https://new.kenyalaw.org/akn/ke/judgment/kehc-dr/2026/8
The taxing officer held that the subject matter value was Kshs.854,000.00 as reflected in the consent, that the matter was defended, and that Schedule 7 of the 2014 Order applied. Instruction fees were therefore allowed as drawn at Kshs.90,000.00. Certain service and court-attendance items were reduced or taxed off...
Source-derived case information.
- Citation
- [2026] KEHC-DR 8 (KLR)
- Parties
- Applicant/advocate: MNM Advocates LLP; Respondent/client: Melchizedek Hospital Limited
- Court
- High Court (DR)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application E302 of 2026
- Procedural Posture
- Advocate Client Bill of Costs Taxation / Ruling on Taxation
- Outcome
- Bill of costs taxed at Kshs.176,800.00 in favour of the Applicant.
- Judges
- ["LA Mumassabba"]
- Legal Topics
- Instruction Fees, Attendance Fees, Service Fees, Value of Subject Matter, VAT on Costs, Advocate Client Costs
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
MNM Advocates LLP
Applicant/advocate
Melchizedek Hospital Limited
Respondent/client
Procedural Posture
Advocate Client Bill of Costs Taxation / Ruling on Taxation
Legal Issues
- 1 What is the proper basis for taxing instruction fees in an advocate-client bill of costs.
- 2 Whether the challenged service and attendance items were properly chargeable under Schedule 7 of the Advocates (Remuneration) Order.
- 3 What total amount was payable after taxation and applicable advocate-client uplift and VAT.
Ratio Decidendi
The taxing officer held that the subject matter value was Kshs.854,000.00 as reflected in the consent, that the matter was defended, and that Schedule 7 of the 2014 Order applied. Instruction fees were therefore allowed as drawn at Kshs.90,000.00. Certain service and court-attendance items were reduced or taxed off for being unsupported or excessive, while properly scaled attendances were allowed. The final advocate-client costs were computed by increasing the allowed fee by 50%, adding VAT, and then adding the taxed disbursements, resulting in Kshs.176,800.00.
Court Disposition
Bill of costs taxed at Kshs.176,800.00 in favour of the Applicant.
Orders
- Advocate / Applicant Client Bill of Costs dated 5 February 2026 taxed at Kshs.176,800.00.
- A sum of Kshs.5,300.00 taxed off from the bill.
Full Case Text
Judgment text and source record
1 paragraphs
MNM Advocates LLP v Melchizedek Hospital Ltd (Miscellaneous Application E302 of 2026) [2026] KEHC-DR 8 (KLR) (29 July 2026) (Ruling) Neutral citation: [2026] KEHC-DR 8 (KLR) Republic of Kenya In the High Court at Nairobi Milimani Commercial Courts (DR) Miscellaneous Application E302 of 2026 LA Mumassabba, PDR July 29, 2026 Between MNM Advocates LLP Advocate and Melchizedek Hospital Limited Client (Arising From Small Claims Court At Nairobi Milimani Commercial Courts Claim No. E781 Of 2021 Keepitkleen Limited V Melchizedek Hospital Limited Advocate/client Bill Of Costs) Ruling Ruling And Reasons For Taxation On The Applicant’s Advocate – Client Bill Of Costs Dated 5Th February ,2026 Introduction 1.The Applicant filed an Advocate-Client Bill of Costs dated 5th February ,2026 urging the Taxing Officer to tax the same at Kshs.182,100.00 The Bill of Costs relates to legal fees for representing the Respondent in CLAIM NO. E781 OF 2021 in which the Applicant herein represented the Respondent. 2.The Respondent in opposition to the Applicant’s Bill of Costs filed Written Submissions dated 16th July ,2026 3.The Client/Respondent opposes the Advocate/Client Bill of Costs dated 4th February 2026 on the ground that several items have been drawn contrary to Schedule 7 of the Advocates (Remuneration) Order and do not accurately reflect the nature of the proceedings before the Small Claims Court. While acknowledging that the Advocate was duly instructed to represent the Client in the subordinate court, the Respondent contends that the Bill contains excessive and unsupported claims which should be taxed in accordance with the applicable statutory scale. 4.On instruction fees, the Respondent submits that the Taxing Officer should assess the fee strictly in line with Schedule 7, taking into account the value of the subject matter and the applicable principles governing taxation as set out in established case law. It argues that only a reasonable instruction fee, commensurate with the nature and value of the matter, should be allowed. 6.With respect to filing, service and travelling expenses, the Respondent argues that the Advocate has improperly combined these claims into lump-sum amounts without itemising the charges or providing documentary proof such as receipts, vouchers or stamped pleadings. It submits that only expenses that have been specifically proved and are recoverable under the Advocates (Remuneration) Order should be allowed. 