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ELCPartially AllowedPetition E006 of 2024· [2024] KEELC 6929 (KLR)

Kigio Group Company Limited v Kenya Electricity Transmission Company Limited & 3 others (Environment & Land Petition E002 of 2024) [2024] KEELC 6929 (KLR)

Environment and Land Court
17 October 2024
11,103 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~44 min to read original · ~4 min brief

The bottom line

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A Kenyan landowner stopped a power company from touching its land before compensation or legal procedure, winning key interim protections.

What this practically means

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Executive summary

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This interlocutory ruling of the Environment and Land Court at Murang'a (Gacheru J) dealt with two matters: the Petitioner's Notice of Motion dated 9 April 2024 seeking conservatory orders restraining the Respondents from interfering with land parcel LR No. 10876/2 (subdivided into 10876/3 and 10876/4, Thika) in connection with the proposed 400KV Gilgil-Thika-Malaa-Konza Power Transmission Line, and the 1st Respondent's Notice of Preliminary Objection dated 6 May 2024 arguing prematurity and failure to exhaust dispute-resolution mechanisms under the Energy Act 2019, EMCA and the Fair Administrative Action Act. The court first found that the objection qualified as a true preliminary objection since it raised jurisdiction, a pure point of law. On the merits, it held that no wayleave had been created over the suit land and the project was at feasibility-studies stage, so no dispute existed capable of resolution under the Energy Act; the claim concerned the constitutional right to property under Article 40, resolvable only by courts. Relying on Benard Murage, it held a party need not await actual violation where violation is threatened, so ripeness and exhaustion did not apply, and the preliminary objection was dismissed with costs. On the application, the court found a prima facie case: the Petitioner is the registered owner, intends to sell the land to offset an HFCK loan, and the Respondents did not deny intentions to construct before acquiring the wayleave or compensating. Irreparable loss not compensable by damages was likely, and the property required preservation. Prayers 3 and 5 were allowed - conservatory orders preserving the suit property pending the Petition, with costs to the Petitioner - and parties were directed to prepare the main Petition for expeditious hearing.

Key legal issues

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01

Whether the Petitioner was obliged to exhaust the dispute-resolution mechanisms under the Energy Act, 2019 before filing the Petition

Holding

The objection was not merited; since no wayleave had been created and no legal relationship or dispute existed between the parties under the Energy Act, its alternative dispute-resolution mechanisms were not the first port of call, and the claim being constitutional (Article 40) could only be resolved by the courts.

Reasoning

The court found all parties agreed no wayleave had been created over the suit land and the project was at feasibility-studies stage. Without a wayleave or acquisition of the land, there was no relationship or dispute between the Petitioner and the 1st Respondent to which the Energy Act could apply. The Petitioner's claim concerned the right to property under Article 40, a constitutional issue reserved for courts, not the Energy Act Tribunal. Hence the exhaustion doctrine was not triggered.

p. 15
02

Whether the Petition and Application were premature under the doctrine of ripeness

Holding

No; there is no legal requirement that the Petitioner await creation of a wayleave before approaching the court, since a threatened violation of constitutional rights suffices.

Reasoning

Relying on Benard Murage v Finserve Africa Ltd, the court held a party need not wait for an actual violation before going to court where there is a threat of contravention. At the feasibility-studies stage, the court could fathom no lawful limitation on its powers under Article 40. The doctrines of ripeness and exhaustion were therefore inapplicable at that conjuncture.

p. 15
03

Whether the Petitioner established a prima facie case for conservatory orders

Holding

Yes; the Petitioner is the registered owner, the Respondents did not deny intentions to construct the transmission line over the land before acquiring the wayleave or compensating the Petitioner, so a prima facie case with probability of success was established.

Reasoning

The court examined the pleadings and evidence, finding it undisputed that the Petitioner owns the suit parcels, intends to sell them to offset a bank loan, and that the Respondents intend to construct the power line over them while still at feasibility stage. If the property were not preserved there was a danger of construction without consent, possibly violating property rights. The ingredients for conservatory orders were satisfied.

p. 19
04

Whether the Petitioner would suffer irreparable loss not compensable by damages, and where the public interest lies

Holding

Construction of the power line might devalue the land and scare away buyers, causing loss of the charged Thika properties which damages might not compensate; meanwhile the Respondents must follow constitutional procedures, so preservation of the property served the proper balance of public interest.

