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MagistratePartially AllowedNot stated in the judgment· [2026] KEMC 756 (KLR)

Wamalwa v Albrima General Cargo Ltd (Civil Suit E179 of 2025) [2026] KEMC 756 (KLR)

Magistrates' Court
30 June 2026
TOT.O. Omono
484 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 taxed a winning party's costs at Kshs. 87,634 and confirmed that VAT cannot be added to party and party costs in Kenya.

What this practically means

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Executive summary

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This is a taxation ruling by T.O. Omono, Senior Resident Magistrate at Bungoma, determining the Plaintiff's Party and Party Bill of Costs dated 17th April 2026 arising from an undefended suit with a subject matter valued at Kshs. 117,625/=. The court allowed items 1, 9–11 and 13–26 as drawn to scale, taxed off items 2, 5, 12 and 17 for want of proof, and struck out item 8 as a repeat of item 7. On instruction fees, the court applied the lower scale under schedule 7(1)(a) of the Advocates (Remuneration) Order, computing a minimum of Kshs. 19,500/= (65% of Kshs. 30,000/=) and awarding Kshs. 25,000/= as reasonable given the nature and duration of the matter. VAT under item B was taxed off following Pyramid Motors Limited v Langata Gardens Limited, as adopted in Kenya Commercial Bank Limited v Stagecoach Management Limited, on the reasoning that party and party costs involve no taxable supply between the parties and VAT is awardable only on advocate-client bills or where the plaintiff proves payment of VAT and entitlement to indemnity. Item 7 (service) was assessed at Kshs. 3,000/= given the distance between Bungoma and Malaba. The Bill was finally assessed at Kshs. 87,634/=. No separate costs order was made.

Key legal issues

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01

Whether VAT is payable on party and party costs

Holding

VAT was taxed off; no taxable supply arises between parties to party and party costs

Reasoning

The court adopted the reasoning in Pyramid Motors Limited v Langata Gardens Limited, holding that party and party costs compensate the party, not the advocate, so no taxable supply of services exists between the parties. VAT could only be awarded on advocate-client bills or on tendered proof that the plaintiff paid VAT and was entitled to indemnity. This holding was followed in Kenya Commercial Bank Limited v Stagecoach Management Limited.

p. 1
02

Applicable scale for instruction fees in an undefended suit

Holding

Lower scale applies; Kshs. 25,000/= assessed as reasonable instruction fees

Reasoning

With a subject matter valued at Kshs. 117,625/= and an undefended suit, schedule 7(1)(a) of the Advocates (Remuneration) Order prescribed the lower scale, giving a minimum instruction fee of 65% of Kshs. 30,000/=, i.e. Kshs. 19,500/=. Considering the nature of the matter and the time taken to conclude it, the court found Kshs. 25,000/= reasonable.

p. 1

Legal principles established

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  • In an undefended suit, the lower scale applies; instruction fees computed at 65% of Kshs. 30,000/= yield Kshs. 19,500/= as minimum, with the court at discretion to award more given the nature and duration of the matter
  • VAT is not chargeable on party and party costs as between the parties; it is only awardable on advocate-client bills or where there is evidence the plaintiff paid VAT and is entitled to indemnity

Court orders

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  1. 1.Items 1, 9–11 and 13–26 allowed as drawn to scale
  2. 2.Items 2, 5, 12 and 17 taxed off for want of proof
  3. 3.Item 8 taxed off as a repeat of item 7
  4. 4.Instruction fees (item A) assessed at Kshs. 25,000/= on the lower scale
  5. 5.VAT (item B) taxed off following Pyramid Motors Limited v Langata Gardens Limited
  6. 6.Item 7 (service) assessed at Kshs. 3,000/=
  7. 7.The Plaintiff's Party and Party Bill of Costs dated 17th April 2026 assessed at Kshs. 87,634/=

Authorities

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Legislation

  • Advocates (Remuneration) OrderSchedule 7(1)(a)
  • Value Added Tax Act2013, section 5

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 Party and Party 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, "Wamalwa v Albrima General Cargo Ltd (Civil Suit E179 of 2025) [2026] KEMC 756 (KLR)", Case Analysis (2026). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2026/756/eng@2026-06-30

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