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ELCDismissedELC Petition No. 175 of 2016· [2017] KEELC 1802 (KLR)

Regnol Oil (K) Limited v National Land Commission & another [2017] KEELC 1802 (KLR)

Environment and Land Court
31 July 2017
2,782 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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Regnol Oil (K) Limited, the registered owner of LR No. 209/19461 (originally 209/11314/4), purchased the land from the National Social Security Fund in 2005 (transferred in 2013) and developed petrol stations, a garage and other improvements valued by Regnol at Kshs.800,000,000/-. When the Kenya Urban Roads Authority sought expansion of Outering Road, it asked the National Land Commission to review grants along the corridor. After a review process in which Regnol was heard through its advocates, NLC determined the title was unlawfully acquired, recommended revocation, and awarded Regnol compensation of Kshs.269,675,000/= for developments only. Regnol petitioned the Environment and Land Court seeking declarations that NLC and KURA exceeded their mandates and violated Article 40, certiorari to quash the revocation recommendation, an order for supplementary compensation for the land itself with interest, and costs. The court framed four issues. It held that NLC acted within its statutory mandate under section 14 of the National Land Commission Act: records showed the land was reserved for road expansion and was allocated through collusion involving the Director of Physical Planning, an official of the benefiting co-operative; due process, including notice and hearing, was observed. Certiorari was refused. On compensation, the court held that Article 40(6) affords no protection to unlawfully acquired land and does not exclude innocent purchasers, since an unlawful title is void ab initio and passes no title; Regnol was therefore entitled to compensation for developments only, not for the land. The petition was dismissed in its entirety with costs to the first and second Respondents.

Key legal issues

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01

Whether the National Land Commission exceeded its mandate in reviewing and recommending revocation of Regnol's title

Holding

NLC acted within its constitutional and statutory mandate under section 14 of the National Land Commission Act.

Reasoning

Section 14(1) empowers NLC, on its own motion or on complaint, to review grants of public land to establish their propriety or legality. NLC traced records showing the land was reserved for the expansion of Outering and Jogoo Roads and that its allocation to a private entity resulted from collusion by public officials, including the Director of Physical Planning who was an official of the benefiting co-operative. Procedures including publication and hearing of affected parties were complied with, so the recommendation for revocation was lawful.

p. 5
02

Whether the NLC decision recommending revocation of title should be quashed by certiorari

Holding

The decision cannot be quashed because it was lawfully made under section 14(5) after due process and a fair hearing.

Reasoning

Regnol was invited, heard through its advocates, and its representations were considered. The court noted that the determination stated the title was revoked when in law NLC should direct the Registrar to revoke, but held this was not fatal since the statutory scheme places the revocation duty on NLC and implementation on the Registrar. No court order is needed to revoke an unlawfully acquired title.

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03

Whether Regnol, as an innocent purchaser for value, is entitled to compensation for the land itself under Article 40

Holding

No. Regnol is entitled to compensation only for the developments valued at Kshs.269,675,000/=, not for the land.

Reasoning

Article 40(6) of the Constitution does not protect property found to have been unlawfully acquired, and that exclusion applies equally to innocent purchasers for value. An unlawfully acquired title is void ab initio and passes no title; protecting such purchasers would encourage unlawful acquisition followed by rapid resale. The land was public land reserved for road expansion and was therefore never available for private allocation.

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04

Costs of the Petition

Holding

Costs awarded to the first and second Respondents.

Reasoning

Having failed on all prayers, the Petitioner could not obtain its costs; costs follow the event and were awarded to the Respondents jointly in respect of the dismissed petition.

p. 5

Legal principles established

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  • Under section 14(5) of the National Land Commission Act, where the Commission finds a title was unlawfully acquired, it is NLC's duty to direct the Registrar to revoke the title; a party cannot resist that on the footing that revocation requires a court order.
  • Article 40(6) of the Constitution affords no protection to unlawfully acquired land, and that lack of protection extends to innocent purchasers for value because an unlawfully acquired title is void ab initio and passes no title.
  • An innocent purchaser of unlawfully acquired public land is not entitled to compensation for the land itself, though it may be compensated for developments lawfully erected on it.

Court orders

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  1. 1.The Petition is dismissed in its entirety
  2. 2.Costs of the Petition awarded to the first and second Respondents

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 40 (including Article 40(6)); Articles 22 and 23; Article 67; Article 68(1)(v)
  • Registration of Titles Act (now repealed)Section 23
  • National Land Commission Act, 2012Section 14(1) and Section 14(5)
  • Land Act, 2012Part VIII
  • Companies Act Cap 486 (Laws of Kenya)not specified
  • Constitution of Kenya (Protection of Rights and Fundamental Freedoms) Practice and Procedure Rules, 2012not specified
Jurisdiction invoked
Articles 22 and 23 of the Constitution of Kenya, 2010 (enforcement of Bill of Rights) and Article 165(3)(b) of the Constitution, as pleaded in the petition under the Constitution of Kenya (Protection of Rights and Fundamental Freedoms) Practice and Procedure Rules, 2012

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (6)

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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, "Regnol Oil (K) Limited v National Land Commission & another [2017] KEELC 1802 (KLR)", Case Analysis (2017). ELC Petition No. 175 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/1802/eng@2017-07-31

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