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ELRCDismissedCause No 812 of 2017· [2025] KEELRC 1821 (KLR)

Chikulolo v National Bank of Kenya Ltd (Cause 812 of 2017) [2025] KEELRC 1821 (KLR)

Employment and Labour Relations Court
20 June 2025
2,645 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court dismissed a challenge to a taxed costs award, confirming courts won't disturb a taxing officer's decision unless an error of principle is proven.

What this practically means

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Executive summary

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The Claimant/Applicant, through advocate Judith A. Guserwa, filed a Chamber Summons dated 5th March 2025 seeking review and/or setting aside of the Taxing Officer's ruling of 26th November 2024, which taxed the party and party bill of costs at Kshs. 637,878.32 in respect of a judgment sum of Kshs. 17,197,443 delivered on 22nd September 2022. An earlier ruling of 2nd September 2024 awarding Kshs. 1,125,205 had been set aside for lack of reasons, and taxing master Hon E. Riany re-taxed the bill. The applicant contended the taxing officer erred in principle by failing to apply the graduated scales under Paragraph 1(b) of Schedule 6 of the Advocates Remuneration Order, computing instruction fees at Kshs. 748,948.86 plus getting up fees, and relied on Radido J's ruling in Molonket v East African Portland Cement. The respondent opposed, arguing the applicant should have appealed rather than sought review, that reasons were furnished, and that there were no new facts or error on the record. The court, applying the established principles in Nyangito and Joreth on interference with taxation, found the taxing master had given reasons for each item and rightly applied the 6th Schedule. It held that the applicant's graduated tabulation would amount to a double award of costs on the first Kshs. 1 million of the judgment sum, and found a misapprehension of the Molonket ruling. The application was dismissed with costs to the respondent.

Key legal issues

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01

Whether the reference/review against the Taxing Officer's ruling of 26th November 2024 disclosed a basis for the court to interfere with the taxation

Holding

The application was not merited; the taxing master applied the correct scale and gave reasons for each item, and the applicant's proposed computation would amount to a double award.

Reasoning

The court noted an earlier ruling of Kshs. 1,125,205 by Hon Mbeja had been set aside for lack of reasons, and Hon E. Riany re-taxed at Kshs. 637,878.32 giving reasons. The applicant relied on Molonket, but the court found the applicant misapprehended paragraph 7 of that ruling: accepting the applicant's tabulation of graduated levels up to Kshs. 1,000,000 plus 2% of the balance would double-count the first million. Since no error of principle was established, the court would not disturb the quantum, quantum being the taxing officer's domain.

p. 3
02

Whether the applicant's reliance on the Molonket decision warranted the higher graduated computation of instruction fees

Holding

The court found a misapprehension of paragraph 7 of the Molonket ruling; the decision did not support the applicant's layered tabulation.

Reasoning

In Molonket, Radido J held the taxing officer fell into error by simply arriving at a lump sum without explanation, applying the graduated scales. The present court distinguished that context, holding that adopting the applicant's arithmetic of separately awarding fees at each graduated level while also computing 2% on the balance would double-award costs on the first Kshs. 1 million of the judgment sum of Kshs. 17,197,443.

p. 5

Legal principles established

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  • A court interferes with a Taxing Officer's decision only where it is shown the decision was based on an error of principle or the fee awarded was manifestly excessive so as to justify an inference of error of principle; the court is not entitled to upset a taxation merely because it considers the amount high.
  • The value of the subject matter for taxation ought to be determined from the pleadings, judgment or settlement; where the taxing officer errs in principle, the judge should refer the bill back for taxation rather than re-tax it.
  • Under Paragraph 1(b) of Schedule 6 of the Advocates Remuneration Order, instruction fees are computed on a graduated basis at the levels of Kshs. 500,000/-, 750,000/-, 1,000,000/- and ultimately 2% of the balance decretal sum, and applying layered graduated caps to the same sum would produce a double award.

Court orders

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  1. 1.The application seeking review and/or setting aside of the Taxing Officer's ruling dated 26th November 2024 is dismissed
  2. 2.Costs of the application to the respondent
  3. 3.It is so Ordered

Authorities

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Legislation

  • Advocates Remuneration OrderSchedule 6, Paragraph 1(b)
  • Advocates Remuneration OrderRule 11

Cases cited (4)

  • Nyangito & Co. Advocates v Doinyo Lessos Creameries Ltd
    [2014] eKLR
  • First American Bank of Kenya vs. Shah and Others
    [2002] 1 EA 64
  • Joreth Limited vs. Kigano & Associates
    Civil Appeal No. 66 of 1999 [2002] 1 EA 92
  • Lucy Rimanto Molonket vs East African Portland Cement Limited (ELRC No. 198 of 2019)
    [2024] KEELRC 2573 (KLR)
Jurisdiction invoked
Review jurisdiction over a Taxing Officer's decision (reference against taxation under 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, "Chikulolo v National Bank of Kenya Ltd (Cause 812 of 2017) [2025] KEELRC 1821 (KLR)", Case Analysis (2025). Cause No 812 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1821/eng@2025-06-20

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