Gona & 56 others v Kenya Power & Lighting Company (Environment and Land Case Civil Suit E064 of 2022) [2023] KEELC 16799 (KLR) (28 March 2023) (Ruling)
Neutral citation:
[2023] KEELC 16799 (KLR)
Republic of Kenya
Environment and Land Case Civil Suit E064 of 2022
LL Naikuni, J
March 28, 2023
Between
Charo Gona
1st Plaintiff
Nicodemus Muia
2nd Plaintiff
Sisilia Maria Opondo & 54 others
3rd Plaintiff
and
The Kenya Power & Lighting Company
Defendant
Ruling
I. Introduction
1.This ruling is in respect of the Preliminary Objection dated September 29, 2022 raised by 'the Kenya Power & Lightening Company' – the Defendant herein, challenging the jurisdiction of this Court to entertain the matter in view of the provisions of the Energy Act, 2019).
II. The Plaintiff’s Case
2.The Plaintiffs’ were residents of Miritini area within the County of Mombasa and dwellers of Jomvu Brightstar area, Jomvu – Sub _ County and owned houses there. Their case was that the Defendant herein sent its workers and/or agents to put ‘X’ marks on all houses at Jomvu Brightstar area, Jomvu alleging that the same were in the wayleave area. Many members were affected. These being schools, churches, mosques and other business premises.
3.The Plaintiffs averred that unless the Defendant’s action were restrained by way of injunction, they would demolish the said structures without giving the Plaintiffs a hearing and ascertaining the true position of the houses affected.
4.The Plaintiffs were alarmed and distressed for fear of demolition of their houses, which they had owned and occupied together with their houses, which they had owned and occupied together with their families for a long time now and that they had nowhere to go. They felt they would be prejudiced and subjected to irreparable harm and loss if the Defendant was not restrained from the intended eviction and/or demolition of the Plaintiffs’ houses as they had no alternative places to go to.
5.The Plaintiffs through their amended Plaint dated June 28, 2022 prayed for:-
6.On November 30, 2022, while opposing the objection raised by the Defendant, the Plaintiffs filed a three (3) points grounds of opposition. These were:-a.That the Energy, Act 2019 did not apply to the Plaintiffs’ case.b.That the Defendant had no jurisdiction (Sic) to put 'X' on the houses near the wayleave as the same was done by the Kenya Electricity Transmission Company Limited (KETRACO Limited).c.That the preliminary Objection was incompetent, misconceived, misplaced and was an abuse of the process of this Honourable Court and the same ought to be dismissed with Costs.For these reasons the Plaintiffs urged the Court to dismiss the said preliminary objection.
III. The Defendant’s case
7.The Defendant filed its Statement of Defence dated the October 5, 2022 in which it entirely denied the Plaintiffs’ claim. Further, the Defendant strongly contested this Court having any jurisdiction to hear and determine the instant suit. The Defendant’s Notice of Preliminary Objection dated September 29, 2022 read as follows:-
IV. Submissions
8.On October 12, 2022, when the matter came up for directions, the parties agreed to dispense with the Preliminary Objection first and by way of written submissions. All the parties complied and filed their written submissions and Court reserved a date for the delivery of its ruling accordingly.
A. The Written Submission by the Defendant
9.On October 26, 2022, the Learned Counsel for the Defendant the Law firm of Joseph Atwoli Advocates filed their written Submissions. Mr Atwoli Advocates commenced his submissions by stating that he was relying on the preliminary objection dated September 29, 2022. He further provided the background whereby the Plaintiffs instituted this suit through an Amended Plaint dated June 28, 2022 and an amended Notice of Motion dated June 28, 2022 together with a supporting affidavit of Nicodemus Muia sworn on the same date. From the filed Amended Plaint dated June 28, 2022, the Plaintiff sought the following orders:-a..b.A permanent injunction restraining the defendant, by himself, agents, servants, and/or anybody claiming through him from interfering with the ownership and/or usage of the Plaintiffs' houses, premises, schools, and churches and any other structure in regard to the wayleave the defendant is alleging.c.That a temporary injunction to issue restraining the Respondent, by himself, agents, servants and/or anybody claiming through him from interfering with the ownership and/or usage of the Applicant's houses, premises, schools and churches and any other structure in regard to the wayleave the respondent is alleging pending the hearing and determination of this application.d.That the Officer Commanding Station (OCS), Jomvu Police Station do ensure compliance.e.That costs of the Application be provided be provided for.
10.On the Notice of Preliminary objection, the Learned Counsel submitted that the Defendant urged the Honourable Court to dismiss the suit with costs and strike out all consequential orders. The Counsel asserted that the issues raised by the Plaintiffs against the Defendant were those that should be dealt with under the provision of the Energy Act, 2019 in the first instance. The Counsel held that essentially this Honourable Court lacked jurisdiction to handle this suit, as the suit offended the provisions of:a.Section 3(1),10;1 1 (e), (f), (1), (k) & (D) ; 23; 24; 36; 40; 42; and 224(2)(e) of the Energy Act, 2019;b.Regulations 2, 4, 7 and 9 of the Energy (Complaints and Disputes Resolution) Regulations,2012;c.Article 159 (2)(c) and 169(1) (d) and (2) of the Constitution of Kenya, 2010; andd.Sections 9 (2) and (3) of the Fair Administration Act, 2015.
