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Court of AppealDismissedCivil Appeal No. 15 of 2017

Mombasa County Government v Kenya Ferry Services & another; Myspace Properties Limited (Interested Party) [2018] KECA 21 (KLR)

Court of Appeal
19 April 2018
5,006 words in judgment
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The bottom line

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Kenya's Court of Appeal ruled that Likoni Ferry belongs to the National Government, not Mombasa County, and ordered the County to hand it back.

What this practically means

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Executive summary

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The Mombasa County Government appealed against a High Court decision (Emukule, J., 28 November 2016) in Constitutional Petition No. 9 of 2016, which had declared that the County's forcible takeover in February 2016 of the ferry facilities and ancillary revenue collections at the Likoni Channel was unconstitutional, and ordered the County to refund and account for monies collected and to hand back operations. The single decisive issue on appeal was whether operation of the Likoni Ferry was a devolved function. The Court of Appeal (Visram, Karanja & Koome, JJ.A) held that it was not. Although section 5(e) of Part 2 of the Fourth Schedule assigns 'ferries and harbours' to counties, that assignment excludes regulation of international and national shipping; and Legal Notice No. 152 of 2013, issued under section 15 of the Sixth Schedule as read with the Transition to Devolved Government Act, 2012, transferred only ferries operating in 'inland lakes and waters'. The Court took judicial notice that the Likoni Channel is part of the Indian Ocean and an international waterway on the country's marine navigation system, assigned to the National Government, and that its use is also governed by international treaties. Since 1989 the Kenya Ferry Services Ltd, a state corporation 80% owned by the National Government, had operated the ferries after the Municipal Council of Mombasa voluntarily handed them over; no Article 187(1) agreement had transferred the function to the County. The Court also held that the ancillary plots and structures belonged to the 1st respondent, which as a juridical person enjoys Article 40 property protection and is entitled to the revenue generated, subject to lawful county levies. A new conflict-of-laws argument under Article 191 raised for the first time on appeal was declined. The appeal was dismissed with costs to the 1st respondent, the High Court judgment and orders upheld, and the County ordered to hand over the operations and management of the facilities within 14 days.

Key legal issues

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01

Whether the operation of the Likoni Ferry was devolved to Mombasa County Government

Holding

No. The Likoni Channel is part of the Indian Ocean and an international waterway assigned to the National Government. Legal Notice No. 152 of 2013 confined the devolved ferry function to ferries and harbours in inland lakes and waters, which excludes international waters.

Reasoning

The Fourth Schedule assigns marine navigation to the National Government and assigns ferries and harbours to counties only excluding regulation of international and national shipping. The Transitional Authority's Legal Notice No. 152 of 2013 transferred only ferries operating in inland lakes and waters. Since the Likoni Channel is an international waterway on the international marine navigation system, governed also by international treaties, the function remains with the National Government, and transfer would require an agreement under Article 187(1), which never occurred.

p. 6
02

Ownership of, and entitlement to revenue from, the ancillary facilities (parking bays, waiting bays, termini, rental and advertising space)

Holding

The plots MS/1/1762 and MS/1/1763 and the structures on them belong to the 1st respondent, which is entitled to the revenue generated from those properties, subject to any licences or levies the appellant is authorized to impose.

Reasoning

It was not disputed that the plots are owned by the 1st respondent, a juridical person with capacity to own property. Structures erected on those properties belong to it. As a juridical person it enjoys Article 40 protection against arbitrary deprivation of property, and the appellant's forcible takeover and collection of revenue was unlawful, entitling the respondents to the reliefs granted by the High Court.

p. 6
03

Whether the High Court judgment should be disturbed

Holding

No. The appeal lacked merit and the High Court judgment and orders were upheld.

Reasoning

On a first appeal the Court is enjoined to make its own independent conclusions, but on the single decisive issue the appellant's claim failed. The predecessor of the appellant had voluntarily handed over ferry operations to the National Government in 1989; no evidence suggested the appellant would manage the ferries more efficiently; and the appellant's forcible February 2016 takeover without consultation violated Article 187(1) and Article 40.

p. 6

Legal principles established

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  • The Likoni Channel is not an inland lake or water but part of the Indian Ocean and an international waterway assigned to the National Government under the Fourth Schedule; ferry operations on it are therefore a National Government function.
  • A county government function under section 5(e) of Part 2 of the Fourth Schedule excludes regulation of international and national shipping and all activities carried out in international waterways.
  • Where county legislation conflicts with national legislation such as the Companies Act or State Corporations Act, the county legislation must yield to national legislation.
  • A transfer of functions between levels of government can only occur by agreement under Article 187(1), not by force or unilateral takeover.
  • A juridical person such as a state corporation enjoys protection of its right to property under Article 40 of the Constitution and is entitled to revenue generated from its properties.
  • An appellate court will not strike out an appeal as defective where the respondent never moved the Court under Rule 84 of the Court of Appeal Rules.

Court orders

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  1. 1.Dismissal of the appeal with costs to the 1st respondent
  2. 2.Upholding the judgment of the High Court dated 28th November 2016 and the orders granted therein
  3. 3.The appellant to hand over to the 1st respondent the operations and management of the facilities in question within 14 days from the date of the judgment
On appeal from
High Court of Kenya at Mombasa
Constitutional Petition No. 9 of 2016
Jurisdiction invoked
First appellate jurisdiction over a decision of the High Court sitting in constitutional petition jurisdiction; first appeal by right under the Court of Appeal Rules (Rule 29(1)(a) duty to make independent conclusions).

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Mombasa County Government v Kenya Ferry Services & another; Myspace Properties Limited (Interested Party) [2018] KECA 21 (KLR)", Case Analysis (2018). Civil Appeal No. 15 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2018/21/eng@2018-04-19

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