Economy Network Limited & 2 others v Equity Bank & 2 others
The bottom line
#Kenya's Court of Appeal blocked the transfer of auctioned land pending appeal, finding the sale's legality debatable and damages an inadequate remedy.
What this practically means
#Executive summary
#Key legal issues
#Arguability of the intended appeal
The intended appeal was arguable because the applicants raised whether the correct public auction procedures, including statutory notices and section 99(3) of the Land Act, were followed.
The Court reviewed the draft memorandum of appeal, which faulted the learned judge on service of statutory notices, undervaluation of the suit property and fraudulent conduct of the auction. Applying the settled test that an arguable appeal need not succeed but need only be deserving of consideration, the Court found the applicants satisfied the first limb of the rule 5(2)(b) threshold.
Whether the appeal would be rendered nugatory
The appeal would be rendered nugatory if the injunction were refused because the suit property would be transferred to the 3rd respondent and possibly onward to third parties, with her financial capability to compensate undisclosed.
The Court weighed the conflicting claims of the parties. Transfer of the suit property to the 3rd respondent, who might resell to third parties, would make recovery impossible if the appeal succeeded. Since the 3rd respondent did not disclose her financial capacity to compensate the applicants in damages, damages would not be an adequate remedy, satisfying the second limb.
Legal principles established
#- An applicant under rule 5(2)(b) must satisfy both twin principles: an arguable appeal and that the appeal will be rendered nugatory absent relief.
- A single bona fide arguable ground suffices; the applicant need not show the ground will succeed.
- An appeal will be rendered nugatory where what is sought to be stayed is irreversible or not compensable by damages.
Court orders
#- 1.Temporary injunction restraining the respondents from dealing with land parcel Kisumu Koru/1279 pending the hearing and determination of the applicant's appeal
- 2.Costs to abide the appeal
- On appeal from
- High Court
- Jurisdiction invoked
- Rule 5(2)(b) of the Court of Appeal Rules
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Economy Network Limited & 2 others v Equity Bank & 2 others", Case Analysis (2025). Civil Application No. E021 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/1051/eng@2025-06-13
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.