Lawyer Donald B Kipkorir to Auction City Hall Assets Over Sh1.69B Debt
Urban attorney Donald Kiprorir has directed auctioneers to confiscate assets owned by the Nairobi county government due to an outstanding debt of Sh1.69 billion dating back to 2022.
The decision follows shortly after High Court judge Nixon Sifuna invalidated Sections 13A and 21 of the Government Proceedings Act. This ruling now allows individuals involved in legal disputes to seize government assets or funds as a means of reclaiming owed debts.
Justice Professor Sifuna described the sections as outdated remnants of colonialism that have no relevance in contemporary society. They were designed not to aid but to hinder the swift handling and resolution of cases.
“The legislation is an archaic colonial outfit that inadvertently escaped the post-2010 legal reforms that sought to align the laws with the Kenya Constitution 2010 and the new legal order it had established as well as the wind of change that it brought,” the judge said.
Yesterday, Mr. Kipkorir directed Garam Investment Auctioneers to confiscate valuable items, office supplies, computers, furniture, and even vehicles to fulfill the debt obligation.
“We urge that you have the warrants issued immediately and if possible, today (March 27) so that you execute tomorrow as Friday is a Public Holiday,” Mr Kipkorir said in the letter to the auctioneer.
The lawyer requested that the auctioneer ensure there was sufficient staffing to announce as many items of property as feasible.
Mr. Kipkorir received one of the largest legal payments ever recorded in the country’s legal history for representing the Nairobi county government in a case against the Ministry of Defence regarding a piece of land occupied by Embakasi Barracks.
In 2022, the Environment and Land Court decided that Mr. Kipkorir was entitled to receive a sum of Sh1.338 billion for his legal representation of the former city council in a decade-long legal battle concerning a 3,000-acre land parcel valued at Sh61.5 billion.
The amount has since risen to Sh1.69 on account of interest.
“Note that executing against County Governments was under the Government Proceedings Act. However, last week in Nairobi HCCC No.E411 of 2023, the High Court voided Sections 13 and 21 of the Government Proceedings Act as unconstitutional and thus allowing execution against county government like in all ordinary executions,” Mr. Kipkorir said.
Individually, the attorney explained that for a considerable period, governmental entities at various tiers held an advantageous position over their creditors due to their immunity from execution and attachment.
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“By removing this legal anomaly, Justice Sifuna has created an even playing level field between the Government and those it enters into a contract with. Government apparatchiks can’t blackmail or extort creditors anymore,” he said.
Mr. Kipkorir represented the former city council when the Kenya Defence Forces forcibly acquired its land, leading to a court case in 2012. However, the case was later withdrawn to facilitate resolution through inter-governmental relations.
The land ownership issue remains unresolved following a Supreme Court decision last year. Despite the Department of Defense occupying the land since 1986, the court ruled that it still belongs to the County government, acting as the legal successor to the now-defunct Nairobi City Council.
The county government’s attempt to dispute Mr. Kipkorir’s legal fees was unsuccessful, as they argued that his law firm, KTK Advocates, had an agreement with the city hall for payment totaling Sh400 million plus VAT.
The Deputy Registrar dismissed the argument and imposed fees, stating that there was no evidence to support the claim that the amount had been mutually agreed upon.
The court observed that the Advocates (Remuneration) Order sets a baseline amount, and while the court can adjust fees upwards, it cannot set them lower than the established minimum.
Prior decisions have underscored the significance of the subject matter and the fees for instruction, considering factors such as the character and significance of the case, the parties’ interests, the overall conduct of the proceedings, and the guidance provided by the trial court, among other considerations.
Court documents revealed that Mr. Kipkorir sought instruction fees totaling Sh1.23 billion, along with incurred costs of Sh410 million for case preparation.
Additional matters that were taken into account included composing numerous correspondences and notifications exchanged with the Attorney General and various legal entities, preparing affidavits, submitting legal paperwork to court, and managing hearing notifications.
The attorney also highlighted to the judge the various court appearances, including mentions and hearings, which amounted to a total of Sh1.6 billion, inclusive of value-added tax.
Lawyer Donald B Kipkorir to Auction City Hall Assets Over Sh1.69B Debt
