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ELCStruck OutNot stated in extract (Plaint dated 18th August 2015)· [2021] KEELC 2047 (KLR)

Machakos County Government v Kapiti Plains Estate Limited [2021] KEELC 2047 (KLR)

Environment and Land Court
30 July 2021
OAO.A. ANGOTE
3,669 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court struck out a county's Kshs. 4.8 billion rates claim because the law requires such suits to start in the Magistrates' Court.

What this practically means

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Executive summary

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The Defendant filed a Notice of Motion dated 18th September 2015 seeking striking out of the Plaintiff's Plaint, arguing that under Section 25 of the Rating Act (Valuation for Rating Act) jurisdiction to hear suits for recovery of rates at first instance vests in subordinate courts of the first class irrespective of the pecuniary amount claimed, and that the Plaintiff, by filing a claim for rates arrears of Kshs. 4,818,988,535 in the ELC, denied the Defendant two levels of appeal. The Plaintiff countered that the ELC, having jurisdiction over land disputes including rates under Article 162(2)(b) and Section 13 of the ELC Act, was the proper forum given the claim's magnitude, and that its prayers for payment and an injunction against disposal were not contradictory. The court framed a single issue: whether it had jurisdiction to entertain the claim. Applying Lillian 'S' vs. Caltex, Republic vs. Karisa Chengo and Kibos Distillers, the court held that although it has jurisdiction over disputes relating to rates, its jurisdiction is subject to jurisdiction statutorily donated to subordinate courts. Section 25 of the Rating Act confers first-instance jurisdiction on all first-class magistrates regardless of the sum claimed, so the suit should have been instituted in the subordinate court. The court allowed the application, struck out the Plaint (as amended) with costs, and ordered the Defendant to pay the costs of the application.

Key legal issues

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Whether the ELC has jurisdiction at first instance over a suit for recovery of land rates given Section 25 of the Rating Act

Holding

The ELC's jurisdiction is subject to jurisdiction statutorily donated to subordinate courts; Section 25 of the Rating Act confers first-instance jurisdiction on first-class magistrates regardless of the amount claimed, so the suit should have been filed in the subordinate court and the Plaint is struck out.

Reasoning

The court accepted that under Article 162(2)(b) and Section 13 of the ELC Act it has jurisdiction over disputes relating to rates. However, following Kibos Distillers, original jurisdiction is not an ouster clause; where a statute donates first-instance jurisdiction to subordinate courts, that allocation must be respected. Section 25 of the Rating Act grants all first-class magistrates jurisdiction to hear rate-recovery suits irrespective of pecuniary value, so a claim of over Kshs. 4 billion must still begin in the Magistrates' Court, with appeal lying to the ELC.

p. 4

Legal principles established

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  • Section 25 of the Rating Act vests jurisdiction to hear suits for recovery of rates at first instance in the Magistrates' Courts irrespective of the pecuniary amount claimed

Court orders

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  1. 1.The Plaint dated 18th August 2015 and amended on 28th October, 2015 is hereby struck out with costs
  2. 2.The Defendant to pay the costs of the Application
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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Later judgments citing this (1)

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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, "Machakos County Government v Kapiti Plains Estate Limited [2021] KEELC 2047 (KLR)", Case Analysis (2021). Not stated in extract (Plaint dated 18th August 2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/2047/eng@2021-07-30

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