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ELCPartially AllowedEnvironment & Land Petition 11 of 2021· [2023] KEELC 19328 (KLR)

Telcom Kenya Limited & another v Ministry of Sports, Culture and Heritage & 4 others; Ministry of Public Service, Youth and Gender Affairs & 2 others (Interested Parties)

Environment and Land Court of Kenya
17 July 2023
17,970 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~72 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court ruled the government illegally took Telkom Kenya's Ngong Road land and must pay Sh15 billion compensation.

What this practically means

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Executive summary

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The Environment and Land Court at Nairobi (JO Mboya, J) determined a constitutional petition by Telcom Kenya Limited (later joined by Aftraco Limited) concerning LR No. 7656 along Ngong Road, together with cross-petitions by Exclusive Estate Limited (4th Respondent) and Postel Housing Co-operative Society Limited (5th Respondent). The court traced the title from Cable & Wireless Ltd through East African External Telecommunication Company Ltd and Kenya Post and Telecommunications Corporation to the 1st Petitioner, holding that neither the 5th Respondent's 1993 sale agreement (never completed) nor Legal Notice 154 of 1999 (superseded by Legislative Supplement No. 11 of 2001) conferred any title, and that the 5th Respondent could pass no title to the 4th Respondent (nemo dat; ex nihilo nihil fit). The 1st Petitioner was declared the lawful owner. The court further held that the 1st Respondent Ministry and the Interested Parties entered upon and took possession of the land without completing compulsory acquisition under Sections 107-113 of the Land Act and without compensation, violating Article 40(3) of the Constitution; there is no constructive compulsory acquisition. The 4th Respondent's cross-petition failed because its arbitral award had been set aside and it derived no title; the 5th Respondent's cross-petition was time-barred and defeated by its Deed of Assignment of 2009. On quantum, the court adopted the 1st Petitioner's uncontroverted valuation of Kes.15 Billion, awarding compensation with interest at 14%, and ordered surrender of the title for cancellation within 180 days. The 2nd Petitioner's petition was dismissed with no orders as to costs.

Key legal issues

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01

Ownership of LR No. 7656 (Ngong Road)

Holding

The 1st Petitioner (Telcom Kenya Limited) is the lawful and legitimate owner as registered proprietor

Reasoning

The court traced the chain from Cable & Wireless Ltd through East African External Telecommunication Company Ltd to Kenya Post and Telecommunications Corporation and thence to the 1st Petitioner by Gazette Supplement No. 64 of 9th November 1998. The 5th Respondent's 1993 sale agreement never crystallised into a transfer; Legal Notice 154 of 1999 was superseded by Legislative Supplement No. 11 of 2001. The certificate of title, unvitiated, confers indefeasible rights under Sections 24 and 25 of the Land Registration Act, 2012.

02

Lawfulness of the State's entry upon and possession of the suit property

Holding

The entry and taking of possession by the 1st Respondent and Interested Parties without completed compulsory acquisition and compensation violated Article 40(3)

Reasoning

The National Land Commission gazetted an intention to acquire and held a public hearing in 2017 but then went silent; no award was made under Section 112 of the Land Act. Despite this, the 1st Respondent entered, invited tenders and construction proceeded. The court held that compulsory acquisition must strictly follow Sections 107-113 of the Land Act with prompt payment of just compensation; self-help by State organs is unconstitutional.

p. 29
03

The 4th Respondent's cross Petition

Holding

Dismissed as devoid of merit

Reasoning

The 4th Respondent's claim derived from the 5th Respondent, who had no title to pass; the arbitral award in its favour was set aside on 22nd April 2021, and its review and extension-of-time applications remained undetermined. Applying nemo dat and ex nihilo nihil fit, the court held the 4th Respondent acquired no legitimate rights to the 60 acres.

