Kenafric Bakery Limited v National Land Commission & 2 others
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Limitation under Section 67(b) of the Kenya Roads Act
The suit was statute barred on both limbs of Section 67(b): the cause of action accrued on June 30, 2012 (12 months expired June 29, 2013) and, if a continuing injury, it ceased on February 11, 2015 (6 months expired August 10, 2015), while the suit was filed May 8, 2016
The court relied on the plaintiff's own pleading in paragraph 8 of the Plaint, which asserted that liability to pay interest accrued from June 30, 2012. On the first limb of Section 67(b), the 12-month period expired by June 29, 2013. Alternatively, treating the delayed payment as a continuing injury, the injury ceased with the last instalment on February 11, 2015, giving a deadline of August 10, 2015. The suit filed on May 8, 2016 was out of time on either computation.
Entitlement to interest on delayed compensation under Section 16(1) of the repealed Land Acquisition Act
No interest was payable because the acquiring authority never took possession before full payment; the notice of taking possession was issued only on May 17, 2016, after full payment, and the plaintiff remained in possession and used the title
Section 16(1) of the repealed Land Acquisition Act triggers interest only where compensation is not paid before the taking of possession. Here the final tranche was paid on February 11, 2015, but possession was never taken; the notice of taking possession came on May 17, 2016, and the plaintiff remained in occupation, drew water from the borehole and charged the title to Fina Bank. Awarding interest would amount to double enrichment and be unconscionable.
Applicable legal regime for the acquisition
The repealed Land Acquisition Act, not the Land Act 2012, governs the claim since the acquisition was concluded under the former
Following the reasoning in Five Star Agencies Ltd v National Land Commission as cited in Patrick Musimba, the court held that rights and obligations accrued under the repealed statute are saved by Section 23 of the Interpretation and General Provisions Act, so the repealed Land Acquisition Act supplies the principles governing compensation and interest.
Legal principles established
#- Under Section 67(b) of the Kenya Roads Act, actions against a roads authority must be instituted within twelve months of the act, neglect or default, or within six months of the cessation of a continuing injury
- A suit filed out of time is statute barred and the cause of action is extinguished
- Interest on a compulsory acquisition award under Section 16(1) of the repealed Land Acquisition Act is payable only where the acquiring authority takes possession before payment of the compensation
- The repealed Land Acquisition Act governs acquisitions concluded under it, not the Land Act 2012
Court orders
#- 1.The Plaintiff's suit is dismissed
- 2.Each party to bear their own costs
- Jurisdiction invoked
- Original civil jurisdiction of the Environment and Land Court over land and compulsory acquisition compensation claims
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Mehisa Enterprises Limited v Kenya Urban Roads Authority & 3 others[2023] KEELC 19341 (KLR)10 Aug 2023
Cite this brief
#Cite this brief
Caselaw, "Kenafric Bakery Limited v National Land Commission & 2 others", Case Analysis (2022). Environment and Land Case Civil Suit 469 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/13800/eng@2022-10-03
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.