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ELCDismissedNot stated in the judgment provided· [2022] KEELC 1804 (KLR)

Igainya Limited v National Land Commission & 2 others; County Government of Machakos (Interested Party) [2022] KEELC 1804 (KLR)

Environment and Land Court
1 February 2022
2,968 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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A Kenyan landowner cannot block a public road project over a compensation disagreement, since the State may acquire land for public use if it pays fair compensation.

What this practically means

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Executive summary

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The Petitioner, claiming to be the registered proprietor of LR No. 7815/8, moved the Court by Notice of Motion dated 29th July 2021 seeking conservatory orders restraining construction of the Second Carriageway of the Athi River-Machakos Turnoff (A109) Road Project on the suit property, suspension of Gazette Notices No. 9536 of 29th September 2017 and No. 11424 of 17th November 2017, and preservation of the property pending determination of its Petition. The Petitioner alleged it accepted an initial compensation award of Kshs. 646,316,243, of which only 10% was paid, and abandoned a Kshs. 6 Billion cement grinding plant joint venture. The 1st Respondent (National Land Commission) explained that an EACC investigation led to withholding of payments, and that a revised road design reduced the land acquired, resulting in a revised award of Kshs. 148,245,174, with the balance payable on the re-evaluation. The 2nd Respondent (KENHA) and the 3rd Respondent (Attorney General) opposed, invoking public interest and eminent domain. Applying the Giella v Cassman Brown principles and Mrao Ltd's definition of a prima facie case, and following Dupoto Farms and Multiple Hauliers, the Court held the real dispute was over the quantum of the revised award, for which the Land Act provides redress; the Petitioner would be compensated, and the Respondents would suffer irreparable harm from project delay. The application was found unmerited and disallowed, with costs in the cause.

Key legal issues

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01

Whether the Petitioner established a prima facie case warranting conservatory orders restraining construction and compulsory acquisition

Holding

No prima facie case was established; the dispute is essentially about the quantum of the revised compensation award, for which the Land Act provides an adjudication mechanism.

Reasoning

The suit property had been gazetted for compulsory acquisition and the Petitioner participated in the inquiry and was paid 10% of the initial award. The award was revised after the road design changed, reducing the land acquired. The dispute centres on the revised award; the Land Act permits the Court to adjudicate absent consensus on compensation. The Respondents confirmed willingness to pay the balance of the revised amount, so the Petitioner will ultimately be compensated and the Respondents would suffer irreparable harm from project delay. Reliance placed on Dupoto Farms and Multiple Hauliers.

p. 4
02

Whether the balance of public and private interest favours injunctive relief

Holding

Public interest in the road project outweighs the Petitioner's private interest; an injunction would merely delay the project.

Reasoning

Applying Giella v Cassman Brown and the definition of prima facie case in Mrao Ltd, and associating with the Court of Appeal decision in Dupoto Farms Limited v KETRACO and Multiple Hauliers East Africa Limited v Attorney General, the court held the Respondents' interests outweigh the Petitioner's, since compensation will eventually be paid once consensus on quantum is reached.

p. 5

Legal principles established

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  • Once the State or a designated state agency has gazetted its intention to compulsorily acquire private property for public utilities, the doctrine of eminent domain applies and the State must provide just and prompt compensation in line with constitutional principles.
  • Under Article 40(3)(b) the State may deprive a person of land for a public purpose provided full just compensation is paid; the right to property is not absolute.
  • Where a party fails to establish the first limb of the injunction test (prima facie case), the court need not determine the other limbs.

Court orders

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  1. 1.The Notice of Motion application dated 29th July 2021 is unmerited and is disallowed
  2. 2.Costs will be in the cause

Authorities

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Legislation

  • Land ActNot specified (provisions on compulsory acquisition and adjudication of compensation disputes)
  • Constitution of KenyaArticle 40(3)(b)

Cases cited (20)

  • Mrao Ltd Vs First American Bank of Kenya & 2 others
    (2003) KLR
  • Board of Management of Uhuru Secondary School V City County Director of Education & 2 Others
    (2016) eKLR
  • Centre for Rights Education and Awareness (CREAW) & Another V Speaker of the National Assembly & 2 Others
    (2017) eKLR
  • Simeon Kioko Kitheka & 18 Others V County Government of Machakos & 2 Others
    (2018) eKLR
  • Law Society of Kenya V Office of the Attorney General & Another, Judicial Service Commission (Interested Party)
    (2020) eKLR
  • Paul Kiprono Chepkwony V the Attorney General of the Republic of Kenya
    Application No. 17 of 2018
  • Benjamin Temut Kerema V Michael Kihambuli Lugwili & 3 others
    (2020) eKLR
  • Nguruman Ltd V Jan Bonde Nielsen
    (2014) eKLR; CA No. 77 of 2012
  • Supermarine Handling Services Ltd V Kenya Revenue Authority
    (2010) eKLR
  • Giella V Cassman Brown Co. Ltd
    (1973) EA 358
  • East African Development Bank V Hyundai Motors Kenya Limited
    (2006) eKLR
  • Studertek Power System (EA) Ltd & Another v Housing Finance Company of Kenya Ltd
    (2019) eKLR
  • Patrick Musimba V National Land Commission & 4 Others
    (2016) eKLR
  • Gatirau Peter Munya V Dickson Mwenda Kithinji & 2 Others
    (2014) eKLR
  • Kenya Association of Manufacturers & 2 others V Cabinet Secretary, Ministry of Environment and Natural Resources & 3 Others
    (2017) eKLR
  • British American Tobacco (K) Ltd V Attorney General & 3 Others
    (2016) eKLR
  • Andy Forwarders Services Ltd V Capital Markets Authority & Another
    (2011) eKLR
  • Multiple Hauliers East Africa Limited V Attorney General & 10 others
    (2013) eKLR
  • Republic Vs Kenya National Commission on Human Rights Ex parte Uhuru Kenya
    HC Misc. App. No. 86 of 2009
  • Dupoto Farms Limited v Kenya Electricity Transmission Company Limited & 121 others
    [2021] eKLR
Jurisdiction invoked
Constitutional Petition (Article 40 property rights) with interlocutory Notice of Motion; exact provision not stated in the judgment

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, "Igainya Limited v National Land Commission & 2 others; County Government of Machakos (Interested Party) [2022] KEELC 1804 (KLR)", Case Analysis (2022). Not stated in the judgment provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/1804/eng@2022-02-01

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