Reasoning

It was uncontroverted that the Petitioner faced potential public auction of its Thika Municipality parcels and intended to sell the suit land to settle the HFCK mortgage; a wayleave would devalue the land and deter buyers, a loss potentially not compensable in damages. On public interest, the court held the Respondents must adhere to constitutional provisions before constructing, and that the dispute could not be adjudicated at the interlocutory stage, requiring maintenance of the status quo.

p. 20

Legal principles established

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  • Where no wayleave has been created over land, there is no dispute capable of resolution under the Energy Act dispute-resolution mechanisms, and a landowner alleging threatened violation of the right to property under Article 40 may approach the court without first exhausting those mechanisms.
  • A party need not await actual violation of a constitutional right before approaching the court; a threat of violation suffices, so the doctrines of ripeness and exhaustion did not apply at the feasibility-studies stage of the project.
  • Pending hearing of a petition challenging the creation of a wayleave, the suit property requires preservation by way of conservatory orders where the owner has established a prima facie case.

Court orders

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  1. 1.The 1st Respondent's Notice of Preliminary Objection dated 6th May 2024 dismissed entirely with costs to the Petitioner/Applicant
  2. 2.Prayers No. 3 and 5 of the Notice of Motion Application dated 9th April 2024 allowed with costs to the Petitioner/Applicant (conservatory orders restraining the Respondents from accessing, interfering with, trespassing on, or conducting any activities on L.R. No. 10876/2, subdivided into L.R. No. 10876/3 and 10876/4 – Thika, pending determination of the Petition, with police supervision/enforcement)
  3. 3.Parties directed to prepare the main Petition for hearing expeditiously

Authorities

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Legislation

  • Civil Procedure RulesOrder 40 Rules 1(a), 2(1), 4(1) and (2); Order 51 Rule 1
  • Environment and Land Court ActSection 13(7)
  • Constitution of Kenya 2010Articles 10(2), 23(3)(b) and (c), 40, 40(3)(a) and (b), 40(3)(b)(i), 60(1)(b), 64, 159(1)(2)(a)(b)(d)(e), 22(3)
  • Land ActNo. 6 of 2012, Sections 143, 144, 146(1), 148, 149
  • Energy Act 2019Sections 3(1), 10, 11, 23, 24, 36, 37(3), 40, 42, 144-149, 224(2)(e)
  • Energy (Complaints and Dispute Resolution) Regulations 2012Regulations 2, 4, 7 and 9
  • Environment Management and Coordination Act 1999 (EMCA)exhaustion provisions
  • Fair Administrative Action Act 2015Section 9(1)-(5)
  • Public Private Partnership Actgeneral provisions
  • Civil Procedure ActSection 11
  • Session Paper No 4 of 2004 on Energy

Cases cited (45)

