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Court of AppealPartially AllowedCivil Appeal (against Malindi ELC Constitutional Petition No. 33 of 2019)· [2023] KECA 870 (KLR)

Kenya Ports Authority v Nightshade Properties Ltd & 4 others (Civil Appeal E025 of 2021) [2023] KECA 870 (KLR)

Court of Appeal
7 July 2023
7,189 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~29 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed the government must pay Nightshade Properties compensation for Lamu port land, but cancelled an extra injunction.

What this practically means

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Executive summary

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The Court of Appeal at Mombasa (Nyamweya, Lesiit and Odunga, JJA) determined a first appeal by the Kenya Ports Authority against the judgment of Olola, J. of the Environment and Land Court in Constitutional Petition No. 33 of 2019, together with a cross-appeal on costs by the National Assembly. The 1st Respondent, Nightshade Properties Ltd, had petitioned after its title to 100 Ha at Mokowe, Lamu - cancelled in 2011 and reinstated by a court order in May 2017 - was gazetted in February 2018 for compulsory acquisition for the LAPSSET Lamu Port project, with no compensation paid, while the Port Authority had already taken possession and constructed three berths. The trial court had issued a mandamus directing the National Land Commission to convene a Section 112 Land Act compensation inquiry within 45 days, backed by a default injunction restraining the Commission, the LAPSSET Authority and the Port Authority from the land, plus costs. The Court of Appeal held that under Section 120(2) of the Land Act possession could lawfully be taken before compensation in cases of urgent necessity, so the acquisition process was properly commenced but remains incomplete until compensation is paid; the mandamus was confirmed and the parties directed to compensate the 1st Respondent within one year. However, the default injunction was set aside as unnecessary because a mandamus is complete in itself and capable of execution. On the cross-appeal, costs were awarded against the 2nd and 3rd respondents and the Appellant, who had active roles in the acquisition, but not against the National Assembly. The appeal succeeded in part.

Key legal issues

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01

Whether the compulsory acquisition of the suit property complied with Article 40(3) of the Constitution and Part VIII of the Land Act

Holding

The proper process was followed in the unique circumstances, possession having been effected before compensation, but the acquisition remains incomplete until compensation is paid; the Appellant and NLC must compensate the 1st Respondent.

Reasoning

Article 40(3) permits deprivation of property for a public purpose with prompt payment of just compensation. The statutory framework for compulsory acquisition is in Part VIII of the Land Act. Here, the 1st Respondent's title had been cancelled in 2011 when the bulk acquisition of 28,139 Ha was done, and was reinstated only in 2017; the NLC gazetted the suit property for acquisition in February 2018. Section 120(2) permits possession before award in cases of urgent necessity. Non-payment of compensation does not invalidate the acquisition but leaves the process incomplete.

p. 12
02

Whether the default order of injunction issued upon non-compliance with the mandamus was proper

Holding

The default injunction was set aside; the order of mandamus was complete in itself and capable of execution, making the default order unnecessary.

Reasoning

The mandamus principles require that the order command only what the party is legally bound to perform and that it be the only lawful remedy available. The ELC judge's mandamus directing the NLC to convene a Section 112 inquiry was sufficient; the 1st Respondent had recourse to execute it if the NLC defaulted. Layering a default mandatory injunction against the Appellant and 3rd Respondent over land already vested in the State for a nearly completed public project was not warranted.

p. 14
03

Whether the costs orders against the Appellant and the 5th Respondent were justified

Holding

Costs of the appeal and the Petition were awarded against the 2nd, 3rd respondents and the Appellant, but not the 5th Respondent (National Assembly).

Reasoning

The Appellant, the 2nd and 3rd respondents each had specific, admitted roles in the acquisition process and should bear the costs. The 5th Respondent, whose role was legislative, was not found to have engaged in the acquisition and its cross-appeal on costs therefore succeeds.

p. 14

Legal principles established

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  • Possession of land may lawfully be taken before compensation in cases of urgent necessity under Section 120(2) of the Land Act, but the compulsory acquisition process remains incomplete until compensation is paid.
  • An order of mandamus is complete in itself and capable of execution; no default consequential order (such as an injunction) should accompany it, since the party in whose favour it issues has recourse upon non-compliance.
  • On a first appeal, the Court of Appeal must re-evaluate, reassess and reanalyze the evidence and draw its own conclusions, while making due allowance for not having seen or heard the witnesses.

Court orders

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  1. 1.The order of Mandamus issued directing the 2nd respondent to convene a meeting under the provisions of Section 112 of the Land Act to determine the just compensation due to the 1st respondent within 45 days from the date hereof is confirmed
  2. 2.The 2nd respondent and the appellant shall compensate the 1st respondent for the suit property within one year from the date of this judgment
  3. 3.The default order of injunction issued against the 2nd and 3rd respondent and the appellant is set aside
  4. 4.The costs of the appeal and of the Petition before the ELC is awarded to the 1st respondent as against the 2nd respondent, the 3rd respondent and the appellant

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 40
  • Constitution of Kenya, 2010Article 40(3)
  • Constitution of Kenya, 2010Article 47
  • Constitution of Kenya, 2010Article 65
  • Constitution of Kenya, 2010Article 27(4)
  • Constitution of Kenya, 2010Article 1, 2, 10
  • Constitution of Kenya, 2010Articles 68 and 95
  • Constitution of Kenya, 2010Article 119(1)
  • Constitution of Kenya, 2010Fourth Schedule
  • Constitution of Kenya, 2010Section 7 of the Sixth Schedule
  • Land Act, No. 6 of 2012Section 107
  • Land Act, No. 6 of 2012Section 110
  • Land Act, No. 6 of 2012Section 112
  • Land Act, No. 6 of 2012Section 117(1)
  • Land Act, No. 6 of 2012Section 120 and 120(2)
  • Land Act, No. 6 of 2012Section 161
  • Land Act, No. 6 of 2012Sections 107 to 133 (Part VIII)
  • Kenya Ports Authority Act Cap 391Section 13(1)(b), (2)(a), (3) and (4)
  • LAPSSET Corridor Development Authority Order, 2013Section 2
  • Court of Appeal Rules, 2010Rule 93 (now Rule 95)

Cases cited (5)

  • Kenya Ports Authority v Kustron (Kenya) Limited
    (2005) 2 EA 212
  • Elizabeth Wambui Githinji & 29 others v Kenya Urban Roads Authority & 4 others
    [2019] eKLR
  • Isaiah Otiato & 6 Others v County Government of Vihiga
    (2018) eKLR
  • Kenya National Examinations Council v Republic ex parte Gathenji & Others
    (1997) eKLR
  • Anarita Karimi Njeru v Republic
    (1979) eKLR
On appeal from
Environment and Land Court
Constitutional Petition No. 33 of 2019
Jurisdiction invoked
First appeal to the Court of Appeal under the Court of Appeal Rules, 2010 (Rule 93 for the cross-appeal)

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, "Kenya Ports Authority v Nightshade Properties Ltd & 4 others (Civil Appeal E025 of 2021) [2023] KECA 870 (KLR)", Case Analysis (2023). Civil Appeal (against Malindi ELC Constitutional Petition No. 33 of 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2023/870/eng@2023-07-07

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