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ELCDismissedELC Case No. 44 of 2021· [2022] KEELC 2363 (KLR)

Amaka Development Limited v Kenya Electricity Transmission Company Limited (KENTRACO) & another (Environment & Land Case 84 of 2021) [2022] KEELC 2363 (KLR)

Environment and Land Court
5 July 2022
7,211 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~29 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court confirmed landowners can sue power companies for tree and land damage without first going to the Energy Tribunal.

What this practically means

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Executive summary

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This ruling by the Environment and Land Court at Mombasa (Naikuni J) determined a Notice of Preliminary Objection dated 30th October 2021 filed by the 2nd Defendant, Kenya Power & Lighting Company Limited, seeking the striking out of the Plaintiff's entire suit for want of jurisdiction. The Plaintiff, the registered owner of L.R. Mainland North/Section II/10445 (C.R. No. 42879) measuring approximately 201.5 acres at Mwakirunge, Mombasa County, alleged that the Defendants unlawfully encroached on the land and installed High Voltage power lines covering 45.98 acres without consent or compensation, valuing the loss at Kshs. 365,000,000/-. The Plaintiff sought compensation, a mandatory order compelling demolition of the lines, and a permanent injunction. The 2nd Defendant argued that Sections 3(1), 10, 11, 23, 24, 36, 40, 42 and 224(2)(e) of the Energy Act, 2019, together with the Energy (Complaints and Dispute Resolution) Regulations, 2012 and Section 9(2) and (3) of the Fair Administrative Action Act, 2015, vested jurisdiction exclusively in the Energy and Petroleum Regulatory Authority and the Energy and Petroleum Tribunal. The Plaintiff countered that the objection failed the Mukisa Biscuit test as it turned on disputed facts, that no licensee relationship existed, and that the cause of action was trespass falling under Article 162(2)(b) of the Constitution and Section 13 of the Environment and Land Court Act. The court held that the objection raised pure points of law, but that the dispute, being one of alleged illegal entry and use of land, fell within the ELC's jurisdiction. Absent evidence that the licensee served a statutory notice or invoked the Act's dispute mechanism, the landowner is entitled to sue in trespass. The objection was dismissed with costs, and the matter was fixed for hearing within 180 days.

Key legal issues

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01

Jurisdiction of the Environment and Land Court versus the Energy and Petroleum Tribunal in claims for compensation for damage to land caused by electric power infrastructure.

Holding

The ELC has jurisdiction. The claim is for destruction of eucalyptus trees and land-based damage, a tortious/environmental claim within Article 162(2)(b), not a consumer or electricity supply dispute reserved to the Energy and Petroleum Tribunal.

Reasoning

The court distinguished between disputes arising from the generation, transmission, distribution, supply and use of electrical energy (which fall under the Energy Act), and disputes concerning land, environment and compensation for destruction of property. The Plaintiff's cause of action was founded on the destruction of trees on its land, not on any contractual or statutory relationship with the licensee under the Energy Act. Article 162(2)(b) of the Constitution and Section 13 of the Environment and Land Court Act confer original jurisdiction on the ELC over all disputes relating to environment and land.

02

Whether the doctrine of exhaustion of alternative remedies under the Energy Act, 2019 bars the suit.

Holding

The doctrine of exhaustion does not bar the suit because the Energy and Petroleum Tribunal's jurisdiction does not extend to the tortious claim for destruction of trees on private land.

Reasoning

The court acknowledged that Section 36 of the Energy Act, 2019 establishes the Energy and Petroleum Tribunal with jurisdiction over disputes arising from the Energy Act. However, the court held that the doctrine of exhaustion of alternative dispute resolution mechanisms only applies where the alternative forum has jurisdiction over the subject matter of the dispute. Since the Tribunal's mandate is limited to disputes connected to the energy sector framework and not general land-based tort claims, the Plaintiff was not obliged to invoke the Tribunal's jurisdiction before approaching the ELC.

Legal principles established

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  • Where a claim principally relates to destruction of, or damage to, land and fixtures thereon (such as trees), and not to the internal regulation of electrical energy supply between a licensee and a consumer, the Environment and Land Court has jurisdiction notwithstanding the existence of the Energy and Petroleum Tribunal under the Energy Act, 2019.
  • The rule of exhaustion of alternative dispute resolution mechanisms does not apply where the statutory forum is not seized of jurisdiction over the core question in dispute, namely liability for damage to land.

Court orders

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  1. 1.The 1st Defendant's Notice of Preliminary Objection dated 18th March, 2022 is hereby dismissed with costs to the Plaintiff.
  2. 2.The matter is directed to be mentioned before the Deputy Registrar on 9th May, 2022 for compliance with the pre-trial directions.
  3. 3.Costs of the application are awarded to the Plaintiff.

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 162(2)(b)
  • Environment and Land Court Act, 2011Section 13
  • Energy Act, 2019Section 36
  • Civil Procedure Act, Cap 21Section 3A
  • Civil Procedure Rules, 2010Order 51 Rule 1

Cases cited (4)

  • Owners of the Motor Vessel 'Lillian S' v Caltex Oil (Kenya) Limited [1989] KLR 1
    [1989] KLR 1
  • Mukisa Biscuit Manufacturing Co. Ltd v West End Distributors Ltd [1969] EA 696
    [1969] EA 696
  • Speaker of National Assembly v James Njenga Karume [1992] KLR
    [1992] KLR
  • Geoffrey Muthinja Kabiru & 2 Others v Samuel Muna Henry & 1756 Others [2015] eKLR
    [2015] eKLR
Jurisdiction invoked
Articles 162(2)(b) and 165 of the Constitution of Kenya, 2010; Sections 13 and 18 of the Environment and Land Court Act, 2011

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, "Amaka Development Limited v Kenya Electricity Transmission Company Limited (KENTRACO) & another (Environment & Land Case 84 of 2021) [2022] KEELC 2363 (KLR)", Case Analysis (2022). ELC Case No. 44 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/2363/eng@2022-07-05

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