Mr Ngengi Muigai.
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Big win for President Uhuru's cousin in Sh6 billion land feud
What you need to know:
- The costs had been awarded to Sceneries, which is owned by businessman Samuel K. Macharia.
- Following judgment, Sceneries sought orders compelling NLC to pay the costs of the legal dispute.
The National Land Commission (NLC) has failed in its bid to pass half of the costs incurred in a Sh6 billion land ownership case to President Uhuru Kenyatta’s cousin Ngengi Muigai.
NLC wanted Mr Muigai to pay half of the costs billed at a total Sh7.2 million. The costs arose from a case involving the ownership of 100 acres of land on Kiambu Road pitting Sceneries Ltd against Kenya Reinsurance Corporation (Kenya Re), NLC and Mr Muigai.
The costs had been awarded to Sceneries, which is owned by businessman Samuel K. Macharia, in a judgment dated February 23, 2017.
The court ruled in favour of Mr Macharia’s firm by quashing the decision of the NLC to investigate and determine the actual owner of the property.
Following judgment, Sceneries sought orders compelling NLC to pay the costs of the legal dispute.
NLC, through Brian Ikol, opposed the demand and told the court that the legal costs were to be borne by it and Mr Muigai, who was an interested party in the dispute.
But Justice Edward Wabwoto yesterday ruled that Sceneries was perfectly in order to seek the order to compel the NLC to pay the money, although the costs were to be paid by both Mr Muigai and NLC.
Pay the costs
“As per the judgment, costs were to be paid by the NLC and Mr Muigai and as such Sceneries has a right to elect which party to pursue their costs,” ruled Justice Wabwoto.
He said NLC has both a statutory and public duty to satisfy the decree issued by a competent court in favour of Sceneries.
“It is not disputed that by the time these proceedings were commenced, the NLC had failed or neglected to fulfill its duty to the detriment of Sceneries despite the fact that no appeal had been lodged against the judgment,” the judge said.
In fighting the demand, NLC had argued that the money needed to pay the costs would be subject to Parliament’s approval. It could only pay the costs owed once the sum is included in its budget as approved, the court heard.
But Justice Wabwoto said there is nothing unconstitutional about enforcing a decree that is due against a government entity and the mere fact that it had not been budgeted for could be a ground for not settling it.
“On the contrary it will be absurd and contemptuous should the NLC prolong the settlement of the said decree,” stated the judge.
Disputed land
The original dispute stemmed from a decision by the NLC to deny Sceneries a fair hearing in its investigations on the validity of title deeds for disputed land.
Court records show that Mr Macharia sold the property to Kenya Re in 1997 for Sh550 million. He told the court that if the NLC held that the title was illegal, he would be required to refund Kenya Re the sum received.
The court heard that President Daniel Arap Moi, acting through the commissioner of lands, issued to Sceneries a grant on July 10, 1997 for the land. Neither the commissioner of lands nor the chief land registrar was a party to the investigations but their actions were being challenged.
The NLC investigated the titles between March 15, 2015 and March 2016 without informing Sceneries or Kenya Re though it knew they would be affected by the decision.
The court heard that the investigations were started by Mr Muigai through a complaint made to the NLC on September 23, 2015 but which was not copied to Sceneries.
The court also heard that NLC started the investigations when it had not made rules to govern such proceedings.
By the time Sceneries learnt of the proceedings, the NLC had heard three witnesses and that it declined to supply Sceneries with records of the proceedings.
