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ELCPartially AllowedE.L.C Case No. 54 of 2015· [2017] KEELC 1452 (KLR)

Gami Properties Limited v National Land Commission [2017] KEELC 1452 (KLR)

Environment and Land Court
22 September 2017
5,644 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~23 min to read original · ~4 min brief

The bottom line

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Kenya's National Land Commission must personally notify landowners before acquiring their land; a gazette notice alone is not enough, and flawed process invalidates compensation awards.

What this practically means

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Executive summary

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Gami Properties Limited, the registered leasehold proprietor of L.R No. 337/4797 on Mombasa Road, appealed against an award of Kshs 86,928,500/- made by the National Land Commission on 16 June 2015 as compensation for the compulsory acquisition of 1.0298 hectares of its land for the Standard Gauge Railway project. The appellant sought enhancement to Kshs 647,000,000/-, claiming development costs, market value, severance, disturbance and redesign costs for a proposed shopping mall. It argued that it was never given notice of the inquiry, that its written representations of 30 March 2015 were ignored, and that no reasons were furnished for the award, contrary to Articles 40 and 47 of the Constitution, the Land Act and natural justice. The NLC maintained that the appellant had notice through the gazette notices, failed to attend the inquiry or submit its claim on time, and that its valuation was arbitrary and prepared for sale purposes. The court framed two issues: whether the appellant was given notice and an opportunity to be heard, and whether the compensation was sufficient. It held that gazette publication was not adequate notice under the Land Act, that there was no evidence of service of either notice, and that the respondent's refusal to consider the written representations and to give reasons violated natural justice and fair administrative action. Declining to assess quantum on a procedurally invalid award, the court partially allowed the appeal, set aside the award, directed a fresh inquiry within 60 days, and awarded the appellant costs.

Key legal issues

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01

Whether the appellant was given adequate notice and an opportunity to be heard before the award of compensation

Holding

The procedure adopted by the respondent was flawed: the gazette notice lacked sufficient particulars, there was no evidence of service of the notice of intention to acquire or of the inquiry notice under section 107(5) of the Land Act, and the respondent disregarded the appellant's written representations and failed to give reasons for the award

Reasoning

The court found no evidence of service of either the notice of intention to acquire or the notice of inquiry, despite the respondent asserting service. The gazette notice alone, containing only the Land Reference Number without owner particulars or approximate area, was inadequate. The appellant's written representations of 30 March 2015, submitted two and a half months before the award of 16 June 2015, were admitted but ignored without any shown prejudice, contrary to natural justice and Articles 40, 47 and 50 of the Constitution and the Fair Administrative Actions Act.

p. 6
02

Whether the compensation of Kshs 86,928,500/- was sufficient

Holding

The Court declined to assess the sufficiency of the compensation or enhance the award because the award was invalidly arrived at through a flawed process; the remedy is a fresh inquiry by the respondent

Reasoning

The court held that since the award was made without notice, hearing, or consideration of the appellant's claim, it was invalidly arrived at without due process. The Court would not usurp the respondent's statutory mandate by itself assessing compensation on an invalid award. The violation of constitutional rights to be heard and to protection from arbitrary deprivation of property goes to the root of the validity of the decision, so the award was set aside and a fresh inquiry ordered.

p. 8

Legal principles established

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  • Publication of a notice in the Kenya Gazette does not qualify as adequate notice of compulsory acquisition and inquiry to the affected landowner under the Land Act; personal service on the registered owner is required
  • Where the award is arrived at through a flawed procedure violating natural justice and fair administrative action, the Court will not delve into the sufficiency of the compensation but will set it aside

Court orders

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  1. 1.The appeal is hereby partially allowed
  2. 2.The award of compensation in the sum of Kshs 86,928,500/- is set aside
  3. 3.The respondent be and is hereby directed to conduct a fresh inquiry in respect to LR No. 337/4797 belonging to the appellant within 60 days from the date hereof
  4. 4.The respondent to pay the costs of the appeal
  5. 5.Parties be at liberty to apply where appropriate

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 67(1)
  • Constitution of Kenya, 2010Article 40(3), Article 40(2)(a)
  • Constitution of Kenya, 2010Article 47(1) and (2)
  • Constitution of Kenya, 2010Article 50
  • Constitution of Kenya, 2010Chapter Five
  • National Land Commission ActNo. 5 of 2012
  • Land ActNo. 6 of 2012, Part VIII; sections 107(5), 108, 110, 111, 112, 112(2), 113(1) and (2), 113, 119, 120-122
  • Land Acquisition ActCap 295 (now repealed), Para 2 of the Schedule
  • Fair Administrative Actions Act

Cases cited (5)

  • Sceneries Limited Vs National Land Commission
    (2017) eKLR
  • Commissioner of Lands & Another Vs Coastal Aquaculture Limited
    CA 252/96
  • Patrick Musimba Vs National Land Commission & 4 others
    (2016) eKLR
  • Five Star Agencies Limited Vs National Land Commission
    ELC NO 445 of 2014
  • Local Government Board Vs Arlidge
On appeal from
National Land Commission
Jurisdiction invoked
Statutory appeal against an award of compensation made by the National Land Commission under Part VIII of the Land Act, No. 6 of 2012, in exercise of the power of compulsory acquisition under Article 40(3) of the Constitution

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, "Gami Properties Limited v National Land Commission [2017] KEELC 1452 (KLR)", Case Analysis (2017). E.L.C Case No. 54 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/1452/eng@2017-09-22

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