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ELCDismissedNot stated in the judgment provided· [2017] KEELC 2264 (KLR)

Kenafric Bakery Limited v National Land Commission & 2 others [2017] KEELC 2264 (KLR)

Environment and Land Court
20 July 2017
1,049 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~4 min to read original · ~4 min brief

The bottom line

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The Environment and Land Court refused to strike out a landowner's Kshs. 490 million interest claim against the Government over delayed compulsory acquisition compensation.

What this practically means

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Executive summary

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The Plaintiff owned land known as L.R. No. 13562/28 in Ruiru, part of which was compulsorily acquired for construction of the Nairobi-Thika Highway under the (now repealed) Land Acquisition Act, Cap 295. By an award made on 30th April 2012, compensation was assessed at Kshs. 942,214,782 for 1.1651 acres; the Plaintiff accepted the award on 7th May 2012, and the 2nd Defendant paid the compensation in instalments between 25th June 2013 and 11th February 2015. The Plaintiff sued for interest on the award, computed at Kshs. 490,278,866 as at 31st March 2015 and continuing to accrue. The 2nd Defendant applied by a notice dated 28th July 2016 to strike out the suit as frivolous, scandalous and vexatious, arguing there is no law supporting a claim for interest where, as it asserted, it had not yet taken possession of the land, and contending the court lacked jurisdiction under Section 67 of the Kenya Roads Act for want of a month's notice and any suit within the limitation periods. The Plaintiff maintained it ceded possession on 30th June 2012 when it accepted the letter of award and had served notice on 11th January 2016. Applying D.T. Dobie, the court held the striking-out jurisdiction is exercised sparingly and found the case neither plain nor obvious, directing the matter to trial on when the Government took possession and whether the claimed interest is payable. The application dated 28th July 2016 was dismissed with costs to the Plaintiff, the judgment being delivered at Nairobi on 20th July 2017 by K. Bor, Judge.

Key legal issues

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01

Whether the suit should be struck out for lack of legal basis for the interest claim

Holding

The court declined to strike out; the matter is not plain and obvious and should proceed to trial to determine when possession was taken and whether the claimed interest is payable.

Reasoning

The court considered the pleadings, application, affidavits and submissions, and applying the D.T. Dobie principle that dismissal jurisdiction is sparingly exercised, found the case was not plain and obvious. The disputed factual issue of the date possession vested in the Government required trial rather than summary striking out.

p. 2
02

Jurisdiction under Section 67 of the Kenya Roads Act

Holding

The court held it has jurisdiction over compulsory acquisition disputes and did not find the suit barred by Section 67 of the Kenya Roads Act.

Reasoning

The court noted its jurisdiction under Section 13 of the Environment and Land Court Act over compulsory acquisition disputes. Although the 2nd Defendant argued the Section 67 notice and time-bar, the court found this dispute required determination of when possession was taken, a matter for trial, and therefore the striking-out application failed.

p. 2
03

Date of taking possession under Sections 16 and 19 of the Land Acquisition Act

Holding

Title to the acquired land ought to have vested in the Government 60 days after the award, i.e. from the award of 7th May 2012.

Reasoning

Section 19(1) provides that possession and title vest no later than 60 days after the award. Since the award was made on 7th May 2012, the court reasoned that title ought to have vested in the Government 60 days from that date, and this disputed factual question should be determined at trial.

p. 2

Legal principles established

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  • The jurisdiction to strike out or dismiss an action should be exercised sparingly and only in exceptional cases.

Court orders

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  1. 1.The application dated 28th July 2016 is dismissed with costs to the Plaintiff

Authorities

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Legislation

  • Land Acquisition Act, Cap 295 Laws of KenyaSection 16(1)
  • Land Acquisition Act, Cap 295 Laws of KenyaSection 19(1) and (3)
  • Environment and Land Court ActSection 13
  • Kenya Roads ActSection 67

Cases cited (1)

  • D.T. Dobie & Company (Kenya) Limited v Joseph Mbaria Muchina & Another
    [1980] eKLR
Jurisdiction invoked
Section 13 of the Environment and Land Court Act

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, "Kenafric Bakery Limited v National Land Commission & 2 others [2017] KEELC 2264 (KLR)", Case Analysis (2017). Not stated in the judgment provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/2264/eng@2017-07-20

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