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ELCStruck OutNot stated in the judgment· [2025] KEELC 4463 (KLR)

Ahmed (Aka Suleiman Ahmed Ali Mombasa) v Standard Chartered Bank Kenya Limited (Environment & Land Case 35 of 2021) [2025] KEELC 4463 (KLR)

Environment and Land Court
12 June 2025
YAY. M. Angima
1,559 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~6 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court cannot stop a bank from selling charged land; loan disputes belong in the High Court, and filing in the wrong court gets your case struck out.

What this practically means

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Executive summary

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By a plaint dated 17 February 2021, the plaintiff sued the defendant bank seeking a permanent injunction against the intended sale of his property Mombasa/Block IX/333, charged to secure a credit facility of Kshs. 20,000,000 obtained in December 2006, together with an order compelling the defendant to provide the current status of the loan account. He alleged breach of the facility terms through exaggerated demands, failure to account, and advertisement of the suit property for sale, prejudicing his right of redemption. Before pre-trial directions, the court of its own motion raised the issue of its jurisdiction and invited submissions; only the defendant filed submissions. Relying on the Court of Appeal's decision in Cooperative Bank of Kenya Ltd v Patrick Kangethe Njuguna and Diamond Trust Bank Limited v FHH, the court held that the creation of a charge has nothing to do with the 'use' of land within Article 162(2)(b) of the Constitution and Section 13 of the Environment and Land Court Act, and that a suit to restrain a chargee from exercising its statutory power of sale is a commercial matter for the High Court. Invoking Owners of Motor Vessel 'Lilian S' v Caltex Oil, the court held it must down its tools for lack of jurisdiction. The suit was struck out without prejudice to the plaintiff's right to file a fresh suit in the proper forum, with no order as to costs.

Key legal issues

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01

Whether charging of land constitutes 'use' of land conferring jurisdiction on the ELC

Holding

No. The creation of a charge has nothing to do with use of land; it is a security relationship limited to repayment of money advanced, and disputes over enforcement of the charge fall outside ELC jurisdiction.

Reasoning

Following Cooperative Bank of Kenya Ltd v Patrick Kangethe Njuguna, the court adopted the Court of Appeal's interpretation of Article 162(2)(b) and Section 13 of the ELC Act. A charge is an interest in land securing payment of money, with rights limited to realization of the security. Charging land is therefore not 'use' of land, and ELC jurisdiction over contracts connected to land does not extend to mortgages and charges.

p. 2
02

The consequence of lack of jurisdiction

Holding

The suit must be struck out, without prejudice to filing a fresh suit in the proper forum.

Reasoning

Citing Owners of Motor Vessel 'Lilian S' v Caltex Oil (Kenya) Ltd, the court held that jurisdiction is everything and a court must down its tools the moment it finds it lacks jurisdiction. The dispute being commercial, the plaintiff's suit could not be entertained and the natural consequence was striking out, preserving his right to sue in the High Court.

p. 4

Legal principles established

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  • The ELC has no jurisdiction over disputes seeking to restrain a chargee from exercising statutory power of sale; such matters are commercial matters for the High Court
  • A court must down its tools once it finds it lacks jurisdiction

Court orders

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  1. 1.The plaintiff's suit is struck out without prejudice to his right to file a fresh suit before the right forum
  2. 2.No order as to costs
Jurisdiction invoked
Article 162(2)(b) of the Constitution and Section 13 of the Environment and Land Court Act

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, "Ahmed (Aka Suleiman Ahmed Ali Mombasa) v Standard Chartered Bank Kenya Limited (Environment & Land Case 35 of 2021) [2025] KEELC 4463 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/4463/eng@2025-06-12

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