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ELCOtherConstitutional Petition No. 2 of 2019· [2019] KEELC 3146 (KLR)

Ethics & Anti- Corruption Commission v National Land Commission & 4 others [2019] KEELC 3146 (KLR)

Environment and Land Court
30 May 2019
7,392 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court froze Sh927 million in disputed railway land compensation, refusing early release until corruption allegations are fully tried.

What this practically means

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Executive summary

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This ruling of the Environment and Land Court at Kajiado (Christine Ochieng J) determines two interlocutory applications and a preliminary objection arising from Constitutional Petition No. 2 of 2019. The Ethics and Anti-Corruption Commission, investigating allegations that the compensation award of Kshs. 927,885,080.00 payable by the National Land Commission to Clarence Matheny Leadership Training Institute for the compulsory acquisition of land L.R. No. Ngong/Ngong/15559 for the Standard Gauge Railway was inflated through bribery and collusion, sought a mandatory injunction that the entire sum remain with the Deputy Registrar pending determination of the Petition. The 2nd Respondent, the uncompensated landowner, sought conservatory orders for immediate release of the conceded sum of Kshs. 690,697,077.76 and an injunction restraining Kenya Railways from occupying the land. The 3rd Respondent raised a preliminary objection on jurisdiction and res sub judice, citing the pending High Court suit over a consultancy agreement. The court upheld its jurisdiction over the compulsory acquisition dispute but declined jurisdiction over the consultancy agreement, which remains before the High Court. Applying the principles for conservatory and mandatory injunctions, the court found the corruption allegations required a full trial and could not be resolved at the interlocutory stage. It refused both the release of the conceded sum and the injunction against the Interested Party, noting the funds were already deposited in court, that it could not review orders of the High Court being a court of concurrent jurisdiction, and that the SGR was a national project of public interest. The Petition was directed to be heard on a priority basis within two weeks, with costs of all applications in the cause.

Key legal issues

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01

Jurisdiction of the ELC over the Petition

Holding

The court has jurisdiction over the petition concerning the compensation award for compulsory acquisition, but not over the consultancy agreement dispute pending in the High Court

Reasoning

The 3rd Respondent raised a preliminary objection on jurisdiction and res sub judice. The court noted the fulcrum of the Petition is the Award for compulsory acquisition of land, which falls squarely within section 13 of the Environment and Land Court Act. However, the consultancy agreement between the 2nd and 3rd Respondents is the subject of a pending High Court suit, and on that issue the court would down its tools.

p. 7
02

Retention of the entire award of Kshs. 927,885,080.00 pending determination of the Petition

Holding

Retention maintained; mandatory injunction refused at the interlocutory stage

Reasoning

The Petitioner's allegations of inflated compensation driven by bribery and corruption are disputed by all Respondents. The evidence consists of transcripts and recordings whose probative value is contested. A mandatory injunction requires a clear case decidable at once; this matter requires full trial analysis of the allegations and counter-allegations, so the court could not grant the mandatory injunction at this stage.

p. 8
03

Release of the conceded sum of Kshs. 690,697,077.76 to the 2nd Respondent

Holding

Release refused at the interlocutory stage

Reasoning

Although the Cross Petitioner demonstrated infringement of its Article 40 right to property, the Petitioner raised serious allegations of bribery and corruption implicating Chapter 6 of the Constitution which cannot be wished away. The funds are already deposited with the Deputy Registrar pending the dispute and are available for release upon determination. The court also could not review Justice Nyakundi's orders, being a court of concurrent jurisdiction.

p. 8
04

Injunction against the Interested Party from boarding the suit land

Holding

Refused

Reasoning

Both the 2nd Respondent and the Interested Party admitted the contractor took early occupation prior to compensation. Compensation has already been determined and deposited in court, and the SGR is a national project of public interest, so the court declined to grant the conservatory injunction restraining the Interested Party.

p. 8

Legal principles established

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  • The Environment and Land Court has jurisdiction over disputes relating to land and environment including compulsory acquisition of land
  • The Environment and Land Court cannot review orders of the High Court as they are courts of concurrent jurisdiction
  • Mandatory injunctions should only be granted at interlocutory stage in clear cases where the matter ought to be decided at once

Court orders

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  1. 1.Declined to grant an order for the release of the sum of Kshs. 690,697,077.76 held out of the sum of Kshs. 927,885,080.00 deposited in court at the interlocutory stage
  2. 2.Directed that the Petition be set down for hearing on a priority basis within two weeks
  3. 3.Certified that costs of the two applications dated 19th February 2019 and 9th March 2019, including the Notice of Preliminary Objection dated 24th April 2019, be in the cause

Authorities

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Legislation

  • Constitution of KenyaArticle 3(1)
  • Constitution of KenyaArticle 162(2)(b)
  • Constitution of KenyaArticle 23(3)(b)(c)
  • Constitution of KenyaArticle 40(3)
  • Constitution of KenyaArticle 165(5)
  • Constitution of KenyaArticle 201(d)
  • Constitution of KenyaArticle 232(1)(b)
  • Constitution of KenyaChapter 6
  • Constitution of KenyaArticle 22
  • Constitution of KenyaArticle 249(2)
  • Environment and Land Court Actsection 13
  • Environment and Land Court Actsection 19(2)
  • Civil Procedure Actsections 1A, 1B & 3A
  • Civil Procedure RulesOrder 40(1), Order 51(1)
  • Ethics and Anti-Corruption Commission Actsection 11(d)
  • Land Actsections 113, 114, 115(c)
  • Land (Assessment of Just Compensation) RulesRule 3
  • Constitution of Kenya (Protection of Rights and Fundamental Freedoms) Practice and Procedure Rules, 2013Rules 3 and 19
  • Bribery Actsections 5 and 6

Cases cited (10)

  • Centre for Rights Education and Awareness (CREAW) and 7 others vs. Attorney General
    [2011] eKLR
  • GATIRAU PETER MUNYA VS DICKSON MWENDA KITHINJI AND 2 OTHERS
    eKLR
  • KANINI FARMS VS. COMMISSIONER OF LANDS
  • Mukhisa Biscuit Manufacturing Co. Ltd Vs West End Distributors Company Limited
    (1969) EA 696
  • Owners of the Motor Vessel "Lillian S" v Caltex Oil (Kenya) Ltd
    [1989] eKLR
  • Board of Management of Uhuru Secondary School v City County Director of Education & 2 Others
    [2015] eKLR
  • Kenya breweries limited and another vs Washington okeyo
    (2002) EA 109
  • Locabail International Finance Ltd vs Agroexport and others
    (1986) 1 ALLER 901
  • Mrao Limited vs First American Bank of Kenya limited and 2 others
    2003 eKLR
  • Patrick Musimba vs National land commission and 4 others
    (2016) eKLR
Jurisdiction invoked
Article 162(2)(b) of the Constitution and 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, "Ethics & Anti- Corruption Commission v National Land Commission & 4 others [2019] KEELC 3146 (KLR)", Case Analysis (2019). Constitutional Petition No. 2 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/3146/eng@2019-05-30

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