[2025] KEHC 7958 (KLR)

[2025] KEHC 7958 (KLR)

The court held that for a moratorium to be effective under the Insurance Act, it must be declared by the statutory manager through a Kenya Gazette notice. The appellant relied solely on a press release, which did not constitute a valid declaration of moratorium. Even if the press release were considered, there was...

Source-derived case information.

Citation
[2025] KEHC 7958 (KLR)
Parties
Appellant: James Tenai; Respondent: Hassan Muriungi Kaburia
Court
High Court
Court Station
High Court at Nairobi (Milimani Law Courts)
Jurisdiction
Kenya
Judgment Date
5 June 2025
Case Number
Civil Appeal E257 of 2024
Procedural Posture
Civil Appeal / Judgment
Outcome
appeal dismissed
Judges
AC Mrima
Legal Topics
Stay of Execution, Statutory Management, Moratorium on Payments, Small Claims Appeals
Source Language
english
Civil Procedure Insurance Law Stay of Execution Statutory Management Moratorium on Payments Small Claims Appeals

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 3 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

James Tenai

Appellant

Hassan Muriungi Kaburia

Respondent

Procedural Posture

Civil Appeal / Judgment

Legal Issues

  1. 1 Whether the trial court erred in refusing to grant a stay of execution of judgment due to a moratorium imposed on the appellant's insurer.
  2. 2 Whether a press release, absent a Kenya Gazette notice, constitutes a valid declaration of moratorium under the Insurance Act.
  3. 3 Whether the appellant provided sufficient evidence that the insurer would have honoured the claim but for the moratorium.

Ratio Decidendi

The court held that for a moratorium to be effective under the Insurance Act, it must be declared by the statutory manager through a Kenya Gazette notice. The appellant relied solely on a press release, which did not constitute a valid declaration of moratorium. Even if the press release were considered, there was no evidence of a current, valid moratorium or that the insurer would have paid the claim but for the moratorium. The appellant failed to meet the legal requirements for a stay of execution based on statutory management and moratorium. Consequently, the trial court was correct in dismissing the application, and the appeal lacked merit.

Court Disposition

appeal dismissed

Orders

  • The appeal is dismissed.
  • The appellant shall bear the costs of the appeal.