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Court of AppealDismissedNot stated in the judgment

Kihoi v Faulu Microfinance Bank Limited (Civil Application E269 of 2025) [2025] KECA 1581 (KLR)

Court of Appeal of Kenya
3 October 2025
1,740 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~7 min to read original · ~4 min brief

The bottom line

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The Court of Appeal refused to halt a High Court ruling because a judgment that simply dismisses a case cannot be stayed.

What this practically means

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Executive summary

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The Court of Appeal at Nairobi (D. K. Musinga, K. M'Inoti and G. V. Odunga, JJAA) delivered a single judgment on 3rd October 2025 dismissing the applicant's Notice of Motion dated 28th April 2025, brought under sections 3A and 3B of the Appellate Jurisdiction Act and rule 5(2)(b) of the Court of Appeal Rules, seeking stay of execution of the judgment and decree of Muchemi, J delivered on 3rd April 2025 in HCCA No. 9 of 2024 pending an intended appeal. The underlying dispute arose from a loan secured by a registered charge; after the original facility was cleared, the lender advanced further sums relying on the letter of offer to extend the original charge rather than registering a fresh one, and later moved to exercise its statutory power of sale. The applicant's suit in the Ruiru Magistrate's Court was dismissed, and the High Court dismissed her appeal. Before the Court of Appeal, the applicant argued her intended appeal was arguable and that execution would render it nugatory as the charged property was unique family land. The respondent countered that no arguable point of law was raised on a second appeal and that no substantial loss was demonstrated. The Court held that before engaging the twin limbs of rule 5(2)(b) it must be satisfied that a positive order exists capable of being stayed; since the High Court judgment merely dismissed the appeal without directing the applicant to do, refrain from doing, or pay anything, save costs, the order was negative and could not be stayed. The motion was dismissed with costs to the respondent.

Questions the Court framed

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

  1. 1.Whether there exists a positive order capable of being stayed
  2. 2.Whether the intended appeal is arguable
  3. 3.Whether the intended appeal would be rendered nugatory if stay is not granted

Key legal issues

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01

Whether a court can grant stay of execution of a negative order

Holding

No. Before engaging the rule 5(2)(b) twin limbs, the court must first be satisfied that there exists a positive order capable of being stayed. A judgment that merely dismisses a suit or appeal, without directing any party to do, refrain from doing, or pay anything, is a negative order that cannot be stayed.

Reasoning

The Court reaffirmed the principle in Western College of Arts and Applied Sciences v EP Oranga, adopted by its predecessor and affirmed in numerous subsequent decisions. The High Court judgment under challenge did no more than dismiss the applicant's appeal; execution could only lie in respect of costs. The motion was worded as an injunction application but the main orders sought were for stay of a negative order, so the relief did not lie in law.

p. 4
02

Whether the applicant satisfied the rule 5(2)(b) twin threshold of an arguable appeal and nugatory aspect

Holding

The Court did not reach the merits of the twin limbs because the threshold condition of a positive order capable of being stayed was not met; the application was therefore found to be without merit.

Reasoning

Although the applicant argued that the intended appeal raised the question whether a statutory power of sale can be exercised without a validly registered charge, and that the family land was unique and irreplaceable, the Court held that the relief sought under rule 5(2)(b) does not lie in law because the order under challenge was negative.

p. 4

Legal principles established

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  • An applicant under rule 5(2)(b) must demonstrate, first, that the intended appeal is arguable, and secondly, that unless the orders sought are granted the appeal will be rendered nugatory
  • Negative orders cannot be stayed; a stay of execution lies only in respect of a positive order capable of being executed

Court orders

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  1. 1.The Notice of Motion dated 28th April 2025 is dismissed with costs to the respondent

The bench

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

majority

Wrote the judgment

majority
majority
On appeal from
High Court of Kenya at Thika
HCCA No. 9 of 2024 (Civil Appeal No. 9 of 2024)
Jurisdiction invoked
Sections 3A and 3B of the Appellate Jurisdiction Act and rule 5(2)(b) of the Court of Appeal Rules

Relief refused

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Stay of execution of the judgment and decree of Muchemi, J delivered on 3rd April 2025 in HCCA No. 9 of 2024 pending the intended appeal

The judgment under challenge was a negative order that cannot be stayed; it merely dismissed the appeal without directing the applicant to do, refrain from doing, or pay anything, save costs

p. 4

Costs

The Notice of Motion dated 28th April 2025 is dismissed with costs to the respondent.

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.

Negative orders cannot be stayed.
p. 3stay of execution - negative orders
It is trite law that in an application of this nature the applicant must demonstrate, first, that the intended appeal is arguable, and secondly, that unless the orders sought are granted, the appeal will be rendered nugatory.
p. 3rule 5(2)(b) twin threshold
In those circumstances, the order under challenge is a negative one that cannot be stayed.
p. 4application to the facts - negative order
For these reasons, the Notice of Motion dated 28th April 2025 is without merit. It is accordingly dismissed with costs to the respondent.
p. 4final orders and disposition

Issues in the judgment

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minor

The judgment does not state the case number, neutral citation or the name of the applicant on the motion; only the underlying appeal (HCCA No. 9 of 2024) and trial case (SPMCC No. E238 of 2021) are identified

minor

The motion is described on its face as an application for injunction, yet the main orders sought are for stay of execution; the Court noted this internal inconsistency itself

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, "Kihoi v Faulu Microfinance Bank Limited (Civil Application E269 of 2025) [2025] KECA 1581 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/1581/eng@2025-10-03

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