The Mombasa County government has lost a Sh164 million claim against a private developer after the two sides battled in court for more than 10 years over land rate arrears.
The county had claimed Multi Investment Ltd had failed to pay land rates since 2007.
But the Environment and Land Court in Mombasa said the private firm did not owe the devolved unit any money in land rates as of 2007.
“I wonder why the devolved unit dragged its feet on this matter when it was pretty obvious by a simple look at the documents that there was nothing owing as at the year 2007,” said Justice Sila Munyao.
The judge also noted that it was wrong for Mombasa to ask for any accumulated rates or penalties or interest from the private firm as there was nothing in the context of land rates that the company owed the county in 2007.
Justice Munyao ruled that the county’s predecessor erred when it advertised the name of the company as a rates defaulter when records show its payments were up to date.
“I issue a declaration that as at the end of the year 2007, the company did not owe any rates, or any arrears of rates, or any penalties, or any interest arising from any default in payment of rates and the county is hereby permanently restrained from making any demand for rates, rates arrears, interest, or penalties over rates up to the year 2007,” the judge ruled.
The firm had in 2007 moved to court to stop the defunct Municipal Council of Mombasa from demanding any land rate arrears from it after listing it as a defaulter in newspapers.
At that time, the council demanded Sh2.4 million and threatened to repossess the property or collect rent from the tenants to defray the claimed rates.
In the suit, the company asked the court to permanently restrain the council from dealing with the land, as well as for costs and interest related to the case.
The company’s representative, Zulfikarali Tajabali Abdulahi, testified that the firm did not owe any rates arrears and produced documents indicating that all rates had been paid before and after 2007 despite threats from the county.
Court documents show that as of 2021, the county was claiming rates of Sh164,129,142, which Mr Abdulahi said the firm could not be owing as all payments for rates were up to date.
Justice Munyao agreed with the private developer that its documents produced in court in support of the case suggested that it was up to date with its rates payments.
“However, I will have to restrict myself to the period up to the year 2007 for that is what is before me,” the judge said.
“If the plaintiff had wished for this court to make orders regarding rates beyond the year 2007, it needed to amend the pleadings, but the pleadings were not amended.”
But the court ruled that the private developer was at liberty to return to the courts for any relief should any issue regarding the rates after 2007 arise.
