Kobilo Farm Limited & another v Elfam Limited; Commodities Fund (Interested Party) (Civil Appeal (Application) E054 of 2024) [2025] KECA 834 (KLR) (16 May 2025) (Ruling)

Facts

Kobilo Farm Limited and Metropole Holdings Limited sought a stay of execution of a decree and judgment issued in Eldoret ELC No. 24 of 2020, pending their appeal. The decree and judgment were related to a sale agreement between the respondents and the applicants, where the applicants were to purchase land. The balance of the purchase price for one of the parcels was not cleared, leading to a 21-day notice and the rescission of the agreement.

Issues

1. Whether the applicants were in breach of the agreement
2. Whether the impugned judgment and decree should be stayed to avoid rendering the appeal nugatory

Reasoning

The court finds that the applicants have satisfied the prerequisites for the stay, and that the appeal is not rendered nugatory by the stay, as the consequences of execution may change the status of the jointly held funds or land.

Outcome

The application is allowed with the condition of depositing Kshs.10,000,000/= in a joint interest earning account.

Authorities cited