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ELCDismissedNot stated in the ruling· [2024] KEELC 718 (KLR)

Impact Chemicals Limited v County Assembly of Kisumu & 4 others; Kenya Commercial Bank Ltd (Interested Party) (Environment and Land Case Civil Suit E027 of 2022) [2024] KEELC 718 (KLR)

Environment and Land Court
15 February 2024
3,836 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~15 min to read original · ~4 min brief

The bottom line

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A registered landowner in Kisumu failed to stop construction on its plots because the court doubted titles issued over land reserved for public use.

What this practically means

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Executive summary

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The Plaintiff, a company claiming to be the registered owner of Kisumu Municipality/Block 13/107 and 109 (purchased in 2017 and charged to the Interested Party to secure a Kshs. 30,000,000/- loan), moved the court by an amended Notice of Motion dated 24th January 2023 seeking a temporary injunction against the 1st Defendant, which it alleged had amalgamated portions of the suit properties with adjacent land on which it was constructing the new Kisumu County Assembly. The 1st Defendant opposed the application, contending that it had been allocated the land by the County Government of Kisumu and that the Plaintiff's titles were irregularly issued because the underlying parcel was reserved for Water Treatment Works under a 1987 Part Development Plan, and that it had committed Kshs. 418,356,348.60 of public funds to the construction. The Interested Party, a chargee, supported the Plaintiff's application. Applying Giella v Cassman Brown as refined in Nguruman and Mrao, the court accepted the Plaintiff's registration but held that the 1st Defendant's evidence had created doubt on the validity of the titles, since indefeasibility under section 26 of the Land Registration Act is subject to Article 40(6) of the Constitution and titles over land reserved for a public purpose are void ab initio. The Plaintiff had also failed the irreparable harm limb, having itself pleaded alternative compensation of Kshs. 30,000,000/-. The balance of convenience, though unnecessary to determine, favoured the 1st Defendant in possession. The application was dismissed with costs in the cause on 15th February 2024.

Key legal issues

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01

Whether the Plaintiff established a prima facie case with a probability of success

Holding

No. Although the Plaintiff is the registered owner, the 1st Defendant's evidence that the suit properties were carved from land reserved for Water Treatment Works created doubt on the validity of the titles

Reasoning

The court accepted that the Plaintiff held certificates of lease for the suit properties, but held that registration is not conclusive where the alienation of reserved public land is impugned. The 1st Defendant produced a PDP approved by the Commissioner of Lands showing the land was reserved for Water Treatment Works, raising the prospect that the titles would be annulled under Article 40(6) if that were established at trial.

p. 5
02

Whether the Plaintiff would suffer irreparable injury not compensable by damages

Holding

No, because the Plaintiff itself pleaded an alternative claim for compensation of Kshs. 30,000,000/-, showing damages would be adequate

Reasoning

The amended plaint sought compensation in the sum of Kshs. 30,000,000/- in the alternative to possession, demonstrating that any loss could be quantified and compensated. There was no evidence that the 1st Defendant would be unable to pay that sum, so damages remained an adequate remedy and the second Giella limb failed.

p. 6
03

Where the balance of convenience lies

Holding

Though unnecessary to decide, the balance tilts in favour of the 1st Defendant, which is in possession and has committed Kshs. 418,356,348.60 of public funds to construction

Reasoning

The court held it need not reach the third Giella limb, but observed that the Plaintiff had never taken possession since acquiring the properties in 2017, while the 1st Defendant, allocated the land by the County Government of Kisumu, was in possession and had incurred massive public expenditure on the Ultra-Modern County Assembly Chamber works.

p. 7

Legal principles established

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  • An applicant for an interlocutory injunction must show a prima facie case with a probability of success; failing which the application may be determined on the balance of convenience
  • Indefeasibility of title under section 26 of the Land Registration Act is subject to Article 40(6) of the Constitution and does not protect unlawfully acquired titles
  • Alienation of land reserved for a public purpose is null and void ab initio; such a title does not exist in law

Court orders

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  1. 1.The amended Notice of Motion dated 24th January 2023 is dismissed
  2. 2.Costs to be in the cause

Authorities

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Legislation

  • Land Registration Actsection 26
  • Constitution of Kenya, 2010Article 40 (including Article 40(6))
  • Constitution of Kenya, 2010Article 27(1)
  • Repealed Constitution of Kenyasection 75
  • Registration of Titles Actsection 23 (cap 281)
  • Government Land Actrepealed
  • Registered Land Actcap 300 (repealed)

Cases cited (7)

  • Nguruman Limited v. Jan Bonde Nielsen & 2 Others
    [2014] eKLR
  • Mrao Limited v. First American Bank of Kenya Limited & 2 Others
    [2003] KLR 125
  • Giella v. Cassman Brown & Co. Ltd
    [1973] EA 358
  • Henry Muthee Kathurima v. Commissioner of Lands & Another
    [2015] eKLR
  • Milankumar Shah & 2 others v. The City Council of Nairobi & another (Nairobi High Court Civil Suit No. 1024 of 2005 (O.S))
  • Adan Abdirahani Hassan & 2 others v. Registrar of Tiles & 2 others
    [2013] eKLR
  • James Joram Nyaga & Another -Vs- The Hon. Attorney General and two others (Miscellaneous Civil Application No. 1732 of 2004)
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over the suit properties in Kisumu Municipality/Block 13/107 and 109

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, "Impact Chemicals Limited v County Assembly of Kisumu & 4 others; Kenya Commercial Bank Ltd (Interested Party) (Environment and Land Case Civil Suit E027 of 2022) [2024] KEELC 718 (KLR)", Case Analysis (2024). Not stated in the ruling. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/718/eng@2024-02-15

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