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ELCPartially AllowedNot stated in judgment· [2015] KEELC 698 (KLR)

Stanley Munga Githunguri v National Land Commission & another [2015] KEELC 698 (KLR)

Environment and Land Court
6 February 2015
1,509 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court threw out a Kshs. 155 million land compensation award because the National Land Commission gave no reasons for the figure.

What this practically means

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Executive summary

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The National Land Commission, by Gazette Notice No. 1190 dated 23rd August 2013, declared its intention to compulsorily acquire 4.914 acres hived out of L.R. No. 12389 in Karen Estate, Nairobi. At an inquiry before Mr. E.G. Rwigi, Assistant Commissioner of Lands, the Appellant relied on a valuation by Ragos Valuers & Estate Agents Ltd placing the value at Kshs. 652,176,500/-, but Mr. Rwigi awarded Kshs. 155,398,925/-. The Appellant appealed to the Environment and Land Court under section 128 of the Land Act, 2012, contending the award ignored the commercial user, location, proximity to the highway and commenced development, and that Mr. Rwigi usurped the Commission's powers. The Respondent filed no response despite being given opportunities. The court framed a single issue: whether to uphold the award as just compensation. Although section 113(2) of the Land Act renders the Commission's award final and conclusive, the court held this is subject to the constitutional guarantee of just compensation under Article 40(3). Because the Assistant Commissioner gave no reasons for his figure, the court could not evaluate whether he misdirected himself; the unreasoned award appeared plucked from the air and violated Articles 40(3), 10(2) and 47(2) of the Constitution. The court also noted the absence of compensation-assessment rules under section 111(2) and unclear delegated authority for the Assistant Commissioner. The court set aside the award, directed the Commission to issue a reasoned award based on clearly ascertainable criteria, and awarded costs to the Appellant.

Key legal issues

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01

Finality of the Commission's award versus constitutional just compensation

Holding

The statutory finality of the award under section 113(2) does not oust the court's duty to ensure just compensation under Article 40(3) of the Constitution

Reasoning

Section 113(2)(a) makes the award final and conclusive evidence of the value of land and compensation payable, subject to Article 40(2) of the Constitution and sections 122 and 128 of the Land Act. The court held this finality is subject to the constitutional guarantee of just compensation, so it may examine whether the award meets that standard, particularly where reasons are absent.

p. 3
02

Duty to give reasons for the award

Holding

The award cannot stand because no reasons were given; the unreasoned figure appears arbitrary and violates Article 47(2) of the Constitution

Reasoning

The Assistant Commissioner gave no reasons for awarding Kshs. 155,398,925/-, making it impossible for the court to evaluate whether he misdirected himself. Article 47(2) guarantees written reasons where administrative action adversely affects a right, and Article 10(2) demands transparency and accountability. An unreasoned decision is arbitrary and unconstitutional.

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03

Authority of the Assistant Commissioner and absence of rules on assessment of compensation

Holding

It is the Commission that is empowered to make the award under section 113(1), and the Commission should have promulgated rules under section 160(1)(e) to streamline valuation procedure; section 111(2) rules were never made

Reasoning

Section 113(1) vests the power to prepare the written award in the Commission, yet it was unclear under what delegated authority the Assistant Commissioner acted. Section 111(2) required the Commission to make rules regulating the assessment of just compensation, which had not been done, and the court considered rules under section 160(1)(e) necessary.

p. 3

Legal principles established

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  • Although an award of the Commission is final and conclusive under section 113(2) of the Land Act, 2012, the court must consider whether the compensation is 'just compensation' within the meaning of Article 40(3) of the Constitution
  • The opinion of the Commission on compensation must be objective and based on objectively ascertainable grounds and reasons; an unreasoned award is arbitrary and unconstitutional
  • The duty to give reasons for administrative action is constitutionally enshrined under Article 47(2) and supports the right to fair administrative action under Article 47(1)

Court orders

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  1. 1.The award of Kshs. 155,398,925/- made by the Assistant Commissioner of Lands is set aside
  2. 2.The National Land Commission is directed to issue a reasoned award on the basis of clearly ascertainable criteria
  3. 3.The costs of the appeal are awarded to the Appellant

Authorities

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Legislation

  • Land Act, 2012section 110(1)
  • Land Act, 2012section 111(1)
  • Land Act, 2012section 111(2)
  • Land Act, 2012section 112
  • Land Act, 2012section 113(1)
  • Land Act, 2012section 113(2)
  • Land Act, 2012section 122
  • Land Act, 2012section 128
  • Land Act, 2012section 160(1)(e)
  • Constitution of Kenya, 2010Article 10(2)
  • Constitution of Kenya, 2010Article 40(2)
  • Constitution of Kenya, 2010Article 40(3)
  • Constitution of Kenya, 2010Article 47(1)
  • Constitution of Kenya, 2010Article 47(2)
On appeal from
National Land Commission (award by Mr. E.G. Rwigi, Assistant Commissioner of Lands)
Gazette Notice No. 1190 dated 23rd August 2013 inquiry
Jurisdiction invoked
Section 128 of the Land Act, 2012 (appeal to the Environment and Land Court)

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, "Stanley Munga Githunguri v National Land Commission & another [2015] KEELC 698 (KLR)", Case Analysis (2015). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2015/698/eng@2015-02-06

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