11.The learned Counsel’s argument was that this case was purely about wayleaves as illustrated by the contents of Paragraphs a, c, and d of the grounds on the Amended Notice of Motion application dated June 28, 2022 and contents of Paragraphs 4, 5, 6, 7, 8 and 9 of the Amended Plaint dated June 28, 2022 and as such the Honourable Court had no jurisdiction to hear and determine this matter.
12.The Learned Counsel reiterated that the foundational basis of the Defendant's Preliminary Objection was on the question of jurisdiction, which had been settled by the superior courts and as such binding on thisHonourable Court. In the case of:- 'Adero Adero and Another – Versus - Ulinzi Sacco Society Limited [2002] eKLR it was held that:
13.The Counsel also referred to the decision by the Supreme Court in the case of 'Albert Chaurembo Mumbo & 7 others – Versus - Maurice Munyao &148 others; SC Petition No 3 of 2016, [2019] eKLR which held that:-
14.Again, the Supreme Court in the case of 'United Millers Ltd – Versus - Kenya Bureau of Standards Directorate of Criminal Investigations &;5 Others [2021] eKLR, while addressing similar circumstances was emphatic that:
15.The Learned Counsel submitted that the jurisdiction in this present matter was with the Energy and Petroleum Regulatory Authority and the Energy and Petroleum Tribunal, who had been expressly set out in the Energy Act, 2019 and they therefore urged the Honourable Court to find that it lacked jurisdiction and proceed to strike out this matter with costs.
16.The Learned Counsel submitted that the only issue for determination was whether the Honourable Court had jurisdiction to hear and determine this suit where he stated that the Court of Appeal in the case of' Joseph Njuguna Mwaura & 2 others – Versus - Republic [2013] eKLR held that:
17.Further, in the Court of Appeal case of:- 'Equity Bank Limited – Versus - Bruce Mutie Mutuku t/a Diani Tour & Travel [2016] eKLR, said as follows:
18.The Learned Counsel averred that in a more recent decision of: 'Phoenix of EA Assurance Company Limited – Versus - SM Thiga t/a Newspaper Service [2019] eKLR, the Court of Appeal held that:-
19.The Learned Counsel submitted that the Court of Appeal in the case of 'Kenya Ports Authority – Versus - Modern Holdings [EA] Limited [2017] eKLR held that:-
20.He argued that the issue of jurisdiction had been raised at the earliest available opportunity by the Defendant and he urged the Honourable Court to decide the issue right away, before delving into the merits of the matter before it. According to him, it was trite law that the Court derived its jurisdiction from the Constitution or statute and as such it must be slow to arrogate itself jurisdiction.
21.Additionally, in the case of: 'John Musakali – Versus - Speaker County of Bungoma & 4 others [2015] eKLR the Court held that:-
22.Further, the provision of Section 5 of the Civil Procedure Act, 2010 limits courts in exercise of their jurisdiction. The limitations of jurisdiction can either be express or implied. Section 5 states:5. Any court shall, subject to the provisions herein contained, have jurisdiction to try all suits of a civil nature excepting suits of which its cognizance is either expressly or impliedly barred.
23.He submitted that the Court in the case of 'Amy Kagendo Mate – Versus - Prime Bank Credit Reference Bureau Africa Ltd [2013] eKLR emphasized the need to stick to the dispute resolution avenues available in law when (Ngugi J) struck out a Petition that sought injunctive reliefs against the Respondents therein on account of by-passing a statutory adjudication remedy in favour of the high court. Pursuant to the provisions of the law set out in Paragraph 6 above as read with Section 5 of the Civil Procedure Act, 2010, the dispute at hand ought to be referred to the Energy & Petroleum Regulatory Authority (formerly Energy Regulatory Commission [ERC]) or in the alternative to the Energy &Petroleum Tribunal; as the limitation of jurisdiction of this Honourable Court was expressly barred by those provisions of the Energy Act,2019.
24.The Learned Counsel on Constitutional provisions on jurisdiction submitted that Article 159(2)(c) of the Constitution expressly recognizes alternative forms of dispute resolution including reconciliation, mediation, arbitration and traditional dispute resolution mechanism.Further Article 169(1)(d) of the Constitution made provision for the establishment of any other court or local tribunal by an Act of Parliament, other than the Courts established pursuant to Article 162 (2). This Article of the Constitution recognizes the role of Parliament to create Tribunals to hear and determine certain disputes.
