Judiciary headquarters
The Court of Appeal has dismissed an application by Equip Agencies Limited seeking to stop I&M Bank from exercising its statutory power of sale over several properties used to secure a Sh2.5 billion debt.
The ruling, delivered by Justices Daniel Musinga, Mumbi Ngugi, and George Odunga, marks the culmination of a protracted legal battle dating back to 2017.
Equip Agencies had filed Civil Application No. NAI E103 of 2025, requesting a stay of execution on a High Court ruling by that vacated an injunction preventing the bank from selling the disputed properties.
The properties, located in Nairobi’s Industrial Area, Muthaiga, and Mombasa, were set to be auctioned on March 31, 2025, as part of the bank’s effort to recover the outstanding loan.
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The appellate court ruled that Equip Agencies’ case was “frivolous and not arguable,” citing numerous prior court decisions that had ruled against the company.
The bench emphasized that the matter was res judicata, meaning it had been litigated and conclusively determined in previous cases, including rulings by Justices Nzioka, Majanja, Chacha Mwita, and Mulwa. The court also noted that the company had previously entered into a Deed of Settlement with I&M Bank in June 2021 but had failed to honor its financial commitments.
I&M Bank, through its senior legal manager Andrew Muchina, argued that the appeal was a deliberate delay tactic, as Equip Agencies had repeatedly sought injunctions without prosecuting its main case.
The bank contended that it would suffer significant financial loss if the auction was further delayed, given that the debt remained unpaid despite multiple legal proceedings in favor of the bank.
“The applicant has engaged both the High Court and this Court over the last nine years in a multiplicity of suits and appeals, all in an effort to delay or frustrate the respondent’s statutory power of sale,” read the judgment in part.
The court concluded that even if Equip Agencies’ appeal were arguable, it would not be rendered nugatory if the sale proceeded, as the properties’ value was known and the bank could compensate the company if necessary.
The ruling effectively grants I&M Bank the green light to proceed with the scheduled auction.
With this decision, Equip Agencies is left with limited legal options, as the ruling reinforces I&M Bank’s right to recover its loan through the sale of the charged properties.
