Kenya Case Law

Family Bank Limited v Ceven Limited

Family Bank Limited v Ceven Limited [2025] KEHC 10115 (KLR)

Court

High Court

Case number

Arbitration Cause E084 of 2022

Judge

AA Visram

The court found that the Respondent's Directors breached court orders and statutory obligations by failing to produce financial records and by misappropriating company funds for personal use. The evidence showed that Andrew Gitonga and Henry Waweru, as signatories to the company's bank accounts, withdrew funds in their own names, blurring the line between the company and its Directors. The Directors failed to provide any credible explanation or documentation to rebut these allegations. The court held that the Respondent operated as a shell to receive funds from the Applicant, which were then…

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• Lifting Corporate Veil
• Director Liability
• Fraudulent Trading
• Execution Of Decree

Berlin Equipment Limited v Mascor Kenya Limited

Berlin Equipment Limited v Mascor Kenya Limited [2025] KEHC 9373 (KLR)

Court

High Court

Case number

Civil Case E051 of 2022

Judge

J Ngaah

The High Court allowed an application to summon company directors for examination on execution, but declined to lift the corporate veil before that process.

• Execution Of Decree
• Lifting Corporate Veil
• Director Liability
• Fraudulent Conduct
• Judgment Debtor Examination
• Execution-of-decree

Agrotech and Input Supplies Ltd v Imexia Ltd

Agrotech and Input Supplies Ltd v Imexia Ltd [2025] KEHC 9008 (KLR)

Court

High Court

Case number

Miscellaneous Application E1009 of 2024

Judge

JN Mulwa

The High Court determined that it lacked jurisdiction to entertain the application for execution of a decree issued by the Small Claims Court because the law requires that all questions relating to the execution, discharge, or satisfaction of a decree be determined by the court executing the decree. There was no evidence that the Small Claims Court, which issued the decree, had ceased to exist or lacked jurisdiction to execute its own decree. The Small Claims Court Act expressly provides for the execution of its decrees, including the examination of directors and the lifting of the corporate…

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• Execution Of Decrees
• Lifting Corporate Veil
• Jurisdiction Of Courts
• Director Liability

Assets Recovery Agency v Geospatial Engineers and Business Consultants Ltd; Equity Bank (Interested Party)

Assets Recovery Agency v Geospatial Engineers and Business Consultants Ltd; Equity Bank (Interested Party) [2025] KEHC 8252 (KLR)

Court

High Court

Case number

Anti-Corruption and Economic Crimes Civil Suit E009 of 2023

Judge

BM Musyoki

The court found that both the respondent and the interested party were served with valid court orders restricting transactions on the subject account and were aware of their obligations. Despite this, substantial debits occurred during the period the orders were in force, and the explanations offered—that the account was an escrow facility and that restrictions were lifted after expiry—did not absolve the parties from the duty to comply or to verify the status of any forfeiture proceedings. The respondent actively participated in the forfeiture proceedings and could not claim ignorance. The c…

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• Contempt Of Court
• Forfeiture Of Proceeds Of Crime
• Preservation Orders
• Bank Account Freezing
• Director Liability
• Anti Money Laundering

Intermedia Development Consultants v Mutisya

Intermedia Development Consultants v Mutisya [2025] KEHC 9596 (KLR)

Court

High Court

Case number

Civil Suit E124 of 2019

Judge

DO Chepkwony

The court found that the Plaintiff failed to discharge the elevated burden of proof required to establish fraud against the Defendant. While the Plaintiff alleged that the Defendant, as accountant, fraudulently altered cheques and payment vouchers to divert funds to entities he controlled, the court noted that all disputed cheques bore the genuine signatures of the Plaintiff's directors, as confirmed by independent forensic experts. No original cheques payable to KRA were produced to substantiate claims of subsequent alteration. The Plaintiff's reliance on cheque stubs and circumstantial evid…

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• Company Fraud
• Embezzlement
• Director Liability
• Burden Of Proof
• Internal Controls
• Forensic Document Examination

Superfit Steelcom Limited v Anmol Limited

Superfit Steelcom Limited v Anmol Limited [2025] KEHC 6765 (KLR)

Court

High Court

Case number

Arbitration Cause E049 of 2022

Judge

PM Mulwa

The court found that the applicant had established a prima facie case for summoning the directors of the judgment debtor for examination and production of documents under Order 22 Rule 35 of the Civil Procedure Rules. The directors' failure to account for the proceeds of asset sales and their lack of transparency justified lifting the corporate veil, making them personally liable for the decretal sum. The court held that the directors' conduct amounted to an attempt to obstruct execution and frustrate the course of justice. However, committal to civil jail was declined as there was no clear e…

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• Arbitral Award Enforcement
• Lifting Corporate Veil
• Director Liability
• Execution Of Decrees
• Injunctive Relief

Nyaga v Nyapela & another; Chhabhadiya Enterprises Limited (Third party)

Nyaga v Nyapela & another; Chhabhadiya Enterprises Limited (Third party) [2025] KEHC 6150 (KLR)

Court

High Court

Case number

Civil Suit 13 of 2012

Judge

JM Omido

The High Court partly allowed a post-judgment application, ordering oral examination of directors of the 2nd defendant, but found the request to lift the corporate veil premature.

• Lifting Corporate Veil
• Execution Of Decree
• Director Liability
• Judgment Enforcement
• Lifting-corporate-veil
• Execution-of-decree

Wanjama v Registrar of Companies & another; Cytonn Investment Partners Eleven LLP & 16 others (Interested Parties)

Wanjama v Registrar of Companies & another; Cytonn Investment Partners Eleven LLP & 16 others (Interested Parties) [2025] KEHC 3644 (KLR)

Court

High Court

Case number

Miscellaneous Application E877 of 2023

Judge

H Namisi

The High Court dismissed an application to register a manager’s and officer’s resignations from multiple Cytonn entities, finding delay, poor compliance, and possible bad faith.

• Company Resignation
• Insolvency Administration
• Liquidation Process
• Director Liability
• Statutory Compliance
• Creditor Protection

Elmarak Holdings Limited & another v Afrikon Limited (In Liquidation)

Elmarak Holdings Limited & another v Afrikon Limited (In Liquidation) [2025] KEHC 3593 (KLR)

Court

High Court

Case number

Insolvency Cause E018 of 2020

Judge

F Gikonyo

The High Court ordered Afrikon Limited’s present and former directors to file a statement of affairs and asset inventory, and directed an insolvency investigation.

• Company Liquidation
• Director Liability
• Fraudulent Conveyance
• Statement Of Affairs
• Asset Diversion
• Company-liquidation

Palm Builders Limited v Commissioner of Domestic Taxes

Palm Builders Limited v Commissioner of Domestic Taxes [2025] KETAT 179 (KLR)

Court

Tax Appeal Tribunal

Case number

Tax Appeal E602 of 2024

Judges

E.N Wafula, Cynthia B. Mayaka, RO Oluoch, AK Kiprotich, G Ogaga

The Tribunal dismissed a tax appeal by Palm Builders Limited, holding that the company failed to prove the assessments were excessive or that its claimed expenses were deductible.

• Income Tax Assessment
• Burden Of Proof
• Tax Objection Procedure
• Corporate Taxation
• Director Liability
• Deductibility Of Expenses