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Court of AppealDismissedNairobi Civil Appeal (Miscellaneous) No E145 of 2021· [2025] KECA 1834 (KLR)

Titus Makhanu & Associates Advocates v Alicate Holdings Limited

Court of Appeal of Kenya
7 November 2025
4,168 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~17 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that lawyers cannot add a 14% interest claim after their bill of costs has been taxed; the claim must be included upfront.

What this practically means

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Executive summary

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The appellant advocate was instructed by the respondent client in arbitration proceedings and filed an Advocate/Client Bill of Costs dated 22nd February 2021, served on 3rd and 4th March 2021, which did not include a claim for the 14% p.a. interest permitted by Rule 7 of the Advocates (Remuneration) Order. After taxing and a successful reference, the Bill was re-taxed to Kshs 26,449,774.64 and a Certificate of Costs issued on 9th January 2023. In adoption proceedings under section 51(2) of the Advocates Act, the High Court (F. Mugambi, J.) adopted the certificate as judgment but declined interest, holding the issue res judicata as it had not been raised in the reference. The advocate appealed, contending Rule 7 required only that a claim for interest be made before payment, which its 10th January 2023 application satisfied. The Court of Appeal framed a single issue: whether an advocate may retroactively charge Rule 7 interest after taxation and issuance of a certificate. Holding that a Bill of Costs must contain the totality of the advocate's claims so the client can contest them, the Court held the interest claim must be made in the Bill of Costs, litigated before the Taxing Master, and any omission challenged by a Rule 11 reference; it cannot be sprung for the first time at enforcement. The Court adopted the reasoning of Murgor, JA in Otieno Ragot, notwithstanding that the majority there was set aside by the Supreme Court. The appeal was dismissed with costs to the respondent.

Key legal issues

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01

Whether a claim for 14% p.a. interest under Rule 7 may be made for the first time in section 51(2) adoption proceedings

Holding

No; the claim for interest must be made in the Bill of Costs and litigated before the Taxing Master, with any omission challengeable only by a Rule 11 reference.

Reasoning

The court read Rule 7 together with section 51(2) of the Advocates Act and its precedents. A Bill of Costs must contain the totality of the advocate's claims so the client knows what to contest. After taxation the door is closed on further claims based on the representation; only a Rule 11 reference can challenge the taxed amount. Allowing piecemeal claims would reward advocates who delay bills to inflate interest. The appellant neither claimed interest in the bill nor filed a Rule 11 reference, so the judge properly declined interest.

p. 7
02

Whether the High Court misdirected itself in declining the discretionary award of interest

Holding

The learned Judge did not misapprehend the law or abuse her discretion in disallowing the interest claim.

Reasoning

Since the appellant was procedurally barred from raising the Rule 7 interest claim at the enforcement stage, the High Court's refusal to award interest was correct in law. An appellate court will not interfere with a discretion exercised judiciously, and the trial judge's decision rested on the res judicata analysis of a claim never pleaded in the reference or the Bill of Costs.

p. 8

Legal principles established

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  • An advocate who wishes to charge interest at 14% p.a. under Rule 7 of the Advocates (Remuneration) Order must include that claim in the Bill of Costs served on the client and litigate it before the Taxing Master; the claim cannot be raised for the first time in section 51(2) enforcement/adoption proceedings.
  • Once a Bill of Costs is taxed and a Certificate of Costs issued, the certificate represents the totality of the client's indebtedness save for interest at court rates at the discretion of the adopting court, and any challenge to the taxed amount lies only by a Rule 11 reference.

Court orders

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  1. 1.The appeal is dismissed with costs to the respondent
On appeal from
High Court of Kenya at Nairobi
Nairobi High Court Miscellaneous (Reference) Civil Application No E145 of 2021
Jurisdiction invoked
First appeal under the Court of Appeal's appellate jurisdiction (Advocates Act enforcement proceedings; not stated by provision in the judgment)

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, "Titus Makhanu & Associates Advocates v Alicate Holdings Limited", Case Analysis (2025). Nairobi Civil Appeal (Miscellaneous) No E145 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/1834/eng@2025-11-07

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