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Court of AppealPartially AllowedCivil Appeal No. 192 of 2009· [2014] KECA 300 (KLR)

Municipal Council Of Nakuru v Reliable Concrete Works Limited [2014] KECA 300 (KLR)

Court of Appeal of Kenya
23 October 2014
6,879 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~28 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal upheld the valuation court system, ruling property owners challenging rates must provide real evidence of bias, not just suspicion.

What this practically means

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Executive summary

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This Court of Appeal judgment (Visram, Koome & Otieno-Odek, JJ.A) allowed the Municipal Council of Nakuru's appeal against a High Court ruling by Maraga, J which had declared Section 12 of the Valuation for Rating Act (Cap 266) and valuation courts constituted thereunder unconstitutional for violating the independence and impartiality requirement of Section 77(9) of the former Constitution. The respondent, a rate payer, had petitioned on the basis that the local authority appointed and remunerated the valuation court's members and its clerk. The Court of Appeal framed four issues. It held, first, that the valuation court is an adjudicating authority exercising quasi-judicial powers, its proceedings being judicial in nature since parties may be heard, witnesses examined on oath, and appeals and case stated lie to the High Court. Secondly, that its determinations impose a civil obligation to pay rates attaching in rem to rateable property, and that imposition and recovery of rates does not violate Section 75 property rights given the statutory exceptions. Thirdly, that the manner of appointment and remuneration of members should not per se establish lack of independence; no single safeguard guarantees independence, and the respondent tendered no factual evidence of bias - mere apprehension and speculation being insufficient. The court also emphasized that the Constitution does not operate in a vacuum and that striking down the valuation court would create an institutional lacuna in handling valuation objections, contrary to public interest. The Court set aside the High Court ruling of 30 June 2009 and all consequential orders, and awarded costs of the appeal and of the High Court proceedings to the appellant. This decision now binds subordinate courts and tribunals on the constitutionality of tribunal appointment mechanisms and the evidentiary threshold for bias claims.

Key legal issues

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01

Whether the valuation court is an adjudicating authority under Section 77(9) of the former Constitution

Holding

It is an adjudicating authority exercising quasi-judicial powers; its proceedings are judicial in nature.

Reasoning

Although not a court under Sections 60 or 65 of the former Constitution, the valuation court hears and determines objections to the valuation roll. Parties may be heard in person or by advocate, witnesses may be examined on oath, sittings are public, appeals lie to the High Court, and questions of law may be reserved by way of case stated. Applying the Supreme Court's dictum in Communications Commission of Kenya, determinations of a non-judicial tribunal acting in a quasi-judicial capacity are entitled to the same effect as judicial determinations.

p. 6
02

Whether the valuation court determines civil rights and obligations and affects property rights under Section 75

Holding

Its determinations impose a civil obligation to pay rates, which attaches in rem to the rateable property, and imposition and recovery of rates is not a violation of Section 75.

Reasoning

Unpaid rates are recoverable as a civil debt and constitute a charge on the land under Sections 17 and 19 of the Rating Act. The determination of the rate payable is a determination in rem attaching to the property. Section 75(6)(a) of the former Constitution excepts nothing done under authority of any law for taking possession of property in satisfaction of any rate or impost, and nothing done in execution of a judgment or order of a court in proceedings for determination of civil rights or obligations.

p. 7
03

Whether the appointment and remuneration of valuation court members by the local authority offends independence and impartiality under Section 77(9)

Holding

It does not per se; independence requires a combination of safeguards and a factual basis for any reasonable apprehension of bias, none of which was tendered.

Reasoning

Adopting Supreme Court dicta, no single safeguard singly guarantees independence; it takes a combination of safeguards and the fortitude of office holders. The respondent tendered no evidence of bias or possibility of bias. The requirement of a first-class magistrate or advocate of five years standing is itself a legislative intervention aimed at ensuring competence and independence. Declaring the tribunal unconstitutional would create a legal vacuum in the framework for handling valuation roll objections, contrary to public interest.

p. 10

Legal principles established

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  • A valuation court established under Section 12 of the Valuation for Rating Act is an adjudicating authority exercising quasi-judicial powers within the meaning of Section 77(9) of the former Constitution.
  • The manner of appointment and remuneration of members of a tribunal should not per se be a ground for determining absence of independence and impartiality; no single safeguard guarantees independence.
  • A party alleging bias or lack of independence must tender evidence establishing a reasonable factual basis; mere apprehension and speculation is not enough.
  • Imposition and recovery of rates on rateable property is not a violation of the right to protection of private property under Section 75 of the former Constitution.

Court orders

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  1. 1.Set aside the Ruling of the High Court dated and delivered on 30th June 2009
  2. 2.Set aside all consequential orders arising from that Ruling
  3. 3.Award costs of the appeal and of the proceedings in the High Court to the appellant

Authorities

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Legislation

  • Valuation for Rating ActCap 266, Sections 3, 10(1), 11, 12, 14, 15(7), 16(3), 18, 19, 20, 24, 28
  • Rating ActCap 267, Sections 3, 17(3), 17(6), 17(7), 19
  • The Constitution of Kenya (former)Sections 60, 65, 75, 75(6)(a)(i), 75(6)(a)(iv), 77(9), 77(a), 84, 84(1), 123(8)
  • Civil Procedure ActCap 75

Cases cited (12)

  • In the Matter of the Principle of Gender Representation in the National Assembly and the Senate
    Sup. Ct. Appl. No. 2 of 2012
  • Communications Commission of Kenya & 5 Others v Royal Media Services Limited & 5 Others
    Petition No. 14 of 2014 as consolidated with Petition No. 14A of 2014, Petition No. 14B of 2014 and Petition No. 14C of 2014
  • Re the Matter of the Interim Independent Electoral Commission (IEBC)
    Sup. Ct. Advisory Opinion No. 2 of 2011; [2011] eKLR
  • R v Sussex Justices Ex Parte MacCarthy
    1923 AllER 233
  • Findlay v UK
    (1997) 24 EHRR
  • Runa Begum v Tower Hamlets LBC
    (2002) 2 All ER 668
  • Kenya Pipeline Company Limited v Kenya Oil Company Limited & Another
    (2012) eKLR
  • Newfoundland Telephone Company Limited v The Board of Commissioners of Public Utilities
    [1992] 1 RCS 623
  • President of the Republic of South Africa v South African Rugby Football Union
    1998 (4) SA 147
  • Homepark Caterers Limited v The Attorney General & 3 Others
    (2007) eKLR
  • Speaker of National Assembly v Njenga Karume
    [2008] 1 KLR 425
  • Alphonse Mwangemi Munga & 10 Others v African Safari Club
    [2008] eKLR
On appeal from
High Court of Kenya at Nakuru
H.C. Petition No. 3 of 2009
Jurisdiction invoked
First appeal from the High Court exercising constitutional jurisdiction under Section 84(1) of the former Constitution; appeal as of right on facts and law

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Municipal Council Of Nakuru v Reliable Concrete Works Limited [2014] KECA 300 (KLR)", Case Analysis (2014). Civil Appeal No. 192 of 2009. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2014/300/eng@2014-10-23

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.