Owuor v Sameer Agriculture and Livestock Limited (Cause 1442 of 2015) [2022] KEELRC 1421 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Distinction between the 'Court rate' of interest and the statutory rate under Section 26(2) of the Civil Procedure Act
The 12% Court rate applies because the decree expressly awarded interest at Court rates; the 6% deemed rate applies only to further interest where the decree is silent
Section 26(1) gives the Court discretion to order interest at a rate it deems reasonable. Section 26(2) is a deeming provision applicable only where a decree is silent on further interest from the date of decree to payment. Since the judgment here expressly ordered interest at Court rates from the date of judgment until payment in full, the decree was not silent, and the applicable rate is the 12% Court rate established by the 1982 Practice Notes of Simpson AG CJ.
Applicability of the 1982 Practice Note rate of 12%
The Practice Notes of 16th March 1982 establish 12% as the rate of interest to be applied in the absence of a valid reason to order a higher or lower rate
The Court relied on the Practice Note issued by Simpson AG CJ on 16th March 1982 under Section 26 of the Civil Procedure Act, which directed that in the absence of a valid reason for a higher or lower rate, interest should be 12%. This has become the established 'Court rate' routinely adopted in decrees ordering interest at Court rates.
Legal principles established
#- Where a decree orders interest at 'Court rates', the applicable rate is the 12% recommended in the 1982 Practice Notes issued by the Chief Justice, not the 6% deemed rate under Section 26(2) of the Civil Procedure Act
Court orders
#- 1.The application dated 9th March 2022 is dismissed with costs
- Jurisdiction invoked
- Sections 26(1) and 26(2) of the Civil Procedure Act; the Court's power to determine interest on its own decree
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Owuor v Sameer Agriculture and Livestock Limited (Cause 1442 of 2015) [2022] KEELRC 1421 (KLR)", Case Analysis (2022). Application dated 9th March 2022 (in the main suit). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1421/eng@2022-05-13
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.