J.M. Njenga & Co. Advocates LLP v Kimuri Housing Company Ltd
The bottom line
#A Kenyan court let a company pay a Kshs 9.58 million debt in instalments, but only after a Kshs 1.5 million upfront payment.
What this practically means
#Executive summary
#Key legal issues
#Stay of execution where application was filed after proclamation
Substantial loss established because immediate carting away of tools of trade posed a genuine risk of operational collapse, notwithstanding post-proclamation filing
Although the applicant moved the court only after execution was levied, the court held that judicial discretion must remain equitable where execution threatens the very existence of an operational enterprise. The immediate threat to the tools of trade satisfied the substantial loss test, provided an equitable payment structure was implemented to protect the decree-holder.
Payment by instalments under Order 21 Rule 12
Sufficient cause shown; instalments granted but on modified terms with a substantial down payment and enhanced monthly rate
The court found the debtor had demonstrated good faith by offering to settle while servicing another court-ordered debt. Outright rejection would destroy the revenue-generating capacity and leave both creditors unpaid. However, the debtor produced no audited accounts or bank statements and paid nothing since judgment, justifying modified, more onerous terms than proposed.
Legal principles established
#- Execution of a lawful decree does not automatically amount to substantial loss absent clear evidence of exceptional prejudice
- A decree-holder's rejection of a proposed payment structure does not mandate absolute refusal of instalment relief
- Instalment orders under Order 21 Rule 12 may incorporate an upfront payment and enhanced monthly rate to balance the equities
Court orders
#- 1.Notice of Motion dated 3/03/2026 allowed with modifications
- 2.Stay of execution of the Decree dated 16/02/2026 and any warrants or proclamation issued pursuant thereto granted pending full liquidation of the decretal sum under the structured payment plan
- 3.Leave granted to settle the decretal sum of Kshs 9,584,270 plus accrued interest: initial down payment of Kshs 1,500,000 within 14 days, then monthly instalments of Kshs 400,000 payable on or before the 15th of every month commencing 15/10/2026 until full payment
- 4.In default of the down payment or any single instalment, the stay lapses automatically and the Decree-Holder may execute for the entire outstanding balance without further reference to the Court
- 5.Leave granted to the firm of Thiongo & Partners Advocates to come on record for the Judgment Debtor post-Judgment
- 6.Each party to bear its own costs of the application
- Jurisdiction invoked
- Sections 1A, 1B and 3A of the Civil Procedure Act; Order 22 Rule 22, Order 9 Rules 9 and 10, Order 51 Rule 1 and Order 21 Rule 12 of the Civil Procedure Rules 2010; Article 159 of the Constitution
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "J.M. Njenga & Co. Advocates LLP v Kimuri Housing Company Ltd", Case Analysis (2026). ELCLMISC E007 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/5575/eng@2026-09-21
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.