Nguku Product Twenty Ten Limited v National Land Commission
The bottom line
#Kenya's Environment and Land Court struck out a landowner's compensation claim, ruling that disputes over compulsorily acquired land must first go to the Land Acquisition Tribunal.
What this practically means
#Executive summary
#Key legal issues
#Whether the Petitioner was entitled to payment of the balance of the initial award of Kshs. 77,478,659 with interest
No - the initial award was lawfully revised after KeNHA revised the road design reducing the land acquired, and the Petitioner failed to prove under-valuation of the revised acquisition
The court found KeNHA's letter of 30 July 2019 revised road designs and land acquisition requirements, and the revised schedule was gazetted. The NLC therefore adhered to the Land Act in re-valuing. The Petitioner, despite rejecting the revised award, tendered no fresh valuation report showing under-valuation, so its claim to the initial award failed.
Whether EACC's intervention directing stoppage of payments and re-valuation violated the NLC's independence
No - EACC is mandated to investigate use and misuse of public funds, and the allegations of fraud and over-valuation made the re-valuation plausible
The court took judicial notice of EACC's anti-corruption mandate. The NLC explained that EACC requested re-valuation due to allegations of fraud, over-valuation and undue influence, and the court found these reasons plausible in warranting re-valuation of the suit properties.
Whether this Court, rather than the Land Acquisition Tribunal, had the mandate to assess the correct compensation
No - disputes on compulsory acquisition must in the first instance go to the Land Acquisition Tribunal; the Petitioner should have appealed there or filed a civil suit
Sections 133A and 133C(6) of the Land Value (Amendment) Act 2019 vest first-instance jurisdiction over compulsory acquisition disputes in the Land Acquisition Tribunal, with appeals to the EL Court. The Tribunal is now operational and the Petitioner, not yet fully compensated, still has a remedy there.
Legal principles established
#- Disputes emanating from compulsory acquisition of land should in the first instance be referred to the Land Acquisition Tribunal, which can confirm, vary or quash the NLC's decision, with appeals lying to the Environment and Land Court
- Just compensation under Article 40 accrues only to the portion of land actually acquired; where the acquisition is reduced, a project affected person cannot be compensated for more land and fresh valuations must be undertaken
- The burden lies on the landowner to present a current valuation report showing the value of the land acquired after revision of the award
Court orders
#- 1.The Petition is struck out as unmerited
- 2.The Petitioner is granted leave of thirty (30) days from the date of the judgment to lodge an appeal at the Land Acquisition Tribunal
- 3.No order as to costs
- Jurisdiction invoked
- Article 162(2) of the Constitution and the Environment and Land Court Act (court's jurisdiction over land and environment disputes); court held compulsory acquisition disputes lie first with the Land Acquisition Tribunal under section 133C(6) of the Land Value (Amendment) Act 2019
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Nguku Product Twenty Ten Limited v National Land Commission", Case Analysis (2023). Environment & Land Petition 25 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/21858/eng@2023-11-30
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.