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Court of AppealDismissedCivil Appeal No. 50 of 2016

Esther Wanjiru Githatu v Mary Wanjiru Githatu [2019] KECA 811 (KLR)

Court of Appeal
4 April 2019
3,633 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~15 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that running a family business and farm counts as a real contribution to property, even when titles bear only the husband's name.

What this practically means

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Executive summary

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This appeal arose from a succession dispute over the estate of Ephantus Githatu Waithaka, who died intestate in 2002 leaving two widows: Mary Wanjiru Githatu (married 1968) and Esther Wanjiru Githatu, whose widowhood was previously declared by the Court of Appeal in Civil Appeal No. 20 of 2009. Before confirmation of the joint grant of letters of administration, Mary sought a declaration that properties acquired between 1968 and 1984 were partly hers by contribution, while Esther contended all properties formed the deceased's estate to be shared equally. Kimondo, J. found that Mary made non-financial contributions to properties acquired before 1984 through managing the family butchery business and commercial farming, that a resulting trust arose in her favour, and that only half of those properties plus all later acquisitions constituted the free estate for distribution under section 40 of the Law of Succession Act, with properties to be valued and divided per house. The Court of Appeal dismissed the appeal in its entirety. It held that Mary's non-monetary contribution was equivalent to a financial contribution, establishing a resulting trust notwithstanding registration in the deceased's name; that a resulting trust will arise in favour of one who advances consideration for property; that an administrator may simultaneously act in her personal capacity as heir or cestui que trust and bring the trust claim within succession proceedings under Order 36 Rule 1 of the Civil Procedure Rules; and that the valuation order was fair and just. As a family dispute, each party was ordered to bear their own costs.

Questions the Court framed

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

  1. 1.Whether Mary made any contribution towards the purchase of properties by the deceased prior to 1986, and if so, whether a resulting trust arose in her favour such that her interests could be identified and excluded from the estate
  2. 2.Whether the resulting trust can be enforced in succession proceedings after the death of the deceased
  3. 3.The determination of the free property of the deceased available for distribution in accordance with section 40 of the Law of Succession Act
  4. 4.Whether the orders made by the learned judge regarding the appointment of a valuer and the filing of a report were appropriate

Key legal issues

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01

Non-financial contribution and resulting trust

Holding

Mary made non-monetary contribution through managing the butchery business and commercial farming, equivalent to financial contribution, establishing a resulting trust over properties acquired up to 1984

Reasoning

Esther came on the scene in 1986 and had no evidence to controvert the testimony of Mary, Makenya and Asaph. Equity imposes a resulting trust where property is transferred without intention to confer a beneficial interest, and non-monetary contribution can suffice. The 50% apportionment per equality is equity was sound.

p. 4
02

Enforceability of the trust after the deceased's death

Holding

The trust claim could be entertained in succession proceedings; an administrator may also act in her personal capacity as heir or cestui que trust

Reasoning

Under the former Order 36 Rule 1 of the Civil Procedure Rules, an heir or cestui que trust may take out an originating summons to determine rights affecting the estate or trust. Administration powers do not extinguish the administrator's individual capacity, so the claim needed no separate suit.

p. 4
03

Free estate available for distribution under section 40

Holding

Only half of the immovable properties acquired between 1968 and 1984, plus all properties acquired thereafter, constitute the free estate for distribution under section 40 of the Law of Succession Act

Reasoning

Before distribution under section 40, the deceased's free property must be identified. Mary's beneficial half-interest under the resulting trust is excluded, leaving half the pre-1984 immovable properties and all post-1984 acquisitions as the net intestate estate divided among the houses.

p. 4
04

Valuation order

Holding

The trial judge's order on valuation and valuer appointment was fair and just

Reasoning

The order allowed the administrators to agree on a valuer within thirty days, with the court retaining residual power to appoint an independent valuer if they failed to agree. The appellant's complaint that parties should have supplied a list from which to choose was unfounded.

p. 4

Legal principles established

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  • Non-monetary contribution to a family business or farming can be equivalent to a financial contribution towards acquisition of matrimonial property and can found a resulting trust even where the property is registered solely in the other spouse's name
  • A resulting trust will arise in favour of a person who advances consideration for property whether or not registered in their name; registration in another's name does not defeat the interest
  • An administrator of an estate may simultaneously act in her own capacity as heir or cestui que trust and bring a claim against the estate under an originating summons
  • A beneficiary's trust claim may be entertained within succession proceedings under Order 36 Rule 1 (now Order 37 Rule 1) of the Civil Procedure Rules without a separate suit
  • Where a deceased was polygamous and died intestate, the net estate is divided among houses according to the number of children in each house, adding any surviving wife as an additional unit

Court orders

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  1. 1.Upholding the judgment of the High Court
  2. 2.Dismissal of the appeal in its entirety
  3. 3.Each party to bear their own costs

The bench

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

majority

Wrote the judgment

majority

Wrote the judgment

majority

Wrote the judgment

On appeal from
High Court of Kenya at Eldoret
Succession Cause No. 244 of 2002
Jurisdiction invoked
First appellate jurisdiction under the Court of Appeal Act against the judgment of the High Court in a succession cause

Relief refused

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Set-aside of the High Court finding of a resulting trust in Mary's favour over properties acquired before 1984

Evidence established Mary's non-monetary contribution through management of the family business and farming

p. 4

Set-aside of the High Court order on valuation and appointment of a valuer

The order was fair and just, giving parties an opportunity to agree on a valuer with the court retaining residual power

p. 4

Costs

This being a family dispute each party shall bear their own costs.

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.

The non-monetary contribution was equivalent to a financial contribution towards the purchase of the matrimonial property acquired up to 1984.
p. 4resulting trust - non-monetary contribution
The mere fact that the properties are registered in the name of the deceased, without mention of Mary’s interest does not change this position.
p. 3registration in one spouse's name does not defeat trust interest
Most importantly, the general rule here is that a resulting trust will automatically arise in favour of the person who advances the purchase money.
p. 4resulting trust principle (quoting Twalib Hatayan)
These powers do not however, take away her position as an individual capable of acting in her own rights.
p. 4administrator's dual capacity
The upshot of the above is that we uphold the judgment of the High Court and dismiss this appeal in its entirety as it has no merit. This being a family dispute each party shall bear their own costs.
p. 4disposition and costs

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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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, "Esther Wanjiru Githatu v Mary Wanjiru Githatu [2019] KECA 811 (KLR)", Case Analysis (2019). Civil Appeal No. 50 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/811/eng@2019-04-04

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