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ELCPartially AllowedELC Petition No. 14 of 2017 (Machakos ELC Petition No. 10 of 2015)· [2018] KEELC 522 (KLR)

Katra Jama Issa v Attorney General & 3 others [2018] KEELC 522 (KLR)

Environment and Land Court of Kenya
19 December 2018
3,533 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan landowner whose property was compulsorily acquired won higher compensation of Kshs. 7.7 million, though the court found her rights were not otherwise violated.

What this practically means

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Executive summary

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The Petitioner, proprietor of Plot No. L.R. 1692/68 Namanga Township measuring 0.030 hectares, petitioned under Articles 40 and 47 of the Constitution challenging the compulsory acquisition of 0.0096 hectares of her land for the Arusha-Namanga-Athi River road project and Namanga One Stop Border Post, gazetted on 6th January 2012. She sought declarations of rights violations and compensation of Kshs. 33,700,000 plus general, exemplary and aggravated damages. Only the 4th Respondent, KeNHA, responded, contending the lawful Award of Kshs. 5,355,625 (per the Ministry of Lands valuation of 19th January 2012) had been set aside and secured with the National Land Commission, and that her appeal to the Land Acquisition Compensation Tribunal lapsed upon repeal of the Land Acquisition Act. The court first held, following Five Star Agencies Ltd v NLC, that the applicable law is the repealed Land Acquisition Act, in force at gazettement. On quantum, applying the equivalence principle from Patrick Musimba v NLC (drawing on Horn v Sunderland and Shun Fung), the court found the Camp Valuers figure of Kshs. 33,700,000 rested on general value including anticipated income, and instead adopted the pre-gazettement Prestige Valuers valuation of Kshs. 7,700,000 as equitable compensation. The court held no contravention of Articles 40 and 47 was established, the Petitioner having received fair administrative action, and refused exemplary and general damages per Rookes v Barnard, there being no oppressive or unconstitutional conduct and no evidence of loss. The Petition was allowed only on quantum: Kshs. 7,700,000 awarded with costs to the Petitioner, borne by the Respondents jointly and severally.

Key legal issues

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01

Applicable law to the compensation claim

Holding

The repealed Land Acquisition Act (Cap 295), in force on 6th January 2012 when the land was gazetted, applies rather than the Land Act, 2012

Reasoning

The acquisition process commenced under the Land Acquisition Act while it was in force. Following Five Star Agencies Ltd v National Land Commission, the applicable law is determined by the operative date of the disputed award/acquisition. Since the suit land was gazetted on 6th January 2012, the repealed Act governs, even though the Tribunal hearing the appeal was wound up by the repeal.

p. 3
02

Adequacy of compensation

Holding

The Award of Kshs. 5,355,625 was inadequate; the equitable compensation is Kshs. 7,700,000 per the Prestige Valuers report predating gazettement

Reasoning

Applying the equivalence principle in Patrick Musimba v National Land Commission, compensation must reflect market value for the direct loss. The Camp Valuers figure of Kshs. 33,700,000 was based on general value including anticipated income and was rejected. The Prestige Valuers valuation of Kshs. 7,700,000, undertaken before gazettement and noting the remainder would have no economic value, equitably compensated the direct loss.

p. 4
03

Alleged infringement of Articles 40 and 47

Holding

No contravention of the rights to property or fair administrative action was established

Reasoning

The Petitioner was presented with a valuation informing the compensation, declined it, and was accorded audience at the Land Acquisition Compensation Tribunal; an inquiry was conducted before gazettement. These occurrences confirmed fair administrative action under Article 47. The delay in payment was attributable to the Petitioner's own actions, so no infringement of Articles 40 and 47 was found.

p. 4
04

General, exemplary and aggravated damages

Holding

Damages refused; the acquisition was neither unconstitutional, oppressive, nor calculated to benefit the Respondents

Reasoning

Applying Rookes v Barnard, exemplary damages require oppressive, arbitrary or unconstitutional state action or conduct calculated to procure benefit at the plaintiff's expense. Neither was established, and the Petitioner led no evidence of damages. The adopted valuation already accounted for all losses arising from the acquisition.

p. 4

Legal principles established

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  • The applicable law for a compulsory acquisition claim is determined by the operative date of the acquisition gazettement, so the law in force at gazettement governs the compensation claim
  • Just compensation for compulsory acquisition should be quantified on the principle of equivalence - a price equal to the owner's pecuniary detriment based on market value, neither more nor less

Court orders

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  1. 1.The Petitioner Katra Jama Issa is entitled to prompt, just and adequate compensation in full within the meaning and tenor of Article 40(3)(b)(i) in the sum of Kshs. 7,700,000/= for the compulsory acquisition of her proprietary interests in PLOT No. L.R. 1692/68 situate in Namanga Township, within Kajiado County
  2. 2.The costs of the Petition are awarded to the Petitioner, to be borne by the Respondents jointly and severally

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 19, 20, 21, 22, 23, 24, 27(4), 40(1), 40(2), 40(3), 40(4), 47(1), 47(2), 47(3), 65
  • Land Acquisition Act, Cap 295section 9 and Schedule (now repealed)
  • Land Act, 2012

Cases cited (5)

  • Five Star Agencies Limited Vs National Land Commission
    (2014) eKLR
  • Patrick Musimba v National Land Commission & 4 others
    [2016] eKLR
  • Horn-v-Sunderland Corporation
    [1941] 2 KB 26,40
  • Director of Buildings and Lands -v- Shun Fung Wouworks Ltd
    [1995] AC 111,125
  • Rookes v Barnard
    (1964) 1 All ER 367
Jurisdiction invoked
Articles 19, 20, 21, 22, 23, 24, 40 and 47 of the Constitution of Kenya, 2010 (contravention of fundamental rights and freedoms)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (14)

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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, "Katra Jama Issa v Attorney General & 3 others [2018] KEELC 522 (KLR)", Case Analysis (2018). ELC Petition No. 14 of 2017 (Machakos ELC Petition No. 10 of 2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/522/eng@2018-12-19

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