5.Regarding court attendance fees, the Respondent maintains that attendance fees are only recoverable where the court actually sat and substantive proceedings took place. It therefore submits that the attendance on 31st May 2022 is properly chargeable, while the attendance on 23rd June 2022 should not attract any fee because the court did not sit due to the illness of the presiding magistrate. As for the attendances on 18th July 2022 and 21st July 2022, the Respondent contends that only the prescribed attendance fee of Kshs. 1,400.00 is recoverable since the parties merely informed the court that they were negotiating a settlement and later appeared only to record a consent, with no substantive hearing taking place. 7.The Respondent urges the Taxing Officer to tax the Advocate/Client Bill of Costs strictly in accordance with Schedule 7 of the Advocates (Remuneration) Order, disallow or reduce the impugned items that are excessive or unsupported by the court record and documentary evidence, and allow only those fees and disbursements that have been properly proved and are lawfully chargeable. The Law 8.I have carefully considered the Bill of Costs filed by the Applicant herein. This is a matter the Applicant was instructed in the year 2021 and hence the applicable Advocates Remuneration (Amendment) Order is that of 2014. Item No.1 – Instruction Fees 9.The Applicant seeks Kshs.90,000.00. The Law 10.The Applicable law is Schedule 7 of the Advocates (Remuneration) (Amendment) No. 2 Order, 2014.In the case of Joreth Limited -vs- Kigano & Associates, Civil Appeal NO. 66 OF 1997 [2002] 1 E.A 92, the Court of Appeal held as follows: “We would at this stage point out that the value of the subject matter of a suit, for the purposes of taxation of a bill of costs ought to be determined from the Pleadings, Judgment or settlement (if such be the case), but if the same is not ascertainable, the taxing officer is entitled to use his discretion to assess such instruction fee as he considers just, taking into account, amongst other matters, the nature and importance of the cause or matter, the interest of the parties, the general conduct of the proceedings, any directions by the trial Judge and all other relevant circumstances.” 11.It is therefore trite law that the instructions fees is calculated from the value of the subject matter which is discerned from the Pleadings, Judgement or Settlement. 12.In the instant case, the value of the subject matter as per the Consent is Kshs.854,000.00 The higher scale shall be applied as the matter was defended. This item is therefore taxed at Kshs.90,000.00 as drawn . Items No.2 & 8 13.These items relate to service. They are taxed at Kshs.1400.00 (Kshs.5,600.00 and Kshs.1,600.00) respectively are hereby taxed off. Items No.3,4&7 14.These items relate to attendances they are reasonably drawn to scale and I tax them as drawn. Items No.5 & 6 15.These items relate to attendance in Court for further hearing. They are taxed at Kshs.2,100.00 (Kshs.1,050.00) is hereby taxed off. Items No.9 16.This item relates to attendance in court for taxation. The attendances are four including taking the Ruling. This item is taxed at Kshs.4,000.00 Advocate and Client Costs 17.The Advocates Remuneration (Amendment) Order 2014 Schedule VII B on Advocate and Client costs provides that:As between Advocate and Client the minimum fee shall be-a.The fees prescribed in A above, increased by 50%; orb.The fees ordered by the Court, increased by 50%; orc.The fees agreed by the parties under Paragraph 57 of this order increased by 50%; as the case may be, such increase to include all proper attendances on the client and all necessary correspondences.Instructions fees …………………………….………...…… Kshs. 90,000.00Add ½ …………………………………….…………...………. Kshs.45,00.00Total ………………………………….…..………..……….. Kshs.135,000.00Add 16% VAT………………………………………..………….…21,600.00Total ………………………………………………….…...…Kshs.156,600.00Add …………………………………………………….……..Kshs.20,200.00Total ……………………………………………………...…Kshs.176,800.00 Conclusion 18Based on the foregoing therefore, the Advocate /Applicant Client Bill of Costs dated 5th February ,2026 is hereby taxed at Kshs.176,800.00 (Kenya Shillings one hundred and seventy six thousand ,eight hundred ) 19.A total sum of (Kshs.5,300.00) (Kenya Shillings five thousand ,three hundred ) is hereby taxed off from the entire Bill.14 Days Right to file a Reference. __________________L.A. MUMASSABBAPRINCIPAL DEPUTY REGISTRAR29. 7.2026RULING DATED, READ, SIGNED AND DELIVERED VIRTUALLY AT NAIROBI VIA MICROSOFT TEAMS PLATFORM THIS 29TH DAY OF JULY,2026In the presence of :M/s Atieno for the ApplicantM/s Njoroge for the Respondent