  • Giella v Cassman Brown
    (1973) EA 358
  • Gerick Kenya Limited v National Environment Management Authority
    [2015] eKLR
  • Mukisa Biscuit Manufacturing Co. Ltd v West End Distributors Ltd
    (1969) EA 696
  • Phoenix of E.A. Assurance Limited vs S.M. Thiga t/a Newspaper Service
    [2019] eKLR
  • Samuel Kamau Macharia & Another vs Kenya Commercial Bank Limited & 2 Others
    [2012] eKLR
  • Abidha Nicholus vs A-G & 7 Others; National Environmental Complaints Committee (NECC) NEMA, Siaya County, PKLC & others
    [2023] eKLR
  • Vitalis Ouma Osan vs KPLC Ltd
    [2021] eKLR
  • George Njoroge Gichia vs Consolidated Bank of Kenya Limited
    Civil Case No. 556 of 2007
  • Mrao Ltd vs First American Bank of Kenya Ltd & 2 Others
    (2003) KLR 125
  • Lydia Muthoni Nabea v Benson Kiriinya & Others
    [2008] eKLR
  • Mumo Matemu vs Trusted Society of Human Rights Alliance & 5 Others
    [2013] eKLR
  • Caroline Wanjiru Karugu vs Nyeri County Secretary & 5 others
    [2021] eKLR
  • Aviation & Allied Workers Union Kenya vs Kenya Airways Limited & 3 Others
    [2015] eKLR
  • Dismas Wambola vs Cabinet Secretary Treasury & 5 Others
    [2017] eKLR
  • Ainsbury vs Millington
    [1987] 1 ALL ER 929 (HLR)
  • Law Society of Kenya vs Attorney-General & Another, National Commission for Human Rights & Another (Interested Parties)
    [2020] eKLR
  • Republic vs National Employment Authority & 3 others Ex-parte Middle East Consultancy Services Limited
    (2018) eKLR
  • William Odhiambo Ramogi & 3 Others vs Attorney-General & 4 Others
    [2020] eKLR
  • Geofirey Muthiga Kabiru & 2 Others vs Samuel Munga Henry & 1756 Others
    [2015] eKLR
  • John Masakali vs Speaker County of Bungoma & 4 others
    [2015] eKLR
  • Amy Kagendo Mate vs Prime Bank Credit Reference Bureau Africa Limited
    [2013] eKLR
  • Board of Management of Uhuru Secondary School vs City County Director of Education & 2 Others
    (2015) eKLR
  • Gatirau Peter Munya vs Dickson Mwenda Kithinji & 2 Others
    [2014] eKLR
  • Platinum Distillers Limited v Kenya Revenue Authority
    [2019] eKLR
  • Centre for Rights, Education and Awareness (CREAW) & 7 Others vs Attorney General
    Nairobi HCC PET NO 6 OF 2011 (2011) eKLR
  • County Assembly of Machakos v Governor Machakos County & 4 Others
    [2018] eKLR
  • Nguruman Limited v Jan Bonde Nielsen & 2 others
    [2014] eKLR
  • Hassan Nyanje Charo vs. Khatib Mwashetani & 3 Others
    Civil Application No. 23 of 2014
  • Independent Electoral & Boundaries Commission vs Jane Cheperenger & 2 others
    Civil Application No. 36 of 2014
  • Owners of Motor Vessel 'Lilian S' v Caltex Oil (Kenya) LTD
    (1989) 1 KLR
  • Odhiambo & Another vs National Police Service & 3 others; CIC General Insurance Limited & 6 others (Interested Parties)
    (Petition E006 of 2023) [2023] KEHC 719 (KLR)
  • Benard Murage v. Finserve Africa Ltd & 3 Others
    (2015) eKLR
  • Invesco Assurance Co Ltd v MW (Minor suing thro' next friend and mother (HW)
    [2016] eKLR
  • Judicial Service Commission vs Speaker of the National Assembly & another
    [2013] eKLR
  • Muslim for Human Rights (Milimani) & 2 others v Attorney General & 2 others
    (2011) eKLR
  • Wilson Kaberia Nkunja vs The Magistrate and Judges Vetting Board & others
    Nairobi High Court Constitutional Petition No 154 of 2016 (2016) eKLR
  • David Ndii & others v Attorney General & others
    [2021] eKLR
  • Naftali Ruthi Kinyua vs Patrick Thuita Gachure & another
    Nairobi Civil Appeal No 44 of 2014 (2015) eKLR
  • American Cyanamid v Ethicon Limited
    [1975] AC 396
  • Habib Bank Ag Zurich v. Eugene Marion Yakub
    CA No. 43 of 1982
  • National Bank of Kenya v. Duncan Owour Shakali & Another
    CA No. 9 of 1997
  • Joseph Siro Mosioma vs. Housing Finance Company of Kenya Limited & 3 Others
    [2008] eKLR
  • Banis Africa Ventures Limited v National Land Commission
    [2021] eKLR
  • Mwangi v County Council of Nairobi (Formerly City Council of Nairobi) & 2 others
    (Environment & Land Case 980 of 2015) [2023] KEELC 84 (KLR)
  • Kigio Group Company Limited vs Housing Finance Company Limited and Garam Investments
    Civil Application No E140 of 2021
Jurisdiction invoked
Articles 23(3)(b) and (c), 40 and 159(1), (2)(a)(b)(d) and (e) of the Constitution of Kenya 2010; Environment and Land Court Act Section 13(7)

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, "Kigio Group Company Limited v Kenya Electricity Transmission Company Limited & 3 others (Environment & Land Petition E002 of 2024) [2024] KEELC 6929 (KLR)", Case Analysis (2024). Petition E006 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/6929/eng@2024-10-17

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