https://new.kenyalaw.org/akn/ke/judgment/kehc/2026/9967
The two insolvency matters had been consolidated before the Court of Appeal issued the stay of proceedings. Because consolidation merges the pending suits into a single proceeding and no separation order had been made, the appellate stay applied to both files as consolidated. Accordingly, the High Court could not...
Source-derived case information.
- Citation
- [2026] KEHC 9967 (KLR)
- Parties
- Debtor: Multiple Hauliers (EA) Limited (Under Administration); Creditor: NCBA Kenya Plc; Party: Official Receiver; Interested Party: Synergy; Interested Party: Prime Bank; Interested Party: IM Bank; Interested Party: Bank of India; Interested Party: NSSF; Interested Party: Okello; Interested Party: 4th interested party; Party: Diro Advocate; Party: Kiprono; Interested Party: Galana; Applicant: 1st and 2nd applicant; Interested Party: KCB; Interested Party: Coop Bank; Party: Ochieng Opiyo
- Court
- High Court
- Jurisdiction
- Kenya
- Case Number
- Insolvency Cause E022 of 2021
- Procedural Posture
- Insolvency Cause; Ruling on Stay of Proceedings After Court of Appeal Order / Post Appeal Stay Directions / Pending Appeal
- Outcome
- Stay applied; proceedings halted pending determination of the appeal.
- Judges
- ["F Gikonyo"]
- Legal Topics
- Consolidation of Proceedings, Stay of Proceedings, Effect of Appellate Stay, Administration Versus Liquidation, Scope of Stay Order
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Multiple Hauliers (EA) Limited (Under Administration)
Debtor
NCBA Kenya Plc
Creditor
Official Receiver
Party
Synergy
Interested Party
Prime Bank
Interested Party
IM Bank
Interested Party
Bank of India
Interested Party
NSSF
Interested Party
Okello
Interested Party
4th interested party
Interested Party
Diro Advocate
Party
Kiprono
Party
Galana
Interested Party
1st and 2nd applicant
Applicant
KCB
Interested Party
Coop Bank
Interested Party
Ochieng Opiyo
Party
Procedural Posture
Insolvency Cause; Ruling on Stay of Proceedings After Court of Appeal Order / Post Appeal Stay Directions / Pending Appeal
Legal Issues
- 1 Whether the two insolvency proceedings had been consolidated
- 2 Whether the Court of Appeal's stay of proceedings in HCCC Insolvency Cause No. E022 of 2021 applied to the consolidated matters
- 3 Whether the High Court could proceed with liquidation or administration steps pending determination of the appeal
Ratio Decidendi
The two insolvency matters had been consolidated before the Court of Appeal issued the stay of proceedings. Because consolidation merges the pending suits into a single proceeding and no separation order had been made, the appellate stay applied to both files as consolidated. Accordingly, the High Court could not proceed until the pending appeal was heard and determined.
Court Disposition
Stay applied; proceedings halted pending determination of the appeal.
Orders
- No further action shall be taken in the consolidated insolvency proceedings until the pending appeal is determined.
Full Case Text
Judgment text and source record
1 paragraphs
In re Multiple Hauliers (EA) Limited (Under Administration) (Insolvency Cause E022 of 2021) [2026] KEHC 9967 (KLR) (Commercial and Tax) (9 July 2026) (Ruling) Neutral citation: [2026] KEHC 9967 (KLR) Republic of Kenya In the High Court at Nairobi (Milimani Commercial Courts) Commercial and Tax Insolvency Cause E022 of 2021 F Gikonyo, J July 9, 2026 Between Multiple Hauliers (EA) Limited (Under Administration) Debtor and NCBA Kenya Plc Creditor Ruling 1.On 19.1.2026, Ms. Arora for NCBA informed the court that on 19.12.2025, the Court of Appeal issued an order of stay of the insolvency proceedings herein. 2.On 17.2.2026, Mr. Safary for the Official Receiver confirmed that the appeal before the Court of Appeal in which these proceedings were stayed is yet to be determined. 3.Ms. Asli, however, submitted that the liquidation petition was filed before the company was placed under administration. She urged the court to give directions on the liquidation proceedings as the creditors wish to proceed with the liquidation and they are suffering as a result of the complications regarding administration that have arisen. 4.Ms. Arora stated that the orders stopping them from appointing a receiver was lifted but the administration is still on. Except, she stated that there was loose consolidation of the matters but she had not traced the relevant record. She intimated that the company and the official receiver are frustrating them. 5.Mr. Odongo spoke of another issues; that once the Court of Appeal decides, the NSSF funds shall be given priority. 6.According to Mr. Thuku, the files were consolidated on 16.6.2021. He proposed waiting until the Court of Appeal determines the appeal. 7.Mr. Owiti supported Ms. Arora’s sentiments. 8.Ms. Asili contended that there was no consolidation and that the order of 16.6.2021 merely stayed the appointment of administrators. She argued that the processes of liquidation and administration cannot be fused. 9.Ms. Asili submitted that the Court of Appeal’s orders stayed the orders in this matter, IC E022 of 2021, and they do not affect IP E010 of 2020. 10.Much help comes from two sources. Whether there was a consolidation of the two proceedings and the scope of the ruling of 19.12.2025 by the Court of Appeal. Consolidation 11.The record shows that on 15.1.2021, the HCCC Insolvency Cause No E022 of 2021 was consolidated with IP E010 of 2020. 12.The court affirmed the consolidation of the two matters on 29.6.2021. Scope of stay of proceedings 13.The ruling of 19.12.2025 by the Court of Appeal was to the effect that: -“We allow the notice of motion dated 24th October 2025, and order stay of the orders issued on 2nd October 2025 by the learned Judge, we also issue an order of stay of proceedings in HCCC Insolvency Cause No E022 of 2021 until the intended appeal, the subject of this ruling is heard and determined.” 14.Arguments were made that the stay relates only to HCCC Insolvency Cause No E022 of 2021. 15.The two proceedings were consolidated before the stay of proceedings. Consolidation combines the pending suits into a single proceeding. 16.Therefore, in my respectful, yet considered opinion, the stay of proceedings order by the Court of Appeal applies to these proceedings as consolidated. Put differently it applies to both HCCC Insolvency Cause No E022 of 2021 and IP E010 of 2020 as consolidated. A separation has not been ordered and the order by the Court of Appeal is not a separation. 17.This court will take no further action on these proceedings until the pending appeal is determined howsoever. 18.Nevertheless, I appreciate the arguments by Ms. Asli that administration and liquidation never mix; and that creditors are suffering because of the complications arising out of the mixture. Bringing to the fore a critical question on the role and obligations of an administrative receiver or receiver manager towards the other creditors and the company or is it only to the appointing authority? But, these are arguments for the appeal in the Court of Appeal. DATED, SIGNED AND DELIVERED THROUGH MICROSOFT TEAMS ONLINE APPLICATION THIS 9TH DAY OF JULY, 2026-----------------F. GIKONYO MJUDGEIn the presence of: -Ms. Asli for SynergyWawire for Gichuhi for Prime Bank & IM BankMs. Manyasi for Bank of IndiaMs Aurora for NCBAMs Gikonyo for Okello for Interested partiesOdongo for NSSFMs. Kasyoki for Achoki for 4th interested partyKarina for Multiple HauliersAyieko for CompanyMalaki for Diro AdvocateSimiyu for Kiprono for GalanaThuku for Ms Wagwi for 1st and 2nd applicantMs Kyalo for Ms Ogula for KCB & Coop BankOpiyo for Ochieng OpiyoCA- Ivan/Aggrey