https://new.kenyalaw.org/akn/ke/judgment/kehc/2026/9254
The Court found that the registration delay resulted from systemic and technological hitches on the Ardhisasa portal, which constituted sufficient cause under section 888 of the Companies Act, 2015; the delay was neither intentional nor negligent, no prejudice to creditors or shareholders was shown, and the...
Source-derived case information.
- Citation
- [2026] KEHC 9254 (KLR)
- Parties
- Applicant: All Tymes Tents Limited; Chargee / Beneficiary: Absa Bank Kenya PLC
- Court
- High Court
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application E701 of 2026
- Procedural Posture
- Miscellaneous Application / Ruling on Ex Parte Notice of Motion for Extension of Time to Register a Charge
- Outcome
- Application allowed.
- Judges
- ["MO Ado"]
- Legal Topics
- Registration of Charge, Extension of Time, Corporate Security, Electronic Registry Downtime, Perfection of Security
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
All Tymes Tents Limited
Applicant
Absa Bank Kenya PLC
Chargee / Beneficiary
Procedural Posture
Miscellaneous Application / Ruling on Ex Parte Notice of Motion for Extension of Time to Register a Charge
Legal Issues
- 1 Whether the Court should extend time under section 888 of the Companies Act, 2015 to enable registration of a corporate legal charge out of time.
- 2 Whether systemic downtime on the Ardhisasa portal amounted to sufficient cause for the delay.
- 3 Whether any prejudice would be caused to creditors or shareholders by granting the extension.
Ratio Decidendi
The Court found that the registration delay resulted from systemic and technological hitches on the Ardhisasa portal, which constituted sufficient cause under section 888 of the Companies Act, 2015; the delay was neither intentional nor negligent, no prejudice to creditors or shareholders was shown, and the extension of time was therefore justified.
Court Disposition
Application allowed.
Orders
- Time for the Applicant to register the Legal Charge dated 6 May 2026 over Title Number Nairobi/Block 47/199 with the Registrar of Companies is extended by thirty (30) days from the date of the Order.
- No order as to costs.
Full Case Text
Judgment text and source record
1 paragraphs
In re All Tymes Tents Ltd (Miscellaneous Application E701 of 2026) [2026] KEHC 9254 (KLR) (Civ) (19 June 2026) (Ruling) Neutral citation: [2026] KEHC 9254 (KLR) Republic of Kenya In the High Court at Nairobi (Milimani Commercial Courts) Civil Miscellaneous Application E701 of 2026 MO Ado, J June 19, 2026 In the matter of All Tymes Tents Limited Applicant Ruling 1.Before the Court is the Applicant’s ex parte Notice of Motion dated 17th June 2026, brought under Sections 878 and 888 of the Companies Act, 2015. The Applicant seeks an order extending time by 30 days to register a corporate legal Charge with the Registrar of Companies. 2.The Charge, dated 6th May 2026, was created by All Tymes Tents Limited in favour of Absa Bank Kenya PLC over property Title Number: Nairobi/Block 47/199 to secure a credit facility of Kshs. 20,000,000/=. 3.The application is supported by the affidavit of Waliaula Obed Dennis, Advocate, sworn on 17th June 2026. The deposition reveals that the Charge was logged on the Ardhisasa portal on 6th May 2026. However, due to multiple systemic downtimes on the electronic platform, registration at the lands registry was only finalized on 6th June 2026. By that time, the statutory 30-day window required under Section 878 of the Companies Act, 2015 to register the charge at the Companies Registry had lapsed. 4.Under Section 888 of the Companies Act, 2015, this Court has the discretion to extend time for registration if the omission was accidental, due to inadvertence, or other sufficient cause. 5.In National Bank of Kenya Ltd v Michael Ndungu [2018] eKLR, the Court emphasized that where a delay is explained, and no third-party interests are prejudiced, the Court should favor the perfection of substantive security interests over procedural technicalities. 6.Having considered the present application, the Court is satisfied that the delay was caused by systemic and technological hitches on the Ardhisasa portal, which constitutes sufficient cause. 7.It is evident that the delay was neither intentional nor negligent. Furthermore, the bank cannot disburse the critical business funds until registration is fully finalized, causing the Applicant ongoing financial prejudice. No prejudice will be caused to any creditors or shareholders by granting the relief sought. 8.Accordingly, the Notice of Motion dated 17th June 2026 is hereby allowed as follows:i.The time for the Applicant to register the Legal Charge dated 6th May 2026 (over Title Number: Nairobi/Block 47/199) with the Registrar of Companies is extended by thirty (30) days from the date of this Order.ii.There shall be no order as to costs. 9.It is so ordered. DATED, SIGNED, AND DELIVERED AT NAIROBI THIS 19TH DAY OF JUNE 2026HON. MR. JUSTICE MOSES ADOJUDGE OF THE HIGH COURT