25.He held the Energy &Petroleum Regulatory Authority (the Authority) and the Energy & Petroleum Tribunal (the Tribunal) were such creatures of Parliament through the Energy Act, 2019 (the Act) and by the powers donated by Article 169 (1) (d) of the Constitution of Kenya, 2010. It was worth to note that the Energy Act, 2019 repealed the Energy Act, 2006. A five-Judge bench of the High Court in the case of 'The Law Society of Kenya – Versus - Centre for Human Rights and Democracy & 13 others [2013] eKLR stated of jurisdiction thus:-
26.He further cited the Court of Appeal in the case of: 'Joshua Sembei Mutua – Versus - Attorney General & 2 others [2019] eKLR in determining the issue of jurisdiction held:-
27.On the statutory provisions on the Jurisdiction of the Energy & Petroleum Regulatory Authority the Learned Counsel submitted that the key legal framework giving rise to the Preliminary Objection herein was the Energy Act, 2019 (the Act). Under the provision of Section 3 (1)of the Act dealt with the issue of conflict of law and the said section states that:3 (1) If there is a conflict between this Act and any other Act, this Act shall prevail on the following matters-(a)The importation, exportation, generation, transmission, distribution, supply or use of electrical energy; (Emphasis ours)(b).(c)All works and apparatus for any or all of these purposes.
28.On this point, the Learned Counsel referred to a recent case of 'Abidha Nicholus – Versus - Attorney General & 7 others; National Environmental Complaints Committee (NECC) & 5 others (Interested Parties) [2021] eKLR, the Court in analysing Section 3 of the Energy Act, 2010 stated as follows:-
29.Further, under Section 2 the Energy Act, 2019 defines the following key terms:
30.The Learned Counsel opined that under Section 9 of the Act established the Energy &Petroleum Regulatory Authority (Authority) while Section 11 sets out the powers of the Authority as follows:-a)Under Sections 11 (i) the Authority has the power to:i.Investigates and determine complaints or disputes between parties over any matter relating to licences and licence conditions under this Act.b)To add under Sections 11 (e), (f), (k) & (l) the Authority has the powers to:(e)Make and enforce directions to ensure compliance with this Act and with the conditions of licenses issued under this Act;(f)Issue orders in writing requiring acts or things to be performed or done, prohibiting acts or things from being performed or done, and may prescribe periods or dates upon, within or before which such acts or things shall be performed or done or such conditions shall be fulfilled;(k)Issue orders or directions to ensure compliance with this Act;l)impose such sanctions and fines not exceeding one hundred thousand shillings per violation per day for a maximum of thirty days;
31.These powers of the Authority were buttressed by the provision of Section 167 of the Act which granted the Cabinet Secretary power to make regulations for several purposes. One such purpose for which the regulations are made is as set out in Section 167 (1)(m) that was:(m)prescribing the procedures for hearings, settlement of disputes and any proceedings before the Authority.
32.He further submitted that Part X of the Act dealt with repeals, savings and transitional clauses. Specifically, Section 224 (2) (e) of the Act provides as follows:(e)Any subsidiary legislation issued before the commencement of this Act shall, as long it is not inconsistent with this Act, remain in force until repealed or revoked by subsidiary legislation under the provisions of this Act and shall, for all purposes, be deemed to have been made under this Act.
33.He averred that on May 25, 2012, the then Minister for Energy gazetted the Energy (Complaints and Dispute Resolution) Regulations, 2012 (the Regulations) under Sections 63 and 110 of the Energy Act, 2006 (repealed) as the Legislative Supplement No15 vide Kenya Gazette Supplement No 49 of 2012. Under the provisions of Sections 3, 9, 10, 11(e), (f), (i), (k) &; (1); 23; 24; 36; 40; 42; 159(3); 160(3); and 224(2)(e) of the Energy Act, 2019 as read with Regulations 2, 4, 7 and 9 of the Energy (Complaints and Disputes Resolution) Regulations, 2012 gives the Authority jurisdiction to handle disputes similar to the one that the plaintiff has filed herein.
34.Regulation 2 of the Energy (Complaints & Disputes Resolution) Regulations 2012 states as follows:4)These regulations shall apply to any person who has a complaint or a dispute regarding any licence, permit, contract, code, conduct, practice or operation of any party or any matter regulated under the Act.
35.Further, the provision of the Regulation 4 of the Regulations provides for the nature of the disputes that ought to be heard by the Authority. It provides thus:4)These regulations shall apply to complaints and disputes in the following areas-a)Billing, damages, disconnection, health and safety, electrical installations, interruptions, licensees practices and procedures, metering, new connections and extensions, reconnections, quality of services, quality of supply, tariffs, way leaves, easements or rights-of-way in relation to the generation, transmission, distribution, supply and use of electrical energy.b)Any other activity and/or matter regulated under the Act.
36.The Learned Counsel’s contention was that Regulations 7 and 9 of the Regulations sets out the procedures for the reference to the Authority of the disputes and the manner the proceedings would be conducted. Whereas the provision of Section 23 of the Act provided for the timelines within which a decision must be rendered by the Authority, the provision of Section 24 provided for the procedure for appeal in the event a party was dissatisfied by the Authority's decisions.From the foregoing, it was certain, there was a clear dispute resolution mechanism available under the Energy Act, 2019 which ought be followed. In the case of Speaker of National Assembly – Versus - Njenga Karume (1992) 1KLR 425 the Court of Appeal held that:-
37.He submitted that under the provision of Sections of the Energy Act, 2019 and the provisions of the Energy (Complaints and Disputes Resolution) Regulations, 2012, the Authority had powers to investigate and determine complaints or disputes between parties and grant equitable reliefs mentioned therein. He submitted that, pursuant to the foregoing provisions, this Honourable Court had no jurisdiction to hear and determine the suit or even grant the reliefs sought by the Plaintiff as against the Defendant. The appropriate forum with jurisdiction was the Energy and Petroleum Regulatory Authority and not this Court at all.
