Ardhilink Limited v Equity Bank Limited & another (Environment and Land Case E023 of 2025) [2025] KEELC 7704 (KLR)
The bottom line
#Kenya's Environment and Land Court confirmed it can hear cases challenging a bank's property auction process, so borrowers can stop sales in that court.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.Whether the Environment and Land Court has jurisdiction to hear and determine the suit challenging the exercise of the 1st Defendant's statutory power of sale
Key legal issues
#Whether the ELC has jurisdiction over a suit challenging the legality of statutory notices and the exercise of statutory power of sale
Yes - the ELC has jurisdiction; a charge is an interest in land and the sale process is governed by the Land Act and Land Registration Act which vest jurisdiction in the ELC
The Court traced jurisdiction to Article 162(2)(b) and Section 13 of the ELC Act, noting Section 13(2)(d) covers contracts and instruments granting an enforceable interest in land. A charge is defined in Section 2 of the Land Act as an interest in land. Sections 104-106 empower the ELC over charge disputes, and Section 150 grants exclusive jurisdiction. Following Lydia Nyambura Mbugua and Thabiti Capital, the dominant issue is the propriety of the sale process, not mere accounts.
Whether the preliminary objection properly raises jurisdiction
The objection failed because the dominant issue in the suit falls squarely within the ELC's jurisdiction
Applying Owners of the Motor Vessel 'Lillian S', the Court was obliged to decide jurisdiction first on the material before it. The Plaintiff's complaint challenged non-service of the 90-day, 40-day and 45-day notices, absence of forced sale valuation, and irregular advertisement - all matters under Part VII of the Land Act, over which the ELC has exclusive jurisdiction.
Legal principles established
#- A charge is an instrument creating an interest in land, and disputes challenging the process of a chargee's exercise of statutory power of sale, including validity of statutory notices and valuation, fall within the jurisdiction of the Environment and Land Court
- Section 150 of the Land Act confers exclusive jurisdiction on the ELC over disputes concerning land under the Act, including the chargee's power of sale under Section 96
- Where a dispute presents mixed issues, the predominant or dominant issue determines jurisdiction; purely commercial disputes over accounts without remedies regarding the charged land belong to the High Court
Court orders
#- 1.The Notice of Preliminary Objection dated 28/03/2025 is dismissed
- 2.No order as to costs
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Article 162(2)(b) of the Constitution read with Section 13 of the Environment and Land Court Act and Sections 2, 104, 105, 106 and 150 of the Land Act
Relief refused
#1st Defendant's prayer that the suit be dismissed in limine for want of jurisdiction and struck out as an abuse of process
The Court found that it has jurisdiction over disputes concerning the exercise of a chargee's statutory power of sale under the Land Act and Land Registration Act
Costs
No order as to costs - the Preliminary Objection was dismissed with no order as to costs
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
it is my finding that this Court has jurisdiction to hear and determine the dispute before it and as such the Notice of Preliminary Objection dated 28/03/2025 lacks merit and is dismissed with no order as to costs.
It is therefore my honest view as has been held by several cases before that even where accounts arise, as it has done in this case, the same cannot be used to deprive this Court of its jurisdiction to hear and determine the dispute before it.
A charge is an instrument creating an interest in land, being an encumbrance on the land, as a guarantee for repayment of debt or for fulfilment of agreed terms between parties to the charge. Therefore, there can be no charge without an interest in land.
Disputes purely over accounts or the amount of debt owed, without seeking remedies regarding the charged land itself, may be heard by the High Court.
Issues in the judgment
#The judgment states the parcels were charged as 'Ruiru/Ruiru East Block 111858' in one passage and 'Ruiru/Ruiru East Block 1/1858' elsewhere, an apparent typographical inconsistency in the parcel number
Judge names of persuasive ELC decisions referenced with inconsistent spellings ('Sila Munyao'/'Silas Munyao') and the Court of Appeal is referred to both as finding jurisdiction lay elsewhere and being distinguishable
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ardhilink Limited v Equity Bank Limited & another (Environment and Land Case E023 of 2025) [2025] KEELC 7704 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/7704/eng@2025-11-06
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.