Gakibe v M. Dalmar Trading Company Limited (Arbitration Cause E034 of 2024) [2025] KEELC 6381 (KLR)
The bottom line
#Kenya's Environment and Land Court confirmed it can hear arbitration challenges where the dispute turns on a lease, rejecting arguments that only the High Court can.
What this practically means
#Executive summary
#Key legal issues
#Jurisdiction of the ELC over challenges arising from arbitration on a lease agreement
The ELC has jurisdiction because the dispute centres on the terms of a lease, an enforceable interest in land under s.13(2)(d) of the ELC Act
The statement of claim in the arbitration was predominantly for damages for breach of the lease, but damages cannot be determined without interpreting the lease terms. The court therefore finds the lease central to the dispute, bringing it within s.13(2)(d) ELC Act, and reads s.17(6) Arbitration Act conformably with Article 162(2)(b).
Predominant purpose argument raised by the Respondent
Rejected - although the claim was predominantly for damages, the lease terms remain central and the ELC is the proper court
Counsel for the Respondent relied on the predominant purpose test to place the matter in the Commercial Division. The court held that damages cannot be assessed in a vacuum without interpreting the lease, so the land dispute is at the centre and the ELC's mandate under the Land Registration Act and Land Act applies.
Legal principles established
#- References to the High Court in pre-2010 legislation, including section 17(6) of the Arbitration Act, must be read together with Articles 162(2)(b) and 165(5)(b) of the Constitution so that disputes over enforceable interests in land, including lease agreements, fall to the Environment and Land Court
Court orders
#- 1.Preliminary Objection dismissed with costs to abide the outcome of the Originating Summons
- Jurisdiction invoked
- Article 162(2)(b) of the Constitution read with Section 13(2) of the Environment and Land Court Act, 2011; Section 17(6) of the Arbitration Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Gakibe v M. Dalmar Trading Company Limited (Arbitration Cause E034 of 2024) [2025] KEELC 6381 (KLR)", Case Analysis (2025). Originating Summons dated 29th April, 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/6381/eng@2025-02-20
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.