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Case Brief · caselaw.co.ke
Court of AppealAllowedNot stated in the judgment· [2025] KECA 1698 (KLR)

Mjad Investments Limited & 1 other v Fujita Corporation Kenya Branch

Court of Appeal of Kenya
24 October 2025
1,758 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that preliminary objections cannot rely on disputed facts, reviving a Mombasa land dispute for full hearing.

What this practically means

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Executive summary

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This was an appeal to the Court of Appeal at Mombasa against a ruling of L.L. Naikuni, J. of the Environment and Land Court dated 7th March 2023, striking out the appellants' suit with costs for want of jurisdiction. The appellants, claiming to be registered owners of two parcels in Mombasa, sued the respondent for trespass, seeking injunctions, mesne profits and damages. They alleged the respondent occupied the land without right, and after negotiations for a two-year lease over part of it failed, filed suit. The respondent raised a preliminary objection contending that the dispute concerned a controlled tenancy governed by the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act (Cap. 301) and belonged to the Business Premises Rent Tribunal. The learned Judge upheld the objection, holding that an oral lease amounted to a controlled tenancy under section 2 of that Act. The Court of Appeal, comprising Tuiyott, Achode and Muchelule, JJA, unanimously allowed the appeal. It held that a preliminary objection must rest on legal grounds and assumes the truth of the facts alleged by the opposing party; here ownership of the land, the alleged compulsory acquisition, and the very existence of a tenancy were all contested, so the objection was improperly taken. The Court found the Judge misapprehended the facts in holding that a controlled tenancy existed, and that the dispute over title, occupation and use of land fell squarely within the ELC's jurisdiction under Article 162(2)(b) of the Constitution, section 13 of the Environment and Land Court Act and section 150 of the Land Act, 2012. The Court set aside the ruling's orders and decree, directed that the claim be heard by a Judge other than Naikuni, J., and awarded the appellants the costs of the appeal.

Key legal issues

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01

Whether a preliminary objection founded on contested facts is maintainable

Holding

It is not; a preliminary objection must be based on legal grounds only and assumes the truth of the facts alleged by the opposing party. Where facts such as ownership and the existence of a tenancy are disputed, the objection cannot stand.

Reasoning

Applying Mukisa Biscuits and Andrew Mwaura Githinji, the Court held that a preliminary objection proceeds on the basis that the facts alleged by the opposing party are true and that the court need not ascertain disputed facts. Here, ownership of the suit properties was contested, the alleged compulsory acquisition was disputed, and whether a tenancy existed was challenged. Since these contested facts would have to be ascertained, the preliminary objection was improperly taken and the learned Judge erred in sustaining it.

p. 3
02

Whether the dispute was a controlled tenancy matter for the Business Premises Rent Tribunal or a land dispute for the Environment and Land Court

Holding

The dispute concerned contested ownership, occupation and title to land and therefore fell within the jurisdiction of the Environment and Land Court; the learned Judge misapprehended the facts in finding a controlled tenancy.

Reasoning

The appellants claimed their title to the suit properties had been interfered with by the respondent without colour of right or permission, while the respondent denied the appellants' ownership, asserting compulsory acquisition by the Government in 2014. The alleged tenancy arose only from an unexecuted draft lease proposed by the appellants. With ownership and existence of a tenancy both contested, the Court held the Judge erred in finding a controlled tenancy and in declining jurisdiction; the dispute belonged to the ELC.

p. 4

Legal principles established

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  • A preliminary objection must rest on pure questions of law and proceeds on the assumption that the facts alleged by the opposing party are true; where the facts are disputed and must be ascertained, the objection is improperly taken.
  • Where ownership or occupation of land is contested, the dispute over use, occupation and title to land falls within the jurisdiction of the Environment and Land Court under Article 162(2)(b) of the Constitution, section 13 of the Environment and Land Court Act and section 150 of the Land Act, 2012.

Court orders

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  1. 1.The appeal is allowed
  2. 2.The orders and decree contained in the ruling delivered on 7th March 2023 are set aside
  3. 3.The appellants' claim shall be heard and determined by a Judge other than the learned L.L. Naikuni, J.
  4. 4.The costs of the appeal be paid to the appellants by the respondent
On appeal from
Environment and Land Court, Mombasa
Not stated in the judgment
Jurisdiction invoked
First appellate jurisdiction over the Environment and Land Court (appeal from the ruling dated 7th March 2023); substantive jurisdiction under Articles 162(2)(b) and 165(5)(b) of the Constitution, section 13 of the ELC Act and section 150 of the Land Act, 2012

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, "Mjad Investments Limited & 1 other v Fujita Corporation Kenya Branch", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/1698/eng@2025-10-24

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