p. 24
04

The 5th Respondent's cross Petition

Holding

Dismissed as premature, misconceived and legally untenable

Reasoning

The 5th Respondent's rights were extinguished by Legislative Supplement No. 11 of 2001, which it never challenged for 22 years; the claim for recovery of land is barred by Section 7 of the Limitation of Actions Act and, in any event, by laches. Further, the 5th Respondent divested itself of any interest by the Deed of Assignment of 15th January 2009 in favour of the 4th Respondent.

p. 27
05

Quantum of compensation

Holding

Compensation awarded at Kes.15 Billion based on the 1st Petitioner's uncontroverted valuation report, with interest at 14%

Reasoning

The only expert evidence on value was the 1st Petitioner's valuation report; the Respondents tendered no contrary report from the Chief Government Valuer. Relying on Zinj and Criticos, the court held expert evidence can only be challenged by another expert and adopted the Kes.15 Billion figure as the reasonable value for compensation.

p. 32

Legal principles established

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  • A party who has not acquired title to land cannot convey title to a purchaser (nemo dat quod non habet / ex nihilo nihil fit)
  • Entry upon and taking possession of private land without completed compulsory acquisition and prompt payment of just compensation violates Article 40(3) of the Constitution
  • There is no constructive compulsory acquisition; possession taken without following Sections 107-113 of the Land Act is unconstitutional
  • An uncontroverted valuation report by a private valuer may be adopted by the court where no contrary expert report is tendered
  • Inordinate and unexplained delay defeats constitutional petitions; laches applies to constitutional claims

Court orders

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  1. 1.Declaration that the act of taking possession of Land Reference No. 7656 by the 1st Respondent was illegal, unlawful and an arbitrary deprivation of the 1st Petitioner's constitutional right to property under Article 40(3)
  2. 2.Declaration that the 1st Petitioner is the lawful owner of the suit property
  3. 3.Declaration that the 1st Petitioner is entitled to compensation for infringement of her constitutional rights to property under Article 40(3)
  4. 4.Compensation assessed and awarded to the 1st Petitioner in the sum of Kes.15,000,000,000/= against the 1st Respondent
  5. 5.Interest on the award at 14% from the date of judgment until payment in full
  6. 6.Costs of the Petition awarded to the 1st Petitioner against the Respondents jointly and/or severally
  7. 7.The 4th Respondent's cross Petition dismissed with costs to the 1st Petitioner
  8. 8.The 5th Respondent's cross Petition dismissed with costs to the 1st Petitioner only
  9. 9.The 2nd Petitioner's Petition dismissed with no orders as to costs
  10. 10.The 1st Petitioner to surrender the certificate of title over the suit property to the Chief Land Registrar for cancellation within 180 days, failing which the Chief Land Registrar may cancel the title

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 40(3); Article 50; Article 156; Article 159
  • Land Act, 2012 (2016)Sections 107-113, 111, 112, 113-119, 120-122
  • Land Registration Act, 2012Sections 24, 25, 26
  • Registration of Titles Act (repealed)Section 23
  • Kenya Post and Telecommunication Act (repealed)Sections 14(4) and (5); 116(11)
  • Limitation of Actions Act, Chapter 22Section 7
  • Penal Code, Chapter 63Sections 108, 113, 114
  • Kenya Communication Act, 1998Legal Notice No. 158 - Vesting of Assets and Liabilities of Telkom Kenya (Special Gazette No. 59A of 5th November 1999)
  • Legislative Supplement Number 11 of 2001dated 23rd February 2001
  • Legal Notice Number 154 of 1999vesting of 60 acres in the 5th Respondent
  • Gazette Supplement Number 64 of 9th November 1998 / Legal Notice Number 133 of 1998vesting of assets of East African External Telecommunication Company Ltd in Kenya Post and Telecommunication Corporation

Cases cited (54)

