Areba t/a Rema Auctioneers & another v Sabuni & another (Civil Miscellaneous Application E166 of 2025) [2025] KEMC 402 (KLR)
The bottom line
#A Bungoma court cut an auctioneer's bill sharply, confirming commissions are calculated on the decretal sum and every expense claim needs receipts.
What this practically means
#Executive summary
#Key legal issues
#Basis of auctioneer's commission where proclaimed property exceeds the decretal sum
Commission taxed on the decretal sum of Kshs. 142,150/=, yielding 5% (Kshs. 7,107.50/=) under item 4, following Julius Mwale v Kennedy Shikuku.
The proclaimed property was valued at approximately Kshs. 800,000/= while the decretal sum was Kshs. 142,150/=. Relying on the Mwale decision, the court held that commission must be pegged to the decretal sum, not the higher value of the proclaimed property, and taxed item 4 accordingly at 5% of the decretal sum.
Proof of disbursements and expenses claimed by an auctioneer
Claims for disbursements and travel must be proved by receipts or other evidence; unsupported items are taxed off or taxed down in the court's discretion.
Item 12, a disbursement, had no receipt and was taxed off. The travel claim under item 7 was unsupported because the logbook showed the vehicle was owned by Auto Mega Limited, not the auctioneer; the court nonetheless exercised discretion to award Kshs. 3,000/= since the auctioneer admittedly visited the judgment debtors' homes. Item 15, though unreceipted, was reasonably awarded at Kshs. 10,000/= as the instruction of an advocate was common ground.
Items rendered nugatory by stay of execution
Item 5 (inventory on proclamation) was taxed off because execution was stayed and the service never took place.
The court found that the execution of the decree in the primary suit had been stayed by the court, so the taking of inventory on proclamation did not occur. An auctioneer cannot recover costs for execution steps that were never actually carried out, and the item was therefore taxed off entirely.
Legal principles established
#- Where the value of proclaimed property exceeds the decretal sum, the auctioneer's commission should be based on the decretal sum.
- An auctioneer's instruction fees are payable only once.
Court orders
#- 1.The Auctioneer/Applicant's Bill of Costs dated 13th March 2025 is taxed at Kshs. 39,564.70/=.
- Jurisdiction invoked
- Section 3, 3A of the Civil Procedure Act and rule 7 of the Auctioneers Rules 1997
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Areba t/a Rema Auctioneers & another v Sabuni & another (Civil Miscellaneous Application E166 of 2025) [2025] KEMC 402 (KLR)", Case Analysis (2025). Taxation of Auctioneer's Bill of Costs dated 13th March 2025 in Bungoma CMCC No. 265 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2025/402/eng@2025-07-01
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.