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ELCPartially AllowedReference dated 03.01.2024· [2025] KEELC 1153 (KLR)

Wakf Commissioners of Kenya v Kabundu Holdings Limited (Environment & Land Miscellaneous Case E114 of 2022) [2025] KEELC 1153 (KLR)

High Court of Kenya
6 March 2025
2,243 words in judgment
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The bottom line

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Kenya's High Court cut a Kshs.2.68 million legal bill, ruling lawyers whose client's suit is withdrawn without trial get 75% of the instruction fee and no getting-up fee.

What this practically means

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Executive summary

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This ruling determines a reference dated 03.01.2024 filed under paragraph 11 of the Advocates Remuneration Order challenging the taxing officer's decision of 06.12.2023, which allowed the respondent's bill of costs dated 30.05.2023 in the sum of Kshs. 2,685,481.67. The applicant sought review or setting aside of the decision, or remittal to a different taxing officer. The respondent opposed, contending there was no valid reference for non-compliance with paragraph 11, and that the value of the subject matter was properly taken from the applicant's pleaded claim of Kshs. 120,000,000/= in mesne profits. The court framed four issues. On competency, it declined to revisit the paragraph 11 objection since Justice N. A. Matheka had already rejected the same objection in a ruling dated 12.06.2024. On representation, the court found from the record that although a notice of withdrawal was filed on 16.03.2023, the respondent then acting in person objected, and the notice was only adopted on 25.05.2023, by which time the respondent's advocates had filed a notice of appointment on 24.05.2023 and were present at the withdrawal. The advocates were therefore properly on record and entitled to file the bill. On the merits, the court held the taxing officer did not err in applying Schedule 6 of the ARO 2014 or in adopting Kshs. 120,000,000/= as the value of the subject matter, but erred in principle by failing to reduce the instructions fee to 75% of the scale fee since the suit was withdrawn without a hearing, and in awarding a getting up fee where there was no trial. The court set aside the taxation and remitted the bill to another taxing officer with directions, ordering each party to bear its own costs.

Key legal issues

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01

Competency of the reference

Holding

The court declined to revisit the objection on non-compliance with paragraph 11 as it had been raised and rejected before Justice Matheka

Reasoning

The respondent had raised the same objection in an application for stay of execution heard by Justice Matheka, whose ruling dated 12.06.2024 did not uphold the objection. The court held it could not revisit the issue so as to review a sister judge's decision.

p. 2
02

Whether respondent's advocates were properly on record before withdrawal of the suit

Holding

They were properly on record; the notice of withdrawal was only adopted on 25.05.2023, after the advocates filed a notice of appointment on 24.05.2023

Reasoning

Although a notice of withdrawal dated 16.03.2023 was filed, the respondent then acting in person objected, and the notice was not endorsed or adopted by the court until 25.05.2023. The respondent's advocates filed a notice of appointment on 24.05.2023 and were present on the date of withdrawal. No consent order was recorded as claimed by the applicant.

p. 3
03

Whether the taxing officer erred in principle

Holding

Yes, in part - failure to reduce instructions fee to 75% and awarding a getting up fee where there was no trial

Reasoning

The taxing officer correctly applied Schedule 6 of the ARO 2014 and correctly adopted Kshs.120,000,000/= as the value of the subject matter from the pleadings. However, since the suit was withdrawn without a full trial, the instructions fee should have been pegged at 75% of the scale fee under paragraph 1(b), and no getting up fee was justifiable as the suit was withdrawn at its infancy.

p. 4

Legal principles established

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  • Where proceedings are terminated in a summary manner without a hearing, the applicable instruction fee is 75% of the fee chargeable under item 1(a)
  • A getting up fee cannot be awarded where there was no trial or preparation for trial

Court orders

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  1. 1.The decision of the taxing officer dated 06.12.2023 is set aside
  2. 2.The respondent's bill of costs dated 30.05.2023 is remitted to another taxing officer for taxation
  3. 3.The respondent is entitled to only 75% of the instruction fee
  4. 4.The respondent is not entitled to any getting up fee
  5. 5.The rest of the items in the bill of costs shall be taxed afresh per scale
  6. 6.Each party to bear its own costs

Authorities

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Legislation

  • Advocates Remuneration OrderParagraph 11; Schedule 6; Paragraph 1(b); item 1(a)
  • Civil Procedure RulesOrder 25 Rule 1
  • Civil Procedure ActSection 27 (proviso)

Cases cited (3)

  • Republic -vs- Commissioner of Domestic Taxes Ex-Parte Ukwala Supermarkets Ltd & 2 Others
    [2018] eKLR
  • First American Bank of Kenya vs. Shah and Others
    [2002] 1 EA 64
  • Hussein Janmohamed & Sons -vs- Twentsche Overseas Trading Co. Ltd
    [1967] EA 287
Jurisdiction invoked
Paragraph 11 of the Advocates Remuneration Order

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, "Wakf Commissioners of Kenya v Kabundu Holdings Limited (Environment & Land Miscellaneous Case E114 of 2022) [2025] KEELC 1153 (KLR)", Case Analysis (2025). Reference dated 03.01.2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/1153/eng@2025-03-06

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