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ELCPartially AllowedEnvironment & Land Case E005 of 2022· [2022] KEELC 14726 (KLR)

Karsan Ramji & Sons Limited v County Assembly of Kitui & 2 others

Environment and Land Court of Kenya
10 November 2022
1,462 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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A Kenyan court temporarily blocked Kitui County from collecting mining levies on one invoice, but refused broader protection until the full case is heard.

What this practically means

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Executive summary

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This is an interlocutory ruling by LG Kimani, J of the Environment and Land Court at Kitui on a notice of motion dated November 2, 2022 by Karsan Ramji & Sons Limited seeking conservatory orders pending hearing of an application and a petition challenging the Kitui County Finance Bill, 2019 and alleged constitutional violations concerning quarrying and mining levies. The court noted two similar applications on record; conservatory orders granted by Justice Limo on June 10, 2021 were set aside on September 22, 2022 when the suit was transferred to the ELC. The court observed that the applicant had enjoyed interim orders for over a year without prosecuting the petition, and that the dispute was broader than a single devolution question, raising mine closure, environmental degradation, environmental impact assessment, and related suits. The court found no evidence on the record of a mining licence or permit under the Mining Act, echoing Justice Limo's earlier observation. Citing the Supreme Court's Base Titanium decision on Article 209 taxing powers (as urged by the applicant), the court declined broad interim conservatory orders in terms of prayers 2 and 4, but issued a narrow conservatory order restraining the respondents from enforcing collection of levies arising from the October 26, 2022 invoice or any subsequent levies pending inter partes hearing. Directions were given for service, replies, submissions and mention on December 8, 2022. No costs order was made.

Key legal issues

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01

Whether to grant interim conservatory orders pending hearing of the application and petition

Holding

The court declined the broad prayers 2 and 4 but granted a narrow restraint on enforcement of the October 26, 2022 levy invoice and subsequent levies pending inter partes hearing

Reasoning

The court noted two similar applications on record, the earlier orders having been set aside on transfer to the ELC. The petition raised more than a single devolution issue, including mine closure, environmental degradation and the absence of an environmental impact assessment. No evidence of a mining licence was on the record, and whether the applicant had been paying levies was unclear. These matters required ventilation inter partes before final conservatory orders could issue.

p. 3
02

Whether the applicant holds a mining licence/permit under the Mining Act

Holding

The court found no evidence on the record of such a licence/permit, an issue left for inter partes determination

Reasoning

The court perused the entire record to verify the applicant's claim of holding a mining licence/permit and found none. Justice Limo had made the same observation in the June 10, 2021 ruling, which issued orders on the strength only of a letter from the Ministry of Petroleum & Mining dated March 2, 2020. The basis upon which the applicant carries out mining activities in Kitui County was flagged as an issue for inter partes determination.

p. 3

Legal principles established

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  • Where prior interim conservatory orders have been set aside and the dispute raises broader issues than the applicant presents, the court may decline broad interim relief while narrowly restraining enforcement of the specific impugned levy pending inter partes hearing

Court orders

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  1. 1.Conservatory order restraining the respondents from enforcing collection of levies arising from the invoice raised on October 26, 2022 or any subsequent levies pending inter partes hearing of the application dated November 2, 2022
  2. 2.Petitioner to serve the petition and application on the 1st and 3rd respondents within three days
  3. 3.Respondents to file and serve replies within three days (2nd respondent) and three days from service (1st and 3rd respondents)
  4. 4.Applicant at liberty to file supplementary affidavit and written submissions within seven days of service of replying affidavits and in any event within 15 days
  5. 5.Respondents to file and serve written submissions within seven days of service of the applicant's submissions
  6. 6.Mention on December 8, 2022 to confirm filing and for further directions

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 1, 2, 3, 10, 19, 20, 21, 22, 23, 24, 35, 40, 43, 47, 62(1)(f), 62(3), 93, 94(6), 109, 110, 124, 191, 199(1), 209, 258, 259, 260 and the Fourth Schedule
  • County Government ActSections 87, 91 and 104
  • Public Finance Management Act, 2012Sections 125(2) and 207
  • Fair Administrative Actions Act, 2015Not specified
  • Mining Act, 2016Sections 6, 20, 136, 140, 183, 197 and 200
  • Environmental Management and Co-ordination ActSections 9, 125 and 147
  • Constitution of Kenya (Protection of Rights & Fundamental Freedoms) Practice & Procedure Rules, 2013Not specified (applications brought under Articles 19, 20, 22, 23 and 159(2)(d))
  • Kitui County Finance Bill, 2019Not specified

Cases cited (1)

  • Base Titanium Ltd v County Government of Mombasa & another
    [2018] eKLR

    Interpretation of the powers to impose taxes by the National and County Governments under Article 209 of the Constitution

Jurisdiction invoked
Articles 22, 23 and 258 of the Constitution of Kenya 2010; petition on alleged violation of constitutional rights and invalidity of county legislation

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, "Karsan Ramji & Sons Limited v County Assembly of Kitui & 2 others", Case Analysis (2022). Environment & Land Case E005 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/14726/eng@2022-11-10

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