38.On the statutory provisions on the Jurisdiction of the Energy & Petroleum Tribunal, the Learned Counsel submitted that the provision of Section 25 of the Act had established the Energy & Petroleum Tribunal (the Tribunal) for the purposes of hearing and determining disputes and appeals. Subsequently, the provision of Section 36 provides for the jurisdiction of the Tribunal as follows:36.(1) The Tribunal shall have jurisdiction to hear and determine all matters referred to it, relating to the energy and petroleum sector arising under this Act or any other Act.(2).(3)The Tribunal shall have original civil jurisdiction on any dispute between a licensee and a third party or between licensees.(4)The Tribunal shall have appellate jurisdiction over the decisions of the Authority and any licensing authority and in exercise of its functions may refer any matter back to the Authority or any licensing authority for re-consideration.(5)The Tribunal shall have power to grant equitable reliefs including but not limited to injunctions, penalties, damages, specific performance.(6)The Tribunal shall hear and determine matters referred to it expeditiously. (Emphasis ours).43. Section 36 (3) of the Energy Act,2019 grants the Energy & Petroleum Tribunal original civil jurisdiction on any dispute between the licensee and a third party. By way of elaboration, section 2 of the Act defines licensee and licence as follows:licensee; means a holder of any licence issued under this Act;licence; means any document or instrument in writing granted under this Act, to any person or authorizing the importation, exportation, generation, transmission, distribution and supply of electrical energy or the exploration and production of geothermal energy, in the manner described in such document or instrument;
39.He argued that it was public knowledge that the Defendant was a public utility company engaged in the bulk purchase, transmission, distribution and retail supply of electricity and therefore licensed within the meaning of Section 2 of the Energy Act, 2019 and as listed in the Third Schedule of the Energy Act, 2019. The Third Schedule of the Energy Act, 2019 on its part listed all Energy Sector Entities within the country including the Defendant herein. The third party contemplated under this Section was anyone else who was affected by the acts or omissions of any licensee under the Act.
40.Under the provision of Sub - Section (5) the Tribunal, had powers to grant equitable reliefs mentioned therein as the ones sought by the Plaintiffs on the face of their Application. On the other hand, Section 37 of the Act provided for the procedure for review and appeal of the decisions of the Tribunal, where it stated that an appeal lies in the High Court. The Section provides as follows:37.(1) The Tribunal may, on its own motion or upon application by an aggrieved party, review its judgments and orders.(2)Judgments and orders of the Tribunal shall be executed and enforced in the same manner as judgments and orders of a court of law.(3)Any person aggrieved by a decision of the Tribunal may, within thirty days from the date of the decision or order, appeal to the High Court.(4)The law applicable to applications for review to the High Court in civil matters shall, with the necessary modifications or other adjustments as the Chief Justice may direct, apply to applications for review from the Tribunal to the High Court.
41.According to the Learned Counsel on September 26, 2008, the then Chairman of the Energy Tribunal gazetted the Energy Tribunal Rules, 2008 (the Rules) under paragraph 12(4) of the Energy Act, 2006 (repealed) as the Gazette Notice No 9163 vide Kenya Gazette Vol CX - No 78 dated 2September 6, 2008. The Rules clearly sets out the procedures before the Energy and Petroleum Tribunal (formerly the Energy Tribunal). It was certain from the Energy Act, 2019 that a dispute resolution procedure had been established and therefore, the same ought to be followed. This proposition was supported by the findings of the Court in the case of: 'Cyrus Komo Njoroge – Versus - Kiringa Njoroge Gachoka& 2 Others [2015] eKLR, where the court held that:-
42.His submission was that going by the provisions of Section 36 of the Energy Act, 2019, this Honourable Court had no jurisdiction to hear and determine the suit or even grant the reliefs sought by the Plaintiff as against the Defendant. The alternative judicial forum with jurisdiction was the Energy and Petroleum Tribunal and not this Court.
43.On the issue of fair administration of justice, the Learned Counsel argued that the issue of the jurisdiction of the Courts had further been extensively addressed by the Fair Administration Act, 2015. The provisions of Section 9 (2) and (3) of the Fair Administration Act, 2015 further illustrated the appropriate forum for resolution of disputes. The provisions of Section states as follows:9(2) The High Court or a subordinate court under subsection (1) shall not review an administrative action or decision under this Act unless the mechanisms including internal mechanisms for appeal or review and all remedies available under any other written law are first exhausted.(3)The High Court or a subordinate Court shall, if it is not satisfied that the remedies referred to in subsection (2) have been exhausted, direct that applicant shall first exhaust such remedy before instituting proceedings under sub-section (1).
