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ELCPartially AllowedConstitutional Petition E002 of 2022· [2023] KEELC 20653 (KLR)

Car Importers Association of Kenya v County Government of Mombasa

Environment and Land Court at Mombasa
2 October 2023
17,839 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~71 min to read original · ~4 min brief

The bottom line

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Mombasa's county government cannot force car dealers out of the CBD without first consulting them and following fair administrative procedures.

What this practically means

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Executive summary

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The Car Importers Association of Kenya, representing 73 used motor vehicle dealers operating in Mombasa's Central Business District, petitioned against the County Government of Mombasa's notice dated 7th January 2022 directing relocation of its members to Jomvu area (Plot No. MN/V/290). The Petitioner sought declarations that its members had a right to be involved in the decision-making process and that relocation without a hearing violated Articles 10, 47, 118 and 174, plus an order that members could continue operating from the CBD. The Respondent, through an affidavit of its CECM Tauriq Balala, contended that the notice had been withdrawn and suspended indefinitely on 12th January 2022 to allow consultation and public participation, rendering the petition overtaken by events and an abuse of process. Justice L.L Naikuni framed four issues: sufficiency of the petition, public participation, violation of rights, and costs. The court held the petition met the Anarita Karimi Njeru precision threshold; that the impugned directives were administrative actions requiring public participation and fair administrative process under Article 47 and the Fair Administrative Actions Act; that no participation was undertaken and the directives were constitutionally infirm; and that withdrawal of the notice did not cure the infringement already felt. Drawing on Lochner-era US jurisprudence and West Coast Hotel v Parrish, the court held economic regulation is permissible but must be reasonable, non-discriminatory, non-oppressive and procedurally fair. The petition was allowed: judgment was entered for the Petitioner, declarations issued on the right to participate and to operate from the CBD, prayer 2 was declared overtaken by events, the Respondent was permitted to re-engage the Petitioner constitutionally, and each party was ordered to bear its own costs given the public importance of the matter.

Key legal issues

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01

Sufficiency of pleading in a constitutional petition

Holding

The Petition met the Anarita Karimi Njeru threshold of reasonable precision

Reasoning

The court applied the Anarita Karimi Njeru standard as restated in Mumo Matemu, requiring constitutional violations to be pleaded with reasonable precision, and found the Petitioner had dutifully complied and fully met the threshold in pleading the violations and reliefs sought.

02

Public participation and fair administrative action in the relocation directives

Holding

The impugned directives required public participation and none was undertaken; they were constitutionally infirm and violated Article 47 and the Fair Administrative Actions Act

Reasoning

The court held the directives were administrative actions affecting the legal rights of the Petitioner, customers and stakeholders, and had to satisfy lawfulness, reasonableness and procedural fairness. The Respondent gave no notice, no opportunity to be heard and no reasons; by its own admission it did not engage the Petitioner. The withdrawal of the notice did not cure the infringement already felt.

p. 33
03

Constitutional standard for limiting economic liberty

Holding

The State may regulate economic activity in the public interest but limitations must be reasonable, non-discriminatory, non-oppressive and procedurally fair

Reasoning

Drawing on Lochner, Holmes' dissent and West Coast Hotel v Parrish, the court held the Kenyan Constitution envisages a directive role for the State permitting regulation of freedom of contract for public interest objectives, but any limitation must meet a four-part test including Article 24 justification, rational basis, procedural public participation and substantive scrutiny of effects on rights.

p. 28
04

Burden of proof in constitutional petitions

Holding

The Petitioner discharged its evidentiary burden by affidavit evidence of the manner of infringement

Reasoning

Relying on sections 107 and 109 of the Evidence Act and the Supreme Court's decision in Communications Commission of Kenya v Royal Media Services, the court required a link between the aggrieved party, the constitutional provisions alleged to be contravened and the manifestation of contravention, and found the supporting affidavit demonstrated the deleterious effects of the directives on businesses and livelihoods.

p. 34

Legal principles established

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  • A decision removing all options from an economic actor or targeted group and channelling their economic activities in a particular direction must be arrived at after due consultation and meaningful public participation and fair administrative process
  • Limitations on economic liberty must be reasonable, non-discriminatory, non-oppressive and procedurally imposed to pass constitutional muster
  • A petitioner may act preemptively to prevent threatened violations of rights without waiting for the violation to occur

Court orders

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  1. 1.Judgment entered in favour of the Petitioners to the extent stated in the orders
  2. 2.An order that the Petitioner's members have a right to carry out their businesses of selling imported used motor vehicles in their car showrooms in the Central Business District of Mombasa Town and that the Respondent has no right to force them to relocate to Jomvu area on Plot No. MN/V/290
  3. 3.Prayer 2 of the Petition declared overtaken by events, the Respondent having withdrawn its directives on relocation
  4. 4.A declaration that the Petitioner's members have a right to be involved in the decision-making process leading to their intended relocation from the Mombasa Central Business District to Jomvu area
  5. 5.The orders do not debar the Respondent from further engaging the Petitioner so long as it is undertaken within the confines of the Constitution of Kenya, 2010
  6. 6.Each party to bear own costs of the Petition

