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ELRCPartially AllowedPetition No. 20 of 2013· [2014] KEELRC 1331 (KLR)

Dennis Moturi Anyoka v Kenya Revenue Authority & 2 others [2014] KEELRC 1331 (KLR)

Industrial Court of Kenya at Nairobi
7 July 2014
MOMAUREEN ONYANGO
1,603 words in judgment
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The bottom line

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Kenya's Industrial Court cut a Kshs.500,000 legal fee award to Kshs.100,000, ruling taxed fees must be reasonable and courts can correct contradictory taxation decisions.

What this practically means

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Executive summary

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This ruling by Hon. Lady Justice Maureen Onyango of the Industrial Court of Kenya at Nairobi determined a Chamber Summons application dated 13th February 2014 by the Kenya Revenue Authority challenging the Deputy Registrar's taxation of a bill of costs. The bill arose from a consent order in the underlying Petition No. 20 of 2013, in which the Petitioner had sought disclosure of documents to prepare for a disciplinary hearing, and by consent the documents were confirmed as fully disclosed and costs were awarded to the Petitioner to be taxed. The Taxing Master taxed instructions fees from Kshs.3,000,000/= down to Kshs.500,000/=. The Respondent contended the figure was neither justifiable nor reasonable for a simple, unopposed petition settled by consent, and urged reduction to Kshs.84,000/=. The Petitioner countered that a court may not interfere with a taxing officer's award absent error of principle or manifest excess or injustice. Both sides relied on authorities on the limits of judicial interference with taxation and the reasonableness of instructions fees. The court found that the Taxing Master had contradicted herself - finding the petition raised no complex issues and was settled by consent, yet treating it as weighty merely because it had been transferred from the High Court's Judicial Review and Constitutional and Human Rights Division. That contradiction amounted to an error of principle, and the award, nearly twenty times the minimum instructions fee, was excessive. The court set aside the Kshs.500,000/= award, substituted Kshs.100,000/=, and fixed the total bill at Kshs.120,245/=.

Key legal issues

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01

Whether the Taxing Master's findings were contradictory and amounted to an error of principle

Holding

Yes - the Taxing Master could not both find the petition raised no complex issues and treat it as weighty merely because it was transferred from the High Court

Reasoning

The court held the two findings of the Taxing Master were irreconcilable: a matter found not to raise complex issues and settled by consent before hearing could not become weighty by reason of transfer between divisions, since transfer was only for jurisdictional convenience. That inconsistency constituted an error of principle justifying interference, and the award of nearly twenty times the minimum instructions fee was excessive.

p. 3
02

Quantum of instructions fees properly awardable

Holding

Instructions fees reduced from Kshs.500,000/= to Kshs.100,000/=, producing a total bill of Kshs.120,245/=

Reasoning

Applying the reasonableness principle that a fee several times the minimum may be fair but not ten or more times, the court found Kshs.500,000/= excessive for a simple, consent-settled petition. It substituted Kshs.100,000/= rather than the Kshs.84,000/= urged by the Respondent, recalculating the total bill accordingly.

p. 4

Legal principles established

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  • A taxing officer's decision may be interfered with only on an error of principle or where the fee awarded is manifestly excessive so as to justify an inference of error of principle
  • Reasonableness caps multiplication of instructions fees; an award many times above the minimum, for a non-complex matter settled by consent, is excessive

Court orders

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  1. 1.The award of Kshs.500,000/= instructions fees set aside and substituted with Kshs.100,000/=
  2. 2.The total bill taxed at Kshs.120,245/=

Authorities

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Cases cited (7)

  • Juma and other vs. Attorney General
    (2003) AHRLR 179 (KeHC 2003)
  • Joseph Mwenda Mbuko vs. Provincial Police Officer & 2 others
    (2013) eKLR
  • Ramesa Naran Patel vs. Attorney General & Another
    (2012) eKLR
  • First American Bank of Kenya Limited vs. Gulab P. Shah & 2 others
    (2002) IEA 64
  • Republic Vs. Minister for Agriculture and 2 others Ex-parte Samuel W'Njuguna & 6 others
    (2006) eKLR
  • Danson Mutuku Muema Vs. Julius Muthoka Muema & others
    Civil Appeal No.6 of 1991 (Machakos)
  • Premchard Raichura & another
    (1972) EA 162
Jurisdiction invoked
Petition transferred from the High Court, Constitutional and Human Rights Division, to the Industrial Court as a matter within its jurisdiction

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, "Dennis Moturi Anyoka v Kenya Revenue Authority & 2 others [2014] KEELRC 1331 (KLR)", Case Analysis (2014). Petition No. 20 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1331/eng@2014-07-07

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