44.The Learned Counsel averred that it was the Plaintiffs’ case and assertion was that the Defendant in exercising its powers and undertaking its duties provided for under the Energy Act, 2019, had purportedly disconnected her electricity supply. It was noteworthy that whereas the Plaintiffs case was guised as a claim against the Defendant, on keen perusal it was revealing that it was purely a complaint to be pursued pursuant to the Energy Act, 2019. The provision of Section 9 of the Fair Administration Act, 2015 was couched in mandatory terms where the superior Courts or Sub - ordinate Courts were stripped off jurisdiction to hear matters where alternative dispute resolution mechanism have not been exhausted. In the case of: Night Rose Cosmetics (1972) Ltd – Versus - Nairobi County Government & 2 Others [2018] eKLR the Honourable Court in upholding a Preliminary Objection on this ground held:
45.The Learned Counsel submitted that the Plaintiffs in filing this matter in this Honourable Court, it knowingly and deliberately by-passed the Energy & Petroleum Regulatory Authority and also the Energy & Petroleum Tribunal in total disregard to the clearly laid down statutory provisions. They relied on the case of Republic – Versus - Energy Regulatory Commission & 2 Others/2018] eKLR. In this case the court held that:
46.He asserted that it was now settled on matters of energy there were alternative forums where such disputes were to be handled. There are plausible reasons as to why the Authority or the Tribunal were vested with jurisdiction in energy matters and the above captioned powers and the sameshould be strictly adhered to. In the case of:- 'Mutanga Tea & Company Ltd – Versus - Shikara Limited & Another [2015] eKLR, the Court of Appeal in addressing the importance of adhering to alterative dispute resolution mechanism noted:
47.The Learned Counsel relied in the recent case of 'Republic – Versus - Public Procurement Administrative Review Board & Energy Sectors Contractors Association, Zoec-Zhepedc-Nginu Ex parte Kenya Power & Lighting Company Limited [2020] eKLR where the Court noted that:-
48.It was the humble submissions of the Learned Counsel that the Energy & Petroleum Regulatory Authority and the Energy & Petroleum Tribunal was comprised of experts in matters of energy as set out under the provisions of Sections 26, 10,11, 12 and 13 of the Energy Act, 2019. Aparty could not move a Court in glaring contradiction of the judicial hierarchical system as provided for by the law. The Energy Act, 2019 had provided very clear dispute settlement mechanisms while the provision of Section 9 of the Fair Administrative Act, 2015 deprived this Honourable Court the jurisdiction to entertain this suit at first instance. In the case of 'Geoffrey Muthinja & Another – Versus - Samuel Muguna Henry & 1756 Others [2015] eKLR the Court of Appeal in dismissing an appeal for failing to adhere to the doctrine of exhaustion held:-
49.In another case of 'Josiah Tatiya Kipelian – Versus - Dr. David Ole Nkadienye&2 Others [2014] eKLR, Justice Mabeya had occasion to pronounce himself thus:-
50.The Learned Counsel averred that the question that the Honourable court should ask was if the Plaintiffs had exhausted the mechanism provided for under the Energy Act, 2019 dealing with the dispute. The answer was in the negative. However, the Plaintiff had elected to ignore the mechanism laid down for resolution of the instant dispute and now invited the Court to invoke, craft and innovate and assume jurisdiction which it did not have. On account of the foregoing, it was beyond doubt that the Plaintiffs’ action of filing this suit before this Honourable Court as against the Defendant amounted to an abuse of the Court process.
51.He argued that having established that there existed competent alternative dispute resolution mechanisms available to the Plaintiffs and the same were bestowed with the requisite capacity to grant the orders sought, the Honourable Court should find that it lacked jurisdiction to entertain this matter at first instance. From the reading of the aforementioned provisions of Sections of the Energy Act, 2019, it was evident that the Energy and Petroleum Regulatory Authority was bestowed with jurisdiction to handle the complaint as against the Defendants. On the other hand, the Energy and Petroleum Tribunal was clothed with jurisdiction to grant equitable reliefs, including injunctions, penalties, damages and orders of specific performance as sought by the Plaintiffs. In view of the foregoing, the orders that the Plaintiffs sought against the Defendant could be issued by the Tribunal by dint of Section 36 (5) of the Energy Act, 2019. The section states as follows:(5)The Tribunal shall have power to grant equitable reliefs including but not limited to injunctions, penalties, damages, specific performance.
