Ratika v Mumias Sugar (2021) Ltd (Civil Case E184 of 2024) [2026] KEMC 648 (KLR)
The bottom line
#A Kenyan court ruled that a judgment debtor must pay auctioneer's fees even when the auction never happened, but capped the fees at a fair, single-rate calculation.
What this practically means
#Executive summary
#Key legal issues
#Liability for auctioneer's fees where no auction takes place
The Judgment Debtor must settle the fees as goods existed for execution and the decretal sum was paid
Rule 7 of the Auctioneers Rules shifts charges to the creditor only where the debtor cannot be found, has no executable goods, or proceeds are insufficient. Nothing on record suggested those circumstances applied, nor that the decretal sum paid included auctioneer's fees.
Method of calculating commission where proclaimed goods exceed the decretal sum
Commission is calculated on the decretal sum using the single applicable percentage (2%)
Following Mrima J in Odongo v Sukari Industries, fees must be pegged on the relevant single percentage rather than banded, to avoid unjust enrichment of auctioneers and keep litigation costs low in line with Article 48. Since proclaimed goods (Kshs. 3,357,500) exceeded the decretal sum (Kshs. 2,395,711.30), commission was computed on the decretal sum.
Whether written submissions can introduce evidence
No - submissions do not constitute evidence
Relying on Daniel Toroitich Arap Moi v Mwangi Stephen Muriithi, the court held that particulars of travelling expenses introduced only through submissions could not stand as proof, but nevertheless assessed item 11 at Kshs. 5,000/= in the exercise of its discretion since service was proved.
VAT on auctioneer's fees
VAT at 16% is payable on the assessed fees as auctioneer income attracts VAT
The court took judicial notice that an auctioneer's firm is a VAT entity and that the fees claimed constitute income attracting VAT, following Kenya Tea Packers Company Limited v Hezron Getuma.
Legal principles established
#- A debtor shall pay the auctioneer's charges unless he cannot be found, has no goods for execution, or sale proceeds are insufficient
- Auctioneer fees on proclamation are calculated on the relevant single percentage, not through bands
- Submissions cannot take the place of evidence
Court orders
#- 1.The Auctioneer's Bill of Costs dated 19th December 2025 is assessed at Kshs. 77,620.54/=
- 2.Each party shall bear their costs of the instant Bill of Costs
- Jurisdiction invoked
- Part II of the Fourth Schedule of the Auctioneers Rules 1997
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ratika v Mumias Sugar (2021) Ltd (Civil Case E184 of 2024) [2026] KEMC 648 (KLR)", Case Analysis (2026). Civil Case No E184 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2026/648/eng@2026-03-03
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.