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 1, 2, 3, 10, 19(3)(b), 20, 21, 22, 23, 24, 25, 27, 28, 35, 43, 47, 69(1), 118, 165, 174, 196, 22(1), 258, 259(1)
  • County Governments Act, No. 17 of 2012Sections 87, 91, 115
  • Fair Administrative Action ActSections 4(3), 4(4), 5(1), 12
  • Physical and Land Use Planning Act, 2019Section 56
  • Evidence ActSections 107(1)(2), 109
  • Civil Procedure Act, Cap 21Section 27(1)
  • Constitution of Kenya (Protection of Rights and Fundamental Freedoms) Practice and Procedure Rules, 2013Rule 26(1) and (2)
  • Civil Procedure Rules, 2010Section 27 (as cited by Respondent)
  • Sixth Schedule to the ConstitutionSection 7(1)

Cases cited (23)

  • Nyongesa & 4 others v Egerton University College [1990] eKLR
    [1990] eKLR

    Compliance with rules of natural justice; courts must curb excesses of officials exercising administrative or disciplinary measures

  • Robert N. Gakuru & Others v Governor Kiambu County & Others (2014) eKLR
    [2014] eKLR

    Definition and centrality of public participation in legislative and policy functions

  • Doctors for Life International v Speaker of the National Assembly and Others (CCT12/05) [2006] ZACC 11
    2006 (12) BCLR 1399 (CC); 2006 (6) SA 416 (CC)

    Right to political participation; duty to facilitate public involvement in public affairs

  • Car Importers Association of Kenya v Kenya Revenue Authority

    Petitioner cited as authority where petition allowed for non-involvement in decision-making

  • Republic v Rosemary Wairimu Munene, Ex-Parte Applicant v Ihururu Dairy Farmers Co-operative Society Ltd, Judicial Review application no.6 of 2014

    Costs follow the event; costs compensate rather than penalise

  • Cecilia Karuru Ngayu v Barclays Bank of Kenya & another [2016] eKLR
    [2016] eKLR

    Costs are at the discretion of the court; basic rule that costs follow the event

  • Orix (K) Limited v Paul Kabeu & 2 others [2014] eKLR
    [2014] eKLR

    Successful party should ordinarily be awarded costs unless conduct disentitles it

  • Anarita Karimi Njeru v Republic [1980] eKLR 154
    (1979) KLR 154; [1980] eKLR 154

    Constitutional violations must be pleaded with reasonable degree of precision

  • Mumo Matemu v Trusted Society of Human Rights Alliance & Another (2013) eKLR
    (2013) eKLR

    Standards of proof and precision in constitutional petitions

  • Thorp v Holdsworth (1886) 3 Ch. D 637
    (1886) 3 Ch. D 637 at 639

    Object of pleadings is to bring parties to a defined issue

  • Onyango Oloo v Attorney General [1986-1989] EA 456
    [1986-1989] EA 456

    A decision in breach of rules of natural justice is not cured by holding the decision would otherwise have been right

  • S v Acheson 1991 (2) SA 805 (Nm HC)
    1991 (2) SA 805 (Nm HC) at 813

    A constitution is a mirror reflecting the national soul; spirit and tenor must permeate judicial interpretation

  • Andrew Omtata Okoiti & 5 Others v Attorney General & 2 others [2010] eKLR
    [2010] eKLR

    Probative value of newspaper cuttings is flawed and amounts to hearsay

  • Lochner v New York 198 U.S. 45 (1905)
    198 U.S. 45 (1905)

    Freedom of contract as liberty under the 14th Amendment; later abandoned approach

  • West Coast Hotel Co. v Parrish, 300 U.S. 379 (1937)
    300 U.S. 379 (1937)

    Freedom of contract is a qualified, not absolute, right; liberty subject to reasonable regulation

  • Jacobson v Massachusetts, 197 U.S. 11
    197 U.S. 11, 25 Sup. Ct. Rep. 358, 49 L. ed.

    Liberty does not import an absolute right to be freed from restraint; manifold restraints for the common good

  • Legal Advice Centre & 2 others v County Government of Mombasa & 4 others [2018] eKLR
    [2018] eKLR

    Purpose of public participation in law-making; consultation; adequacy of participation mechanisms

  • Matatiele Municipality and Others v President of the Republic of South Africa and Others (2) (CCT73/05A) [2006] ZACC 12
    2007 (1) BCLR 47 (CC)

    The more discrete and affected the population, the more reasonable to expect a reasonable opportunity to have a say

  • Mui Coal Basin Local Community & 15 Others v Permanent Secretary Ministry of Energy & 17 Others [2015] eKLR
    [2015] eKLR

    Public participation must show intentional inclusivity; those most affected must have a bigger say

  • Independent Electoral and Boundaries Commission (IEBC) v National Super Alliance (NASA) Kenya & 6 others [2017] eKLR
    [2017] eKLR

    State has discretion to choose the medium of public participation provided it ensures widest reach

  • Communications Commission of Kenya & 5 Others v Royal Media Services Limited & 5 Others [2014] eKLR
    [2014] eKLR

    Burden of proof in constitutional petitions; link between party, provisions and contravention

  • Jasbir Rai Singh Rai v Tarhochan Singh (2014) eKLR
    (2014) eKLR

    Costs follow the event; event means the result of the litigation

  • Mary Wambui Munene v Ihururu Dairy Cooperative Societies eKLR (2014)
    (2014) eKLR

    Costs follow the event

Jurisdiction invoked
Articles 22, 23 and 165 of the Constitution; jurisdiction founded on the land-use subject matter (Plot No. MN/V/290, Jomvu) vesting the Environment and Land Court with greater jurisdiction than the High Court

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, "Car Importers Association of Kenya v County Government of Mombasa", Case Analysis (2023). Constitutional Petition E002 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/20653/eng@2023-10-02

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