Registered Trustees of Premier Club & 2 others v Commissioner of Lands (Civil Appeal 85 of 2018) [2024] KECA 281 (KLR)
The bottom line
#The Court of Appeal confirmed that special resumption clauses in Kenyan leases can allow government to reclaim land for public use without paying for the land itself.
What this practically means
#Executive summary
#Key legal issues
#Whether the appellants were entitled to compensation for their interest in the land in addition to compensation for developments
The appeal was dismissed; the special conditions in the leases allowed resumption without compensation for the interest in land, and the appellants had already been compensated for improvements and developments
The leases contained special clauses permitting the Government or the Council to resume undeveloped land required for a public purpose upon due notice, without compensation, with compensation payable only for improvements and developed land. The Court found the gazette notice constituted the required six months' notice, that valuation was carried out under the schedule to the Land Acquisition Act, and that the conditions restricted the use to which the land could be put, which was a relevant matter in assessing compensation. The High Court and Tribunal findings were therefore affirmed.
Whether sufficient notice of surrender was served under the special conditions of the leases
The gazette notice issued and served was a six months' notice sufficient as contemplated in the special conditions
The appellants conceded that notice was given by Gazette Notice No 6034 of July 2008 notifying intent to compulsorily acquire portions of the parcels. The Court held that contrary to the appellants' submissions, the notice issued and served was for six months and was therefore sufficient under the special conditions, satisfying the covenant that resumption be upon due notice.
Whether the failure to compensate for the interest in land was unconstitutional
The surrender made pursuant to the lease provisions was not unconstitutional
The Court held that the respondent diligently carried out his mandate in the valuation and compensation, that there was no breach of the law or of the lease or instrument, and that since the surrender was made pursuant to the provisions in the respective leases, which expressly excluded compensation for the interest in undeveloped land, the claim of unconstitutionality failed.
Legal principles established
#- On a second appeal, the Court of Appeal confines itself to questions of law only
- Special conditions in a leasehold title resuming undeveloped land for public purposes without compensation, but with compensation for improvements and developed land, bind the grantee and defeat a claim for compensation for the interest in the land
- In determining compensation for compulsorily acquired land, only the matters enumerated in the schedule to the Land Acquisition Act, including the effect of express or implied conditions of title restricting the use of the land, shall be considered
Court orders
#- 1.Appeal dismissed with costs to the respondent
- On appeal from
- High Court of Kenya at Nairobi
- Jurisdiction invoked
- Second appeal to the Court of Appeal on questions of law (Court of Appeal jurisdiction over appeals from the High Court; specific statutory article not cited in the judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Registered Trustees of Premier Club & 2 others v Commissioner of Lands (Civil Appeal 85 of 2018) [2024] KECA 281 (KLR)", Case Analysis (2024). Civil Appeal No 85 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/281/eng@2024-03-08
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.