  • Niaz Mohamed Jan Mohamed versus The Commissioner of Land & 4 Others
    (1996) eKLR

    cited by the 1st Petitioner on property rights

  • Kenya National Highway Authority versus Shalien Masood Mughal & 5 Others
    (2017) eKLR

    cited by the 1st Petitioner on compulsory acquisition and compensation

  • Anacherry Limited versus Attorney General
    (2014) eKLR

    State impunity in forceful take-over of property without compensation

  • Japheth Azegele versus The Chief Land Registrar & 3 Others
    (2018) eKLR

    cited by the 1st Petitioner

  • Attorney General versus Zinj Limited
    (2021) KESC 23 (KLR)

    compulsory acquisition process; valuation report uncontroverted by a government report supports special damages

  • Accredo A G & 3 Others versus Stefano Ucelli & Another
    (2019) eKLR

    res judicata

  • Bellevieu Development Company Ltd versus Francis Gikonyo & 7 Others
    (2018) eKLR

    res judicata

  • Agricultural Finance Corporation versus Lengetia Limited
    (1985) eKLR

    privity of contract

  • Savings and Loans Kenya Limited v Kanyenje Karangaita Gakombe & Another
    (2015) eKLR

    privity of contract

  • Kenya Hotels Properties Limited versus The Attorney General & 5 Others
    (2018) eKLR

    res judicata / sub-judice

  • Robert Alai Onyango versus Cabinet Secretary in Charge of Health & 7 Others
    (2017) eKLR

    res judicata / sub-judice

  • Joseph Arap Ngok versus Justice Moijo Ole Keiwua
    (1997) eKLR

    sanctity and indefeasibility of certificate of title

  • Charles Odejo Ochieng versus Geoffrey Okumu
    (1995) eKLR

    registered proprietor's title

  • Patrick Musimba versus National Land Commission & 4 Others
    (2016) eKLR

    elaborate statutory process of compulsory acquisition under Part VIII of the Land Act

  • Kanini Farm Limited versus The Commissioner of Lands
    (1984) eKLR

    compulsory acquisition and compensation

  • The Chief Land Registrar and 4 Others versus Nathan Tirop Koech & 4 Others
    (2018) eKLR

    a court must independently assess a valuation report; an uncontroverted report is not automatically reasonable

  • E.T v Attorney General & Another
    (2012) eKLR

    res judicata

  • John Florence Maritime Services Limited & Another v The Cabinet Secretary for Transport and Infrastructure & 3 Others
    (2015) eKLR

    res judicata

  • Kamunye & 3 Others v Pioneer General Assurance Society Limited
    (1971) EA 263

    res judicata

  • Independent Electoral & Boundaries Commission v Maina Kiae & 5 Others
    (2017) eKLR

    res judicata

  • Kenya Commercial Bank versus Benjoh Amalgamated Limited
    (2017) eKLR

    res judicata

  • Zephir Holdings Limited versus Mimosa Plantations Limited & 2 Others
    (2014) eKLR

    joinder of interested parties

  • Apex International Limited & Another versus Kenya Anti-Corruption Commission
    (2012) eKLR

    joinder of interested parties

  • Florence Nafula Ayodi & 5 Others versus Jonathan Ayodi Ligure & Another; Benson Girenge Gidiavai & 67 Others

    joinder of interested parties

  • Temple Point Resort Limited versus Accredo A G & 5 Others
    (2018) eKLR

    joinder of interested parties

  • Exclusive Estate Limited versus The Registrar of Titles & Others
    Court of Appeal Civil Appeal No. 135 of 2013 (2016) eKLR

    restoration of caveat over the suit property; alleged contempt by the Petitioners

  • Postel Housing Cooperative Society Ltd & Another versus Telkom Kenya Ltd & Another; Attorney General (Interested Party)
    (2019) eKLR

    preservation of the suit property during pending proceedings

  • Grace Chemutai Koech versus Francis Kiplangat Chebiror & 2 Others
    (2018) eKLR

    lis pendens

  • Mawji versus United States International University & Another
    (1976) eKLR

    cited by the 4th Respondent

  • Shimmers Plaza Limited versus National Bank of Kenya Limited
    (2015) eKLR

    cited by the 4th Respondent

  • Chase Bank (K) Ltd versus Cannon Assurance (K) Ltd
    (2019) eKLR

    suppression of material evidence

  • Kenya Akiba Micro Financing Ltd versus Ezekiel Chebii & 14 Others
    (2012) eKLR

