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ELCDismissedNot stated in the judgment (two Notices of Motion dated 10/10/2016 and 20/7/2018)· [2018] KEELC 352 (KLR)

Mariakani Estate Welfare Association v Nairobi County Government & another Interested Party Local Authorities Provident Fund & 5 others [2018] KEELC 352 (KLR)

Environment and Land Court
13 December 2018
2,739 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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A Kenyan court refused to undo a land settlement deal, ruling that consent orders are binding even after a change of government.

What this practically means

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Executive summary

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This ruling by the Environment and Land Court at Nairobi (B M Eboso, J) determined two Notices of Motion seeking to set aside a consent order adopted by the court on 22/7/2016 between Mariakani Estate Welfare Association, the County Government of Nairobi and the Local Authorities Provident Fund. The Association, whose members are tenants in Mariakani Estate, alleged the consent was recorded by its advocates through collusion and without instructions. The County Government initially opposed, but later supported setting aside, contending the transfer of the Estate to the Provident Fund under a debt swap was effected fraudulently during the transition period without required approvals and without the consent of the National Land Commission. The Provident Fund opposed both applications, maintaining the debt swap was duly sanctioned, properly valued, and in the public interest of protecting pensioners, and that the County Government still owes it billions in unremitted pension dues. The court declined to determine the Association's locus standi as it was never raised by the parties. Applying the settled criteria that a consent order, having contractual effect, can only be set aside on grounds of fraud, collusion, agreement contrary to public policy, or lack of sufficient material facts, the court found neither applicant had discharged the burden. It held that a change of political administration is not a ground for setting aside a properly recorded consent order, and characterized the County Government's application as a ploy to evade pension obligations. Both applications were dismissed with costs to be borne by the respective applicants.

Key legal issues

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01

Whether the Association's application met the criteria for setting aside a consent order

Holding

It did not; no evidence was placed before the court to impeach the consent order

Reasoning

The applicants did not contest that the officials in office when the suit was filed were duly authorized. The certified extract of officials was uncontested, and those officials, through their advocates, asserted the consent was validly recorded after negotiations. The court found no evidence of fraud, collusion or lack of instructions to justify impeachment of the consent order.

p. 3
02

Whether the County Government's application met the criteria for setting aside a consent order

Holding

It did not; a change of political administration is not a ground for setting aside a consent order properly recorded

Reasoning

The court examined the debt swap agreements, Council resolutions, approvals, and the acting County Secretary's affidavit affirming there was no fraud or collusion. The subsequent administration's wish to disengage from its predecessors' commitments cannot impeach a properly recorded consent. The application was found to be a ploy to escape pension obligations.

p. 3
03

Whether the court should determine the locus standi of the Association

Holding

The court declined to rest its determination on locus because the issue was not raised by the parties when the suit was initiated or when the consent was recorded

Reasoning

The court raised the issue suo motto at submissions stage but noted the impugned consent order fully settled the suit without locus being raised. Had it been raised by a party, the court would have made a definitive pronouncement. The only key issue was therefore the criteria for setting aside a consent order.

p. 2

Legal principles established

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  • A consent order or judgment has contractual effect and can only be set aside on grounds which would justify setting aside a contract, namely fraud, collusion, agreement contrary to policy of the court, or where the consent was given without sufficient material facts or in misapprehension of them.
  • A duly instructed advocate has implied general authority to compromise and settle an action, and a client cannot avail himself of any limitation of that authority unless it was brought to the notice of the other side.

Court orders

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  1. 1.The Notice of Motion dated 10/10/2016 is dismissed for lack of merit
  2. 2.The Notice of Motion dated 20/7/2018 is dismissed for lack of merit
  3. 3.The respective applicants shall bear the costs of the applications

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 10
  • Constitution of Kenya, 2010Articles 22, 48, 258, 260
  • County Government ActSection 6

Cases cited (7)

  • S M N v S M S & 3 others
    (2017) eKLR
  • Flora N Wasika v Destimo Wamboku
    (1988) eKLR
  • Kenya Commercial Bank Ltd vs Specialised Engineering Co. Ltd
    [1982] KLR 485
  • Kenya Commercial Bank Limited vs Benjoh Amalgamated Limited & Another
    [1998] eKLR
  • Lenina Kemigisha Mbabazi Star Fish Ltd
  • Board of Trustees National Social Security Fund v Michael Mwalo
    (2015) eKLR
  • Samuel Mbugua Ikumbu v Barclays Bank of Kenya Limited
    (2015) eKLR
Jurisdiction invoked
Original jurisdiction under the Environment and Land Court Act to determine disputes relating to land (no specific provision stated in the judgment)

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, "Mariakani Estate Welfare Association v Nairobi County Government & another Interested Party Local Authorities Provident Fund & 5 others [2018] KEELC 352 (KLR)", Case Analysis (2018). Not stated in the judgment (two Notices of Motion dated 10/10/2016 and 20/7/2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/352/eng@2018-11-13

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