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Case Brief · caselaw.co.ke
Court of AppealDismissedCivil Appeal 298 of 2004

Kenya Shell Limited v Milkah Kerubo Onkoba

Court of Appeal of Kenya
24 September 2010
1,995 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that companies storing fuel underground are strictly liable for leaks, even without negligence, and must pay for the damage caused.

What this practically means

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Executive summary

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Kenya Shell Limited appealed against a High Court of Kenya at Kisii judgment (Wambilyangah, J., 25 September 2003) awarding Milkah Kerubo Onkoba Kshs.600,000 general damages after diesel from the appellant's underground tank at Kiamokama Tea Factory leaked into her borehole. The appellant contended that no specific tort was pleaded, that special damages were unproven, that the burden of proof was shifted onto it, and that the respondent failed to mitigate. The Court of Appeal (Bosire, Waki and Nyamu, JJA) dismissed the appeal. It held liability admitted by the appellant's conduct — supplying water for two weeks and attempting unsuccessfully to clean the borehole — and uncontradicted by any evidence from the appellant. The court found the plaint's averments sufficiently clear to ground the tort under the rule in Rylands v Fletcher, applying strict liability notwithstanding the absence of negligence and rejecting the Act of God defence as unsupported. Invoking the polluter-pays principle, it held the respondent discharged her duty to mitigate by sourcing alternative water and was not obliged to sink a new Kshs.6,000 borehole while pollution continued. The global award of Kshs.600,000 was left undisturbed, the court deferring to the superior court's discretion given the continuing and unascertainable nature of the loss. Note: the final order reads 'the appeal is dismissed with costs to the appellant,' an apparent internal contradiction in the costs direction.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether liability for contamination of the respondent's borehole was established against the appellant
  2. 2.Whether the plaint disclosed a specific tort despite not naming it
  3. 3.Whether the defence of Act of God was available
  4. 4.Whether the respondent discharged the duty to mitigate her loss
  5. 5.Whether the award of general damages of Kshs.600,000 was excessive or erroneous

Key legal issues

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01

Applicability of the rule in Rylands v Fletcher

Holding

The rule applies; the appellant, as occupier keeping diesel in an underground tank, was strictly liable for its escape into the respondent's borehole.

Reasoning

The court adopted Salmond on Torts' formulation: one who brings and keeps on land anything likely to do damage if it escapes is bound at his peril to prevent its escape and liable for direct consequences even without negligence. Blackburn J's formulation in Rylands was hailed as a masterpiece and applied without hesitation; the Act of God defence failed on the evidence.

p. 4
02

Liability by conduct/admission

Holding

The appellant admitted liability by supplying water for two weeks and attempting unsuccessfully to clean the borehole.

Reasoning

After the leakage the appellant made efforts to clean the borehole and supplied water; these post-incident actions were treated as an admission of liability. The appellant also offered no rebuttal evidence, leaving the respondent's evidence, including the Kenya Bureau of Standards report, uncontroverted.

p. 3
03

Mitigation of loss

Holding

The respondent discharged her duty to mitigate by obtaining alternative water; she was not required to sink a new borehole while pollution continued and the appellant did nothing.

Reasoning

The abortive cleaning attempts confirmed continuing pollution; it would be unreasonable to expect the respondent to sink a Kshs.6,000 borehole until the appellant repaired the leak or removed the tank. The appellant took no preventive steps, and the global award cushions the respondent against unascertainable continuing loss.

p. 3
04

Quantum of general damages

Holding

The global award of Kshs.600,000 was left undisturbed; an appellate court will not interfere with judicial discretion in quantum absent valid reasons.

Reasoning

Although the borehole cost only Kshs.6,000 to construct, the pollution was continuing and its full extent unascertainable at hearing; the global sum cushioned the respondent against that continuing loss. The court therefore found no basis to interfere with the superior court's discretion.

p. 4
05

Sufficiency of pleadings identifying the tort

Holding

The plaint's averments were sufficiently clear to indicate the tort under Rylands v Fletcher; failure to name the tort is not fatal.

Reasoning

The particulars given in the plaint pointed to the strict liability tort, and the expert report from the Kenya Bureau of Standards established the escape of diesel from the underground tank into the neighbour's borehole, so the claim survived the absence of a named tort.

Legal principles established

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  • The rule in Rylands v Fletcher, a rule of absolute or strict liability, applies to escape of diesel from an underground tank into a neighbouring borehole.
  • Liability may be admitted by conduct, such as supplying water and attempting to clean the contaminated borehole after the escape.
  • Failure to name the specific tort in the plaint is not fatal if the particulars plead point to the tort.
  • The polluter pays principle informs awards where pollution is continuing and the full extent of loss is unascertainable.

Court orders

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  1. 1.The appeal is dismissed
  2. 2.Costs to the appellant (as stated in the judgment's final order)

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority
majority
majority
On appeal from
High Court of Kenya at Kisii
Jurisdiction invoked
First appeal to the Court of Appeal under the Constitution of Kenya and the Appellate Jurisdiction Act (appeal from the judgment and decree of the High Court)

Relief refused

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Setting aside or varying the award of Kshs.600,000 general damages

No valid reasons to interfere with the superior court's exercise of discretion

Act of God defence

Not borne out by the evidence; the appellant gave no evidence explaining the leakage

p. 4

Costs

"the appeal is dismissed with costs to the appellant" (as drafted; likely a slip, since dismissal would ordinarily carry costs to the respondent)

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

It is a rule of absolute or strict liability recognized by our law – one of the chief instances in which a man acts at his peril and is responsible for accidental harm, independently of the existence of the wrongful intent or negligence.
p. 3Strict liability under Rylands v Fletcher
The occupier of land who brings and keeps upon it anything likely to do damage if it escapes in bound at his peril to prevent its escape, and is liable for all the direct consequences of its escape, even if he has been guilty of no negligence
p. 4Formulation of strict liability (Salmond on Torts)
It is a cardinal principle of environmental law that the polluter must pay.
p. 3Polluter pays principle
In the result, the appeal is dismissed with costs to the appellant.
p. 4Final orders / disposition

Issues in the judgment

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material

Costs order contradicts the dismissal outcome: appeal dismissed yet costs awarded to the appellant.

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Kenya Shell Limited v Milkah Kerubo Onkoba", Case Analysis (2010). Civil Appeal 298 of 2004. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2010/471/eng@2010-09-24

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