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ELCPartially AllowedMombasa BPRT Appeal arising from Mombasa BPRT Case No. E162 of 2025 (Notice of Motion dated 19th March 2026)

Kenya Railways Corporation v Aluminium Extruders Ltd (Environment and Land Appeal E011 of 2026) [2026] KEELC 4598 (KLR)

High Court of Kenya
16 July 2026
4,015 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~16 min to read original · ~4 min brief

The bottom line

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Kenya's High Court paused a rent tribunal case so Kenya Railways could appeal a jurisdiction ruling, but only on strict conditions including rent deposits and deadlines.

What this practically means

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Executive summary

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Kenya Railways Corporation, landlord under a registered 77-year lease of Plot No. Mombasa/Block I/356, moved to stay proceedings before the Business Premises Rent Tribunal in Mombasa BPRT Case No. E162 of 2025 pending its appeal against a ruling of 13th February 2026 (Hon. Gad Chemoiyai) dismissing its preliminary objection that the Tribunal lacked jurisdiction because a long-term registered lease is not a 'controlled tenancy' under section 2(1) of Cap. 301. The tenant, Aluminium Extruders Limited, opposed on four grounds: lack of authority of the deponent, non-appealability of a Complaint outcome, the negative-order bar on stay, and failure to meet the stay threshold. The court held that a ruling dismissing a jurisdictional preliminary objection is a ruling on a point of law appealable under section 15(1) of Cap. 301; that a corporate officer is presumed to have authority to swear an affidavit absent contrary evidence; that a stay of proceedings, unlike a stay of execution, may lie against a negative order; and that although the appellant's showing on nugatoriness and security was thin, a jurisdictional appeal is a difference in kind since proceedings taken without jurisdiction are incurably bad. Balancing the tenant's statutory protection against distress and self-help eviction with the landlord's right of appeal, the court granted a conditional stay of the merits hearing, preserved interim protective orders, restrained distress and extra-judicial eviction, ordered the rent to be deposited into a joint interest-earning account as security under Order 42 Rule 6(2)(b), set timelines for the Record of Appeal and submissions with mention on 3rd November 2026, provided that the stay lapses of its own force on default, and awarded costs in the cause.

Questions the Court framed

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

  1. 1.Whether this Court has jurisdiction to entertain the appeal, and hence to grant ancillary relief, in view of the Respondent's objection that a decision on a Complaint is not appealable.
  2. 2.Whether the deponent Stanley Gitari has locus standi to swear the Supporting Affidavit on behalf of the Appellant.
  3. 3.Whether the impugned Ruling — being a Ruling dismissing a Preliminary Objection — is a 'negative order' incapable of stay, and, if not, whether the Appellant has satisfied the trilogy of conditions for the grant of a stay of proceedings pending appeal.
  4. 4.What orders ought to issue, and as to costs.

Key legal issues

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01

Jurisdiction of the Court to entertain the appeal from the Tribunal's ruling

Holding

The Court has jurisdiction; a ruling dismissing a jurisdictional preliminary objection is a ruling on a point of law appealable under section 15(1) of Cap. 301.

Reasoning

The Respondent argued that an outcome of a Complaint is not appealable. The court held that the right of appeal from a Tribunal determination is expressly conferred by section 15(1) of Cap. 301 on a point of law or mixed law and fact. What is appealed is the Ruling itself, regardless of whether the process was styled a Complaint under section 12(4) or a Reference, and a jurisdictional ruling is the most fundamental point of law a tribunal can determine.

p. 3
02

Locus standi of the deponent Stanley Gitari

Holding

The deponent, as an officer of the body corporate, is presumed to have authority; the objection fails absent contrary evidence.

Reasoning

The Appellant is a body corporate under the Kenya Railways Corporation Act, Cap. 397, which speaks through its officers. Relying on Spire Bank Ltd v Land Registrar and Assia Pharmaceuticals Ltd v Nairobi Veterinary Centre Ltd, the court held that an officer swearing an affidavit for a corporation is presumed to do so with authority, rebuttable only by evidence and not bare denial. The Respondent produced no contrary evidence.

p. 4
03

Whether a ruling dismissing a preliminary objection is a 'negative order' incapable of stay

Holding

A negative order may be incapable of a stay of execution, but a stay of proceedings is a different remedy governed by different considerations and may lie.

Reasoning

The Respondent relied on Western College, Sonalux and Kimondo to argue the ruling was a negative order incapable of stay. The court distinguished stay of execution, which presupposes a positive decree, from stay of proceedings, citing Erinford Properties and RWW v EKW. The negative-order line of authority goes to weight: the applicant must show with particular clarity the mischief a stay would prevent.

p. 4
04

The trilogy of conditions for a stay of proceedings pending appeal

Holding

Arguability was satisfied; nugatoriness was met only because the appeal turns on jurisdiction; there was no unreasonable delay; security was fashioned as a rent-deposit order rather than dispensed with.

Reasoning

Applying Kenya Shell and its progeny, the court found the appeal arguable on three planes: whether a 77-year registered leasehold is a 'tenancy' under Cap. 301; the construction of section 2(1)(b)(ii); and whether the premises are 'shops, hotels or catering establishments'. The generic 'irreparable harm' pleading would ordinarily be fatal, but a jurisdictional appeal is a difference in kind, since proceedings taken without jurisdiction are incurably bad. Delay was within Order 42 Rules 1 and 4; the absence of security was met by a conditional rent-deposit order.

p. 5
05

Balancing the equities and framing of the final order

Holding

A conditional stay was granted: the merits hearing is paused, interim protective orders are preserved, security by way of rent deposit is imposed, and the stay lapses automatically on default in prosecuting the appeal.

