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MagistratePartially AllowedNot stated in the judgment· [2026] KEMC 548 (KLR)

Omonde t/a Dimonde Agencies and Auctioneers v Rafiki Microfinance Bank Ltd & another (Miscellaneous Application E590 of 2021) [2026] KEMC 548 (KLR)

Principal Magistrate's Court (Bungoma)
20 August 2026
RMR.B.N. Maloba
358 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Bungoma court slashed an auctioneer's bill, taxing off every charge lacking receipts or proof of service.

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 at Bungoma, assessing an auctioneer's bill of costs dated 4/8/2021. The court went through thirteen items item by item. Item 1 (drawn to scale) was taxed at Kshs. 1,000 and item 2 (fees on attachment) allowed at Kshs. 4,000. Commission on Kshs. 953,012.20 was computed under rule 4 at 10% on the first Kshs. 100,000 and 5% on the excess, yielding Kshs. 52,650.61. Claims for inventory, insurance, security, storage, other disbursements and process service fees were taxed off or assessed at Nil for want of receipts, affidavits of service or other substantiation. The transport claim of Kshs. 40,901.40 was reduced to Kshs. 10,000 as reasonable taxi hire, and the investigation charge of Kshs. 5,600 was allowed as drawn. Filing fees of Kshs. 500 were allowed on the strength of receipts on record. The bill was taxed at Kshs. 73,250.60, plus VAT of Kshs. 11,720.10, for a total of Kshs. 84,970.70. The underlying dispute appears to involve execution against the respondent (represented by Mr. Macharia, apparently connected to Rafiki Bank) with the applicant appearing through Mr. Otsiula's firm. The ruling establishes that auctioneers must substantiate every disbursement with receipts, work sheets or affidavits of service, failing which items are taxed off or scaled down to reasonable amounts.

Key legal issues

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01

Quantification of auctioneer's commission under rule 4

Holding

Commission on Kshs. 953,012.20 taxed at Kshs. 52,650.61, being 10% on the first Kshs. 100,000 and 5% on the excess of Kshs. 853,012.20

Reasoning

The court applied the sliding scale in the auctioneers' fees rules, calculating 10% on the first Kshs. 100,000 and 5% on the balance of Kshs. 853,012.20, arriving at Kshs. 10,000 plus Kshs. 42,650.61.

p. 1
02

Evidentiary burden on the taxing officer's assessment of disbursements

Holding

Items claiming inventory, transport, disbursements and process service fees were taxed off or reduced where no receipts, work sheets, affidavits of service or other proof were availed

Reasoning

The taxing officer required documentary substantiation for each disbursement. Inventory charges, food and accommodation, and process service fees were struck out for want of receipts or affidavits; transport was scaled down to a reasonable taxi hire figure.

p. 3

Legal principles established

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  • Auctioneer's commission under rule 4 is calculated at 10% on the first Kshs. 100,000 and 5% on the excess
  • Claims on a bill of costs unsupported by evidence, receipts or affidavits of service are taxed off
  • Transport claims without proof of vehicle type, engine capacity or fuel vouchers may be reduced to a reasonable sum, such as reasonable taxi service hire

Court orders

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  1. 1.Item 1 taxed at Kshs. 1,000
  2. 2.Item 2 (fees on attachment) allowed at Kshs. 4,000
  3. 3.Item 3 (taking inventory) taxed off
  4. 4.Item 4 (commission) taxed at Kshs. 52,650.61 per rule 4
  5. 5.Items 5, 7, 8 and 9 assessed at Nil
  6. 6.Item 6 (transport) reduced to Kshs. 10,000 as reasonable taxi hire
  7. 7.Item 10 (other disbursements) taxed off for want of receipts
  8. 8.Item 11 (filing fees) allowed at Kshs. 500 on production of filing fees receipts
  9. 9.Item 12 (process service fees) taxed off for want of evidence of service
  10. 10.Item 13 (investigation) allowed as drawn at Kshs. 5,600
  11. 11.Total taxed at Kshs. 73,250.60, plus VAT of Kshs. 11,720.10, total Kshs. 84,970.70

Authorities

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Legislation

  • Auctioneers' fees rules (rule 4 referenced)rule 4
Jurisdiction invoked
Taxation of an auctioneer's bill of costs under the applicable auctioneer's fees rules (reference made to 'rule 4')

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 E590 of 2021) [2026] KEMC 548 (KLR)", Case Analysis (2026). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2026/548/eng@2026-08-20

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