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ELCPartially AllowedNot stated in judgment

Northstream Limited v Registered Trustees of the Comboni Sisters (Land Case (Originating Summons) E063 of 2024) [2025] KEELC 8379 (KLR)

High Court of Kenya
1 December 2025
3,750 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~15 min to read original · ~4 min brief

The bottom line

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The High Court refused to remove an arbitrator because the challenge was filed late, but preserved the disputed property pending arbitration.

What this practically means

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Executive summary

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The High Court (Christine Ochieng, J) determined two applications arising from a lease dispute between NorthStream Limited (applicant) and the Registered Trustees of Comboni Sisters (respondent) over L.R. No. 4857/22, leased in January 2021 for development of a fuel station and retail building. The lease was terminated and arbitration was commenced before Nyambura Musyimi, sole arbitrator. The Applicant's Originating Summons dated 7th October 2024 sought removal of the arbitrator and annulment of the arbitral proceedings and her ruling of 24th June 2024 dismissing a recusal challenge, alleging bias because the arbitrator chairs the Human Resources and Spiritual Nurture Committee at Daystar University, and claiming the lease was terminated on religious grounds against its Muslim director. The court held the application was time-barred under Section 14(3) of the Arbitration Act, the 30-day period having lapsed on 7th August 2024, and that no bias was demonstrated under the objective fair-minded observer test, the dispute being contractual in nature. The Respondent's Chamber Summons dated 16th April 2025 sought injunction and status quo orders under Section 7 of the Arbitration Act, alleging the Applicant intended to demolish structures on the suit property without paying rent or providing a bank guarantee. Finding the subject matter needed preservation to allow the arbitration to conclude, the court granted status quo orders over the existing buildings and directed adherence to the orders of 2nd April 2025, with costs in the cause. Judgment delivered at Nairobi on 1st December 2025.

Questions the Court framed

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

  1. 1.Whether the Court should uphold the challenge lodged and remove Nyambura Musyimi as the sole arbitrator in the dispute between the parties herein.
  2. 2.Whether the Applicant has made a case for annulment of arbitral proceedings presided over by Nyambura Musyimi and quash her Ruling dated 24th June 2024.
  3. 3.Whether the Respondent met the threshold for issuance of status quo orders pending arbitration proceedings?

Key legal issues

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01

Timeliness of an application under Section 14(3) of the Arbitration Act challenging an arbitrator's rejection of a recusal challenge

Holding

The Applicant's Originating Summons filed on 8th October 2024 was time-barred, having been filed more than thirty days after the Arbitrator's decision of the challenge was communicated

Reasoning

Section 14(3) requires an application to the High Court within thirty days of being notified of the decision rejecting the challenge. Courts have interpreted notice of decision by reference to when the tribunal notifies parties that the decision/award is ready for collection. The Arbitrator notified the parties on 8th July 2024, so the deadline was 7th August 2024; the summons filed 8th October 2024 was out of time.

p. 6
02

Whether the sole arbitrator's role at Daystar University gave rise to a real possibility of bias

Holding

No bias was established; the mere holding of a position on a Spiritual Nurture Committee, without more, does not disqualify an arbitrator under the objective fair-minded observer test

Reasoning

The Applicant alleged bias solely from the arbitrator's chairmanship of the Human Resources and Spiritual Nurture Committee at Daystar University, combined with claims of religious discrimination by the Respondent. The court found no facts showing actual or apparent bias during the proceedings, noted the dispute is governed by the Lease contract, and observed the arbitrator's decision on the recusal application was not shown to be marred by suspicion.

p. 6
03

Whether interim measures/status quo orders under Section 7 of the Arbitration Act were warranted

Holding

Partially granted - status quo of existing buildings and structures on the suit property to be maintained pending arbitration

Reasoning

The court applied the Safaricom v Ocean View essentials: there is an arbitration agreement and the subject matter requires preservation. A prior ruling of 2nd April 2025 had granted conditional interim orders for one year, but the Applicant had not deposited the full rent as directed. The site visit showed no activity on the property. The court held the subject matter should be preserved as is to enable conclusion of the arbitration.

p. 7

Legal principles established

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  • An application under Section 14(3) of the Arbitration Act to determine a challenge to an arbitrator must be filed within thirty days of notification of the decision rejecting the challenge; time computed from the tribunal's notice that its decision is ready for collection.
  • The test for bias is objective - that of a fair-minded and informed observer.
  • Essentials for interim measures of protection under Section 7 of the Arbitration Act.

Court orders

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  1. 1.Pending hearing and determination of the Arbitration Dispute between the parties, the obtaining status quo be maintained concerning the status of the existing buildings, structures, facilities and developments on Land Parcel No. Nairobi/Block 22/313 (formerly known as L.R. No. 4857/22, Nairobi).
  2. 2.The parties are directed to adhere to the Orders of this Court issued on the 2nd April, 2025.
  3. 3.Costs in the cause.
  4. 4.The Applicant's Originating Summons dated 7th October 2024 challenging the arbitrator and seeking annulment of the arbitral proceedings was declined/dismissed.

The bench

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

Wrote the judgment

Jurisdiction invoked
Sections 14(3) and 7 of the Arbitration Act (application to the High Court on challenge to an arbitrator and interim measures of protection pending arbitration)

Relief refused

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Upholding the Applicant's challenge and removal of Nyambura Musyimi as sole arbitrator

Application filed outside the 30-day period in Section 14(3) of the Arbitration Act and no bias demonstrated

p. 6

Annulment of the arbitral proceedings and quashing of the Arbitrator's Ruling dated 24th June 2024

No element of bias established against the arbitrator

p. 7

Applicant's opposition to the Respondent's Chamber Summons (status quo orders)

Subject matter of the arbitration needed to be preserved pending arbitral proceedings

p. 7

Costs

Costs in the cause

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.

Pending hearing and determination of the Arbitration Dispute between the parties, the obtaining status quo be maintained concerning the status of the existing buildings, structures, facilities and developments on Land Parcel No. Nairobi/Block 22/313 (formerly known as L.R. No. 4857/22, Nairobi).
p. 7Final orders - status quo pending arbitration
I find that Applicant’s application seeking to challenge the Arbitrator’s decision of 24th June 2024 is time barred by dint of Section 14 (3) of the Arbitration Act.
p. 6Time-bar under Section 14(3) of the Arbitration Act
In my view since the Applicant and Respondent’s relationship including obligations are governed by terms of the Lease Agreement which was the contract, I do not see how the issue of religion can be invoked.
p. 6Religion irrelevant to contractual dispute
The parties are directed to adhere to the Orders of this Court issued on the 2nd April, 2025.
p. 8Adherence to earlier interim orders

Issues in the judgment

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minor

The coram lists the parties' names with minor inconsistency in capitalisation ('NorthStream Limited' vs 'North stream Limited') and the judgment appears to refer to Susan Murugi Ng'ang'a as 'the Respondent' when describing an order restraining eviction of the Applicant, an apparent role reversal

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, "Northstream Limited v Registered Trustees of the Comboni Sisters (Land Case (Originating Summons) E063 of 2024) [2025] KEELC 8379 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/8379/eng@2025-12-01

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