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Case Brief · caselaw.co.ke
Court of AppealDismissedCivil Appeal No 54 of 2016

William Kipsoi Sigei v Kipkoech Arusei & another [2019] KECA 446 (KLR)

Court of Appeal
25 July 2019
3,212 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that buyers of agricultural land who pay in full and take possession can enforce the sale even without Land Control Board consent.

What this practically means

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Executive summary

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This was a second appeal from the Environmental and Land Court (Ombwayo, J.), which had affirmed the dismissal of both parties' claims in the Chief Magistrate's Court but found, on the appellant's appeal, that a constructive trust had arisen in favour of the 1st respondent who had paid the full purchase price and been allowed into possession, and a resulting trust in favour of the 2nd respondent, notwithstanding the absence of Land Control Board consent. The respondents' cross-appeal was struck out as filed out of time without leave. Before the Court of Appeal (Githinji, Okwengu and J. Mohammed, JJ.A), the appellant argued that the transaction was void under section 6 of the Land Control Act for want of consent, and that any trust would itself be a controlled transaction requiring consent. The Court, confining itself under section 72 of the Civil Procedure Act to matters of law, followed the Macharia Mwangi Maina and Willy Kimutai Kitilit line of authority, holding that the equitable doctrines of constructive trust and proprietary estoppel, elevated by Article 10(2)(b) of the Constitution, are applicable to and supersede the Land Control Act where a transaction lacks consent. A constructive trust created by operation of law is not an express declaration of trust requiring Land Control Board consent. The Court also relied on the English decision Yaxley v Gotts. It found that the appellant's receipt of the full purchase price and the respondents' possession and development of the land for at least fourteen years gave rise to an enforceable constructive trust. The first appellate court's decision was found correct, and the appeal was dismissed with costs to the respondents.

Questions the Court framed

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

  1. 1.Whether the transaction between the appellant and the 1st respondent was void for lack of consent of the Land Control Board, or whether an enforceable constructive trust arose

Key legal issues

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01

Scope of the Court's jurisdiction on a second appeal

Holding

Section 72 of the Civil Procedure Act confines a second appeal to matters of law only; the Court will not revisit findings of fact by the two courts below.

Reasoning

Relying on Kenya Breweries Ltd v Godfrey Odoyo, the Court reiterated that on a second appeal it must resist the temptation of delving into matters of fact. It may intervene only where the courts below considered matters they should not have, failed to consider matters they should have, or where the entire decision is perverse. The appellant's challenge to factual findings therefore fell outside the Court's remit unless a pure point of law was engaged.

p. 2
02

Effect of absence of Land Control Board consent on a sale of agricultural land

Holding

Although a controlled transaction without Land Control Board consent is void under section 6 of the Land Control Act, a constructive trust arising from payment of the full purchase price and transfer of possession remains enforceable notwithstanding that voidness.

Reasoning

Following Macharia Mwangi Maina and Willy Kimutai Kitilit, the Court held that equity, elevated to a constitutional principle by Article 10(2)(b), requires substantive rather than technical justice. A constructive trust is created by operation of law, not by the express declaration of trust contemplated by the Land Control Act's definition of controlled transactions. The vendor who received full payment and let the purchaser into possession for over fourteen years could not renege on the transaction.

p. 3
03

Whether a constructive trust over land in a land control area is itself a controlled transaction requiring consent

Holding

A constructive trust or trust created by operation of law is not a transaction requiring Land Control Board consent; only an express declaration of trust by deed or instrument falls within the controlled transaction regime.

Reasoning

The Court adopted the reasoning in Willy Kimutai Kitilit distinguishing Sironga Ole Tukai, holding that the phrase 'declaration of trust of agricultural land' refers to an express creation of trust by deed or instrument under the land registration statutes, not to a constructive trust arising by operation of law. It also cited the English decision Yaxley v Gotts, where an oral agreement void as a contract was nonetheless enforceable on the basis of a constructive trust or proprietary estoppel.

p. 3

Legal principles established

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  • In a second appeal the Court of Appeal confines itself to matters of law only and will not interfere with concurrent findings of fact unless the courts below considered matters they should not have, failed to consider matters they should have, or the decision is perverse.
  • The equitable doctrines of constructive trust and proprietary estoppel are applicable to and enforceable in respect of land subject to the Land Control Act notwithstanding the absence of Land Control Board consent, where the purchaser has paid the full purchase price and been allowed into possession.

Court orders

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  1. 1.Appeal dismissed
  2. 2.Costs of the appeal awarded to the respondents

The bench

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

majority
majority
majority
On appeal from
Environmental and Land Court
Civil Appeal No 31 of 2013
Jurisdiction invoked
Section 72 of the Civil Procedure Act (second appeal on matters of law only)

Relief refused

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Setting aside of the judgments of the Environment and Land Court and the Chief Magistrate's Court

The Court found the constructive trust doctrine applicable despite lack of Land Control Board consent and saw no justification to interfere with the first appellate court's decision

p. 4

Judgment in terms of the appellant's counterclaim (injunction and eviction)

The equitable doctrines of constructive trust and proprietary estoppel were enforceable notwithstanding the absence of Land Control Board consent

p. 3

Costs

The appeal was dismissed with costs to the respondents.

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.

For this reason, the appeal is hereby dismissed with costs to the respondents.
p. 4Final orders - dismissal of the second appeal
We come to the conclusion that the in the circumstances of this case the equitable doctrines of constructive trust and proprietary estoppel were applicable and enforceable in regard to land subject to the Land Control Act.
p. 4Enforceability of constructive trust over land subject to the Land Control Act
This Court in a second appeal, confines itself to matters of law unless it is shown that the two courts below considered matters they should not have considered or failed to consider matters they should have considered or looking at the entire decision, it is perverse.
p. 2Jurisdiction on second appeal
Thus since the current Constitution has by virtue of Article 10(2(b) elevated equity as a principle of justice to a constitutional principle and requires the courts in exercising judicial authority to protect and promote that principle, amongst others, it follows that the equitable doctrines of constructive trust and proprietary estoppel are applicable to and supersede the Land Control Act where a transaction relating to an interest in land is void and enforceable for lack of consent of the Land Control Board.
p. 3Constitutional elevation of equity over the Land Control Act

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (5)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "William Kipsoi Sigei v Kipkoech Arusei & another [2019] KECA 446 (KLR)", Case Analysis (2019). Civil Appeal No 54 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/446/eng@2019-07-25

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