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Court of AppealDismissedReference from ruling in taxation of costs in Civil Appeal No. 24 of 2020· [2025] KECA 688 (KLR)

Chande & another v Kwale & 3 others (Civil Appeal (Application) 24 of 2020) [2025] KECA 688 (KLR)

Court of Appeal of Kenya
11 April 2025
3,055 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal upheld a Kshs 1.25 million costs award, confirming judges rarely overturn a Taxing Officer's decision unless there's an error of principle.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Mombasa (Achode, JA, sitting as a single judge) on a reference under rule 117(1) of the Court of Appeal Rules, 2022. The reference challenged a Taxing Officer's ruling of 29th November 2023 assessing party and party costs in Civil Appeal No. 24 of 2020 at Kshs. 1,249,025 in favour of Ali Khamis Chande and Nasra Sharifi Mohamed. David Kandie, the 1st Respondent, sought to have the taxation set aside and the bill remitted for re-taxation, arguing that the Taxing Officer ignored his submissions, based instruction fees on a subject-matter value of Kshs. 40 million instead of the Kshs. 1 million shown in a Land Control Board consent, taxed one appellant who was not a party at the High Court, and applied the 2022 Rules to a 2020 appeal. The Appellants countered that the award was founded on a recent valuation report valuing the properties at about Kshs. 33 million and the complexity of three consolidated appeals, and that no error of principle was demonstrated; they also complained of a 9-month delay in service. The Court restated the settled thresholds: interference lies only for error of principle or where the award is manifestly excessive or inadequate, and quantum-only disputes are outside a judge's remit. It found the Taxing Officer had considered the submissions, given sufficient reasons, and relied on the valuation report and the complexity of the consolidated cases. The reference was dismissed in its entirety with costs to the Appellants; the Taxing Officer's ruling was thereby affirmed.

Key legal issues

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01

Threshold for interference with a Taxing Officer's decision on a reference

Holding

The judge will not interfere unless there is an error of principle or the fee awarded is manifestly excessive or inadequate; quantum-only disputes do not justify interference

Reasoning

Relying on the Supreme Court's decision in Non-Governmental Organization Board, Kipkorir Too & Kiara, First American Bank and Premchand Raichand, the Court reiterated that taxation is a matter of opinion based on experience; a judge will not upset a taxation merely because the award seems too high or too low, but only where it amounts to an injustice or rests on an error of principle such as taking into account irrelevant factors or omitting relevant ones.

p. 4
02

Application of the threshold to the facts

Holding

The Taxing Officer gave sufficient reasons, based the award on the market value of the subject properties per a valuation report and the complexity of the consolidated appeals, so no error of principle was shown

Reasoning

The Court found, contrary to the Respondent's assertion, that the Taxing Officer considered the Respondent's submissions and explained how he arrived at the figure. He relied on a recent valuation report dated 2nd July 2023 fixing market value at about Kshs. 33 million, and considered the complexity of three consolidated appeals, consistent with the criteria in rule 9(2) of the Third Schedule and Joreth Limited.

p. 6
03

Effect of failure to serve a rule 117(1) application within 3 days

Holding

The Court considered the application on its merits because the Appellants did not move to strike it out despite the 9-month delay in service

Reasoning

Although rule 117(1) requires service within 3 days of filing and the Appellants complained they were served 9 months late, the Appellants did not seek to have the application struck out. The Court treated the objection as not dispositive and determined the reference on its merits rather than punishing the procedural lapse.

p. 3

Legal principles established

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  • A judge on a reference will not interfere with a Taxing Officer's discretionary award unless the Taxing Officer erred in principle or the award is manifestly excessive or inadequate
  • The value of the subject matter for instruction fees is determined by the pleadings before judgment, and by the judgment once entered

Court orders

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  1. 1.The reference is dismissed in its entirety
  2. 2.Costs awarded to the Appellants

Authorities

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Legislation

  • Court of Appeal Rules, 2022Rule 117(1), 117(3)
  • Court of Appeal Rules, 2022Third Schedule, paragraph 9(2)
  • Court of Appeal Rules, 2010referred to as allegedly applicable rules
  • Advocates ActRule 11, rule 11(1), rule 11(3)

Cases cited (8)

  • Joreth Limited v Kigano & Associates
    [2002] eKLR
  • First American Bank Ltd v Shah & another
    [2002] 1 EA 64
  • Peter Muthoka & Another v Ochieng & 3 Others
    [2019] eKLR
  • Mbogo v Shah
    [1968] EA 93
  • Non-Governmental Organization Board v EG & 5 Others
    (Petition (Application) 16 of 2019) [2023] KESC 102 (KLR) (Civ)
  • Kipkorir, Too & Kiara Advocates v Deposit Protection Fund Board
    (2005) eKLR
  • Premchand Raichand Limited and Anor v Quarry Services of East Africa Limited and Anor
    [1972] 562
  • Kamunyori & Company Advocates v Development Bank of Kenya Ltd
    Civil Appeal No. 206 of 2006
On appeal from
Taxing Officer, Court of Appeal
Civil Appeal No. 24 of 2020
Jurisdiction invoked
Rule 117(1) of the Court of Appeal Rules, 2022 (reference against a decision of the Registrar as Taxing Officer)

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, "Chande & another v Kwale & 3 others (Civil Appeal (Application) 24 of 2020) [2025] KECA 688 (KLR)", Case Analysis (2025). Reference from ruling in taxation of costs in Civil Appeal No. 24 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/688/eng@2025-04-11

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