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ELCPartially AllowedNot stated in the judgment (Plaint dated 7th September, 2023, Environment and Land Court, Mombasa)· [2024] KEELC 1003 (KLR)

Oakdale Commodities Limited v Sazit Company Limited & 2 others (Environment & Land Case E015 of 2023) [2024] KEELC 1003 (KLR)

Environment and Land Court
20 February 2024
25,056 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~100 min to read original · ~4 min brief

The bottom line

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A Mombasa court stopped a Nyali apartment construction until trial, ruling neighbours can challenge county planning approvals directly in the Environment and Land Court.

What this practically means

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Executive summary

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Oakdale Commodities Limited, owner of a neighbouring parcel (CR. No. 14800) in Nyali, sued Sazit Company Limited, NEMA and the Mombasa County Department of Lands, Housing and Physical Planning, challenging approvals for a multi-storey apartment development on Plot Number 22992/I/MN. By Notice of Motion dated 7th September 2023 it sought a permanent injunction, declarations that the EIA Licence No. EIA/PSR/23223 and the Change of User approval No. P/2022/00592 violated the Environmental (Impact Assessment and Audit) Regulations, 2003, Article 47 of the Constitution and the Fair Administrative Action Act, cancellation of both approvals, and general damages. Interim orders had been issued on 12th September 2023. The 3rd Defendant raised a preliminary objection on jurisdiction, invoking the doctrine of exhaustion under Section 129 EMCA and Sections 61(3) and 93 of the Physical and Land Use Planning Act. The Court condensed the matter into five issues. It upheld that the objection raised pure points of law but rejected it: the Mombasa County Physical and Land Use Planning Liaison Committee had not been established, so Section 93 vests planning disputes in the ELC, and the plaintiff, never notified of the approval, could not be barred by exhaustion. Applying Giella v Cassman Brown as refined in Nguruman, the Court found a prima facie case, irreparable loss and balance of convenience favouring the plaintiff, and granted a temporary injunction restraining further development pending trial. However, it declined prayers for permanent injunction, declarations, cancellation/revocation of the licences and general damages as final reliefs ungrantable at the interlocutory stage, reserving them for the full hearing. Costs of both applications were made costs in the cause, and the suit was fixed for hearing on 4th April 2024.

Key legal issues

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01

Whether the preliminary objection raised a pure point of law

Holding

The Court was satisfied the objection raised pure points of law premised on the doctrine of constitutional avoidance/exhaustion

Reasoning

The Court reviewed the settled test in Mukisa Biscuit and related authorities that a preliminary objection must raise a pure point of law on the assumption that all facts pleaded by the other side are correct, and that it cannot be raised where facts must be ascertained or judicial discretion exercised. Applying that test, it accepted the objection was on a pure point of law, before going on to reject it on jurisdiction.

p. 32
02

Whether the ELC has jurisdiction over the suit on the Change of User and EIA Licence

Holding

The Court held it has jurisdiction; the exhaustion argument failed because the Liaison Committee for Mombasa County has not been established and the plaintiff was never notified of the decision

Reasoning

Although Sections 61(3) and 93 of the Physical and Land Use Planning Act channel planning disputes first to the County Physical and Land Use Planning Liaison Committee, the Court found no evidence the Mombasa Committee exists, and neither Defendant controverted that assertion. Section 93 therefore applies, vesting disputes in the ELC. Further, following Kibicho, a party never notified of the decision cannot be barred by exhaustion. The EIA licence limb was also a non-starter since no complaint on the licence was actually lodged as the dispute centred on the Change of User.

p. 39
03

Whether the Plaintiff met the Giella v Cassman Brown criteria for a temporary injunction

Holding

All three criteria were satisfied: prima facie case, irreparable injury, and balance of convenience favouring the Plaintiff

Reasoning

The Court found a prima facie case because once the six-storey building is finalized, the Plaintiff's constitutional right to quiet enjoyment and privacy would be permanently infringed. Irreparable loss was demonstrated, and the Court could not interrogate all documents at that stage, so it saw a lower risk in granting the injunction pending full hearing of the suit.

p. 41
04

Whether permanent injunction and other final reliefs could issue at the interlocutory stage

Holding

No; prayers 3 to 8 were reserved to the full hearing

Reasoning

Distinguishing prohibitory from mandatory injunctions (Shepard Homes v Sandham) and relying on Kenya Power & Lighting v Sheriff Molana Habib, the Court held permanent injunctions are granted only after full hearing. Declaratory orders, cancellation/revocation of licences and general damages are final reliefs incapable of being granted interlocutorily; granting them would leave nothing for trial.

p. 43
05

Costs of the application and preliminary objection

Holding

Costs were ordered to be in the cause

Reasoning

Although costs ordinarily follow the event under Section 27(1) of the Civil Procedure Act, the Court elected, at this interlocutory juncture, to reserve costs to the outcome of the main suit rather than award them to any party immediately.

