The Supreme Court of Kenya has issued a significant ruling in Petition (Application) No. E001 of 2026: Cytonn Investments Partners Four LLP & 6 Others v The Official Receiver. ( Read the full ruling here)
The Court dismissed the Official Receiver’s Preliminary Objection and affirmed that the appeal properly invokes the Supreme Court’s jurisdiction under Article 163(4)(a) of the Constitution. The Court found that, although the matter arises from insolvency proceedings, it also raises serious constitutional questions touching on property rights, fair hearing, and the limits of insolvency powers.
Most importantly, the Supreme Court granted conservatory orders restraining the Official Receiver from enforcing or implementing the vesting orders over the subject properties, including Mystic Plains/Newtown, Riverrun, Taraji, The Ridge, The Alma, Applewood and the Kilimani properties, pending the hearing and determination of the appeal.
The Court recognized that the appeal is arguable, that the properties ought to be preserved, and that proceeding with valuation, sale or transfer before the final appeal is heard may cause consequences that may not be reversible.
This ruling is an important affirmation that insolvency processes must be balanced against constitutional safeguards, especially where the rights of property owners, purchasers, investors, creditors and other affected stakeholders are at stake.
The matter now proceeds to the substantive appeal before the Supreme Court, where the final legal position will be determined.
Read the full ruling here
