Ang’anya v Okinyi (Civil Suit E197 of 2025) [2026] KEMC 608 (KLR)
The bottom line
#A Bungoma court taxed a winning party's costs at Kshs. 61,385, ruling VAT cannot be claimed in party-and-party costs unless you prove you actually paid it.
What this practically means
#Executive summary
#Key legal issues
#Instruction fees on formal proof
Instruction fees computed at 65% of the lower scale fees of Kshs. 45,000/= under Schedule 7(1)(a) ARO, yielding Kshs. 29,850/=
The subject matter was valued at Kshs. 263,760/=. The Defendant neither entered appearance nor filed a defence, so the suit proceeded by formal proof. Schedule 7(1)(a) of the ARO 2014 prescribes that in such instances instruction fees should be 65% of the lower scale fees of Kshs. 45,000/=, producing the assessed figure for item A.
VAT in a Party and Party Bill
VAT was taxed off; it is not awardable in a Party and Party Bill absent proof of payment of VAT
The court reasoned that party-and-party costs compensate the litigant, not the advocate, so no taxable supply arises between the parties. Following Pyramid Motors Ltd v Langata Gardens Ltd, VAT is chargeable only on a taxable supply and can be awarded only in an Advocate-Client Bill. No evidence was tendered that the Plaintiff paid VAT on legal fees.
Proof of disbursements (filing, service, attendance)
Unproved filing fees taxed off; service fees assessed at Kshs. 3,000/= each per Schedule 7(10)(i) ARO considering distance; attendance assessed at Kshs. 2,100/= per Schedule 7(7)(ii)
Item 2 failed for want of proof while item 4 was proved by the court fees receipt at Kshs. 500/=. Service in Buyofu within Bungoma county was proved by affidavits of service, and fees were assessed at Kshs. 3,000/= each considering the distance from Bungoma. The hearing did not take a full day, so item 13 was assessed at Kshs. 2,100/=.
Legal principles established
#- VAT cannot be awarded in a Party and Party Bill of Costs; it is awardable only in an Advocate-Client Bill or where the party proves payment of VAT
Court orders
#- 1.The Plaintiff's Party and Party Bill of Costs dated 11th December 2025 was assessed at Kshs. 61,385/=
- Jurisdiction invoked
- Taxation of a Party and Party Bill of Costs under the Advocates Remuneration Order, 2014
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ang’anya v Okinyi (Civil Suit E197 of 2025) [2026] KEMC 608 (KLR)", Case Analysis (2026). . Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2026/608/eng@2026-02-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.