Chege & 3 others v Gitamaiyu Trading Company Limited & 7 others (Environment and Land Miscellaneous Case E029 of 2025) [2026] KEELC 2503 (KLR) (28 April 2026) (Ruling)

Chege & 3 others v Gitamaiyu Trading Company Limited & 7 others (Environment and Land Miscellaneous Case E029 of 2025) [2026] KEELC 2503 (KLR) (28 April 2026) (Ruling)

A derivative suit cannot be instituted in the form of a Constitutional Petition as their purposes and procedural requirements are mutually exclusive. The Environment and Land Court lacks jurisdiction to grant leave for a derivative suit under the Companies Act. The matter is res judicata, having been conclusively...

Source-derived case information.

Citation
[2026] KEELC 2503 (KLR)
Parties
Applicant: James Macharia Chege; Applicant: Paul Maina Nguata; Applicant: Bernard Njuguna Gakumo; Applicant: John Nduru Muhia; Respondent: Gitamaiyu Trading Co. Ltd; Respondent: John Njoroge Mugana; Respondent: Nyakinyua Mugumo Kiambaa Co. Ltd; Respondent: J.R Njenga; Respondent: Estate of James Njenga Karume; Respondent: Fanros Co. Ltd; Respondent: Land Registrar Kiambu; Respondent: The Attorney General
Court
Environment and Land Court
Jurisdiction
Kenya
Case Number
Environment and Land Miscellaneous Case E029 of 2025
Procedural Posture
Notice of Motion / Chamber Summons (derivative Action and Constitutional Petition) / Ruling on Application for Leave to File Derivative Suit as Constitutional Petition
Outcome
Application struck out as a procedural nullity for want of jurisdiction and res judicata.
Legal Topics
Derivative Actions, Locus Standi, Jurisdiction, Res Judicata, Limitation of Actions, Fraudulent Transfer of Land, Corporate Governance
Source Language
en
Company Law Constitutional Law Land Law Civil Procedure Derivative Actions Locus Standi Jurisdiction Res Judicata +3 more

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Parties

James Macharia Chege

Applicant

Paul Maina Nguata

Applicant

Bernard Njuguna Gakumo

Applicant

John Nduru Muhia

Applicant

Gitamaiyu Trading Co. Ltd

Respondent

John Njoroge Mugana

Respondent

Nyakinyua Mugumo Kiambaa Co. Ltd

Respondent

J.R Njenga

Respondent

Estate of James Njenga Karume

Respondent

Fanros Co. Ltd

Respondent

Land Registrar Kiambu

Respondent

The Attorney General

Respondent

Procedural Posture

Notice of Motion / Chamber Summons (derivative Action and Constitutional Petition) / Ruling on Application for Leave to File Derivative Suit as Constitutional Petition

  1. 1 Whether a shareholder can be granted leave to institute a derivative suit in the form of a Constitutional Petition
  2. 2 Whether the Environment and Land Court has jurisdiction to grant leave for a derivative suit under the Companies Act
  3. 3 Whether the matter is res judicata

Ratio Decidendi

A derivative suit cannot be instituted in the form of a Constitutional Petition as their purposes and procedural requirements are mutually exclusive. The Environment and Land Court lacks jurisdiction to grant leave for a derivative suit under the Companies Act. The matter is res judicata, having been conclusively determined by the Supreme Court, and the application is a procedural nullity.

Court Disposition

Application struck out as a procedural nullity for want of jurisdiction and res judicata.

Orders

  • The application dated 11/04/2025 is struck out for being a procedural nullity.
  • The matter is res judicata, having been conclusively determined by the Supreme Court of Kenya.