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MagistratePartially AllowedBill of Costs dated 4/8/2021 (number not stated in the judgment)· [2026] KEMC 545 (KLR)

Omonde t/a Dimonde Agencies and Auctioneers v Rafiki Microfinance Bank Ltd & another (Miscellaneous Application E593 of 2021) [2026] KEMC 545 (KLR)

Senior Principal Magistrate's Court
20 August 2026
433 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~2 min to read original · ~4 min brief

The bottom line

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A Kenyan court sharply cut an auctioneer's bill because receipts and evidence backed few charges, taxing costs down to Kshs. 63,201.72.

What this practically means

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Executive summary

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This is a first-instance taxation ruling by Hon. R. B. N. Maloba, SPM, assessing an auctioneer's bill of costs dated 4/8/2021, canvassed by written submissions. The court went item by item through thirteen items. Items 1 (receipt of warrants, Kshs. 1,000) and 2 (fees before attachment, Kshs. 4,000) were allowed as presented. The inventory charge of Kshs. 4,300 was taxed off because Rule 10 applies only where goods must be transported or insured, which was not evident. Commission of Kshs. 41,843.15 charged on a principal sum of Kshs. 616,843.15 was recomputed under rule 5 at Kshs. 25,842.12. Transport claimed at Kshs. 48,378 using AA rates was reduced to Kshs. 12,000 as reasonable car hire because no vehicle particulars, fuel vouchers or work tickets were supplied. Insurance, security, storage and sale commission attracted Nil. Other disbursements of Kshs. 3,400 and process server's fees of Kshs. 10,000 were taxed off for want of receipts; notably, even a return of service was missing. Investigation fees of Kshs. 5,300 were allowed as reasonable, and filing fees of Kshs. 500 were allowed on production of a receipt. The bill was taxed at Kshs. 54,484.24, plus 16% VAT of Kshs. 8,717.45, totalling Kshs. 63,201.72. The ruling establishes that disbursement items must be proved by verifiable documents. Note: the judgment contains internal date inconsistencies flagged in the data quality notes.

Key legal issues

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01

Calculation of the auctioneer's commission under rule 5

Holding

Commission of Kshs. 41,843.15 charged on a principal sum of Kshs. 616,843.15 was reduced to Kshs. 25,842.12 as computed under the rule 5 scale (10% on first 100,000 and 3% on the excess).

Reasoning

The court applied the scale tariff directly to the principal sum of Kshs. 616,843.15, taking 10% of the first Kshs. 100,000 and 3% of the balance of Kshs. 316,843.15 falling within the band up to Kshs. 1,000,000, yielding Kshs. 15,842.12 on the excess in addition to Kshs. 10,000.

p. 1
02

Evidentiary support required for disbursement items

Holding

Transport and process server's fees were taxed down or off because no receipts, work tickets, fuel vouchers or returns of service were produced; a reasonable sum of Kshs. 12,000 was allowed for transport in lieu of the Kshs. 48,378 claimed.

Reasoning

The court insisted that items charged as expended must be proved by verifiable documents. The absence of vehicle particulars, fuel voucher receipts and a work ticket defeated the AA-rate transport computation, while the absence of a receipt and even a return of service defeated the process server's fee claim.

p. 2
03

Inventory fees under Rule 10

Holding

The inventory charge of Kshs. 4,300 was taxed off because there was no evidence that goods had to be transported or insured, the trigger for the charge under Rule 10.

Reasoning

The court construed Rule 10 as confined to situations where goods have to be transported or insured. Since no such transportation or insurance was evident on the record, the inventory item failed and was taxed off entirely.

p. 1

Legal principles established

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  • Commission on attachment is calculated on the principal sum in accordance with the rule 5 scale: 10% on the first Kshs. 100,000 and 3% on the excess not exceeding Kshs. 1,000,000.
  • Inventory fees under Rule 10 are only payable where goods have to be transported or insured.
  • Claimed disbursements such as transport and process server's fees must be supported by receipts, work tickets or other verifiable evidence of expenditure, failing which they are taxed off.

Court orders

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  1. 1.Item 1 (upon receipt of warrants, Kshs. 1,000) allowed as presented
  2. 2.Item 2 (fees before attachment, Kshs. 4,000) allowed as drawn to scale
  3. 3.Item 3 (taking inventory, Kshs. 4,300) taxed off
  4. 4.Item 4 (commission) calculated under rule 5 at Kshs. 10,000 (10% of first 100,000) plus 3% of Kshs. 316,843.15, i.e. Kshs. 15,842.12, instead of the Kshs. 41,843.15 charged
  5. 5.Items 5, 7, 8 and 9 (insurance, security, storage, sale commission) allowed at Nil
  6. 6.Item 6 (transport) allowed at Kshs. 12,000 as reasonable taxi/car-hire instead of Kshs. 48,378 charged
  7. 7.Item 10 (other disbursements, Kshs. 3,400) taxed off
  8. 8.Item 11 (filing of bill of costs, notice of appointment and submissions) allowed at Kshs. 500
  9. 9.Item 12 (process server's fees, Kshs. 10,000) taxed off
  10. 10.Item 13 (investigation, Kshs. 5,300) allowed as drawn
  11. 11.Total taxed costs of Kshs. 54,484.24 plus 16% VAT of Kshs. 8,717.45, i.e. Kshs. 63,201.72

Authorities

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Legislation

  • Auctioneers' tariff rules (scale of fees) - Rule 5 (commission calculation)Rule 5
  • Auctioneers' tariff rules (scale of fees) - Rule 10 (inventory fees)Rule 10
Jurisdiction invoked
Taxation/assessment of an auctioneer's bill of costs under the applicable scale rules (Rule 5 and Rule 10 of the auctioneers' tariff rules)

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, "Omonde t/a Dimonde Agencies and Auctioneers v Rafiki Microfinance Bank Ltd & another (Miscellaneous Application E593 of 2021) [2026] KEMC 545 (KLR)", Case Analysis (2026). Bill of Costs dated 4/8/2021 (number not stated in the judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2026/545/eng@2026-08-20

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