How Del Monte Lost Bid to Stop Sh975 Million Legal Bill
Del Monte Kenya Limited has lost its attempt to stop the assessment of a legal bill worth nearly Sh975 million arising from a long-running land dispute in Murang’a and Kiambu counties.
The Environment and Land Court in Murang’a dismissed the company’s application to halt the process, ruling that determining legal costs after a case has been concluded is a normal part of court proceedings.
Justice Maxwell Gicheru said Del Monte had failed to demonstrate that it would suffer substantial loss if the assessment of the legal costs proceeded before its pending appeal was determined.
The ruling allows the Kandara Residents Association to continue pursuing a claim for Sh975,113,854.34 in legal expenses incurred during the dispute.
Business Daily reported that Del Monte had sought to suspend the taxation of the bill, arguing that proceeding before the Court of Appeal hears its challenge could expose the company to a significant financial burden.
Justice Gicheru, however, found no legal basis to stop the process.
“It is nothing unusual but a formal and legal way of concluding a suit. It should be allowed to flow naturally,” the judge ruled.
Del Monte faces Sh975 million legal costs claim
The dispute stems from a petition filed by Del Monte against the Speaker of the National Assembly, the National Land Commission, the Ministry of Lands, Public Works, Housing and Urban Development and the Attorney General.
Del Monte challenged the handling of a long-running dispute involving thousands of acres of land the company leases in Murang’a and Kiambu counties.
The case was linked to petitions by the Kandara Residents Association, whose members claim their communities were historically displaced from land now occupied by the fruit and food processing company.
The association, Cyrus Njoroge Muthoni and 130 other people joined the proceedings as interested parties.
Del Monte had argued that Parliament exceeded its constitutional powers while dealing with the land dispute.
The Environment and Land Court dismissed the company’s petition on September 30, 2025, and ordered it to meet the legal costs incurred by the interested parties.
The company subsequently challenged that decision before the Court of Appeal in Nyeri, including the order requiring it to pay the legal costs.
The appeal remains pending.
The Kandara Residents Association, meanwhile, moved ahead with the process of having its legal expenses assessed and filed a claim seeking Sh975,113,854.34.
Del Monte opposed the move and asked the Murang’a court to stop the assessment until its appeal was determined.
The company argued that allowing the process to continue could expose it to a substantial financial obligation before the appellate court had considered its challenge.
The residents’ association rejected that argument, maintaining that the assessment process was simply intended to establish the amount of costs payable.
The association also argued that the assessment did not mean Del Monte would immediately be forced to settle the bill.
Justice Gicheru agreed with the residents’ association and found that Del Monte had not met the legal requirements needed to obtain a stay.
Court says Del Monte failed to meet stay conditions
The judge noted that Del Monte had not demonstrated that it would be denied a fair hearing during the assessment process or that due process would not be followed.
“The Petitioner has not said that it will be denied a fair hearing by the Honourable the Deputy Registrar. Neither has it said that due process will not be followed,” Justice Gicheru said.
The court further found that Del Monte had failed to demonstrate substantial loss, a key requirement when seeking to halt proceedings.
The company had also failed to provide security as required under the law, leaving it unable to satisfy the conditions necessary for a stay.
“The Petitioner has satisfied only one out of the three conditions yet for it to qualify for stay all the three conditions must be met,” the judge ruled.
The decision means the Deputy Registrar can proceed with the process of determining how much Del Monte should pay in legal costs.
The court also found that the company had approached the matter prematurely because Kenyan law provides a procedure for challenging the amount of costs after they have been assessed.
That procedure meant there was no need to halt the assessment before the amount had even been determined.
Justice Gicheru further noted that Del Monte had already sought similar orders from the Court of Appeal.
The existence of the appeal presented another legal obstacle to the company’s application before the Environment and Land Court.
“Once the Court of Appeal starts exercising its jurisdiction in an appeal arising from this Court’s decree, this court becomes functus officio,” the judge ruled.
The legal principle means that a court generally loses authority to reconsider or alter a matter once its decision has been taken up on appeal, subject to limited exceptions allowed by law.
Justice Gicheru consequently dismissed Del Monte’s application and ordered the company to pay the costs of the application.
Del Monte land dispute continues in court
The latest ruling adds another development to the wider land dispute involving Del Monte and residents in the Kandara area.
The company has faced sustained legal and public scrutiny over land it occupies under leases in Murang’a and Kiambu, with residents and community groups raising historical claims over the property.
The September 2025 judgment represented a major setback for Del Monte after the court dismissed its petition challenging Parliament’s involvement in the matter.
The subsequent appeal means the underlying dispute has not reached its final legal conclusion.
The latest ruling does not determine whether Del Monte will ultimately pay the full Sh975.1 million being sought by the Kandara Residents Association.
The immediate issue before the court was whether the process of assessing the legal costs should be stopped pending the appeal.
Justice Gicheru’s decision allows that process to continue, meaning the final amount payable will only become clear after the legal bill has been assessed.
Del Monte retains the opportunity to challenge the amount through the procedures provided by law once the assessment has been completed.
The ruling also illustrates the distinction between assessing legal costs and enforcing payment of those costs.
A costs assessment establishes the amount that a successful party is entitled to claim after litigation. Disputes over the amount can then be addressed through the mechanisms provided under the law.
The court’s decision therefore does not immediately require Del Monte to pay Sh975 million.
The company must, however, contend with the continued assessment of the bill while its wider appeal remains before the Court of Appeal.
The case could have significant financial implications depending on the eventual amount awarded after the assessment process.
The Sh975 million claim also highlights the substantial legal costs that can arise from lengthy disputes involving land, constitutional questions and multiple parties.
The latest development leaves the Court of Appeal to determine the merits of Del Monte’s broader challenge, while the lower court process relating to legal costs proceeds separately.
The Kandara Residents Association can now continue with the taxation process, bringing the parties closer to establishing the final figure that Del Monte may be required to pay.
The company will then have an opportunity to challenge the assessed amount through the legal avenues available to it.
The dispute over the land and the financial consequences of the litigation therefore remain active, even after Del Monte’s latest attempt to pause the costs process was rejected.
