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MagistratePartially AllowedCivil Suit No E313 of 2025· [2026] KEMC 709 (KLR)

Wanyonyi v Ambrose & others (Civil Suit E313 of 2025) [2026] KEMC 709 (KLR)

Magistrates' Court
14 April 2026
TOT.O. Omono
524 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 ruled that VAT cannot be added to legal costs awarded against a losing party unless the winner proves a taxable supply between the parties.

What this practically means

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Executive summary

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This ruling by T.O. Omono, Senior Resident Magistrate, Bungoma, determined the Plaintiff's Party and Party Bill of Costs dated 6th February 2026. Items A, 1, 4 and 7-31 were assessed as drawn, being drawn to scale. The substantive dispute concerned VAT: the Plaintiff prayed for an award of VAT in the Party and Party Bill. The court held that costs in a Party and Party Bill are due to the litigant, not counsel, and that VAT is chargeable only on a taxable supply made by a registered person under section 5 of the Value Added Tax Act, 2013. Relying on Pyramid Motors Limited v Langata Gardens Limited (2015) eKLR, as followed in Kenya Commercial Bank Limited v Stagecoach Management Limited [2017] eKLR, the court held that VAT cannot be awarded in a Party and Party Bill unless a party proves it supplied taxable goods and services to the other party, and that a law firm's payment of VAT does not entitle a party to an award of VAT. Item B on VAT was therefore taxed off. Items 2 and 3 were taxed off for want of proof. Item 6, involving service at Ndengelwa, was assessed at Kshs. 3,000/= guided by Schedule 7(10)(i) of the Advocates Remuneration Order. The Bill was assessed at Kshs. 109,100/=.

Key legal issues

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01

Whether VAT is awardable in a Party and Party Bill of Costs

Holding

VAT was not awardable; item B was taxed off

Reasoning

Costs in a Party and Party Bill are due to the litigant, not counsel. Following Pyramid Motors Ltd v Langata Gardens Ltd, VAT is chargeable only on a taxable supply by a registered person; there is no taxable supply between parties to litigation. VAT could only be awarded in Advocate-Client bills or on proof that the plaintiff paid VAT.

p. 1
02

Assessment of item 6 (service at Ndengelwa)

Holding

Assessed at Kshs. 3,000/= guided by Schedule 7(10)(i) of the ARO and the distance between Bungoma and Ndengelwa

Reasoning

The court applied Schedule 7(10)(i) of the Advocates Remuneration Order, taking into account that Ndengelwa is only a few kilometres from Bungoma town, and fixed the service item at Kshs. 3,000/=. Items 2 and 3 were taxed off for want of proof.

p. 2

Legal principles established

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  • VAT cannot be awarded in a Party and Party Bill of Costs unless the party proves it supplied taxable goods and services to the other party
  • The fact that a law firm representing a party pays VAT does not entitle the party to an award of VAT

Court orders

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  1. 1.Item B on VAT was taxed off
  2. 2.Items 2 and 3 were taxed off for want of proof
  3. 3.Item 6 was assessed at Kshs. 3,000/=
  4. 4.The Plaintiff's Party and Party Bill of Costs dated 06th February 2026 was assessed at Kshs. 109,100/=

Authorities

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Legislation

  • Value Added Tax Actsection 5
  • Advocates Remuneration OrderSchedule 7(10)(i)

Cases cited (2)

  • Pyramid Motors Limited vs Langata Gardens Limited
    (2015) eKLR
  • Kenya Commercial Bank Limited v Stagecoach Management Limited
    [2017] eKLR
Jurisdiction invoked
Taxation of a Party and Party Bill of Costs under the Advocates Remuneration Order

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, "Wanyonyi v Ambrose & others (Civil Suit E313 of 2025) [2026] KEMC 709 (KLR)", Case Analysis (2026). Civil Suit No E313 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2026/709/eng@2026-04-14

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