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ELCAllowedNot stated in judgment

Ajwala v Rosslyn Suites Limited & 2 others (Land Case E334 of 2025) [2026] KEELC 3373 (KLR)

Environment and Land Court
4 June 2026
1,673 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 Environment and Land Court ordered a property dispute to arbitration because the lease's arbitration clause applied, despite a consumer-protection argument.

What this practically means

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Executive summary

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The applicants, parties to lease agreements dated 6th August 2020 and 20th December 2023 over apartments B604 and E304 on LR No 10688/219, moved the court by chamber summons dated 25th September 2025 seeking a stay of proceedings pending arbitration under the arbitration clauses in the leases. The respondent/plaintiff opposed, contending that the dispute concerned consumer protection under the Consumer Protection Act and that section 88(1) renders disputes arising from consumer agreements non-arbitrable. The applicants replied that the Consumer Protection Act applies to goods and services, not immovable property, and that the validity of the arbitration clause had not been challenged. The court framed the sole issue as whether proceedings should be stayed to allow arbitration. It found that clauses 8.10 and 8.11 of the leases contained valid arbitration agreements which the respondent had not asserted were null, void, inoperative or incapable of performance. Reviewing the plaint's particulars of breach, the court held that all the alleged grievances arose from the lease agreement itself, so the consumer-agreement characterisation failed. Section 6(1) of the Arbitration Act is mandatory subject to limited exceptions, and courts must respect parties' contractual autonomy and the constitutional imperative to promote ADR. The court allowed the application, stayed the proceedings, referred the dispute to arbitration to be completed within 60 days, and awarded costs to the applicants against the respondents.

Questions the Court framed

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

  1. 1.Whether the Applicants have taken any step in the proceedings other than the steps allowed by Section 6 of the Arbitration Act
  2. 2.Whether there are any legal impediments on the validity of the arbitration clause
  3. 3.Whether the Consumer Protection Act applies to real estate lease transactions
  4. 4.Whether the arbitration clause in the lease is enforceable
  5. 5.Whether the court should stay the proceedings to allow the parties refer the matter to arbitration

Key legal issues

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01

Whether the proceedings should be stayed pending arbitration under section 6(1) of the Arbitration Act

Holding

Yes. The arbitration clauses (8.10 and 8.11) were valid and unchallenged; the applicant had taken no disqualifying step; and all the pleaded breaches arose from the lease agreement, so the matter was referable to arbitration.

Reasoning

The court examined the lease agreements and confirmed arbitration clauses 8.10 and 8.11. The respondent did not assert the clause was null, void, inoperative or incapable of performance. The plaint's particulars of breach all arose from the lease agreement, so the consumer-protection argument failed. Section 6(1) is mandatory subject to limited exceptions, and the constitutional imperative favouring ADR required the court to give effect to the parties' chosen dispute-resolution mode.

p. 4
02

Whether the dispute falls outside arbitration as a consumer-protection matter under section 88(1) of the Consumer Protection Act

Holding

No. The alleged breaches were of the lease agreement itself, and the disputes were captured by clause 8.10 of the lease.

Reasoning

The respondent argued that the leases were consumer agreements under section 88(1) of the Consumer Protection Act and thus not arbitrable. The court reviewed the plaint's particulars of breach - unfair terms, misleading information, concealment, delay in delivery - and found they all emanated from the lease agreement and were captured in clause 8.10. The applicants also argued the Act applied to goods and services, not immovable property. The consumer characterisation therefore failed.

p. 4

Legal principles established

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  • Section 6(1) of the Arbitration Act is mandatory, but a stay will be refused where the arbitration agreement is null and void, inoperative or incapable of being performed, or where there is no dispute.
  • Where the dispute arises from breach of the lease agreement itself, characterising it as a consumer dispute does not defeat an arbitration clause.
  • Courts must give effect to parties' contractual autonomy in choosing arbitration as the mode of dispute resolution.

Court orders

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  1. 1.That there be a stay of proceedings in this suit pending arbitration of this dispute in compliance with the terms of the respective lease agreements entered into between the applicants and respondents
  2. 2.The matter is hereby referred to Arbitration. The arbitration should be completed within 60 days of referral to an Arbitrator failing which either parties shall be at liberty to move the court to list the matter for hearing
  3. 3.Costs of the application be borne by Respondents

The bench

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

Wrote the judgment

Jurisdiction invoked
Section 6(1) of the Arbitration Act No. 4 of 1995; inherent powers of the court

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.

That there be a stay of proceedings in this suit pending arbitration of this dispute in compliance with the terms of the respective lease agreements entered into between the applicants and respondents
p. 4Final orders - stay of proceedings pending arbitration
The matter is hereby referred to Arbitration. The arbitration should be completed within 60 days of referral to an Arbitrator failing which either parties shall be at liberty to move the court to list the matter for hearing
p. 4Referral to arbitration with timeline
It is not asserted by the Respondent that clause 8.10 and 8.11 being the Arbitration Agreement is null and void or otherwise incapable of being performed
p. 3Unchallenged arbitration agreement
In light of the Constitutional imperative for courts to promote Alternative Dispute Resolution, courts should to the fullest extent possible, give efiect intentions of the parties as to the mode of resolving any dispute that arises.
p. 4Constitutional imperative for ADR

Issues in the judgment

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minor

Inconsistent dates given for the sale/lease agreement relating to apartment E304

minor

The judgment is dated 4th June 2026 but recites affidavits and submissions dated after that period and refers to an application of 25th September 2025; also the judgment elsewhere refers to arbitration clauses existing in 'sale agreements' and 'lease agreements' inconsistently

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, "Ajwala v Rosslyn Suites Limited & 2 others (Land Case E334 of 2025) [2026] KEELC 3373 (KLR)", Case Analysis (2026). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/3373/eng@2026-06-04

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