APA Homes (K) Limited v Omar & another (Civil Appeal (Application) E040 of 2024) [2025] KECA 1035 (KLR)
The bottom line
#Kenya's Court of Appeal refused to pause a Kshs.16 million judgment against APA Homes but allowed it to keep the money safe in escrow while the appeal continues.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.Whether this Court has jurisdiction to determine the application in the absence of a Notice of Appeal on record
- 2.Whether the stay of execution orders sought under rule 5(2)(b) should issue
Key legal issues
#Jurisdiction to entertain a rule 5(2)(b) application absent a notice of appeal on record
The Court had jurisdiction because a Notice of Appeal dated 7th March 2024 was in fact filed within 14 days of the judgment, as disclosed by the Record of Appeal, even though counsel failed to transmit it as directed.
Relying on Safaricom Ltd v Ocean View Beach Hotel and Abok James Odera, the Court held that the lodging of a notice of appeal is what confers jurisdiction on the Court in an application under rule 5(2)(b). A review of the Record of Appeal disclosed that the notice was filed within time, so the objection to jurisdiction failed.
Arguability of the intended appeal
The appeal was arguable: the grounds on the alleged director's lack of authority to execute the sale agreement and that the applicant never received the purchase price were worthy of consideration.
Applying Cleophas Wasike v Mucha Swala, the Court reiterated that an applicant need not show overwhelming probability of success, only merit. The proposed grounds concerning the unauthorised director and non-receipt of the Kshs.16,000,000 met that threshold.
Whether the appeal would be rendered nugatory absent stay
The applicant failed on the nugatory limb: the decree is a money decree, the applicant did not properly argue the respondents could not refund, and the applicant was pleading a relief on behalf of third parties.
Applying Kenya Hotel Properties v Willesden Properties, the Court noted that a money decree does not automatically defeat stay, but the applicant must show the respondent is a person of straw or undue hardship. The applicant made no such case; the suit apartment was already in a third party's hands and charged to a bank, and the applicant was already a beneficiary of the money allegedly advanced to it.
Legal principles established
#- The filing of a notice of appeal is what confers jurisdiction on the Court of Appeal to entertain an application under rule 5(2)(b).
- An arguable appeal need not be one that must succeed; it suffices that it is not frivolous and worthy of consideration.
- The twin principles under rule 5(2)(b) - arguability and nugatory-ness - must be satisfied conjunctively.
- When jurisdiction of a court is challenged, the court must determine that issue first.
Court orders
#- 1.Notice of Motion dated 7th March 2024 dismissed
- 2.Applicant to deposit the decretal sum of Kshs.16,000,000 in an escrow account to be opened in the names of the advocates for the two parties in a reputable bank to be agreed upon by the parties within 30 days of the ruling, failing which the respondents will be at liberty to execute
- 3.Costs of the application to abide the outcome of the appeal
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- On appeal from
- Environment and Land Court
- Mombasa ELC No. 111 of 2018
- Jurisdiction invoked
- Rule 5(2)(b) of the Court of Appeal Rules, 2022
Relief refused
#Stay of execution of the ELC judgment pending appeal
Applicant failed to satisfy the conjunctive twin principles under rule 5(2)(b), particularly the nugatory limb, as the decree is a money decree and the applicant did not demonstrate the respondents would be unable to refund
Costs
The costs of this application will abide the outcome of the appeal.
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
Accordingly, the Notice of Motion dated 7th March 2024 is hereby dismissed.
we hereby order that the applicant deposits the decretal sum of Kshs.16,000,000 in an escrow account to be opened in the names of the advocates for the two parties in a reputable bank to be agreed upon by the parties within 30 days of this ruling, failure to which the respondents will be at liberty to execute.
If there is no notice of appeal lodged, one cannot get an order under Rule 5 (2) (b)
The twin principles must be satisfied conjunctively.
The costs of this application will abide the outcome of the appeal.
Issues in the judgment
#The applicant's name appears inconsistently within the judgment - the Housing Finance case is cited once as 'Housing Finance Company of Kenya vs.5 Sharok Kher Mohamed Ali Hirji' and later without the stray figure; also the Kenya Hotel Properties citation omits parentheses ('401 KLR')
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (2)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Ibrahim v Mutava & another (Land Case Appeal E020 of 2025) [2026] KEELC 583 (KLR)[2026] KEELC 583 (KLR)10 Feb 2026applied
- Mukusya & another v Kaunda alias Teresia Kanini Kaunda (Environment and Land Appeal E076 of 2024) [2025] KEELC 6013 (KLR)[2025] KEELC 6013 (KLR)16 Sept 2025applied
Cite this brief
#Cite this brief
Caselaw, "APA Homes (K) Limited v Omar & another (Civil Appeal (Application) E040 of 2024) [2025] KECA 1035 (KLR)", Case Analysis (2025). Civil Application No. E120 of 2024 (Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/1035/eng@2025-06-05
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.