Erinpet Enterprises Ltd v Equity Bank (Kenya) Ltd & 2 others (Environment and Land Case 21 of 2022) [2026] KEELC 5301 (KLR)
The bottom line
#Kenya's Environment and Land Court ruled it cannot hear cases about loan defaults and property sold to recover debt—those belong in the High 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 handle a suit arising from a loan secured by a charge over land and the subsequent sale of the charged property
Key legal issues
#Jurisdiction of the ELC over loan and charge disputes
The ELC has no jurisdiction; the suit was struck out
The cause of action originated from default on a Kshs.26,000,000 loan facility secured by a charge over Karatina/Township/Block 1/428. Relying on Court of Authority precedent, the court held that a charge is a financial transaction and disposition of security, not a land-use dispute. The central issue was the debt; the land was merely security. Even if the realisation of security was muddled, the High Court has jurisdiction, so the court struck out the suit with costs.
Nature of a charge under the Land Act
A charge operates solely as security and does not transfer interests or rights in land
Section 2 of the Land Act defines a charge as an interest in land securing payment of money, and Section 80 provides that a charge operates solely as security without transferring interests in land. On default, the lender's remedies under Sections 90-96 arise, and disputes over those remedies lie in the High Court.
Legal principles established
#- Disputes concerning charged land fall within the civil and commercial jurisdiction of the High Court, not the ELC
- A mortgage or charge is a financial transaction and a disposition of security, not a matter concerning land use, so the ELC's mandate does not extend to it
- The ELC may assume jurisdiction only where the primary issue shifts from the loan itself to a substantive land dispute, such as a challenge to the fundamental validity of the title
- A court must down its tools the moment it holds the opinion that it is without jurisdiction
Court orders
#- 1.The Plaintiff's suit is struck out with costs
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Article 162(2)(b) jurisdiction of the Environment and Land Court considered; Section 13 of the Environment and Land Court Act (jurisdiction) read against the Land Act, Sections 2, 80 and 90-96
Relief refused
#Declaration that the sale of the suit property was unlawful, null and void and direction to the Land Registrar, Nyeri County, to register back the plaintiff as owner
The ELC lacks jurisdiction over disputes concerning charged land, which fall within the civil and commercial jurisdiction of the High Court
Alternative prayer for damages for loss of the suit property
Same jurisdictional bar; the entire suit was struck out
Costs
The Plaintiff's suit is struck out with costs (costs awarded to the Defendants)
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.
I down tools. The Plaintiff's suit is struck out with costs.
Jurisdiction is everything. Without it, a court has no power to make one more step. Where a court has no jurisdiction, there is no basis for the continuation of proceedings pending evidence.
The ELC lacks jurisdiction to adjudicate financial accounting matters, interest rates, or the enforcement of commercial securities.
Issues in the judgment
#The judgment is dated '6th day of August, 2026', which appears to be a prospective/typographical year for a 2022-filed matter
Inconsistent reference to the suit property - the amended Plaint is quoted as describing the loan as utilised for acquisition of Block 1/420 while the suit property is Block 1/428
The judgment refers to the court in the first person plural ('what we have is a commercial matter') in a single-judge bench
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Erinpet Enterprises Ltd v Equity Bank (Kenya) Ltd & 2 others (Environment and Land Case 21 of 2022) [2026] KEELC 5301 (KLR)", Case Analysis (2026). ELC NO E021 OF 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/5301/eng@2026-08-06
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.