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ELCPartially AllowedNot stated in the judgment as provided· [2020] KEELC 940 (KLR)

Kenyatta University Staff Retirement Benefits Scheme v Athi Water Services Board & 3 others [2020] KEELC 940 (KLR)

Environment and Land Court
22 October 2020
4,345 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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A Kenyan court confirmed land taken for a public dam must be compensated at market value, but an unsigned valuation report couldn't lock in the claimed Kshs.135 million.

What this practically means

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Executive summary

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The Plaintiff, registered owner of L.R No. 3544 Kiambu, sued for payment of Kshs.135,781,650/= for 17.492 acres earmarked for a dam, general damages for trespass, a permanent injunction, or in the alternative an order for compulsory acquisition and lawful compensation. The Plaintiff relied on a joint valuation of 8th March 2016 signed by both parties' valuers and adopted at a meeting of 10th May 2016. The Defendants contended the joint report lacked supporting documents and that the final GenAfrica report was never signed by both valuers, and offered only their original figure of about Kshs.64.3 million. The Court framed three issues. It held that although the fair value of Kshs.135,781,650/= was agreed and adopted at the meeting, the conditions requiring the compiled valuation report to be signed by both valuers were never fulfilled, so no binding valuation report existed to compel payment of that sum. However, since the 1st Defendant, a government entity, had taken possession and constructed a dam for a public purpose, the Plaintiff was entitled to compensation based on open market value, with the acquisition process regularised under sections 107 to 115 of the Land Act and Article 40(3) of the Constitution. Entry with the Plaintiff's permission did not amount to trespass, and the permanent injunction failed because the land was already in public use. Judgment was entered for the Plaintiff in terms of prayers (d) and (e): compulsory acquisition of the 17.492 acres and compensation according to law, plus costs of the suit.

Key legal issues

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01

Validity of the joint valuation report

Holding

The fair value of Kshs.135,781,650/= was agreed and adopted, but the final valuation report failed the conditions set at the 10th May 2016 meeting because it was never signed by both valuers; hence no binding report entitling the Plaintiff to that specific sum

Reasoning

The Court accepted that both parties adopted the fair value at the meeting. However, the minutes required GenAfrica to compile the report and have it signed by both valuers. PW1 confirmed the report was prepared and forwarded, but the 1st Defendant never signed it. Since the conditions were not fulfilled, the agreed figure could not be enforced as the compensation amount.

p. 4
02

Entitlement to compensation despite defective acquisition procedure

Holding

The Plaintiff, whose land was taken for a public purpose, is entitled to compensation at open market value even though the correct acquisition procedure was not followed; the defect is remedied by following due process under the Land Act

Reasoning

It was undisputed that the Plaintiff owns the land and that the 1st Defendant entered, constructed a dam and took possession. Relying on the Land Act and cited case law, the Court held compensation must be paid based on open market value, and procedural defects can be cured by the Defendants following sections 107 to 115 of the Land Act.

p. 4
03

Trespass

Holding

Entry onto the suit property did not constitute trespass because it was made with the Plaintiff's consent and permission

Reasoning

The Plaintiff acknowledged that it allowed the 1st Defendant to enter and implement works pending compensation. Applying the definition of trespass as an unjustifiable intrusion upon land in possession, the Court found the entry was justified by consent, though compensation remained unpaid.

p. 5

Legal principles established

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  • No person can be deprived of property except in accordance with the Constitution or statute; compliance is a condition precedent to compulsory acquisition
  • Compensation for compulsorily acquired land must be based on open market value in an arm's-length transaction, with transparency and accountability in valuation
  • Possession may be taken before all compulsory acquisition procedures are completed, but the process must still be completed through payment and due process under the Land Act

Court orders

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  1. 1.Judgment entered for the Plaintiff against the Defendants jointly and severally in terms of prayers (d) and (e) of the Plaint dated 2nd May 2017
  2. 2.The Defendants to compulsorily acquire 17.492 acres of the Plaintiff's suit property and compensate the Plaintiff in accordance with the Land Act 2012 and Article 40(3) of the Constitution
  3. 3.The Plaintiff awarded costs of the suit

Authorities

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Legislation

  • Constitution of Kenya 2010Article 40 and Article 40(3)
  • Land Act 2012Sections 107 to 111, 112, 113(2)(a), 107 to 115
  • Civil Procedure ActSection 27
  • Civil Procedure RulesOrder 21 rule 1

Cases cited (3)

  • Chief Land Registrar & 4 Others vs Nathan Tirop Koech & 4 Others
    [2018] eKLR
  • National Land Commission vs Afrison Export Import Limited & 10 others
    [2019] eKLR
  • Isaiah Otiato & 6 others vs County Government of Vihiga
    [2018] eKLR
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over land and compulsory acquisition disputes; Article 40 of the Constitution and the Land Act 2012 invoked

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, "Kenyatta University Staff Retirement Benefits Scheme v Athi Water Services Board & 3 others [2020] KEELC 940 (KLR)", Case Analysis (2020). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/940/eng@2020-10-22

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