    suppression of material evidence

  • Go-TV Kenya Ltd versus Royal Media Services Ltd & 2 Others
    (2015) eKLR

    unclean hands

  • Owners of Motor Vessel Lilian S versus Caltex Oil Kenya Limited
    (1989) eKLR

    unclean hands / jurisdiction

  • R versus Kessington Income Tax Commissioner
    (1917) 1 KB 486

    unclean hands

  • Raila Odinga & 16 Others versus Ruto & 10 Others; Law Society of Kenya & 4 Others (amicus curiae)
    2022 KESC 54 (KLR)

    fabrication of evidence / perjury

  • Standard Chartered Financial Services Limited & 2 Others versus Manchester Outfitters (Suiting Division) Limited (now known as King Woollen Mills Ltd & 2 Others)
    (2016) eKLR

    unjust enrichment

  • Macharia Mwangi Maina & 87 Others versus Davidson Mwangi Kagiri
    (2014) eKLR

    unjust enrichment

  • Kiplagat Kotut versus Rose Jebor Kipngok
    (2019) eKLR

    unjust enrichment

  • Accredo A. G & 3 Others versus Stefano Useli & Another
    (2019) eKLR

    res judicata

  • Suleiman Saaid Shabal versus IEBC & 3 Others
    (2014) eKLR

    res judicata

  • IEBC versus Maina Kiae & 5 Others
    (2017) eKLR

    res judicata

  • Naftali Ruthi Kinyua versus Patrick Thuita Gachure & Another
    (2015) eKLR

    doctrine of lis pendens

  • Arthi Highway Developers Ltd versus West End Butchery & 6 others

    one with no title cannot pass title to subsequent purchasers

  • Dr. Joseph N K Arap Ngok versus Justice Moijo Ole Keiwua
    (1997) eKLR

    absolute and indefeasible title under Section 23(1) of the Registration of Titles Act

  • Embakasi Properties Limited & Another versus The Commissioner of Lands & Another
    (2019) eKLR

    certificate of title as conclusive evidence of ownership, challengeable only on fraud or misrepresentation

  • Caroget Investment Limited v Aster Holdings Limited & Another
    (2019) eKLR

    ex nihilo nihil fit - out of nothing comes nothing

  • Benjamin Leonard Macfoy versus United Africa Company Limited
    [1962] AC 152

    void acts are nullities; you cannot put something on nothing

  • Pius Kiamiyo Langat versus Cooperative Bank of Kenya Ltd
    (2017) eKLR

    definition of a cause of action

  • Kigwor Company Limited versus Samedy Trading Company
    (2021) eKLR

    definition and import of a cause of action

  • Daniel Kibet Mutai and 9 Others versus The Attorney General
    (2019) eKLR

    inordinate delay defeats constitutional petitions; laches

  • Ocean View Plaza Ltd versus the Attorney General
    (2002) eKLR

    allotment symbolised by title deeds invests inviolable and indefeasible rights

  • Criticos versus National Bank of Kenya Limited (as successor in Business to Kenya National Capital Corporation Limited "KENYAC") & another
    (Civil Appeal 80 of 2017) [2022] KECA 541 (KLR)

    expert evidence can only be challenged by another expert

  • Stephen Kinini Wang'ondu

    referred to within Criticos on challenge to expert evidence

Jurisdiction invoked
Article 40(3) of the Constitution of Kenya, 2010 (property rights), read with the Environment and Land Court's constitutional jurisdiction

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, "Telcom Kenya Limited & another v Ministry of Sports, Culture and Heritage & 4 others; Ministry of Public Service, Youth and Gender Affairs & 2 others (Interested Parties)", Case Analysis (2023). Environment & Land Petition 11 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/19328/eng@2023-07-17

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