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ELCDismissedNaivasha ELC Case (Plaint dated 10th July 2023)

Prigal Limited & another v Kenya Electricity Transmission Company Limited (Environment and Land Case 96 of 2024) (Environment and Land) [2025] KEELC 5137 (KLR)

Environment and Land Court
10 July 2025
13,553 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~54 min to read original · ~4 min brief

The bottom line

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The court confirmed it can hear wayleave compensation claims against KETRACO, but dismissed this Ksh. 65 million claim because the plaintiffs could not prove ownership, company authority, or paperwork.

What this practically means

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Executive summary

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The Plaintiffs sued KETRACO for Ksh. 65,797,788/= wayleave compensation plus 14% interest over parcels LR No. 5212/16, 5212/17, 5212/18 and 5212/19 in Naivasha, traversed by the Olkaria-Lessos-Kisumu transmission line. Letters of offer dated 18th December 2020 were issued, the transmission lines were constructed and the wayleaves utilised, but no compensation was paid. KETRACO defended on the grounds that the letters of offer were conditional and unfulfilled, that the titles were under challenge following Gazette Notice No. 1716 of 22nd February 2019 revoking the mother title LR No. 5212, that the ELC lacked jurisdiction, and that the 1st Plaintiff's suit was not properly authorised. The court found it had jurisdiction over wayleave compensation disputes, applying the Supreme Court's decision in Nicholus, since the Energy Act does not expressly oust ELC jurisdiction. It held the Gazette Notice remained quashed as no appeal or stay of the judgment in Nakuru ELC Petition No. 8 of 2019 was proved. However, on the evidence, the Plaintiffs failed to prove the 1st Plaintiff's existence, incorporation, or that the 2nd Plaintiff had authority to act for it; no certificate of incorporation, CR12 or sealed resolution was produced, and no certificate of title for LR No. 5212/19 or LR No. 27368 was exhibited. The Plaintiffs also failed to prove compliance with the documentary conditions of the letters of offer, and the court could not rewrite the contract between the parties. The suit was dismissed with costs to the Defendant.

Questions the Court framed

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

  1. 1.Whether this court has jurisdiction over this matter
  2. 2.Whether Gazette Notice No. 1716 of 22nd February 2019 revoking ownership of L.R No. 5212, the mother title of the suit properties, was set aside
  3. 3.Whether the Plaintiffs made out their case

Key legal issues

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01

Jurisdiction of the ELC over wayleave compensation disputes against KETRACO

Holding

The ELC has jurisdiction; the Energy Act and the Energy and Petroleum Regulatory Authority/Tribunal framework do not oust the ELC's exclusive land jurisdiction

Reasoning

Article 162(2)(b) and Section 13 of the ELC Act confer exclusive jurisdiction over disputes relating to land use, occupation, title and contracts granting enforceable interests in land. Wayleaves are registrable rights of way involving compensation for use and occupation of land. The Energy Act's tribunal deals with licensee/consumer disputes; the Supreme Court in Nicholus confirmed the ELC retains original jurisdiction unless expressly and constitutionally ousted.

p. 18
02

Whether the quashed Gazette Notice revoking the mother title LR No. 5212 remained of no effect

Holding

The Gazette Notice remains quashed since no appeal or stay of the judgment quashing it was proved

Reasoning

The revocation in Gazette Notice No. 1716 of 22nd February 2019 was quashed by judgment in Nakuru ELC Petition No. 8 of 2019 (Consolidated with ELC No. 24 of 2019). Although a Notice of Appeal was lodged, no appeal record or stay order was proved. Applying Kibunja v Kirweya, a dormant Notice of Appeal may be deemed withdrawn, and an appeal does not operate as a stay; the quashing therefore stands.

p. 19
03

Authority of the 2nd Plaintiff to act for and institute suit on behalf of the 1st Plaintiff company

Holding

The 2nd Plaintiff had no authority to act for the 1st Plaintiff; the suit was not properly sanctioned by the 1st Plaintiff, if it existed at all

Reasoning

The Plaintiffs produced no certificate of incorporation, no CR12 official search, no board resolution and no sealed authority; Pf exh 1 bore no stamp or seal and the 2nd Plaintiff was shown to be neither a director nor shareholder of the 1st Plaintiff. Although United Assurance relaxes the strict board-resolution rule, the burden shifted to the officer to demonstrate authority under seal, which was not discharged.

