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ELCAllowedEnvironment & Land Petition 11 of 2022· [2023] KEELC 17864 (KLR)

Edelweiss Limited v Deputy County Commissioner, Nairobi County and Chairman, Dagoretti Sub-County Land Control Board & 2 others; Waiganjo (Interested Party)

Environment and Land Court
24 May 2023
5,863 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~23 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that officials cannot restrict your land title without hearing you first, and ordered compensation for the resulting losses.

What this practically means

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Executive summary

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Edelweiss Limited purchased L.R No. Dagoretti/Riruta/4130 at a public auction conducted on behalf of National Housing Corporation as chargee, and lodged an application for Land Control Board consent to transfer. The Deputy County Commissioner, Nairobi County, who chairs the Dagoretti Sub-County Land Control Board, had caused a restriction to be registered against the title despite the subsisting charge. The Board declined consent citing family objections, a board member from the firm that alleged the auction was illegal sat despite conflict-of-interest objections, and a site visit was conducted a day early without notice to the petitioner. Correspondence from the petitioner, the interested party and NHC went unanswered, and the respondents did not defend the petition. The court framed three issues: violation of Article 47, violation of Articles 24 and 27, and the relief deserved. It held the 1st respondent acted ultra vires, high-handedly and in breach of natural justice by registering and maintaining the restriction without notice, hearing or written reasons, violating Articles 47 and 50(1) read with Article 27. The petition met the Anarita Karimi Njeru threshold. General damages for economic loss were assessed at Kshs 2,000,000 despite the court finding the loss unproved, awarded jointly and severally against the respondents. The court granted mandamus to compel conclusive determination of the consent application, declarations that the restriction was unlawful, an abuse of process and unfair administrative action, mandamus for its removal and registration of the transfer, plus costs against the 1st respondent.

Key legal issues

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01

Violation of Article 47 (fair administrative action)

Holding

The 1st respondent acted ultra vires and unlawfully by registering a restriction without notice or hearing and by failing to respond to correspondence or give reasons; Article 47 was violated.

Reasoning

The petitioner and interested party were given no notice before the restriction was registered, were excluded from the site visit, and their letters went unanswered. The 1st respondent filed no response, so the facts were uncontroverted. Natural justice requires no person be condemned unheard; the restriction could not stand.

p. 7
02

Violation of Articles 24, 27 and 50

Holding

Denial of a chance to be heard at board meetings and the site visit violated Article 50(1) fair hearing rights, read with Article 27 equality guarantees; the Anarita Karimi Njeru threshold was met.

Reasoning

The court concatenated the pleadings to test the Anarita threshold and found the petitioner had identified the infringed provisions and the manner of infringement. Uncontroverted facts showed the petitioner's advocates were not heard, satisfying the threshold.

p. 10
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Appropriate relief and general damages

Holding

Declarations and mandamus granted; general damages of Kshs 2,000,000 awarded for economic loss despite thin proof, guided by constitutional damages principles.

Reasoning

No evidence was given of the earnings the land would have generated, but the court inferred the petitioner would have used the land to generate income and, doing its best, assessed Kshs 2,000,000 as compensation for lack of development.

p. 11

Legal principles established

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  • A person adversely affected by administrative action must be given an opportunity to be heard and written reasons before the action is taken
  • Statutory powers must be exercised reasonably and not arbitrarily, capriciously or in bad faith
  • An intending purchaser at a properly advertised auction sale has no duty to inquire into the rights of the chargee to sell

Court orders

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  1. 1.An Order for Mandamus directing the 1st Respondent and the Dagoretti Land Control Board to forthwith conclusively deal with the Petitioner's Application to the Land Control Board dated 8th October 2020 and issue the relevant documentation
  2. 2.A declaration that the restriction filed against the subject property is unlawful and abuse of process
  3. 3.A declaration that the said Restriction amounted to an unfair administrative action
  4. 4.An Order of Mandamus for the Removal of the said Restriction and Registration of Transfer by Chargee in favour of the Petitioner
  5. 5.An award of General Damages for economic loss for lack of development of the property of Kshs 2,000,000 against the respondents jointly and severally
  6. 6.The 1st Respondent to bear the costs of the Petition

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 1(1), 2, 3, 10, 22, 23(3), 24, 25(c), 27, 40, 47, 48, 50(1), 73(1)(a), 156(4)(b), 159(2)
  • Fair Administrative Action ActSections 4, 6 and 12
  • Land ActSection 38 (as amended by Section 55 of the Land Laws (Amendment) Act No. 28 of 2016)
  • Land Laws (Amendment) ActSection 55
  • Registration of Titles Act (repealed)Sections 23, 60 and 61
  • Companies Act, 2015Cap 486
  • Land Registration Act, 2012

Cases cited (9)

  • Captain Patrick Kanyagia & Another v Damaris Wangechi & Savings & Loan Kenya Ltd
    Civil Appeal No. 150 of 1993

    A mortgagor's right of redemption is lost upon sale by public auction or binding contract by the mortgagee.

  • Republic vs Commissioner of Co-operatives exparte Kirinyaga Tea Growers
    [1999] 1 EA 245

    Statutory powers must be exercised reasonably, not arbitrarily, capriciously or in bad faith.

  • Associated Provincial Picture Houses Ltd v Wednesbury Corporation
    [1947] 2 ALL ER 680

    Reasonableness standard for exercise of administrative powers.

  • Republic vs Secretary of State for the Home Department
    [2003] UKHL 36

    Notice of a decision is required before it can have legal effect; an uncommunicated decision cannot bind an individual.

  • Kenya Human Rights Commission & another vs Non-Governmental Organizations Co-ordination Board & another
    [2018] eKLR

    Administrative actions must meet the constitutional test of legality, reasonableness and procedural fairness.

  • Anarita Karimi Njeru vs Republic
    (1976-1980) KLR 1272

    Threshold for constitutional petitions: identify infringed provisions and manner of infringement.

  • David Katana Ngomba v Shafi Grewal Kaka
    (2014) eKLR

    An intending purchaser at a properly advertised auction has no duty to inquire into the chargee's right to sell.

  • Gitobu Imanyara & 2 Others vs Attorney General
    [2016] eKLR

    Principles for award of damages for constitutional violations, including vindicatory and deterrent awards.

  • Siewchand Ramanoop v The AG of T&T
    PC Appeal No 13 of 2004

    Monetary awards for constitutional violations are not confined to compensatory damages; additional awards may vindicate rights.

Jurisdiction invoked
Articles 22, 23 and 47 of the Constitution of Kenya, 2010; Fair Administrative Action Act, No. 4 of 2015

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, "Edelweiss Limited v Deputy County Commissioner, Nairobi County and Chairman, Dagoretti Sub-County Land Control Board & 2 others; Waiganjo (Interested Party)", Case Analysis (2023). Environment & Land Petition 11 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/17864/eng@2023-05-24

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