Charana v Kerosi (Commercial Case E047 of 2026) [2026] SCC 73 (KLR)
The bottom line
#A lender who waited seven years to sue over a Kshs. 1 million loan lost the case because Kenyan law gives only six years to sue on a broken contract.
What this practically means
#Executive summary
#Key legal issues
#Limitation period for actions founded on contract
The six-year limitation period ran from the breach in February 2019; a claim filed on 19th January 2026 was out of time and statute-barred, so the court lacked jurisdiction.
The court found as undisputed that the loan agreement was made in December 2018, repayable in three monthly installments commencing February 2019, and that postdated cheques bounced. Breach occurred in February 2019. Under Section 4(1)(a) of the Limitation of Actions Act the suit had to be filed by February 2025. It was filed in January 2026 without leave, hence statute-barred.
Accrual of cause of action in contract
Applying South Nyanza Sugar Company Limited v Dickson Aoro Owuor, the cause of action arises at the date of breach, not at the end of the contract period.
The court relied on the High Court decision to locate accrual at the moment of breach. Since repayment was due commencing February 2019 and the cheques bounced, breach occurred in February 2019, starting the six-year limitation clock then rather than at any later point.
Legal principles established
#- Actions founded on contract may not be brought after the end of six years from the date the cause of action accrued.
- In contract, a cause of action accrues on the date of the alleged breach, not at the end of the contract period.
- Jurisdiction is everything and a court may not arrogate to itself jurisdiction through craft of interpretation where the wording of legislation is clear.
Court orders
#- 1.The claim is struck out for being time barred
- 2.No orders as to costs
- Jurisdiction invoked
- Limitation of Actions Act, Section 4(1)(a)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Charana v Kerosi (Commercial Case E047 of 2026) [2026] SCC 73 (KLR)", Case Analysis (2026). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/scc/2026/73/eng@2026-04-23
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.