p. 45

Legal principles established

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  • Where the County Physical and Land Use Planning Liaison Committee has not been established, disputes relating to physical and land use planning fall to be heard by the Environment and Land Court under Section 93 of the Physical and Land Use Planning Act
  • A party who was never notified of a planning approval cannot be shut out of the court for failure to exhaust the statutory appeal mechanism
  • The ELC has jurisdiction where environmental and developmental issues in a suit cannot be dealt with separately by numerous tribunals

Court orders

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  1. 1.The Preliminary objection dated 25th October, 2023 is found to lack merit
  2. 2.The Notice of Motion dated 7th September, 2023 is partially found to have merit and is allowed partially
  3. 3.An order of temporary injunction restraining the 1st Defendant by itself, its servants and/or agents from continuing with the developments on Plot Number 22992/I/MN, Nyali, along Moyne Drive, Mombasa County pending the hearing and determination of this suit
  4. 4.Prayers 3, 4, 5, 6, 7 and 8 cannot be granted at an interlocutory stage and the Court reserves discretion to deal with them at the finality of the suit
  5. 5.The suit to be heard on 4th April, 2024 and mention on 20th March, 2024 for Pre-Trial Conference under Order 11 of the Civil Procedure Rules, 2010; judgment to be delivered on 7th May, 2024 if all facts remain constant
  6. 6.The costs of the Notice of Motion application dated 7th September, 2023 and Notice of Preliminary objection dated 25th October, 2023 shall be in the cause

Authorities

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Legislation

  • Civil Procedure Act, Cap 21Sections 1A, 1B, 3A; Section 27(1)
  • Constitution of Kenya, 2010Articles 22, 23(3), 35, 47, 48, 69(d) & (g), 70, 159, 162(2)(b)
  • Fair Administrative Action Act, 2015Sections 4 and 5(1)
  • Environment and Land Court Act, 2011Sections 4, 13(1), 13(2)(a) and (e)
  • Environmental Management and Co-ordination Act, 1999 (EMCA)Sections 3(3), 125, 129
  • Environmental (Impact Assessment and Audit) Regulations, 2003Regulations 17, 21, 22
  • Physical and Land Use Planning Act, No. 13 of 2019Sections 56, 61(1),(2),(3),(4), 76, 78, 93
  • Civil Procedure Rules, 2010Order 40 Rules 1 and 2; Order 11
  • Companies ActNot specified
  • County Government Act, 2013Not specified
  • Public Health ActNot specified
  • Water ActNot specified
  • Employment Act 2007Not specified
  • Work Injuries Benefits Act 2007Not specified
  • Labour Institutions Act 2007Not specified
  • Occupational Safety and Health Act 2007Not specified
  • Legal Notice No. 74: The National Construction Authority Regulations 2014Not specified

Cases cited (60)

