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Court of AppealDismissedCivil Application No. E503 of 2024 (ruling on motion dated 4th October 2024)

Oilfields Engineering & Supplies Ltd v Zakhem International Construction Ltd; Ecobank Kenya Ltd & 3 others (Interested Parties) (Civil Appeal (Application) E504 of 2024) [2025] KECA 1362 (KLR)

Court of Appeal
25 July 2025
3,843 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~15 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that appeals against a judge's recusal decision in arbitration-related proceedings do not require leave under the Arbitration Act.

What this practically means

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Executive summary

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This was a motion on notice dated 4th October 2024 by Oilfields Engineering and Supplies Ltd seeking to strike out Zakhem International Construction Limited's Notice of Appeal dated 3rd October 2024. The notice of appeal challenged orders of P. J. Otieno, J. made in consolidated arbitration-related proceedings (HCARB Nos. E042 and E036 of 2021), including directions for a DCI investigation into alleged attempts to pervert the dispute and directions to proceed with pending applications. Oilfields argued that appeals from interlocutory applications in proceedings under sections 35 and 36 of the Arbitration Act required leave under section 39, without which the notice of appeal was incompetent. Zakhem and Ecobank opposed, contending the appeal arose from a recusal application anchored in Articles 10, 50, 159 and 160 of the Constitution, not from the Arbitration Act. The Court of Appeal (Kiage, Mohammed and Korir, JJA) dismissed the motion. Holding that section 39(3)'s leave requirement applies only to appeals against a High Court decision under section 39(2) - a determination of a question of law arising in the arbitration or a decision confirming, varying or setting aside an award - and that the High Court had determined neither, the Court held leave was not required. It distinguished Anne Mumbi Hinga and aligned itself with the Indian and English authorities cited, emphasising that the arbitral scheme protects the award itself, not every procedural act of a judge. The motion was dismissed with costs on 25th July 2025.

Questions the Court framed

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

  1. 1.Whether the decision of the learned Judge declining a plea for his recusal on grounds of alleged bias, lack of impartiality and denial of the right to fair hearing is one appealable to this Court only with leave under section 39 of the Arbitration Act

Key legal issues

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01

Whether leave under section 39(3) of the Arbitration Act is required before an appeal to the Court of Appeal against a recusal decision made in pending section 35/36 proceedings

Holding

Leave is not required. Section 39(3) applies only to appeals against a High Court decision under section 39(2). The High Court had not determined any question of law arising in the arbitration nor confirmed, varied or set aside the award; the recusal application was anchored in the Constitution and the Judicial Service Act, not the Arbitration Act.

Reasoning

The court read section 39 as a whole, noting that subsection (2) governs decisions determining questions of law arising in the course of arbitration or confirming, varying or setting aside awards. Since the High Court was yet to pronounce itself on the award, the consent/leave limitation in section 39(3) was inapplicable. The recusal application had nothing to do with the process or legal standing of the award and concerned only alleged judicial misconduct on fair hearing. Anne Mumbi Hinga was distinguished because there the High Court had already determined an application under section 36.

p. 7
02

The scope of judicial non-intervention under section 10 of the Arbitration Act

Holding

The principle of party autonomy and judicial non-intervention protects the arbitral award itself from interference, not every procedural decision of a judge handling an arbitral matter; constitutional claims of bias and denial of fair hearing remain appealable without leave.

Reasoning

The court affirmed that section 10 and the UNCITRAL Model Law ethos limit court intervention, and that what the entire arbitral scheme immunises from liberal judicial intervention is the arbitral award itself. It declined to extend that hedge of protection to every procedural deed or misdeed of a judge seized with an arbitral matter, aligning with the Indian and English authorities cited that appeals lie without leave on decisions other than on the award itself.

p. 8

Legal principles established

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  • The leave or consent requirement in section 39(3) of the Arbitration Act applies only to appeals against a High Court decision under section 39(2) - that is, a determination of a question of law arising in the course of arbitration or a decision confirming, varying or setting aside an arbitral award - and does not apply to appeals against interlocutory or procedural decisions such as a recusal ruling made within undetermined section 35/36 proceedings.
  • Section 39 of the Arbitration Act does not immunise every procedural act of a High Court judge seized with an arbitral matter from appellate enquiry; what the arbitral scheme protects from liberal judicial intervention is the arbitral award itself.

Court orders

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  1. 1.The applicant's motion dated 4th October 2024 seeking to strike out the respondent's Notice of Appeal dated 3rd October 2024 was dismissed with costs

The bench

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

majority

Wrote the judgment

majority

Wrote the judgment

majority

Wrote the judgment

On appeal from
High Court at Milimani Law Courts
HCARB No. E042 of 2021, Consolidated with E036 of 2021
Jurisdiction invoked
Article 164(3) of the Constitution; the question was whether leave under section 39(3) of the Arbitration Act, 1995 was required before appealing to the Court of Appeal
Consolidated with
HCARB No. E042 of 2021, HCARB No. E036 of 2021

Relief refused

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Order to strike out the respondent's Notice of Appeal dated 3rd October 2024

The leave requirement under section 39(3) of the Arbitration Act applies only to appeals against a High Court decision under section 39(2), which determines a question of law arising in the arbitration or confirms, varies or sets aside an award; the recusal decision is not such a decision, so the notice of appeal was competent

p. 7

Costs

The same is accordingly dismissed with costs.

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.

The inevitable fate of the motion before us, which Dr. O'Kubasu to his credit conceded was "hazy," is rejection. The same is accordingly dismissed with costs.
p. 8Final orders - dismissal of the striking-out application
The High Court has not rendered itself in either of the above respects and it must therefore follow, per force, that the consent or leave limitation contained in section 39(3) is not applicable to the case at bar.
p. 7Scope of the leave requirement under section 39(3) of the Arbitration Act
We are unprepared to hold that non-intervention by way of appeal, unless with leave, is meant to put a hedge of protection from appellate enquiry on every procedural deed or misdeed of a Judge seized with an arbitral matter.
p. 8Limits of judicial non-intervention in arbitral matters
That application was not an application under Section 39(1) of the Arbitration Act as we have quoted and explained it. Rather, it was an application anchored in the Constitution and the Judicial Service Act and the Regulations thereunder.
p. 7Character of the recusal application as a constitutional, not arbitral, application

Issues in the judgment

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minor

The judgment contains typographical errors in quotations from authorities and statutes (e.g. 'UNICITRAL' for UNCITRAL; 'an International Commercial Arbitration' for 'on International Commercial Arbitration'; 'recconsideration' for 'reconsideration'; 'efi' renderings), and the citation for ZCCM appears as '[2019] FWHC 1285' elsewhere as '[2019] EWHC 1285', suggesting transcription corruption.

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, "Oilfields Engineering & Supplies Ltd v Zakhem International Construction Ltd; Ecobank Kenya Ltd & 3 others (Interested Parties) (Civil Appeal (Application) E504 of 2024) [2025] KECA 1362 (KLR)", Case Analysis (2025). Civil Application No. E503 of 2024 (ruling on motion dated 4th October 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/1362/eng@2025-07-25

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