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ELCStruck OutELC 297 of 2018· [2026] KEELC 5228 (KLR)

Credit Bank Limited v Kangethe & 2 others (Environment and Land Case 297 of 2018) [2026] KEELC 5228 (KLR)

Environment and Land Court
6 August 2026
1,064 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court struck out a debt-recovery suit, ruling it had no power to hear commercial loan claims and refusing to transfer the case.

What this practically means

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Executive summary

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The 1st and 2nd Defendants filed a Notice of Preliminary Objection dated 12th February 2026 contending that the Environment and Land Court lacked jurisdiction over the suit because the amended plaint had abandoned claims founded on land title, use, occupation or interest in land and now raised a purely commercial claim for recovery of money allegedly lent. They further argued that debt recovery and contractual loan disputes fall outside the ELC's mandate and that the suit belonged in the High Court. The Plaintiff, in submissions dated 21st May 2026, admitted the preliminary objection but asked that the suit be transferred to the High Court rather than dismissed. The Defendants opposed transfer, urging dismissal. The court, per Mohammed N. Kullow J, held that the objection was a pure point of law under the Mukisa Biscuit test. Citing Equity Bank v Mutie and the Supreme Court's decision in Mumba v Munyao (which restated Kagenyi v Musiramo), the court held that a suit filed in a court lacking jurisdiction is a nullity with nothing capable of being transferred, that parties cannot confer jurisdiction by consent, and that the O2 principle and overriding objective cannot cure the defect. The preliminary objection was upheld; the amended plaint dated 2nd February 2026 was struck out with no order as to costs, with the court suggesting the plaintiff may file a fresh suit in a court with jurisdiction.

Key legal issues

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01

Jurisdiction of the ELC over the amended plaint

Holding

The court lacks jurisdiction because the amended plaint abandoned land-based claims and now raises a purely commercial debt-recovery claim

Reasoning

The preliminary objection raised a pure question of law going to jurisdiction. The amended plaint abandoned claims founded on land title, use, occupation or interest in land, leaving only a commercial loan-recovery claim which the ELC has no mandate to adjudicate. Without jurisdiction, the court must down its tools.

p. 1
02

Whether the suit should be transferred rather than dismissed

Holding

The court cannot transfer the suit; transfer of an incompetent suit filed in a court lacking jurisdiction is impermissible

Reasoning

Relying on Equity Bank Ltd v Bruce Mutie Mutuku and the Supreme Court in Mumba v Munyao (citing Kagenyi v Musiramo), the court held that an order transferring a suit cannot be made unless the suit was brought in the first instance to a court with jurisdiction. Transfer would sanctify an incompetent suit. The plaintiff was advised to consider filing a fresh suit in a court with jurisdiction.

p. 5

Legal principles established

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  • A suit filed in a court without jurisdiction is a nullity and cannot be transferred to a competent court; parties cannot confer jurisdiction by consent or invoke the overriding objective to cure the defect

Court orders

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  1. 1.The notice of preliminary objection dated 12th February 2026 is upheld
  2. 2.The amended plaint dated 2nd February 2026 is struck out with no order as to costs
Jurisdiction invoked
Environment and Land Court Act jurisdiction; objection under Civil Procedure Act framework (court determined it lacks jurisdiction over the purely commercial claim)

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, "Credit Bank Limited v Kangethe & 2 others (Environment and Land Case 297 of 2018) [2026] KEELC 5228 (KLR)", Case Analysis (2026). ELC 297 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/5228/eng@2026-08-06

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