Reasoning

The court weighed the Respondent's statutory protection against distress and self-help eviction under section 4 of Cap. 301 against the Appellant's right of appeal not being a paper right. Rather than an unqualified grant or outright dismissal, the court fashioned a conditional order pausing the merits hearing while preserving the Respondent's protection and requiring diligent prosecution of the appeal, on pain of the stay lapsing of its own force.

p. 6

Legal principles established

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  • A ruling of the Business Premises Rent Tribunal dismissing a jurisdictional preliminary objection is a ruling on a point of law and is appealable under section 15(1) of Cap. 301.
  • An officer of a corporation is presumed to have authority to swear an affidavit on its behalf unless the contrary is shown by evidence, not bare denial.
  • A stay of proceedings and a stay of execution are governed by different considerations, and a stay of proceedings may lie even where the impugned ruling is a negative order incapable of execution.
  • Where an appeal turns on jurisdiction, allowing the lower tribunal to proceed may render the appeal nugatory even absent a decretal sum, because proceedings taken without jurisdiction are a nullity.
  • A stay of proceedings is a grave step to be taken sparingly, but it is not closed to a negative-order applicant; rather the applicant must show with particular clarity the mischief a stay would prevent.

Court orders

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  1. 1.The Notice of Motion dated 19th March 2026 is allowed in part.
  2. 2.A stay of the hearing on the merits of the Complaint in Mombasa BPRT Case No. E162 of 2025 pending the hearing and determination of the appeal; the Tribunal shall not receive evidence on the substantive Complaint nor make any final orders thereon pending that determination.
  3. 3.The stay shall not displace interim preservative orders already made by the Tribunal; the Appellant is restrained pending the appeal from levying distress against the Respondent or taking any step in eviction outside the process of the law.
  4. 4.As security under Order 42 Rule 6(2)(b), the Respondent shall deposit the monthly rent falling due under the Lease into a joint interest-earning account in the names of Hassan Alawi & Company Advocates and Mogaka Omwenga & Mabeya Advocates within seven days of each month's rent falling due; the account to be opened within fourteen days; funds to abide the outcome of the appeal.
  5. 5.The Appellant shall file and serve the Record of Appeal within thirty (30) days; the Appellant's submissions within fourteen (14) days of service of the Record; the Respondent's submissions within twenty-one (21) days of service of the Appellant's submissions; mention on 3rd November 2026 for confirmation of compliance and fixing of a Judgment date.
  6. 6.In the event of default in the timelines or failure to prosecute the appeal with due diligence, the stay shall lapse of its own force and the Tribunal shall be at liberty to proceed with the Complaint on the merits.
  7. 7.Costs of the Application shall be in the cause.

The bench

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

majority

Wrote the judgment

On appeal from
Business Premises Rent Tribunal
Mombasa BPRT Case No. E162 of 2025
Jurisdiction invoked
Section 15(1) of the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, Cap. 301 and Order 42 Rule 6 of the Civil Procedure Rules, 2010

Relief refused

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Wholesale freeze of all proceedings before the Business Premises Rent Tribunal

The court found only a conditional stay justified; a blanket stay would strip the tenant of statutory protection under Cap. 301.

p. 6

Costs

Costs of this Application shall be 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.

There shall be a stay of the hearing on the merits of the Complaint in Mombasa BPRT Case No. E162 of 2025 pending the hearing and determination of this appeal; for the avoidance of doubt, the Tribunal shall not receive evidence on the substantive Complaint, nor make any final orders thereon, pending the said determination;
p. 7Final orders - conditional stay of proceedings
In the event that the Appellant shall default in the timelines set out in order (5) above, or shall otherwise fail to prosecute the appeal with due diligence, the stay hereby granted shall lapse of its own force, without further order of the Court, and the Tribunal shall be at liberty to proceed with the Complaint on the merits.
p. 7Final orders - lapse of stay on default
As security within the meaning of Order 42 Rule 6(2)(b), the Respondent shall, from the date hereof and until the determination of the appeal, deposit the monthly rent falling due under the Lease into a joint interest-earning account in the names of the two firms of Advocates on record
p. 7Final orders - security by rent deposit
Jurisdiction is everything. Without it a court has no power to make one more step.
p. 1Jurisdiction
A stay is not a hammock; it is a bridge to a hearing.
p. 6Caution on appellants who obtain stay and then sleep
Costs of this Application shall be in the cause.
p. 7Costs

Issues in the judgment

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minor

The judgment describes the court inconsistently: it cites Spire Bank Ltd v Land Registrar as 'this very Court' while that authority is described elsewhere in practice as a Court of Appeal decision, yet the judgment elsewhere refers to 'our own Court of Appeal in RWW v EKW', suggesting the court is not the Court of Appeal.

minor

The judgment contains no case number for the appeal or the Notice of Motion; the appeal is identified only by reference to the Tribunal case and the Motion date.

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, "Kenya Railways Corporation v Aluminium Extruders Ltd (Environment and Land Appeal E011 of 2026) [2026] KEELC 4598 (KLR)", Case Analysis (2026). Mombasa BPRT Appeal arising from Mombasa BPRT Case No. E162 of 2025 (Notice of Motion dated 19th March 2026). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/4598/eng@2026-07-16

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