobi, Constitutional and Human Rights Division
Petition No. E307 of 2023
Jurisdiction invoked
Appellate jurisdiction of the Court of Appeal over an interlocutory ruling of the High Court, with a stay-of-proceedings application under the Court's rules pending the intended appeal

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

It is only in exceptional instances that this Court will stay proceedings going on in the trial court. There has to be suficient cause, and it should be clear that the applicant does not merely want to delay or obstruct justice.
p. 3Exceptionality of stay of proceedings
We do not find that the applicant’s intended appeal is a frivolous one. It is arguable.
p. 3Arguability of the intended appeal
These are the reasons why we allow the application, and stay the proceedings in the High Court Petition No. E307 of 2023 in the Constitutional and Human Rights Division at Milimani until the appeal has been heard and determined.
p. 3Final orders - stay granted
We make no order as to costs.
p. 3Costs

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, "Milestone Games Limited v Consumer Federation of Kenya & 7 others (Civil Application E717 of 2024) [2025] KECA 453 (KLR)", Case Analysis (2025). Application dated 19th December 2024 (Civil Application, intended appeal from High Court Petition No. E307 of 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/453/eng@2025-03-07

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