Middle East Bank Kenya has been sued for failing to transfer a piece of land to a buyer from whom it had received the full transaction price of Sh195.2 million.
Hussein Alibhai Pirbhai and his firm Tranquility Holdings Limited filed an application at Nairobi’s Environment and Land Court seeking to compel the bank to complete the land sale.
In response, the bank sought to have the case dismissed on grounds that the court did not have jurisdiction to resolve the dispute.
The lender argued that it is the High Court that should hear the matter. The Environment and Land Court, however, rejected the bank’s argument, stating that the dispute lies in its domain.
“In applying the predominant purpose test, it is clear that the intention of the contract in the present case was the sale and purchase of land, which will govern the ownership, occupation and title to the suit land, exactly what this court was designed to hear and determine,” the court ruled.
“From the above, I find the notice of motion dated November 25, 2025 misplaced and misconceived. The same lacks merit and it is thus dismissed with costs to the plaintiffs/respondents,” the court said in the decision issued on February 5, 2026.
Mr Pirbhai told the court that he bought the land in an auction conducted on November 21, 2023, paying a 10 percent deposit amounting to Sh19.5 million and signing a sale agreement with the bank on the same date.
He subsequently instructed Tranquility Holdings on February 20, 2024, to remit the balance of Sh175,750,330 to the bank, which had communicated that the transfer documents were ready for completion.
Mr Pirbhai said he fully discharged all obligations as the purchaser by paying the total of Sh195.2 million, which was the highest successful bid in the auction.
The court heard that the bank did not inform the buyer that there was a pending suit at the High Court that prohibited completion of the sale of the land.
The bank won the High Court case on July 31, 2025 but still failed to transfer the land to Mr Pirbhai.
“The said (High Court) suit was dismissed on 31st July, 2025 thereby allowing parties to complete the transaction, but the defendant/applicant is yet to complete the sale and transfer the suit property to the 1st plaintiff/respondent,” the court was told.
The court said that land disputes including on processes like sale and transfer fall within its ambit.
“Thus, the suit herein arising out of a contract regarding the sale, ownership and title to and use of the suit land falls squarely within the jurisdiction of this court, contrary to the defendant/ applicant’s contention," the judge said.