  • Tiara Villas Management Limited & 4 others v Joe Mutambu & 3 others
    [2022] eKLR
  • MRAO Limited v First American Bank of Kenya Ltd & 2 Others
    [2003] KLR 125
  • Mwalungu Mwambui Nyiyo & 201 others v Total Oil Products (East Africa) Limited & another
    [2021] eKLR
  • Nguruman Limited v Jan Bonde Nielsen & 2 others
    (2014) eKLR; CA No.77 of 2012
  • Mburu v Kibara & 2 others
    (Environment & Land Case 237 of 2021) [2022] KEELC 3226 (KLR)
  • Republic v National Environment Tribunal, Ex-parte Palm Homes Limited & Another
    [2013] eKLR
  • Kenya Airline Pilots Association (KALPA) v Cooperative Bank of Kenya Limited & another
    [2020] eKLR
  • Esso Kenya Limited v Mark Makwata Okiya
    Civil Appeal No.69 of 1991
  • JM v SMK & 4 others
    [2022] eKLR
  • Giant Holdings Limited v Kenya Airports Authority
    [2004] eKLR
  • Bandari Investments & Co. Limited v Martin Chiponda & 139 others
    [2022] eKLR
  • Malier Unissa Karim v Edward Oluoch Odumbe
    (2015) eKLR
  • Kenya Breweries Limited v Washington Okeyo
    (2002) EA 109
  • Jay Super Power Cash and Carry Limited v Nairobi City Council and 20 others
    CA 111/2002
  • Locabail International Finance Limited v Agro Export and others
    (1986) All ER 906
  • Shepard Homes v Sandham
    (1970) 3 WLR 356
  • Mukisa Biscuit Manufacturing Co. Limited v West End Distributors Limited
    (1969) EA 696
  • Peter Karung'o Njoroge v Hijaz Development Limited & 4 others
    [2018] eKLR
  • Ken Kasing'a v Daniel Kiplagat Kirui & 5 others
    [2015] eKLR
  • John Kabukuru Kibicho & another v County Government of Nakuru & 2 others
    [2016] eKLR
  • Benson Ambuti Adega & 2 others v Kibos Distillers Limited & 5 others
    [2020] eKLR
  • Republic v Magistrates Court, Mombasa; Absin Synegy Limited (Interested Party)
    (Judicial Review E033 of 2021) [2022] KEHC 10 (KLR)
  • Republic v NEMA Ex-Parte Sound Equipment Ltd
    CA CA No. 84 of 2010 [2011] eKLR
  • Vincent Mwathi Kioko v Edward Sigei & 4 Others
    (2021) eKLR
  • William Odhiambo Ramogi & 3 Others v Attorney General & 4 Others
    (2020) eKLR
  • Geofrey Muthinja Kabiru & 2 Others v Samuel Munga Henry & 1756 Others
    (2015) eKLR
  • Albert Chaurembo Mumbo & 7 Others v Maurice Munyao & 148 Others
    SC Petition No. 3 of 2016 (2019) eKLR
  • Anchor Limited v Sports Kenya
    (2017) eKLR
  • Secretary, County Public Service Board & Another v Hulbhai Gedi Abdalle
    (2017) eKLR
  • Omondi v National Bank of Kenya Limited & Others
    (2001) eKLR
  • The Owners of Motor Vessel 'Lillian S' v Caltex Kenya Limited
    [1989] KLR 1
  • Samuel Kamau Macharia v KCB & 2 Others
    Civil Application No. 2 of 2011
  • County Government of Migori v INB Management IT Consultant Limited
    (2019) eKLR
  • Hon (Lady) Justice Kalpana H Rawal v Judicial Service Commission and others
    Supreme Court Civil Application No. 11 of 2016
  • Ocheja Immanuel Dangama v Hon. Atoi Aidoko Aliaswan and 4 others
    Supreme Court of Nigeria No. 11 of 2012
  • Mary Musuki Mudachi & another v Anthony Muteke Mudachi & 2 others; Elijah K. Kimanzi & 6 others (Interested Parties)
    [2021] eKLR
  • Kibos Distillers Limited & 4 others v Benson Ambuti Adega
    Not stated (Supra)
  • Lashad Mohamed Mubarak v County Government of Mombasa
    Mombasa Judicial Review No. 14 of 2019 [2020] eKLR
  • Speaker of the National Assembly v James Njenga Karume
    [1992] eKLR
  • Kharisa Kyango v Law Society of Kenya
    Not stated
  • Taib Investment Limited v Fahim Salim Said & 5 Others
    [2016] eKLR
  • Pius Kipchirchir Kogo v Frank Kimeli Tenai
    [2018] eKLR
  • Paul Gitonga Wanjau v Gathuthis Tea Factor Company Ltd & 2 others
    (2016) eKLR
  • Amir Suleiman v Amboseli Resort Limited
    [2004] eKLR
  • Robert Mugo Wa Karanja v Ecobank (Kenya) Limited & Another
    [2019] eKLR
  • Giella v Cassman Brown & Co. Ltd.
    [1973] E.A. 358
  • Lenkishon Kimirei Maika & 2 others v A.M. Kalio
    [2018] eKLR
  • Janet Flora Muna v John Karanu Ikinu & 2 others
    [2015] eKLR
  • MacMillan Bloedel Limited v Gallano Island Trust Committee
    {1995} B.C.J. 1763
  • Kenya Power & Lighting Co. Limited v Sheriff Molana Habib
    [2018] eKLR
  • Lucy Wangui Gachara v Minudi Okemba Lore
    [2015] eKLR
  • Bharat Petroleum Corp Ltd v Haro Chand Sachdeva
    AIR 2003
  • Nation Media Group & 2 others v John Harun Mwau
    (2014) eKLR
  • Harun Mutwiri v Nairobi City County Government
    [2018] eKLR
  • Kenya Union of Commercial, Food and Allied Workers v Bidco Africa Limited & Another
    [2015] eKLR
  • Hussein Muhumed Sirat v Attorney General & Another
    [2017] eKLR
  • Nitin Properties Ltd v Jagjit S. Kalsi & another
    Court of Appeal No. 132 of 1989 [1995-1998] 2 EA 257
  • United Insurance Company LTD v Scholastica A Odera
    Kisumu HCC Appeal No. 6 of 2005 (2005) LLR 7396
  • In the matter of Siaya Resident Magistrate Court
    Kisumu HCC Misc. App No. 247 of 2003
  • Attorney General & Another v Andrew Mwaura Githinji & another
    [2016] eKLR
Jurisdiction invoked
Article 162(2)(b) of the Constitution of Kenya, 2010 and Sections 4, 13(1) and 13(2) of the Environment and Land Court Act, 2011; Section 93 of the Physical and Land Use Planning Act, No. 13 of 2019

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, "Oakdale Commodities Limited v Sazit Company Limited & 2 others (Environment & Land Case E015 of 2023) [2024] KEELC 1003 (KLR)", Case Analysis (2024). Not stated in the judgment (Plaint dated 7th September, 2023, Environment and Land Court, Mombasa). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/1003/eng@2024-02-20

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