52.By doing so, the Counsel held that the Plaintiff would not be prejudiced, as her rights would be protected by either the Authority or the Tribunal, as the case may be. They relied on the case of Thomas Schering – Versus - Nereah Michael Said & Others (2019) eKLR whereby in upholding a preliminary objection of the same nature, the Court held that:
53.In giving a similar finding and upholding a preliminary objection, the court in the case of 'Alice Mweru Ngai – Versus - Kenya Power & Lighting Co Ltd [2015] eKLR held as follows:
54.The Learned Counsel also place reliance on the case of 'James Kibugi Githinji – Versus - Kenya Power & Lighting Company Limited [2016] eKLR wherein in determining that the Court did not have jurisdiction, the Judge held that:
55.Similarly, in the case of 'James Mwaura Ndung’u – Versus - Kenya Power and Lighting Co Ltd [2016] eKLR, the Judge while dismissing the appeal filed by the customer made a finding that:
56.Additionally, he cited the recent decision in 'Kenya Power and Lighting Co. Ltd – Versus - Geofrey Orina Oganga [2020] eKLR where the Judge held that:-
57.In the case of 'Kenya Power &Lighting Co Limited – Versus - Samuel Mandere Ogeto [2018] eKLR, being an appeal against an order dismissing the appellant’s preliminary objection based on provisions of Section 61(3) of the Energy Act 2006 (repealed), where DS Majanja Judge while allowing the appeal held that:-
58.In the recent ruling in 'Abidha Nicholus – Versus - Attorney General & 7 others; National Environmental Complaints Committee (NEEC) &5 others (Interested Parties (supra), the Court held that:
59.Further, recently the High Court determined similar preliminary objections raised by the Defendant herein and the Honourable Judges made the finding that disputes with regard to the electricity should all be referred to the Energy and Petroleum Regulatory Authority or the Energy and Petroleum Tribunal.The High Court in Nairobi, in the case of Justin Karionji Nyaga – Versus - Attorney General & 2 others [2021] eKLR held as follows:
60.Whereas the High Court in Kisumu made the same holding in the case of Vitalis Ouma Osano – Versus - Kenya Power and Lighting Company PLC [2021] eKLR and held that:-
61.The Learned Counsel submitted that this sound jurisprudence in the Court’s consideration and determination of this present matter. On account of the above, it was imperative that this Honourable Court afforded opportunity to the statutory bodies mentioned, to exercise their jurisdiction with respect to the matter. Under the provision of Article 159 of the Constitution of Kenya, 2010 was instructive that in exercising judicial authority the Court shall 'inter alia' be guided by the principle of promoting alternative forms of dispute resolution. This Honourable Court ought also take judicial notice of the huge backlog of cases before the courts and therefore take cognizance of the fact that encouraging and promoting these statutory bodies would in essence substantially reduce the number of cases filed before this Court and enhance principle of expeditious disposition of cases.
62.The Learned Counsel urged the Honourable Court to make a finding that it had no jurisdiction and proceed to down its tools as was held by the Court of Appeal in the case of Esther Gachambi Mwangi – Versus - Samuel Mwangi Mbiri [2013] eKLR:
63.The Learned Counsel concluded by urging the Honourable Court to find that this Court did not have jurisdiction to entertain this matter and dismisses the same with cost.
64.On the issue of who bears the costs, the Learned Counsel relied on the provision of Section 27 (1) of the Civil Procedure Act, Cap 21 which stipulated that costs must follow the event unless the Court for good reason, orders otherwise. In the case of:- 'Kenya Sugar Board - Versus - Ndungu Gathini (2013) eKLR, the court in recognizing that costs do follow the event, maintained an award of costs to a party stating that the discretion was applied judiciously. In awarding costs to the defendant, the court in the case of Joseph Nzyoki Mwanthi – Versus - Kenya Power &Lighting Co Ltd [2017] eKLR had this to say:-
65.He argued that the Plaintiffs being fully aware of the mechanisms put in place for parties to pursue reprieve in instances such as these and to ventilate the issues raised in the Plaint elected to prematurely drag the Defendant to court. The Defendant had expended considerable resources in this matter and thus ought to be awarded costs as reprieve. In the case of: 'Cecilia Karuru Ngayu – Versus - Barclays Bank of Kenya & Another [2016] eKLR while quoting with approval the case of Republic – Versus - Rosemary Wairimu Munene ex - parte Applicant – Versus - Ihururu Dairy Farmers Co-operative Society Ltd.
66.In the case of 'Party of Independent Candidate of Kenya – Versus - Mutula Kilonzo & 2 others, while citing the case of Nedbank Swaziland Ltd – Versus - Sandile Dlamini No(144/2010)-2012 SZHC 30 (2013) where it was stated that the underlying principle in awarding costs are that the award of costs is a matter of discretion of the Judge to be exercised upon grounds on which a reasonable man could have come to the conclusion arrived at and that the general rule is that costs are awarded to the successful party, unless there good ground for not doing so. The Learned Counsel asked the Court to be guided by these authorities.
67.In conclusion, the Learned Counsel stated that the suit herein as against the Defendant was one that exclusively fell under the jurisdiction of the Energy & Petroleum Regulatory Authority or in the alternative the Energy & Petroleum Tribunal as such the Plaintiffs ought to pursue its claims there. The Defendant prayed that the suit herein be hereby dismissed with costs.
B. The Written Submissions by the Plaintiffs
68.On November 30, 2022, the Learned Counsel for the Plaintiffs the Law firm of Messrs Birir & Company Advocates filed their written submissions dated November 23, 2022. Mr Birir Advocate submitted that the Defendant’s Notice of Preliminary Objection is misconceived, incompetent, misplaced and is an abuse of the process of this Honourable Court and that the same ought to be dismissed with costs.
