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Court of AppealDismissedApplication dated 15th July 2024 (Civil Application)· [2025] KECA 1317 (KLR)

Cytonn Investments Management Plc v Margaret Mary Njuguna

Court of Appeal
18 July 2025
2,036 words in judgment
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The bottom line

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Kenya's Court of Appeal refused Cytonn permission to appeal a ruling enforcing a Kshs. 41 million arbitral award, confirming appeals from arbitration decisions are extremely rare.

What this practically means

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Executive summary

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This Court of Appeal decision (Mumbi Ngugi, P. Nyamweya and W. Korir, JJA) arose from a High Court ruling of 14th June 2024 (F Mugambi J) in consolidated miscellaneous arbitrations. The High Court struck out Cytonn's application to set aside an arbitral award of Kshs. 41,404,959 plus compound interest, finding it filed out of time under section 35(3) of the Arbitration Act, and simultaneously allowed the respondent's application for enforcement under section 36, adopting the award as a judgment of the court. Cytonn sought leave to appeal and stay of execution under rule 5(2)(b) and rules 41, 44 and 45 of the Court of Appeal Rules, 2022, arguing that the High Court failed to consider its section 37 objections (absence of a valid arbitration agreement, public policy violations, and arbitrator bias), miscomputed the 90-day period under section 35(3) read with section 57 of the Interpretation and General Provisions Act, and condemned it unheard contrary to article 50 of the Constitution. The court applied the Supreme Court's framework in Nyutu Agrovet, Synergy and Geo Chem, under which appeals from section 35 decisions lie only where the High Court stepped outside the statutory grounds and made a decision so grave and manifestly wrong that it closed the door of justice. Finding that Cytonn's arguments disclosed no such exceptional circumstances or grave injustice, the court declined leave, held it unnecessary to consider the rule 5(2)(b) question, and dismissed the application with costs to the respondent.

Key legal issues

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01

Threshold for leave to appeal from a High Court decision under section 35 of the Arbitration Act

Holding

Leave was refused because the applicant's grievances fell within the ordinary section 35/37 framework and did not disclose the grave, manifestly wrong decision that closes the door of justice, as required by Nyutu Agrovet and Synergy.

Reasoning

The court applied the Supreme Court's governing pronouncements in Nyutu Agrovet, Synergy and Geo Chem, which confine appeals from section 35 decisions to cases where the High Court stepped outside the statutory grounds and occasioned grave injustice. The applicant's complaints - erroneous computation of the 90-day timeline, failure to consider its section 37 replying affidavit, absence of a valid arbitration agreement, bias and public policy - did not amount to such exceptional circumstances. Having declined leave, the court found it unnecessary to consider the rule 5(2)(b) merits question.

p. 3

Legal principles established

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  • No appeal lies to the Court of Appeal from a decision of the High Court under section 35 of the Arbitration Act, except in the narrow circumstances set by the Supreme Court in the Nyutu Agrovet and Synergy cases, where the High Court stepped outside the grounds in section 35 and made a decision so grave as to close the door of justice
  • Arguments alleging errors in computation of the 90-day period under section 35(3) and failure to consider section 37 objections do not meet the exceptional threshold for leave to appeal from a section 35 decision

Court orders

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  1. 1.The application dated 15th July 2024 is dismissed with costs to the respondent
  2. 2.Leave to appeal against the ruling of the High Court is declined
On appeal from
High Court
Misc Arb No. 030 of 2023 (consolidated with Misc Arb No. E018 of 2023)
Jurisdiction invoked
Rule 5(2)(b) and rules 41, 44 and 45 of the Court of Appeal Rules, 2022 - application for leave to appeal and stay of execution

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, "Cytonn Investments Management Plc v Margaret Mary Njuguna", Case Analysis (2025). Application dated 15th July 2024 (Civil Application). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/1317/eng@2025-07-18

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