Kenya Case Law

Muli v Kenya Commercial Bank Kenya Limited & another

Muli v Kenya Commercial Bank Kenya Limited & another [2025] KEHC 10511 (KLR)

Court

High Court

Case number

Civil Case E016 of 2021

Judge

RC Rutto

The court found that the 1st Defendant failed to provide sufficient proof of proper service of the mandatory statutory notices required under the Land Act and the terms of the charge. File copies of notices without valid certificates of postage or credible evidence of dispatch do not satisfy the legal requirement for service. The burden of proving service lies with the chargee, and in the absence of such proof, the Applicant established a prima facie case warranting injunctive relief. Although the Applicant admitted indebtedness, the court held that non-compliance with statutory prerequisites…

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• Statutory Power Of Sale
• Service Of Statutory Notices
• Injunctive Relief
• Loan Default
• Mortgage Enforcement
• Valuation Of Security

Ajwang t/a Milambo Bajaj Spares & Services v SBM Bank & another

Ajwang t/a Milambo Bajaj Spares & Services v SBM Bank & another [2025] KEHC 10061 (KLR)

Court

High Court

Case number

Commercial Case E008 of 2024

Judge

A Mabeya

The court found that the applicant had defaulted on his loan obligations and that the 1st respondent had duly served all requisite statutory notices as required by the Land Act. The applicant's claim of not being served was disproved by documentary evidence annexed to the respondents' affidavit, which went unchallenged. The court held that financial constraints do not constitute a valid ground for restraining a lender from exercising its statutory power of sale. The applicant failed to establish a prima facie case with a probability of success, nor did he demonstrate that he would suffer irre…

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• Statutory Power Of Sale
• Injunctive Relief
• Loan Default
• Service Of Statutory Notices
• Contractual Obligations
• Irreparable Harm

Mutea v Kiringa

Mutea v Kiringa [2025] KECPT 371 (KLR)

Court

Cooperative Tribunal

Case number

Tribunal Case 58 of 2020

Judges

Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol

The Tribunal found that the applicant was properly served with all relevant pleadings, summons, and notices at her last known address, and that she failed to enter appearance or file a defence despite multiple opportunities. The Tribunal was not persuaded that the default judgment was irregular or that the applicant had raised any triable issues regarding the loan or the accrued amount, as she admitted to taking the loan and defaulting. The Tribunal exercised its discretion to review the interest rate awarded in the judgment, reducing it from 24% per annum to the Tribunal rate of 12% per annu…

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• Setting Aside Default Judgment
• Service Of Process
• Loan Default
• Interest Rates

Muhugu Limited v KCB Bank Kenya Limited; Devshibhai & Sons Limited (Interested Party)

Muhugu Limited v KCB Bank Kenya Limited; Devshibhai & Sons Limited (Interested Party) [2025] KEHC 10025 (KLR)

Court

High Court

Case number

Commercial Case E176 of 2024

Judge

PM Mulwa

High Court dismissed an application to stop a bank’s sale of charged property, finding the borrower had not shown a prima facie case or evidence of overcharging.

• Statutory Power Of Sale
• Injunctive Relief
• Loan Default
• Mortgage Enforcement
• In Duplum Rule
• Contractual Obligations

Mugo v Chania Kibwezi Travellers Sacco

Mugo v Chania Kibwezi Travellers Sacco [2025] KECPT 380 (KLR)

Court

Cooperative Tribunal

Case number

Tribunal Case 315 of 2020

Judges

Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol

The Cooperative Tribunal ordered release of one vehicle held by a Sacco, declined to restructure a loan, rejected an unsupported loss claim, and dismissed the counterclaim.

• Cooperative Societies Disputes
• Loan Default
• Vehicle Security Interest
• Expulsion From Society
• Cooperative-societies-disputes
• Loan-default

Waigwe v Pamofine Trading Limited

Waigwe v Pamofine Trading Limited [2025] KEHC 10058 (KLR)

Court

High Court

Case number

Insolvency Cause E061 of 2023

Judge

PM Mulwa

The High Court declined to set aside a statutory demand, finding the debtor had not shown a bona fide dispute supported by documents.

• Insolvency Proceedings
• Statutory Demand
• Company Debt Dispute
• Loan Default
• Insolvency-proceedings
• Statutory-demand

Siloam Ministries & another v Family Bank Limited & another

Siloam Ministries & another v Family Bank Limited & another [2025] KEHC 10009 (KLR)

Court

High Court

Case number

Civil Suit E081 of 2022

Judge

J Ngaah

The court found that the judgment delivered was a dismissal of the plaintiffs' suit with costs, which is a negative order and not capable of being stayed. The public auction of the suit property is a consequence of the bank's statutory power of sale, which is independent of the court's judgment. There was no positive order in favour of the defendants that could be stayed. The applicants failed to demonstrate substantial loss, did not offer security, and did not meet the mandatory conditions for stay under Order 42 Rule 6 of the Civil Procedure Rules. The application for stay of execution was…

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• Stay Of Execution
• Statutory Power Of Sale
• Injunctions
• Loan Default
• Security For Performance

Convex Commodity Merchants Limited & 2 others v Stanbic Bank Kenya Limited & another

Convex Commodity Merchants Limited & 2 others v Stanbic Bank Kenya Limited & another [2025] KEHC 9491 (KLR)

Court

High Court

Case number

Commercial Case E355 of 2023

Judge

A Mabeya

The court found that the applicants admitted to obtaining and defaulting on the loan from the 1st respondent. While they attributed default to delayed disbursements and external challenges, they failed to provide specific evidence of such delays or their impact. The court held that the respondent bank had complied with statutory requirements under the Land Act by serving the requisite notices. The applicants' claims of undervaluation and requests for additional financing or a moratorium could not override the contractual terms, as courts do not rewrite contracts. The court further held that a…

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• Statutory Power Of Sale
• Injunctive Relief
• Loan Default
• Valuation Of Security
• Equity Of Redemption
• Contractual Obligations

Kahuna Construction Limited v Equity Bank (Kenya) Limited

Kahuna Construction Limited v Equity Bank (Kenya) Limited [2025] KEHC 9623 (KLR)

Court

High Court

Case number

Civil Suit E189 of 2023

Judge

MA Otieno

The Plaintiff failed to establish a prima facie case with a probability of success, as the default in loan repayment was admitted and the only justification offered was financial hardship, which does not suffice for equitable relief. The Plaintiff also failed to comply with a prior court order requiring a deposit as a condition for interim relief, further undermining its claim to equitable remedies. The court found that the property in question, being charged as security for a loan, is liable for sale upon default, and any loss can be compensated by damages. The balance of convenience favoure…

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• Interlocutory Injunctions
• Loan Default
• Mortgage Enforcement
• Statutory Power Of Sale
• Equitable Remedies
• Prima Facie Case

Eleete Interiors Limited v Stanbic Bank Kenya Limited

Eleete Interiors Limited v Stanbic Bank Kenya Limited [2025] KEHC 9530 (KLR)

Court

High Court

Case number

Civil Appeal E362 of 2024

Judge

TW Ouya

The court found that the applicant had not conclusively demonstrated substantial loss but, guided by the overriding objective and the need to balance the interests of both parties, exercised its discretion to grant a conditional stay of execution. The court held that the applicant must pay half of the decretal sum to the respondent and deposit the balance in a joint interest-earning account or provide a bank guarantee for the balance. Failure to comply with these conditions within 30 days would result in automatic dismissal of the application. The court emphasized that the principles under Or…

Source excerpt

• Stay Of Execution
• Asset Financing
• Loan Default
• Security For Decree
• Substantial Loss
• Movable Property Security