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Small ClaimsStruck OutNot stated in judgment· [2026] SCC 62 (KLR)

Radel Ltd v Eldon Villas Ltd & another (Commercial Case E108715 of 2025) [2026] SCC 62 (KLR)

Small Claims Court
3 July 2026
GKGladys W. Kiamah
723 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The claimant, a security services provider, claimed Kshs. 908,640/- from the respondents, comprising balances for security services rendered at the respondents' premises, recruitment and training costs, loss and continued use of company property, and damages for breach of a non-solicitation clause in the contract. The respondents opposed the claim: the 1st respondent denied being party to the contract and challenged its validity for lack of authority and proper execution, contending the contract had expired by effluxion of time and that the dispute was subject to an arbitration clause. The Adjudicator confirmed that the sum claimed fell within the pecuniary limits of Section 12 of the Small Claims Court Act, 2016, but held that jurisdiction alone did not settle the matter: the Court had to assess the nature and complexity of the factual and evidentiary issues. The dispute extended beyond a simple liquidated claim, involving questions of privity, execution, authority of the signatory, expiry of the contract, and unliquidated damages requiring rigorous proof, witness examination and credibility assessment. The Court held such complexity incompatible with the summary, informal and expeditious procedure of the Small Claims Court, even though the matter had proceeded under Section 30 of the Act. Accordingly, the Court deemed the claim unfit for determination in that forum and struck it out without prejudice to the claimant's right to pursue it before a court of competent jurisdiction. Each party was ordered to bear its own costs.

Key legal issues

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01

Whether possession of pecuniary jurisdiction under Section 12 of the Small Claims Court Act, 2016 obliges the Court to determine a contract claim

Holding

No. Although the claim of Kshs. 908,640/- fell within the pecuniary limits and the Court has jurisdiction over breach of contract, the Court may decline a claim that is unsuitable for summary adjudication due to its complexity.

Reasoning

The Court accepted that the sum claimed was within Section 12 limits and that it has jurisdiction over contract disputes. However, it held that the Small Claims Court is a specialised forum for simple, low-value disputes handled summarily and expeditiously. The claim involved disputed questions of privity, execution, authority of signatory and expiry, plus unliquidated damages requiring rigorous proof - incompatible with the summary procedure and strict timelines. Suitability, not jurisdiction alone, governs.

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02

Whether the complexity of the issues justified striking out the claim rather than determining it

Holding

Yes. The dispute extended beyond a simple liquidated claim and required detailed evidentiary inquiry, including credibility evaluation, witness examination and rigorous proof of damages, which the summary procedure cannot accommodate.

Reasoning

The Court found that part of the claim concerned unpaid service fees, but a substantial part comprised damages for breach of a non-solicitation clause, operational disruption, recruitment and training costs, loss of business and continued use of company property. There were also disputes over the identity of contracting parties and validity of execution. Fair determination would require substantial time and detailed documentary and oral examination, inconsistent with the Act's objectives; hence striking out without prejudice was the just course.

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Legal principles established

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  • The Small Claims Court must assess not only the subject-matter and value of a claim but also the nature and complexity of the factual and evidentiary issues in deciding whether a claim is suitable for its summary procedure.
  • Where a dispute requires complex evidentiary analysis and prolonged examination, it ceases to be suitable for determination by the Small Claims Court notwithstanding that the claim falls within its pecuniary jurisdiction.

Court orders

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  1. 1.The claim is struck out without prejudice to the claimant's right to institute proceedings before a court of competent jurisdiction
  2. 2.Each party shall bear its own costs
Jurisdiction invoked
Section 12 of the Small Claims Court Act, 2016 (pecuniary jurisdiction); the matter proceeded under Section 30 of the Act

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, "Radel Ltd v Eldon Villas Ltd & another (Commercial Case E108715 of 2025) [2026] SCC 62 (KLR)", Case Analysis (2026). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/scc/2026/62/eng@2026-07-03

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