Otieno, Ragot & Co Advocates v Chemelil Sugar Co Ltd (Miscellaneous Case E019 of 2021) [2025] KEELRC 56 (KLR)
The bottom line
#A Kenyan court ruled a pro forma invoice is not a proper bill of costs, so the advocate won the debt but interest only from taxation, not 2020.
What this practically means
#Executive summary
#Key legal issues
#Whether interest under Rule 7 of the Advocates Remuneration Order runs from delivery of a pro forma invoice or from taxation
Interest runs from the date of taxation (18th April 2023) because the applicant failed to prove delivery of a compliant bill; a pro forma invoice is not a 'bill' under Rule 7
Rule 7 permits 14% interest from the expiration of one month from delivery of the bill to the client. The applicant relied on a pro forma invoice sent on 16th July 2020 but did not attach the forwarding letter or proof of receipt. Relying on Otieno Ragot and Muri Mwaniki authorities, the court held that a pro forma invoice is not a bill or fee note under Rule 7, so interest cannot run from the alleged delivery date and must run from taxation.
Whether the unchallenged certificate of costs should be adopted as judgment
Yes; since the taxed sum was not challenged, varied or altered and no reference was pending, the certificate of costs dated 18th April 2023 was adopted as judgment for Kshs.140,584.60
Section 51(2) of the Advocates Act allows the certificate of costs to be adopted as a judgment and decree of the court where it has not been set aside or altered and no reference is pending. The respondent did not challenge the taxation, so judgment was entered for the applicant for the taxed amount, with the dispute confined to the commencement date of interest.
Legal principles established
#- A pro forma invoice is neither a Bill nor a fee note as contemplated by Rule 7 of the Advocates Remuneration Order and does not trigger the 14% interest.
- An advocate must demonstrate delivery of a bill to the client in compliance with Rule 7 before interest can run from the date of delivery.
Court orders
#- 1.The certificate of costs dated 18th April, 2023 is adopted as a judgment of this court in favour of the Applicant/Advocates
- 2.Interest on the taxed Bill of Costs to run from 18th April 2023, the date of taxation, not from 15th August 2020
- 3.Each party to bear their own costs of the application dated 15th May 2024
- Jurisdiction invoked
- Section 51(2) of the Advocates Act and Rule 7 of the Advocates Remuneration Order
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Otieno, Ragot & Co Advocates v Chemelil Sugar Co Ltd (Miscellaneous Case E019 of 2021) [2025] KEELRC 56 (KLR)", Case Analysis (2025). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/56/eng@2025-01-22
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.