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ELCPartially AllowedMachakos ELC No. 50 of 2019 (consent recorded in related Machakos ELC No. 64 of 2019)· [2021] KEELC 4536 (KLR)

Kelvin Mutua & 197 others v Athi Water Services Board [2021] KEELC 4536 (KLR)

Environment and Land Court
29 January 2021
3,600 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

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A Kenyan court set aside a land consent order after finding claimants hid ongoing ownership disputes, but refused to make them deposit Kshs. 250 million.

What this practically means

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Executive summary

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The Defendant, a Water Works Development Agency established under Section 65 of the Water Act, 2016, moved the court by Notice of Motion dated 9th June 2020 seeking to vacate or set aside, alternatively review, a consent order recorded on 17th July 2019 in Machakos ELC No. 64 of 2019 and adopted in this suit. The consent had constituted a committee (a RAP Review consultant, ten Plaintiffs' representatives and two Defendant's representatives) to identify bona fide project-affected land owners, granted it access, and stopped all works on the Miwongoni dam project until a RAP Review Report was presented. The Defendant alleged the Plaintiffs fraudulently and maliciously procured the consent by non-disclosure of pending ownership suits over the suit property, and sought security of Kshs. 250 million from the Plaintiffs for contractor losses. The 66th Plaintiff opposed, maintaining the consent was lawfully entered and that no compensation had been paid under the Land Act, 2012. The court restated the settled principles that a consent order has contractual effect and may be set aside only on grounds such as fraud, collusion, non-disclosure or misapprehension of material facts. Finding that the Plaintiffs knowingly failed to disclose existing suits over ownership, the court held they made a false representation of material facts inducing the consent. The application was allowed in part: the consent order of 17th July 2019 was set aside, but the request for security of Kshs. 250 million was declined because entitlement to the suit property for compensation purposes remained pending. The Plaintiffs were ordered to pay the costs of the application.

Key legal issues

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01

Whether non-disclosure of pending suits over the suit property vitiated the consent order

Holding

Yes. The Plaintiffs knowingly made a false representation of material facts, inducing the Defendant to record the consent, justifying setting it aside

Reasoning

The Plaintiffs held themselves out as owners of the suit property and did not disclose existing suits concerning ownership (Court of Appeal Civil Appeals 151, 167, 169 of 1989 and Machakos ELC 76 of 2017). Disclosure emerged only after the consent was recorded. The court found a knowing false representation of material fact on which the Defendant relied, a ground equivalent to misrepresentation justifying rescission of a contract and therefore setting aside of the consent.

p. 5
02

Whether security of Kshs. 250 million should be ordered from the Plaintiffs

Holding

No; the court declined to order any security

Reasoning

Although the consent was set aside for misrepresentation, the court noted the Plaintiffs were entitled to approach the court, and ownership/entitlement to compensation over the suit property remained unresolved in other pending suits. Requiring security from persons whose entitlement is undetermined was therefore inappropriate, and the defendant's contractor losses were not attributed to the Plaintiffs.

p. 5

Legal principles established

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  • A consent order has contractual effect and can only be set aside on grounds that would justify setting aside a contract, such as fraud, collusion, non-disclosure of material facts, or misapprehension of material facts
  • A party seeking to impeach a consent order bears the onus of proving fraud or collusion to a standard higher than balance of probability but not beyond reasonable doubt

Court orders

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  1. 1.The consent order recorded on 17th July 2019 in Machakos ELC No. 64 of 2019, which was adopted in this suit, is set aside
  2. 2.The Plaintiffs to pay the costs of the Application
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over the suit and the Defendant's Notice of Motion dated 9th June 2020 to set aside/review a consent order adopted by the court

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, "Kelvin Mutua & 197 others v Athi Water Services Board [2021] KEELC 4536 (KLR)", Case Analysis (2021). Machakos ELC No. 50 of 2019 (consent recorded in related Machakos ELC No. 64 of 2019). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/4536/eng@2021-01-29

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