69.The Learned Counsel argued that the Sections relied upon by the Defendant did not apply to the issues raised in the suit. The Energy Act, 2019 as enacted and as per the preamble was to: -i.Provide National and County Governments functions in relation to energy;ii.Provide for establishment, power and functions of energy sector entities;iii.Promotion of renewable energy; exploration, recovery and commercial utilization of the geothermal energy;iv.Regulation of midstream and downstream petroleum and coal activities;v.Regulation, production, supply and use of electricity and other energy forms;vi.For connected purposes
70.He submitted that a look at the preamble was evident that the same had nothing to do with the 3rd Parties but it had everything to do with regulating those in energy sector, in the circumstances. Therefore, without belabouring the point, the Learned Counsel submitted that the Preliminary Objection was misplaced, misguided, misapplied and should be dismissed with costs.
V. Issues for Determination
71.I have considered the gist of the preliminary objection dated September 29, 2022 by the Defendant herein, the written submissions, the cited authorities and the relevant constitutional and statutory frameworks together with the prevailing jurisprudence on the key question falling for determination in the preliminary objection.
72.In order to arrive at an informed, reasonable, Just and equitable decision, the Honourable Court has condensed the subject matter to the following three (3) issues for its determination. These are:
VI. Analysis & Determination
ISSUE No a). Whether the Preliminary objection dated September 29, 2022 by the Defendant met the thresholds of an objection as stipulated under the law and precedents.
73.According to the Black Law Dictionary a Preliminary Objection is defined as being:The above legal preposition being the meaning, scope and nature of preliminary objection has been made graphically clear in the now famous case of Mukisa Biscuits Manufacturing Co Limited – Versus- West End Distributors Limited [1969] EA 696. Where Lord Charles Newbold P held that a proper preliminary objection constitutes a pure points of law. The Learned Judge then held that:-
74.I further wish to cite the case of 'Attorney General & Another –Versus- Andrew Mwaura Githinji & another [2016] eKLR:- as it explicitly extrapolates in a more concise and surgical precision what tantamount to the scope, nature and meaning of a Preliminary Objection inter alia:-
75.It is trite law that a preliminary objection can be brought at any time at least before the final conclusion of the case. Ideally, all facts remaining constant, it should be filed at the earliest opportunity of the subsistence of a case, in order to pave way for the smooth management and determination of the main dispute in a matter. Certainly, the issues raised by the Defendant are serious and pure issues of law which this court is duty bound to critically venture to be heard and determined prior to them being set down the case for full trial on its own merit. The issues are not fanciful nor remote. For these reasons, therefore, I find that the objection raised by the Defendant was properly filed hereof. It constitutes matters akin to be determined at the preliminary level before embarking on the hearing of the case on its own merit in conformity to the case of Mukisa Biscuits Manufacturing Co Limited (Supra). Therefore, I shall proceed to consider them and determine them accordingly.
ISSUE No b). Whether this Honourable Court is clothed with the Jurisdiction to entertains this Suit filed by the Plaintiff herein taking into account the doctrine of exhaustion of remedies.
76.Under this sub heading, an objection to the court’s jurisdiction may be raised as a preliminary objection as it was a pure point of law and may arise by clear implication out of pleadings. It was also an elementary principle in law that a Court could not adjudicate on matters in which it lacked jurisdiction. The jurisdiction of the court is derived from the Constitution or Statute. If a court finds that it lacks jurisdiction to hear and determine a matter, it is obligated to halt the proceedings. It cannot expand or arrogate to itself jurisdiction which is not conferred upon it by the law. This position was stated In 'the locus classicus' case of: 'Owners of the Motor Vessel 'Lillian S' – Versus - Caltex Oil (Kenya) Ltd [1989] KLR 1 Justice Nyarangi held as follows:-
77.And by the Supreme Court in the case of Samuel Kamau Macharia & Another – Versus - Kenya Commercial Bank Limited & 2 Others (2012) eKLR.
78.The Defendant’s contention is that the matter before this court fell within the jurisdiction of both the Energy and Petroleum Tribunal and the Energy and Petroleum Regulatory Authority. The doctrine of exhaustion of remedies provides that, where a dispute resolution mechanism has been established by a statute outside the mainstream courts, that mechanism should be exhausted before the jurisdiction of the mainstream courts is invoked. Put differently, where there exists a legitimate statutory primary dispute resolution mechanism, such as a tribunal, the mainstream courts should be the fora of last resort and not the first port of call.
79.The Supreme Court of Kenya explained the importance of the doctrine of exhaustion of remedies in the case of Benard Murage – Versus - Fine Serve Africa Limited & 3 others [2015] eKLR in the following words:
80.The Court of Appeal in the case of: Geoffrey Muthinja & Another - Versus - Samuel Muguna Henry & 1756 others (2015) eKLR was also elaborate that;
81.See also the case of Speaker of the National Assembly – Versus - James Njenga Karume (Supra) where the Court of Appeal emphasized that where there is a clear procedure prescribed by the Constitution or by a statute for the redress of a particular grievance, that procedure should be strictly followed and exhausted before invoking the jurisdiction of the Court.