04

Whether the Plaintiffs proved compliance with the documentary conditions of the letters of offer to entitle them to compensation

Holding

The Plaintiffs failed to prove they submitted the signed letters of offer and requisite documents (titles, IDs, photographs, PIN certificate, bank details), and a court cannot rewrite the contract to excuse that non-compliance

Reasoning

The letters of offer required acceptance and submission of documents to enable registration of easements and processing of payment. Although the Plaintiffs alleged the documents were delivered, no evidence confirmed this; the Defendant's witness conceded non-acknowledgement but the Plaintiffs bore the burden under Sections 107 and 109 of the Evidence Act. The court cannot rewrite the contractual terms per National Bank of Kenya v Pipeplastic.

p. 21
05

Whether parcel LR No. 5212/19 and LR No. 27368 exist and who owns them

Holding

The court could not determine the existence or ownership of either parcel as no certificate of title for either was produced

Reasoning

The dispute turned on whether the offer erroneously addressed to 'Morendat Limited' for parcel LR 27368 related to LR 5212/19, claimed to be owned by the 1st Plaintiff but donated to Shelter Yetu. Section 26(1) of the Land Registration Act makes the certificate of title prima facie proof of ownership, but no certificate for either parcel was produced, leaving the court unable to resolve existence or proprietorship.

p. 20

Legal principles established

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  • The ELC has original jurisdiction over wayleave compensation disputes notwithstanding the Energy Act dispute-resolution framework, unless that jurisdiction is expressly and constitutionally ousted
  • A Notice of Appeal on which no steps have been taken may be deemed withdrawn, and without a stay order the underlying judgment stands
  • It is not necessary for a board of directors to resolve to file suit; any director authorised to act for the company, unless the contrary is shown, has the powers of the board
  • A court of law cannot rewrite a contract between the parties; parties are bound by the terms of their contract absent coercion, fraud or undue influence
  • The evidential burden lies on the party asserting facts on which a legal right or liability depends

Court orders

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  1. 1.The Plaintiffs' suit is dismissed with costs to the Defendant

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Article 162(2)(b) of the Constitution as read with Section 13 of the Environment and Land Court Act and Section 148 of the Land Act

Relief refused

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Ksh. 65,797,788/= wayleave compensation plus interest at 14% p.a. from 24th December 2020

The Plaintiffs failed to discharge the burden of proof: no board resolution, no certificate of incorporation, no CR12 proving the 1st Plaintiff's existence or the Director's identity, the 2nd Plaintiff had no authority to act for the 1st Plaintiff, and the Plaintiffs did not prove compliance with the documentary conditions in the letters of offer

Compensation for wayleave over LR No. 5212/19

No certificate of title for either LR No. 5212/19 or LR No. 27368 was produced; the court could not determine the parcel's existence or registered proprietor

p. 20

Costs

Suit dismissed with costs to the Defendant

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.

Wayleaves are rights of way over land, often registrable as easements, and involve compensation for the use and occupation of land and as such, they directly fall under the purview of the Environment and Land Court's mandate.
p. 18Jurisdiction of the ELC over wayleave compensation disputes
In the ordinary course of events, the ELC still has original jurisdiction over the matters that are handled by NEMA, unless such jurisdiction is specifically and expressly ousted in a constitutionally compliant manner. The same holds true for proceedings under the Energy Act.
p. 19Supreme Court on non-ouster of ELC jurisdiction by the Energy Act
There having been no evidence that the decision in the Nakuru ELC Petition No. 8 of 2019 (Consolidated with ELC No. 24 of 2019) had been set aside, that decision by the Land Commission via Gazette Notice No. 1716 of 22nd February 2019 in my view remains quashed.
p. 19Effect of dormant Notice of Appeal on quashed Gazette Notice
Any Director, who is authorized to act on behalf of the company, unless the contrary is shown, has the powers of the board to act on behalf of that Company.
p. 20Corporate authority to institute proceedings
I find that the Plaintiffs' suit lacks merit and the same is herein dismissed with costs.
Disposition - dismissal with costs

Issues in the judgment

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minor

The judgment gives inconsistent dates for the judgment quashing Gazette Notice No. 1716 - paragraph 7 says 27th September 2023 while paragraphs 19, 45, 78 and 139 say 27th September 2022

minor

The Defendant submits the 2nd Plaintiff was neither a director, employee nor shareholder of the 1st Plaintiff, yet paragraph 31 records the 2nd Plaintiff stating he was a Director of the 1st Plaintiff

minor

Plaintiffs' supplementary submissions state compensation was denied since '24th December 2024' which post-dates the letters of offer of 18th December 2020 and the suit of 2023

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, "Prigal Limited & another v Kenya Electricity Transmission Company Limited (Environment and Land Case 96 of 2024)  (Environment and Land) [2025] KEELC 5137 (KLR)", Case Analysis (2025). Naivasha ELC Case (Plaint dated 10th July 2023). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/5137/eng@2025-07-10

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