Whether the Small Claims Court has jurisdiction to hear and determine a declaratory suit arising from an insurance policy: The Case of Jubilee Allianz General Insurance Kenya Limited v Benson Muhavi Butiya

Court: High Court of Kenya at Nairobi (Milimani Law Courts)
Case Number: Civil Appeal E613 of 2024
Judgment Date: 24 April 2025
Judge: Hon. J.N. Njagi

Parties:

• Appellant: Jubilee Allianz General Insurance Kenya Limited
• Respondent: Benson Muhavi Butiya

Background:
Benson Muhavi Butiya (the Respondent) filed a declaratory suit against Jubilee Allianz General Insurance Kenya Limited (the Appellant) in the Small Claims Court. The suit concerned a claim under an insurance policy issued by the Appellant. The Appellant challenged the jurisdiction of the Small Claims Court, arguing that it lacked the authority to determine a declaratory suit, particularly one related to insurance matters.

The appellant, Jubilee Allianz General Insurance Kenya Limited, appealed against a decision by the Small Claims Court in Milimani Civil Suit No. E741 of 2024. The suit involved a declaratory action concerning the jurisdiction of the Small Claims Court over a matter related to an insurance policy.

Issues:
The central issue in this appeal was whether the Small Claims Court had the jurisdiction to hear and determine a declaratory suit concerning an insurance policy/ Whether the Small Claims Court had jurisdiction to hear and determine a declaratory suit involving an insurance contract.

Court’s Determination:
The High Court, presided over by Hon. J.N. Njagi, dismissed the appeal. The court upheld the decision of the Small Claims Court, affirming its jurisdiction to entertain the declaratory suit.

The High Court dismissed the appeal, holding that the Small Claims Court had the requisite jurisdiction to hear the declaratory suit. The Court upheld the lower court’s decision and allowed the matter to proceed before the Small Claims Court.

Legal Significance:
This judgment reinforces the jurisdictional boundaries of the Small Claims Court in Kenya, particularly concerning declaratory actions related to insurance policies.

Rationale

• The court interpreted the Small Claims Court Act and applicable statutes, finding no limitation excluding declaratory actions from its jurisdiction.
• The court emphasized that access to justice and timely resolution of commercial disputes is essential, particularly where the claim value falls within the statutory threshold.

Citation:
Jubilee Allianz General Insurance Kenya Limited v Butiya [2025] KEHC 5170 (KLR) (Civ)

For a comprehensive understanding of the case, you can access the full judgment here: https://new.kenyalaw.org/akn/ke/judgment/kehc/2025/5170/eng@2025-04-24