82.The dispute in this suit was triggered by the Defendant’s threat that they wanted to set up a way leave over the suit property without the Plaintiffs’ consent. The Plaintiffs allege that the Defendant is planning to lay a high voltage electric power supply line through their land and the Defendant herein sent his workers and/or agents to put ‘X’ marks on all houses at Jomvu Brightstar area, Jomvu alleging that the same were in the wayleave area. That this is a violation of their rights, title and interest in the suit property.
83.Continuing trespass is defined by Clerk On Law of Torts, 16th Edition Para 23-01 as;
84.Granted the above definition and as long as a trespasser continues to occupy another’s land unlawfully, such occupation constitutes a continuing trespass which is actionable from day to day so long as the trespasser remains on the land. The Plaintiff alleges that the electric power lines are still on her land. The Plaintiffs’ cause of action arose sometime in 2021 after the enactment of the Energy Act, 2019 in any event.
85.The Supreme Court of Kenya in the case of 'Samuel Kamau Macharia & another – Versus - Kenya Commercial Bank Ltd & 2 others (2012) eKLR while addressing the issue of retrospective application of the law held that,
86.Therefore, this court’s finding is that the provisions of the Energy Act, No 1 of 2019 are applicable to the Plaintiffs’ cause of action as suggested by the Defendant. Indeed, Article 159 (2) c of the Constitution of Kenya 2010 provides that in exercising Judicial Authority, the courts and Tribunals shall be guided by the principles of alternative forms of dispute resolution mechanisms including reconciliation, mediation and arbitration.
87.The provision of Section 9 of the Fair Administration Act provides:
88.I do fully agree with the Learned Counsel for the Defendant that the Defendant act of wanting to constructing the way leaves in the Plaintiffs’ land is a decision that affects the rights of the Plaintiff and therefore is an administrative action.
89.He provision of Section 2 of the fair Administrative Act on its part defines administrative action to include:
90.For these reasons adduced herein, therefore, I hold that this Court which is an appellate Court on all matters pertaining to Energy this Court lacks the legal mandate to entertain the same in the first instance. Thus, the objection raised by the Defendant must be upheld thereof.
ISSUE No c). Who will bear the Costs of the Objection
91.It is well established that the issue of Costs is at the discretion of Court. Costs means the award that is granted to a party upon the conclusion of the legal process and/or legal proceedings of any litigation. The proviso of the provision of Section 27 ( 1 ) of the Civil Procedure Act, Cap 21 holds that costs follow the events (See the Court of Appeal cases of 'Cecilia Karuru Ngayu – Versus - Barclays Bank of Kenya & Another [2016] eKLR while quoting with approval the case of Republic – Versus - Rosemary Wairimu Munene ex - parte Applicant – Versus - Ihururu Dairy Farmers Co - operative Society Limited (2014) eKLR; and Supreme Court case of 'Jasbir Rai Singh – Versus – Tarchalan Singh (2014) eKLR) held thus:-
92.In the instant case, the Plaintiffs being fully aware of the mechanisms put in place for parties to pursue reprieve in instances such as these and to ventilate the issues raised in the Plaint elected to prematurely drag the Defendant to this Honourable Court. I fully concur with the argument advanced by the learned Counsel for the Defendant that the Defendant had expended considerable resources in this matter and thus ought to be awarded costs as reprieve. The results of the case is that the objection by the Defendant is allowed taking that the right forum to have instituted this suit was exclusively fell under the jurisdiction of the Energy & Petroleum Regulatory Authority or in the alternative the Energy & Petroleum Tribunal as such the Plaintiffs ought to pursue its claims there. The Defendant prayed that the suit herein be hereby dismissed with costs. Hence, it is fair as a the general rule that costs be awarded to the successful party being the Defendant herein.
VI. Conclusion & Disposition
93.Consequently, having conducted such an elaborate and indepth anaylsis of the framed issues surrounding the objection raised by the Defendant herein, the Honourable Court finds on preponderance of probability that the objection has merit. Therefore, the Court finds as follows:-a.That this dispute ought to have been referred to the Energy and Petroleum Tribunal in accordance with the Act.b.That the Preliminary Objection date September 29, 2022 be and is hereby upheld and the suit is struck out. The matter stands closed.c.That the costs of the suit to awarded to the Defendant.
It Is So Ordered Accordingly
RULING DELIVERED THROUGH MICROSOFT TEAMS VIRTUAL MEANS, SIGNED AND DATE AT MOMBASA THIS …….28TH ………DAY OF ………MARCH…………..2023.HON. JUSTICE L. L. NAIKUNI, (JUDGE)ENVIRONMENT AND LAND COURT ATMOMBASAIn the presence of:a. M/s. Yumna, the Court Assistant.b. Mr. Birir Advocate for the Plaintiffsc. No appearance for the DefendantRULING: CIVIL SUIT NO. E064 OF 2022 Page 15 of 15 HON. L.L. NNAIKUNI (JUDGE)