The Supreme Court has declined to hear a dispute between the National Bank of Kenya (NBK) and a ranching company over a Sh2.8 billion parcel of land that was sold to recover a loan of Sh2.8 billion advanced 32 years ago.

A bench of five judges presided over by Deputy Chief Justice Philomena Mwilu (right) dismissed the application by Mwambeja Ranching Company Ltd saying the firm has not demonstrated the exceptional circumstances that would make the court review its decision made on October 6, 2023.

“Having carefully appraised the application, the responses thereto, and submissions by the parties, we find that the applicants have not demonstrated any special and compelling circumstances to warrant an oral hearing of the instant application, in exception to the provisions of Rule 31(1) of the Supreme Court Rules, 2020, which require that applications before this Court shall be determined by way of written submissions,” Judges Mwilu, Mohammed Ibrahim, Smokin Wanjala, Isaac Lenaola and William Ouko said.

The court said that the issues raised by the company were not substantial questions of law, whose determination would have a significant bearing on the public interest.

The dispute arose from a Sh30 million loan that was borrowed by Project Advisory Ltd in July 1992 and a related firm, Mwambeja Ranching Company who was the guarantor, charged its land Taita Taveta as security.

After failing to repay the loan even after agreeing that the amount be settled in installments, the borrower did not offset the amount forcing the bank to auction the property to Shimbaland Ranching Company Limited in 2012 for Sh305 million.

Attempts by the company to overturn the sale were dismissed by the High Court and Court of Appeal, forcing the Mwambeja Ranching to move to the Supreme Court.

The ranching company had complained that the property was undervalued but the court disagreed saying the ranchers’ valuer did not take into consideration that 13,000 acres of the 81,182 acres of the property were occupied by squatters.

The parties reached a compromise in July 1998, as they agreed that the debtor pays Sh22 million in three installments, the last of which was to be paid by December 31, 1998.